So you’re a retailer and you’ve been considering the idea of starting a private label business. Perhaps you want to boost your brand personality or build customer loyalty, and of course, you would like to increase your revenue.
However, it can be a challenge to come up with ideas for products to start your private label business. Well, look no more, because we’ve got you covered.
What is a Private Label Business?
Here is a refresher on the basics. A private label business is when a retailer starts selling their own branded items to their customers. However, instead of manufacturing their own products to sell, the retailer buys goods from a manufacturer and has that manufacturing company put their brand name on the goods.
You can sell practically any type of goods and services, from food to skincare products to a streaming platform service, with your own brand stamped on them. Again, you do not manufacture the goods yourself. Some other company does it for you, but you have total control over the branding, design, packaging, and marketing.
What is a Private Label Product?
A private label product is, essentially, a store brand sold exclusively by the retailer. For example, WalMart’s own products, sold under their own brand name Equate, are only available in WalMart.
A private label product is different from a white label product, but the differences are small. White label products are basically generic products that you can get from multiple stores, like the generic brand of paracetamol (Tylenol).
As a retailer, you can sell your own private label products online or in a physical store.
Top Private Label Brands on Amazon:
Below are listed some of the top private label brands on Amazon with their top selling products:
Cestash – Set of 5 souffle bowls
Upsimples – Muslin swaddle blankets
Coney Island Cotton – Salon towels
Plixio – Bamboo Pillows
Covacure – Camping Hammock
Benefits of Private Labeling
If you’re still on the fence about whether or not to start your own private label business, then consider the benefits of starting one.
1. Customer Loyalty
One established strategy to make your business successful is building a loyal customer base. Through private labeling, you, as a retailer, will inspire loyalty from your customers who trust your business and like the goods that you sell.
You can build a niche and a loyal customer base by offering high-quality goods to your core customers under your store brand.
2. Rise Above Your Competitors
Since private label products are synonymous to exclusivity, you are separating your business from your competitors. You will gain your own brand identity and, as a result, create a foundation for stronger customer recognition.
3. Increased Revenue
The lower the production costs, the higher your profits will naturally be. Through private labeling, you are gaining higher profit margins. On top of this, you can also earn wholesale income if you choose to be non-exclusive and offer selling rights to other retailers for premium acquisition costs. By doing this, you’re not only getting more income, you are also widening your market reach.
Top 5 Products Perfect for Private Labeling
1. Tumblers and Lunch Boxes
Tumblers and lunch boxes are a forever necessity. They are simple and come in different sizes and designs. Customers who patronize your store can have access to a range of tumblers and lunch boxes with the name of their favorite store brand stamped across it. It is also one of the most effective ways to advertise your brand without spending additional money.
2. Wall Art
Wall art can dramatically transform any room, taking it from drab to colorful, to kitschy to elegant in a matter of minutes. Private labeling wall art goods can give your customers something nice for their homes at a low price. You have plenty of options, from photographs that showcase your town’s tourist attractions, to uniquely designed mirrors, and framed artworks.
3. Notebooks and Stationery
Notebooks and stationery are household and office staples that will never go obsolete even in the digital age. People still need paper to write on, and by stocking a wide collection of notebooks and stationery products, you can ensure that every customer will find what they are looking for.
4. Holiday Items
Holidays are naturally fun and festive. Your customers, while doing their shopping in your store, would be delighted to find that you are selling your own novelty items for the holidays. Especially when they’re looking for gift ideas!
Perhaps heart-shaped glasses for Valentines, or a reindeer hat for Christmas, or a turkey toy for Thanksgiving. The ideas are endless, and popular.
Note: New sellers should be careful with this type of product, as it is often seasonal and does not sell evenly throughout the year.
5. Shopping Bag
This is perhaps the most standard private label product—reusable. Your loyal customers would love to get a shopping bag with your logo across it and use it every time they shop in your store.
By promoting a reusable shopping bag in your private label collection, you are also showing your commitment to the environment and promoting goods that don’t hurt the planet. This shows your customers that you are environmentally conscious, which in turn adds to brand loyalty.
How to Scout for Products for Private Labels
When scouting for new product ideas, the Amazon Best Sellers list is the perfect place to start. Though it is highly competitive, you’ll also get a lot of inspiration. Once you have decided on the category that you want to sell, you can research viable sub-categories.
Some other popular sites for product or niche ideas would be:
eBay – check out top sellers in the various product categories here and on other marketplaces as well for ideas.
Alibaba – another great platform for product ideas. You have access not only to countless products but also millions of manufacturers and suppliers.
Reddit – Subreddits or topic forums are also great inspirations for unique product ideas.
Quick Guide: Product Search
If you are wondering how to find good products to sell on Amazon, check out the special seller tools. AMZScout is a user-friendly tool within Amazon that makes it simple and easy to find profitable niches and products that are in high demand. While determining your product criteria look for products that:
- Appeal to Hobbyists – In other words, products that cater to a specific niche. Target hobbies or one particular hobby like art materials for artists and illustrators, scrapbook paper for scrapbookers, or sporting goods for sports enthusiasts. Gradually build up a range of products in your chosen niche.
- Have Less Competition – Find a product that is low competition but is still necessary, something that people don’t know that they actually need. Look for products with 100 reviews or less since a higher number of reviews makes it harder for you to compete.
- Improvable – Find products that have room for improvement where you can apply your own design and distinct image.
- Accessories – Appeal to your customers’ boredom or their need for experimentation by providing accessories for their day-to-day gadgets or appliances. It should be both convenient to the user, as well as a novelty that they can proudly showcase on their social media accounts. Let’s say a glow-in-the-dark cellphone case… It sends a message that you want to protect their smartphones from damage, but you also add an exciting feature that makes it stand out in a crowd.
Private labeling, like any business, poses its own pros and cons, and can be risky. But everything in life is a risk, especially in business. If you play your cards right, use the best strategies, and make sure to psychologically appeal to your customers, a Private Label can be incredibly profitable. This is why plenty of retailers have ventured onto this income-generating path and have not regretted it.
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