December 23, 2020 Last updated December 23rd, 2020 788 Reads share

4 Reasons Why You Should Choose Private Labeling

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Private labeling has been getting a lot of traction in recent times, and you might even come across this term as you were doing your research about going into the online retail business.

Plenty of online retailers these days are going the private labeling root for their products.

The number one reason why private labeling is chosen is that it gives businesses and their products a unique identity, especially if they are going the wholesale route.

It also places your brand and company as a seller, setting yourself apart from wholesalers and manufacturers. In terms of marketing your products, private labeling is the better option to choose if you are looking to build a strong reputation for your brand in the long run.

What is Private Labeling?

Private labeling refers to a product that is manufactured by a contract or third-party manufacturer but sold under the retailer’s brand name. The retailer gets to specify everything about the product from its look and feel, what it is made of, how it is packaged, and even its logo, name, and label.

The retailer paid the manufacturer to produce and deliver according to these specifications and delivered to its store.

For instance, Trader Joe’s sells a variety of spices in their supermarkets, but they also sell their own private label in-house brand of spices.

How Does Private Labeling Work?

It’s simple. The first thing you would need to do is buy the products you want from your chosen wholesale supplier. For instance, if you wanted to sell custom made shirts or canvas art, you can choose to work with

You will then specify certain aspects that the supplier should follow, such as the logo, design, and colors, to sell it under your brand name. The conventional way of running a business would be manufacturing the products yourself. But that is not how it works in this case.

You won’t be manufacturing your products. Instead, you will create a private brand and then put all the products that you bought from the supplier under that brand. You will then resell them on your online retail platform.

Under the private labeling option, you will need to create custom logos that will represent your brand. These logos are going to be printed on all your items and your packages. If there were any brand identities before purchasing them, you would have to remove it. You cannot have two logos represented on your products because that will create confusion for your customers.

Your customized logo should be associated with your brand and your product, not the manufacturer’s logo. A lot of online sellers like this option right now, and you can easily find a lot of companies these days specializing in helping you create a brand identity of your own. If needed, these companies will even offer advice on promoting, extending, and positioning your brand in the market so you can get the most out of it. A quick search on Google will reveal a list of companies who specialize in brand identity for you to choose from.

4 Reasons to Go the Private Labeling Route

It’s Easier To Manage and Handle

Trading your products is a lot easier than trading someone else’s. A common misconception is that products under private labels don’t sell compared to products that you manufacture by yourself. This is a false assumption, and nothing could be further from the truth. As long as your products are of good quality and sold at a very reasonable price, your customers won’t care who is responsible for manufacturing the goods.

Tweak Products To Your Liking

Modify your products any way you like when you go with the private labeling option. You can make your products as unique as you want without the hassle of trying to come up with revolutionary or groundbreaking new ideas. Private labeling is not the same as reselling, so you don’t have to worry about that. Reselling rights will not allow you to make modifications to the products.

It Makes Your Business Life Easier

You don’t need to spend as much time on product conceptualization, which is a very difficult thing to do when you go with the option of using private labels. Even when you come up with a great product concept, if you choose the conceptualization process, there is no guarantee that another entrepreneur will not come along and outdo you. There are already a lot of giants out there in almost every niche industry today. The E-Commerce space it’s not a new environment, and you don’t want to bite off more than you can chew when you’re trying to compete against the big names and long-standing players in the industry. Make your job a lot easier by buying existing products and putting your own personal touch on them. This way, you can concentrate on your business’s other important aspects, like keeping your customers satisfied.

You Don’t Have Too Many Risks Involved

Trying to introduce a new product into the market is always a risky move. New ideas of very volatile in nature. They can either be a massive hit or a major flop and despite all the preparation you do, you can never be too sure which one it is going to be. Every mistake you make when running a business is costly, which is why you need to do everything you can to minimize the risks involved. One way to do this is through the private labeling option. You don’t have to worry about losing a lot of money when you choose to buy an already popular product. You don’t need to test the market because you know this popular item already sells well. All you need to do now is to remarket it under your brand.

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Harry S

Harry S

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