Did you know? There are more private labels in the market now more than ever. Private labels in the United States collectively have higher unit shares than the strongest national brands. In Amazon alone, 50% of the retailers sell private labels.
Without a doubt, private labels are a force to be reckoned with. They are making a name so great that even well-established local and international brands become afraid of them. And they’re right to feel that way.
A decade ago, there was a big gap between the quality of products made by private labels and national brands. Now, the gap has narrowed. In fact, the quality of private-label products are better than ever before. The products are more consistent and innovative as well.
Despite the good statistics, many people remain apprehensive about venturing into the private labeling business. However, taking advantage of the booming industry is something that you don’t want to miss.
Here are some tips when Starting a Private Label:
Find the Right Product
This is the most important step in starting a private label. Finding a product that can generate sales can be tricky, but with the right checklist, you’ll do just fine.
First, find a niche that you’re passionate about. Then, do market research. Make sure that you look at the trends of your chosen product and see if it’s worth investing in. If not, you can look for another product under the same niche.
Reach Out to Suppliers
You have to be careful about this though since not all international manufacturers meet US standards. It’s up to you to check the manufacturer’s certification and manufacturing process.
Set The Prices
This step involves checking out your competition. Let’s say the product you want to sell is perfume. Check out the popular brands in the area you want to sell it at, and see their price range. You can try going below this price or offering an introductory price to your potential clients.
It’s also good to identify how much your target consumers are willing to pay for your product. You can conduct online surveys and ask your friends & family to get a better pricing technique.
Market Your Brand
There are many ways to market your brand. You can do it traditionally using flyers and word of mouth. You can also choose to market it online by setting up your own website.
And don’t forget to market through social media. Making a Facebook or Instagram page can get the sales rolling. You can also reach out to social media Influencers. Just make sure you’re willing to shell out money for it.
Thanks to technology and innovation, earning money from private-label products is easier now more than ever.