Private Labeling – It’s not just a money-maker, but a fun Ways of extra income. You can create your own brand, indulge your creative side and sell a product under your own brand name. And you can do all this without developing and manufacturing a product yourself! You just need to do some research, make some smart decisions and invest a little to get started.
What is private labeling?
If you haven’t heard of private labeling before, here’s what you need to know: With private labeling, you buy someone else’s product and then sell it under your own name and label. It’s that simple. You are creating a product with relatively low risk by purchasing something already made, then packaging it with your own product logo You list your product for sale – perhaps on Amazon – and then you make money. Although it is a bit labor intensive up front, once you are set up, you have the opportunity to draw a significant passive income.
But where do you find product names and labels? You must make it up! You can get inspiration by participating in contests: research the best sellers of the product you want to sell, note popular product colors and logo sizes, and other details. If you are an artist yourself or good at graphic design, you can create your own logo. If not, you can hire a freelancer from Upwork or similar places to do it for you.
I can hear you thinking – this sounds like it costs money and I need it to do Money It is true that private labeling requires an upfront investment. But it doesn’t have to break the bank.
Figure out your budget.
The first step to making money with private label is to establish your budget. What is the maximum amount you can spend on this venture? Whether you can only pull together a few hundred dollars or you have thousands to invest, there is a product out there that will make you money. Setting up a budget in the beginning will keep you on task, and help you zero in on items that you can market under your own private label.
For example, let’s say you can put $700 together. Right now there are some sellers who will give you a pop fidget spinner toy for 20 to 50 cents. You can start with a stock of 1000 units – more than enough – and commission a logo from a freelance artist to customize the toy (or at least the packaging). That’s just a random example. For a small budget, you can market and sell yarn to knitters; With a larger budget, you can splurge on travel mugs, which are a must-have for those people who don’t work from home on their daily commute.
Decide what to sell and where to sell it.
Once you’ve got your budget, it’s time to find your product. The ideal choice is something that is cheap to make, friendly to generics and a popular item – that is, something that many people need or buy. Let’s unpack that a bit. You want an item that is cheap to make so you can buy less and sell it for a healthy profit margin. An item friendly to generics is one that doesn’t rely on an established big brand name to sell it – would you buy off-brand headphones or no-name shoes? Probably not. For popularity, you want an item that many people either need (kitchen tools, blankets) or want (fidget spinners, hot sauce). Research zero to best selling products online on these items
As you narrow down the best product to sell, decide how you want to get your private label product to your customers. You can be completely hands-on by stocking the product in your own storage space, picking and packing and managing order shipping and customer service. This involves investing more time and money up front, especially if you are selling through your own website. An even simpler approach is to handle sales through a service like Fulfillment by Amazon – your product can be shipped directly to Amazon from your manufacturer, and Amazon handles all the day-to-day business of customer service and shipments and returns. You pay Amazon a fee for this, but having your product available with Prime shipping is almost certainly worth it! – at one of the world’s largest online retailers.
Select a manufacturer.
With the Internet at your fingertips, you have a world of manufacturers to choose from when ordering your products. Where you buy from is entirely up to you, but be aware that some methods of conducting business are more expensive. For example, if you want to buy American, you will have to pay more and charge more for your products. If you want the biggest profit margin, you’ll probably want to buy overseas. alibaba A good place to start looking. To find other manufacturers, try Googling product names (eg “moisturizer,” “yarn”) with the phrase “private label.”
Learn from your competition – then outperform them.
With all that market research you’ve picked a product that will sell, you should have made notes about how best-selling items are marketed. Study the difference between top sellers and less popular versions of the same item: check how their product listings differ Do bestsellers have better pictures? Amazing product details? A funny name or product story that hooks consumers? In any case, emulate the best and avoid the mistakes of others. Play the game better than the big players, and follow that profit!
Your research here will inspire your branding, as I mentioned above. Packaging is an incredibly important part of private labeling and monetization. Clean presentation and professional packaging can make or break a product, so pay as much attention to those choices as you do to creating a catchy name.
For more detailed and step-by-step instructions on starting your own private label and working with Fulfillment by Amazon, I’d like to refer you to the following articles and courses:
Are you new to private labeling? Let me know how this resource works for you! Or do you already have a few products under your belt and your own knowledge to offer? I’d love to hear from you too, so drop me a note!
No Comments
Leave a comment Cancel