What is Private labelling?
In theory, A private label product is a product manufactured by Company A with the branding logo and packaging of Company B, which is you. In theory, Company A (the manufacturer) provides a ready-made ‘product template’, to which other buyers can apply their own brands.
The benefit of private labelling is that you can create a branded product, without investing into all too much time and money in expensive product development – and tooling. Hence, you can launch a product much faster and easier.
With all that said, branding is still a key for startups and small businesses, as these cannot compete on pricing. This is especially obvious on marketplaces, such as Amazon.com or ebay.
There are many people like us making a living eCommerce sites like eBay or Amazon; not to mention the unlimited creative methods and online income strategies you can utilise to fully create a successful online business. The most common method for eCommerce is Retail arbitrage, where sellers buy clearance or sale items and then sell at retail prices in different outlets, for instance, is perhaps the most common way. Another option, which more sellers are beginning to consider, is creating your own private label. This can be a tedious process with considerable upfront costs (anywhere between $50-$5,000), but awards individuals an opportunity to grow a potentially limitless lucrative brand and business in any niche.
It’s becoming more and more difficult for those performing retail arbitrage to turn a profit in an eCommerce world that’s becoming saturated, increased restrictions from purchase sources such as Target, and new Amazon brand restrictions. It’s time to start considering options that will transfer the control of your businesses from eCommerce marketplaces to where it should be– in your hands.
Ready for this?