sweater in color

Selling private labels is a simple design — one that can yield great results. You can sell private labels that are of the same quality as leading national brands, without spending hundreds of thousands of dollars. While it is possible to make a lot of money every month selling private label products, it takes diligence, patience and a willingness to see your idea come to life, from start to finish. Patience is key to selling private labels because you’re creating a brand, not just selling. Financial rewards will take time to reveal themselves and give you the wiggle room you need to grow your online store. Here’s how to sell private labels that your customers will want to buy.


Why sell private labels?


There’s a reason why many companies decided to head down the private label route for their ecommerce stores. Ultimately, it’s because it’s an easy solution to sourcing products that sell well online. It’s also an important way to build customer loyalty. When starting an ecommerce store, most prefer the do-it-yourself method for manufacturing; this can actually hinder productivity and take up time and resources for your company.


Investing in an existing solution may be more cost-effective for your business in the long run. Sourcing private label products means more time can be spent focusing on your business’s core infrastructure, without having to spend time and money on research or development. You will be able to reach your goals more effectively and create a trusted and efficient brand.


Step 1: Product research & analysis

product search and analysis

This is perhaps the most important and time-consuming step in establishing your niche. Research is paramount to finding the right product for your brand. You will want to look for something that is high in demand and low in competition to ensure your ecommerce store will be a success. Although this sounds complicated, there are lots of ways to uncover this information.


  • Check out Amazon. They have an abundance of information that you can use to your advantage to find out what people are looking for online. Amazon compiles a public list aimed at customers to show the most popular and best-selling items on the platform. This can serve as your pre-marketing product research, highlighting items that will sell very well online. Check this list every day for each niche category to help you decide what product you want to sell


  • Free tools like Unicorn Smasher will identify other sellers on Amazon in a certain niche, so you can see how much they are selling products for and scope out the competition for that specific product


  • Go for generic products rather than intricate and special designs. Products like this will be easier to brand and package yourself. You will not be able to go after other brands’ products, like iPhone or Samsung, because these are already branded products. Stick to generic items that you can put your own stamp on.


  • Snoop on your potential competition to see what they are doing well. Type in your product into Google’s search bar and open the first five stores or sellers that pop up. Scope out the competition and take note of price, reviews and website layout (if they are not on Amazon or eBay). Use this information to make an informed decision about your potential product selection


Step 2: Find your manufacturer


Your manufacturer has the potential to make or break your online business. Use the right one for your store to get the best results. Products need to be of high quality to represent your brand and ensure customer satisfaction.


  • Look for quality products that will stand out from the rest in your niche. If your items are of poor quality, then it’s going to be difficult for you to sell private labels and make a profit. Once you are almost certain you have the right product or manufacturer, it’s important that you test by ordering a small batch, to make sure the product is something you want to put your name to


  • Shop around for the best manufacturer for your store – there are so many different manufacturers to choose from, even just with a quick internet search. If you are looking for a reputable private label manufacturer then take a look at ecommerce site Alibaba to source private label manufacturers. Chinese companies sell private labels through Amazon and eBay, and lots of them offer free shipping


  • Take a look at all-inclusive private label sourcing companies like Groupe Casino and Godirek. Most of the products they sell are already fit for private label selling through Francophone, the Americas and Asian markets. Godirek works with manufacturers that are reputable and only collaborates with audited suppliers


Step 3: Develop your brand


develop a brand

Source: Nike.com


Selling private labels means you have a lot more time to spend on developing the perfect brand. This is important. Don’t just slap on any old label on your private label products and expect them to sell.


  • Take time establishing your company brand. This is what sets you apart from the competition, and a poor brand selling private label products will not lead to a good business model. Brainstorm ideas about your company name, logo, tone of voice and company values to establish a strong store brand customers will fall in love with


  • Let your brand and personality shine through every aspect of your business. This can be difficult to achieve when using a platform like eBay or Amazon, but with your own website you can create a strong brand. Integrate your brand voice and personality with social media profiles to strengthen your brand voice and remain consistent


  • Take time to create a logo and name that you are happy with. This must reflect your company voice to stay consistent and will become something your customers remember


Step 4: Beat the competition


By selling private labels on Amazon, you will be competing with the rest of the Amazon market. To beat the competition and grow your private label sales, you will have to compete for the best possible product spot. Even when you sell private labels through your own online store, competition is still fierce, with lots of other brands potentially selling similar products under their own brand.


  • Make your product stand out. Add a feature or functionality that is sought after: one that no other seller offers. It could be a different color, an extra feature or an add-on to the original product. Simply adding a new logo does not make your product any different from all the other products out there. Add personality and dream big to make a product that sells


  • Branding private label products is crucial to ensure that they stand out from the rest. Nail your branding to set your company and products apart from the competition. It doesn’t have to cost a lot – low cost and free logo makers, like Fiverr, can help you design the perfect simple logo for your brand


  • Give customers the best possible experience. Good user experience will help people navigate your site easily and lead to improved conversions. If you sell private labels through Amazon, make sure you are giving customers as much information as possible about your products. Make use of beautiful product videos and pictures to offer in depth information on how to use your products. You can soar above your competition incorporating keywords into your product descriptions and titles. Use free tools like Merchant Words or io. Customer retention comes from exceeding your customers expectations


  • Add value to get your store noticed. Offer customers more than just your products, for example in-depth style guides or how-to guides. Give your customers helpful advice and tips to give them the ultimate shopping experience. You can even offer customers free gifts and samples when people buy your products. Or offer incentives by offering product bundles, like buying a laptop, screen and keyboard bundle that saves them more money. This will promote customer loyalty and will yield great results


Step 5: Invest and reinvest


Grow your private label company online by investing time and money in the right places. Don’t be sucked into the small wins – big wins are what you need to reinvest back into your store and help it grow.


  • Keep costs low to ensure more money is available to grow your online business. Try to get things done yourself and only outsource when you really need to


  • Selling private labels on Amazon is difficult, but you will have no problem getting your products noticed. Although you don’t need to worry about traffic, you will still need to focus your attention on beating the competition; other Amazon sellers. If you run your own ecommerce store, you will not only have to compete with other sellers, but also need to generate traffic to your site


  • Invest time and effort into your own ecommerce store. You can build brand equity and grow substantially, while maintaining control over your online store, which is a lot harder to do when selling on Amazon. Hosted online store builders spread out the costs of running a website and have high quality themes, which look great, even if you are only selling one or two private label products to start with.


Perhaps the best way to sell private label products is to utilize both channels. Amazon will bring your products the exposure you need, and will drive organic traffic to your own ecommerce store, and visa-versa. With an omnichannel approach, you can reach people in a variety of ways to sell private labels your customers will love.


Selling private labels has the potential to create a healthy revenue stream for your ecommerce store. It allows you to utilize your own business’s unique branding, without having to invest in tricky and expensive infrastructure or technology to meet customer demands. This means you will have more time to focus on branding and giving your customers the best possible user experience. Work hard and remain patient and you will be rewarded. What private label product will you start selling online?