Kirkland Signature, AmazonBasics, GreatValue – these are all examples of private label products. A “private label” brand refers to a product manufactured by a third-party and sold under a retailer’s brand name, who decides on the product’s characteristics, packaging, and pricing. If you’re looking to start an eCommerce business, private label products may be a consideration.
To get you started, we’ve put together a guide on private label products and a list of the top 20 products that are in high demand right now and popular in other online marketplaces.
What Is Private Label?
Private labeling is when a product line is sold exclusively through one retailer and products are unique to them:
- The supplier or manufacturer produces original products or modifies an existing product using the seller’s specifications.
- The goods are retailed, packaged, and sold exclusively by a third party, which allows for customization and uniqueness of products.
This process makes it easy to build new and add to existing product lines. Private labeling also provides pricing control of products, which can generate more profit for sellers; however, it’s more capital intensive because it involves custom manufacturing.
Typically, you must conduct extensive market research and product development to ensure you are creating a product that consumers want; otherwise, you may be spending more for a unique product that will generate excessive inventory.
The primary benefits of private labeling include:
- Manufacturing companies can maximize profits without having to worry about retailing and marketing.
- Businesses can retain key competitive advantages while also being able to customize their products.
- Control over pricing.
On the other hand, downsides can be:
- Custom manufacturing costs more.
- Market and product research takes time and money.
- It can be more challenging to build brand loyalty.
When To Choose Private Label
Choose private label if:
- You want to sell a specific product since you control product quality and specifications.
- Uniqueness and differentiation are high priorities for customers, and you want to be able to quickly respond to consumer needs and preferences.
- You want exclusivity.
- You want control over pricing (because you own the products).
- You don’t mind facing the challenges of building brand loyalty when competing with larger, established brands.
How to Find Private Label Products to Start Selling
Start by finding a niche market to sell your products to. What do you want to sell? What markets already exist within those categories? The more you know about your audience’s needs, the more you can use highly targeted marketing strategies to get your brand and products out there.
Next, contact private label manufacturer. Look for manufacturers and suppliers who have the items you need (some may specialize in a specific product category). Ask questions about minimum order value, product sourcing, pricing, and other related questions. Order samples to find the perfect fit, and work with the manufacturer to create and produce your product.
Then, determine your pricing strategy. Your prices must be high enough to make profit, but not too high to outprice customers. Set up an online store or work with brick-and-mortar stores to feature your products. Add products to the store with compelling product descriptions and high-quality images, and then market your store/products.
Top 20 Private Label Products to Sell
- Cosmetics, but be sure to avoid generic products already on the market. Organic cosmetics are in especially high demand.
- Essential oils that can be used for aromatherapy, massage, home scenting, and/or health and wellness benefits.
- Water bottles. Focus on sustainability and environmentally friendly options. Think about who you specifically want to target to create bottles that are both functional and appealing.
- Furniture falls into a variety of niches, so find one that fits your product.
- Home décor. Keep an eye on current trends and check out which products are popular with your competitors. Decide a theme and vibe for your products and stick to it. Also choose a manufacturer that’s willing to let you buy smaller quantities of stock. Examples can be pillows, photo frames, artificial flowers, art candles, vases, and sculptures.
- Travel accessories come in a wide variety such as suitcases, packing bags, passport holders, and other travel accessories. You’ll want to make sure your product stands out from competition but also solves a common travel problem.
- Stationary like pencil cases, office supplies, notebooks, pens, sticky notes, and similar products.
- Snacks and packaged food. Decide on what makes your snacks stand out and pay attention what’s popular in the market, such as gluten-free or vegan options.
- Supplements, and while you must ensure they meet regulations, this category can also be one of the most profitable.
- Apparel and accessories such as tank tops, yoga pants, dresses, shorts, jeans, and backpacks.
- Hair care products including shampoo, conditioner, hair oils, gel, and spray.
- Party games. Cards Against Humanity and What Do You Meme are recent examples of a successful private label party game. These products have a large amount of brand equity.
- Phone accessories like Popsockets, car mounts, card wallets, and phone cases.
- Bags including backpacks and reusable bags. The “green” lifestyle is still very popular.
- LED lights like fairy lights, lanterns, neon room décor, and Christmas lights. There are also other uses for LED lights you could venture into.
- Yoga/exercise accessories including mats, blocks, balls, straps, socks, mat bags, and pants.
- Shaving equipment and accessories like brushes and shaving soaps/creams/lotions.
- Electronics can include smart backpacks, wireless earphones, computer mice, charging stations, and other USB gadgets.
- Camping equipment such as tents, sleeping bags, first aid, and camping starter kits.
- Toys are always popular, but you must find your niche. Examples of products can include wooden blocks/toys, cars, soft toys, dolls, action figures, and board games.
Private Label Manufacturers to Contact
- AOP+ Easy Print on Demand
Work with QL2
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