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How to Start a Private Label Business?

  • system
  • 2024-01-18 10:41:44
  • 1 min read

Updated: 2024-04-11 13:41:55

Online sellers never stop exploring the best business model in the challenging and changing ecommerce world. Are you also struggling to draw a better map out for your online business trip? Then why not start a private label business?


Nearly 80% of US adults reported either purchasing or being willing to purchase private label apparel, pantry, personal care, and other goods. The customized brand service can offer customers a more special shopping experience and win a higher rate of purchasing again. The private-label business model continues to grow in popularity worldwide and grows to make up a larger proportion of the ecommerce industry.

With private labeling, you can launch your own brand and bring unique products to market. Whichever niche you choose, private labeling enables you to create a distinct brand identity and establish a loyal customer base. Keep up with us step into the world of private labeling and unlock the profitability of brand recognition.


What is Private Label?


Private label is a business model in which retailers sell exclusive products under their own brands. It maintains your control of selling, marketing, and brand building while allowing you to outsource manufacturing and production. Online sellers may choose to sell private-label products to increase sales volume, cut costs, or introduce items in unique designs to the market.

Private-label products can be similar to existing items, but they can be exclusive in custom packaging, kitting content, or materials. Retailers can take advantage of private labeling to build up specific product lines and expand catalogs to set them apart from competitor's offerings. Most private-label businesses serve a specific niche, where they have a better understanding of consumer needs and market trends. Cosmetics, home decor, or clothing are common choices. The same applies to electronics, jewelry, pet products, etc.


Private Label vs White Label


Private label and white label are under similar modes, but there are still slight differences between them. Private labeling usually requires a producing line apart from competitors' offerings that align with business goals and target market Retailers who run a private label usually design customized products and find reliable manufacturers specifically for their brand. Also, the products are usually special in designs, kitting groups, or looks exclusive to the brand.

Though white-label products are also manufactured by a third party, they are available to multiple retailers and sold under respective brands. These products allow sellers to brand their business more effortlessly by adding labels and branding. 

In a word, private label and white label are both good ways to launch and build a brand business by outsourcing manufacturing.


Start a Private Label Business in 6 Steps


1. Identify a Niche and Products to Sell


The first step to starting a private label is research and deciding on a niche market. Take factors such as market trends, competition, target audience, and profitability into consideration. We recommend starting with a niche that interests you or that you are passionate about if you are a beginner. Such research can help further learn about the market needs and identify your target audience and regions. Combining the valuable information from the results with your business goals, choose appropriate products to sell under your brand.


2. Create a Brand and Customize Products


The next step is launching your own brand. Build up a unique selling proposition(USP) and apply your creation to create your product line. Differentiate your business with personalized packaging, marketing inserts, or kitting sales. To further magnify your brand's uniqueness, you may make slight customizations on existing products--involve customizing the product specifications, designs, materials, or others.


3. Find a Reliable Private Label Manufacturer


Finding manufacturers and suppliers who can produce the items you want to sell is a significant step in starting a private label bsusiness. When asking for quotes from a supplier,  also inquire about minimum order quantities and figure out the profit margins. Before placing orders, ensure to evaluate the quality, pricing, production capacity, and ability to meet your specific requirements. To save more time and effort for other work, you can work with a sourcing agent like SourcinBox which offers excellent sourcing and fulfillment services to align with your private label requirements.


4. Order Samples and Test


If possible, order samples of your private-label products to make thorough tests before launching them to market. Before getting a satisfied product ready for the shelves, you may need to take quite a few tests. You shall keep in close touch with your supplier for timely review and necessary adjustments. For such time-consuming progress, some will turn to an agent to follow up with. Note that when asking for a quote, define with your supplier the price and lead time for making samples.


5. Set up an Online Private Label Store 


Once you've found reliable suppliers for your private labeling, choose one ecommerce website builder to create an online store. Decide a theme to match your brand concept and use the built-in tools to design your store and make the store layout emphasize product features simply and directly. Set up various sales channels aiming to reach out to more audiences. Some platforms like SourcinBox can sync your orders and inventory to automate shipping and fulfillment. You can connect your store with it for an efficient working experience.


6. Market Your Brand and Products


Getting more traffic is top of mind for any ecommerce business. For an online branding business, exploring ways to promote your brand and get more customers to your store can be essential. To enhance brand awareness and drive sales, apply as plentiful channels as possible, including social media advertising, SEO, email marketing, influencer campaigns, and others. To keep pace with the changing customer needs, you must upgrade your marketing strategy occasionally.


What SourcinBox Private Label Service Includes?


SourcinBox aims to provide a seamless solution for both white labeling and private labeling. Our comprehensive services allow you to bring a branded product to market efficiently and effectively. Besides, we can further enhance your brand presence if you are already running a private-label business.


1. Custom Packaging


Sophisticated, branded packaging always leaves a deeper impression on customers. Custom packaging services help differentiate your business in the market. To express your brand concept and bring your brand vision to life, we provide a range of options including custom packaging bags, shipping boxes, and adhesive tapes.


custom packaging


2. Custom Stickers & Labels


Add personalized stickers and brand labels to strengthen brand visibility. SourcinBox's flexible custom sticker and label solutions can always meet your specific requirements and reflect your brand image. We can create tailored solutions according to your requirements in size, shape, material, color, finish, and adhesive type.


custom stickers and labels


3. Brand Kitting


Product kitting and subscription boxes are another trending way to gain more sales. Combine various products in your store together to offer more options for your customers. We'll help source the appropriate products and carefully handle the fulfillment process for you. Contact us to determine the kit's contents, considering factors such as product selection, branding elements, packaging, and any specific customization requirements.


Brand Kitting


4. White Labeling


Introduce your brand to the market quickly with white labeling! SourcinBox works with premium manufacturers that can provide products aligned with your private label position and target market. Just provide your branding elements, such as logos, packaging designs, or customization requirements to be applied to your product.


White Labeling


5. Marketing Inserts


Marketing inserts are effective tools for increasing brand awareness, driving customer engagement, and increasing repeated purchasing rates. Incorporate diverse marketing inserts into your private-label packaging. Just let us know your designs and content, and we'll take care of the printing and production of the inserts and the combination with the whole packaging.


marketing inserts


6. Product Customization


We also recommend you make slight customizations on existing products to bring them in line with your USP. This includes customizing the product specifications, designs, materials, or other attributes to align it more closely with your brand's vision and target market. SourcinBox can find trusted manufacturers to source the necessary materials, manufacture the product, and ensure the quality of your new products.


Product Customization


Build up Your Private Label Business with SourcinBox


Private labeling is a perfectly lucrative path for most online sellers. Compared with developing a new product, making slight changes to existing products may encompass fewer difficulties and is more favorable in developing and nurturing a specific product line. Private labeling is also a great chance for stores that already have an established audience group and hope to expand their product catalog. Working with a reliable partner can cut much of the hassle when building up a brand. SourcinBox's comprehensive private label services will surely pave a smoother way to success for your brand store!


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