Product Private

Product Private



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Product Private
September 18, 2020 / By
Darren DeMatas




Pro Tip: In Jungle Scout you can filter products with a lot of reviews and a low overall rating. This tells you the product is in demand and has room for improvement. Lots of poor reviews is an opportunity for you.
Darren has an MBA in Internet Marketing and 10+ years of experience marketing retail, manufacturing and Internet marketing corporations, 7-figure brands and startups online. Follow him on  Twitter ,  LinkedIn . Or take his course to learn ecommerce .


58 thoughts on “29 Private Label Products to Kickstart a $100K+ Brand”

Selling private label products is the most profitable ecommerce business model.
The top ecommerce brands (that rake in 8-figures) aren’t dropshipping generic junk. They’re using private label products as the cornerstone of a brand marketing machine.
With a little bit of thought and resources, you can develop and sell your own brand, giving you total control and maximum profits.
The reason that I created this guide is that too many people think there is an insurmountable learning curve to building a private label business.
Disclaimer: If you’re looking to get rich quick, sorry this isn’t for you. But, if you’re willing to put the work in, you can make real money selling private label products online.
This guide will help you understand what it takes to launch a private label brand and give you ideas on products commonly private or white labeled.
The holy grail of ecommerce is when people start searching for your  brand. Don’t make the mistake of pushing cheap, generic products on Amazon or your website. Instead of building a quality brand of your own, you’ll be chasing your tail forever.
“Jordan Shoes” is searched for 83,000 times per month. That’s more search traffic than the entire category of “basketball shoes” and “And1 Shoes”, combined! But in reality – there isn’t much difference in the materials or manufacturing process between Jordan and And1.
You don’t have to create a Jordan brand to be successful – look at Peak Design. They’ve carved out a nice niche for themselves.
Every month tens of thousands of people are looking to buy their branded products. And their products are NOT cheap.
I’m sure you can imagine how much markup is in that $260 backpack.
If your ecommerce site is just selling other people’s stuff, you’re only going to go so far. But, if you’re willing to put in the time and energy required to build a brand, you can crank out some serious cash.
But you’re probably asking yourself – How do I build a brand? It all starts with learning how to identify product/market fit and find in-demand products. You need to find products to sell online that are important to your ecommerce site’s niche audience.
It’s not as complex to sell online as you might think. The proof of this is in the huge number of people that have had success.
There is always a risk when starting a business. But, if you can master the basics, you can make private selling work for you.
These ten steps can take you from where you are, to where you want to go. There’s a learning curve. You’re going to have to pick-up some new skills. But there is no question that you can learn the skills you need to succeed. All it takes is a little research and persistence.
I don’t want to make it sound like selling online is easy. It’s just not as hard as some of the “gurus” like to make it seem.
There are many important decisions that you’ll need to make along the way. This guide will go a long way to highlighting the challenges your company will experience.
Before you start selling products, you need to be aware of some of the hurdles. The strategies I outline will help you get over them.
You need capital to launch a private label business. You have to pay for initial product runs, branding, design, marketing, shipping and customer service. The more units you purchase up front, the better the per-unit cost will be.
Resourceful entrepreneurs can source private branded product for as low $500. It all depends on your approach.
Don’t forget to register for a business tax ID with the IRS. Keep careful records of your financial accounts. Consider hiring a tax preparer.
For starters, it’s important to understand the terms used by ecommerce companies to define their relationship with the company providing their goods and services. In order to create profit, you’ll need to find the right suppliers and the right ecommerce business model .
There is a lot of confusion about the differences between white label and private label products. When you talk to suppliers, always confirm that their definition matches up with your understanding. This will prevent a lot of confusion in your career as an ecommerce merchant. It’s always best to invest time and energy into partners that have a clear understanding of your needs.
This is where your creativity and ability to do market research really shines. Virtually anything can be private labeled. Private label manufacturers offer you the best price when you order in bulk. So, it’s important to choose the right products to develop and produce.
Warning: Unless you’re an engineer, it’s best to stick to products that are simple and easy to design / develop. You don’t want to get stuck dealing with unforeseen product issues down the road. The more complex, the more there is an opportunity for products to be faulty and returned.
There are a variety of tools available to help you find market opportunities. Keyword research can help you identify hot trends on Google. If more and more people are looking for answers to a specific problem on Google, your product could meet a growing market.
Researching Amazon is another no-brainer. Look for products that have a ton of negative reviews. If you can develop a better solution at a similar price point, you might be able to win over their customers.
Industry research is also important. If you dig beneath the surface, what trends are the professionals seeing? What is the true size of the market? Is it growing or retracting?
Jungle Scout is a powerful database tool that gives you insights into what shoppers are looking for and purchasing on Amazon. If you have an idea, searching through this tool can help you confirm the size of the market. It’ll also help you identify competitors. Their dashboard can help you filter opportunities by how competitive the market is, so you won’t waste your time in a crowded market.
If you’re still trying to figure out what to sell online , let me help you out. I’ll outline the most popular niches where private label products are excelling.
Private label products are more popular than ever. Some of the most popular products can be found in these segments:
Clothing is a great market for private label brands . Customers love discovering new brands that help them stand out. The average closet has more than 100 items of clothing and fashion. Plus, there are purpose-driven outfits for working out or enjoying a day at the beach.
The skincare industry is estimated to reach $180 billion dollars by 2020 .
Margins on cosmetic products are insane. People are becoming more aware of what they put in and on their body. Think vegan, natural, etc.
With the push for healthier skin care products, the cosmetic industry is shifting. This is an excellent opportunity for entrepreneurs to establish their private label as the perfect next step for shoppers looking to make a change.
It will be much easier to just white label these – but if you wanted to – you could try to get the manufacturer to leave out the parabens and sulfates.
Private label food brands are going online to find health-conscious consumers at home. Think vegan, organic, gluten-free, non-GMO. Beyond health food, custom sweets and other gifts are extremely popular with online shoppers. With the loosening Marijuana laws in North America, there’s been a surge of demand for this type of edibles.
If you don’t have the cojones to sell weed online (I sure don’t) – a safer bet would be to start a gluten-free snack brand.
Everyone has different hair needs. This is a huge market with a virtually unlimited customer base. From bald men to natural curls – there’s endless segments here.
People take supplements to combat all sorts of personal issues. JungleScout, once again, is their friend. And high retail prices have driven large segments of the market online. Dr. Axe is the perfect example of a site killing it with private label supplements.
These are just a few category examples. But there’s something that binds them together. Every one of the niches listed above can be marketed through influencer marketing and Facebook ads. And, the relative cost to produce these items in large quantities is lower. Plus, the profit margins can be phenomenal.
Have you ever considered how little it actually costs to manufacture common cosmetic products? Think of those tiny bottles of eyeliner, or a container of foundation. The margins at the convenience store are insane!
And if you can find the right clothing manufacturers, you can make a killing there too.
The markets where private labels succeed have low barriers to entry. There is a short product life-cycle. (Think about how often you buy these products.) And brand trust is important for the buyer. This means that once you establish your brand, customers are likely to return for more.
The most important partner you’ll have in your private label adventure is your private label manufacturer. You might be able to make products on your own – but that’s a tough route to go. You’ll hit capacity issues and struggle with quality control as you chase the most efficient process to make products that customers love.
It’s hard trusting a new manufacturer with your hard-earned cash – especially if things are financially tight in the beginning. That’s why thoroughly vetting a private label manufacturer is so important.
All of this can be intimidating. I promise, it’s pretty straight-forward. I can show you the ropes. I offer in-depth training where I share my process for finding and securing the help of trusted private label manufacturers. Some of the areas I cover include:
With the information from my courses, you’ll be able to find great manufacturers and get them to take you seriously.
Depending on the type of market you’re looking to sell to, it may make more sense to list your private label products on a third-party platform. Amazon is the most popular ecommerce platform in the United States. But there are pros and cons to selling private label products on Amazon .
In the photo above, I’ve highlighted some Amazon products that are sold under Amazon’s private label. These are brands that Amazon has acquired or developed in-house. Amazon recognizes that they can make more money by selling their own products, instead of just taking a slice of the revenue from sellers on their platform.
A word of caution: Amazon has been aggressive in competing with sellers on their own platform. If you strike gold, Amazon’s probably not too far behind. This is why it’s so important to have multiple sales channels for your private label products.
Don’t worry, though. There are plenty of niche markets. No one company can cover all the bases. The market is just too diverse.
I usually recommend doing the heavy-lifting of building and marketing your own ecommerce site. That way you can maximize your long-term profits when selling private label products – avoiding the commissions and listing fees that sites like Amazon charge.
You may be able to connect more quickly with your target audience by listing products on a third-party platform. But, it will come at a cost. You’ll have to decide whether you want to
Fulfillment by Amazon (Amazon FBA) is a program where you can have your merchandise shipped directly to an Amazon warehouse. Once it’s there, Amazon will show your item as in-stock on their website.
Better yet, your products qualify for Prime Shipping, along with other Amazon benefits that are important to Amazon shoppers. Amazon will even provide customer service for your product orders. This can be a huge benefit, especially if you don’t like dealing with customers over the phone.
If you’re worried about fees, it is super easy to estimate Amazon FBA/MCF fees :
You have to decide whether the benefits outweigh the costs.
After you’ve done your product/market research and established solid relationships with reliable suppliers, you’ll need to set up a business and get a tax ID.
Most suppliers only want to deal with serious businesses – not tire kickers.
Before you get to all the fun stuff like brand development, content marketing, Facebook ads, Instagram marketing – you’ll want to get a solid plan in place to make sure you can thrive financially.
It all starts with selecting the right product niche and validating your idea. If you’d like some additional help, I’d love to be of service – either through my 1:1 coaching or online courses . I look forward to helping your private label business thrive!
Got questions? Leave a comment and I’ll reply right away!
Hi Darren do you have any courses on starting and running a private label business? Thank you for the amazing content
Hey Richard – I have a completely free course on ecommerce business. Id love for you to join. Ecommerce CEO is all about starting a private label business for a single product category and using affiliate marketing to add additional revenue streams.
I see that you are already a member. Stay tuned. I am launching the course one module at a time in the membership area.
So is it not possible to dropship and have private labeling at the same time? Because you need to warehouse your products?
Its possible. Definitely. You just need to be moving enough volume to make it worth it to your supplier.
I was beginning do research on private label brand, so far I have contacted a company that provide the service of private label brand and they manufacture the product to my specification. I would like to work with you to get a better understanding of the process.
That’s awesome, Edward! Have you gotten samples yet?
Thanks, Steven. Good to see you here.
$500 to start PL and put on FBA! Yeah right!!! Lol… that’s wholly NOT realistic. I’ve done it on minimum and you need $3000 to properly get started. Remember your second inventory comes round quickly. You also need to think about marketing either Amazon PPC (which loses you money while you learn) and FB ads .. do not kid yourself $500 will get you started – it will not! Thanks.
Thanks for adding to the conversation, Becky. $500 is certainly not enough to start an ecommerce business. $500 is enough to source branded product as a MOQ. To start a proper ecommerce business selling private label products with an element of affiliate marketing is more in the range of $5K – $10K. That includes some startup budget for FB ads, IG marketing and content.
Hello, I make products for skin. I have eczema and suffered terrible pain for years. I developed a salve that has helped where no prescription or otc products could. I need help getting it out there. Any advice would be greatly appreciated.
Thank you!
What have you done to market it so far?
I have always wanted to take advantage of the low cost organic products made in my country in Africa. These range from packaged Moringa , chia seeds, tumeric. Then crafts like real leather sandals all good genders, art and craft pieces etc. Would you be so kind as to guide me on the best way to kickstart this initiative. I would greatly appreciate your assistance.
Thanks
Hey Ronnie – Sorry I missed your comment. I think all of those products will sell well. Would you want to sell these products in Africa or North America? Europe, Australia?
You could potentially be a raw supplier to US based companies. Or did you want to do b2c?
I need to better understand your thought process, business model and plan before offering detailed guidance. Have you taken my Ecommerce 101 Course?
Hello this was a great and informative reading. So in actuality as Becky stated there’s no way to start this with less than $5000?
It depends on your product, where you want to sell it and how much you want to invest in brand marketing.
Great content as usual! I’m an international student in Canada that has been following your content since Selfstartr. I couldn’t help but notice that you replied to everybody’s comment except the one person who said he wanted to work with products from his country in Africa. I apologize if I am reaching but as an African who follows your content I was wondering the reason for this bias. Perhaps you continued the conversation privately, I don’t know. It would be lovely if you could clear this up, thank you!
No bias here. I get a lot of comments and spam so I just overlooked it.
Thanks for the info. Do we have to take care of returns ourselves if we’re not doing Amazon FBA – if we’re doing White or Private Label ?
Yes you do. But you can use a third party fulfillment company as well.
Wow!! Completely blown away by the content here. Been searching for hours and you helped me in sooo many ways just now! You’ve motivated me to start, and although I’m still nervous…you gave me a platform to begin on. Awesome awesome! Can’t thank you enough. Will bookmark your page and start with the great links and tips.
Here is the reality of things! Not as easy as described here. I have been selling my private label product on Amazon for 3 months after spending a year between researching and getting the product to market. My product was deemed as perfect for Amazon in 2019 by at least 3 internet marketing gurus like yourself. Invested over $15,000 on it between sourcing products, promotional launch and PPC.
Amazon support is a nightmare to deal with and they do not give a damn about sellers.
Whomever call this a “passive income” business has never done it himself, is a liar and is definitely pushing his own agenda: selling marketing courses or software supposedly intended to make your life easier.
My advice after this experience? You have more chances of success if you gamble your money on the stock market or put it in a saving account or even give it away to someone you know that may need it more than you do!
Whats up, Alberto? Thanks for writing in. I don’t think that we have ever connected before? I can’t speak for others, but I certainly don’t think ecommerce is an easy passive income business model.
I’m really sorry that you burned up your cash on an Amazon business model. In this article, I specifically mention that you need to be investing in your own asset.
I usually recommend doing the heavy-lifting of building and marketing your own ecommerce site. That way you can maximize your long-term profits when selling private label products – avoiding the commissions and listing fees that sites like Amazon charge.
You may be able to connect more quickly with your target audience by listing products on a third-party platform. But, it will come at a cost.
$15K on your own niche site can go a VERY long way. I typically consult with brands who want to get OFF of Amazon – and I have sold products in many different niches online (health, survival, beauty – to name a few).
You have to invest in your own web property.
I always wanted to start selling African Design clothes, caps, shoes and sandals from my country Cameroon in Africa through out the world and also packaged organic agricultural products like the Moringa , White Pepper, Mangoes etc. Would you be so kind enough to coach me on the best way to kickstart this initiative. I would greatly appreciate your assistance.
Thanks
#EsongPrecious
I do offer private coaching. Contact me for more info.
Hi Darren, great article! I’m about to venture into private label sourcing for FMCGs please can I get info about your coaching?
Thanks, this post was really informative and helped with my decision to start a private label business
Hi Daren . How can I contact you for privacte coaching
I plan to open up some slots in 2020.
Darren, I have been searching for a number of days as to how I would go about private labeling products and selling through my website with third party shipping. Your content is exactly what was looking for. I will take your course and provide feedback.
Hope to see you in the course , Brock
Do you have any SEO suggestions for on e-commerce site.
It depends on your site size and niche – and what your goals are with SEO.
Hi Darren,
I wonder how much your private coaching costs? How long would it take? and would you be there and answer the questions if needed your help?
Thanks
How long do you need me to help? Im still not quite sure how to package the coaching offering.
are you still teaching the e commerce course
I am also interested in the course.
I am interested in learning more about your course.
Hi Darren,
Great info in this article, thanks. I’m interested in your ecommerce course and getting some advice on my particular plans. Thanks!
Hi Darren,
Legally wise what needs to be in place before doing branded private label supplements?
For example: trademarks, copyright, business license, LLC, corporation, etc. what do I need in order to succeed from let say legally issues or will the manufacturer/amazon deal with those situation? Thanks in advance great post btw!
Hi Darren!
THANK YOU for this article. I’ve learned more in the last seven minutes reading this than I have in the last three months reading other posts. Nice. I haven’t even followed all of the helpful links yet! I look forward to the relaunch of your course. Please keep me informed!
Kristin
Hi Darren!
It is indeed a great article actually I am developing a brand for clothing and accessories + more but I have got an idea to create a nutritious bar( Protein bar) without adding Sugar any preservatives so my point is how can find a reliable manufacturer for private label please?
Oh, that sounds good. I would buy it – sugar free / keto stuff is huge right now. Start here https://www.ecommerceceo.com/private-label-manufacturers/
Hi Darren,
I found your informative article after googling private label versus new product development. My sister and I have been looking at either private labelling a toy adapted and aimed at a niche market and another toy that is a completely new design with new technology that has not been done by anyone else. I personally think the private labelling is the ideal option but my sister is really keen on doing her new product and I am just worried that this is going to be beyond us. It will require us to get a loan and crowdfunding for the design and development whereas the former idea is still going to require a high MOQ. At a point now where I am not sure which one to pursue and time is ticking! Any thoughts on how you would approach this? Thanks!
Creating a new product makes sense if the idea is well validated and the new features meet a specific, desirable market need. Otherwise, white labeling might be a better idea. If you like the niche, you can do affiliate marketing while you build an audience and better determine the viability of the product idea. Plus, if you have an audience first you’re more likely to get investors.
Hey Darren,
It is indeed a great article.
I’m interested in your course and to get some advice.
Hey Matheiu – thanks for dropping by – I am glad that the article was helpful.
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16 February 2020 18 December 2014 by Tejvan Pettinger




Tejvan Pettinger studied PPE at LMH, Oxford University. Find out more
Private label brands (or own brand labels) are products sold by a retailer with its own packing, but manufactured by a third party. For example, Tesco sell ordinary branded items, such as Heinz baked beans, but also sell their own ‘Tesco Value’ baked beans. Tesco will license a manufacturer to produce baked beans and then sell the product with it’s own label.
The big advantage of private label brands is that they do not include specific marketing costs; also, if a supermarket has an exclusive deal, average transport costs can be lower and they can benefit from distributional economies of scale. Because of the lower costs, the supermarket can sell the product at a lower price, but also gain a bigger profit margin.
Private label brands have grown in popularity in recent years, suggesting consumers are becoming more sensitive to price and less loyal to their favourite brands. Supermarkets, such as Aldi and Lidl have made significant strides through the promotion of their own private label products. The recent recession was important for changing consumer spending habits – making them more sensitive to price; but also giving consumers the realisation that there is little difference in quality between branded goods and private label. More consumers are aware of the fact that the same companies often make both ‘expensive’ brand names and the less expensive private label; this change in consumer preferences could mean the growth of own brand / private label could continue.
Cheap – cut price. Tesco Value . This was a particular series that offered extremely low prices. There was a time when Tesco used rather unattractive packagingto try and reinforce the image of very low cost / price. It was suggested that the packaging was so dismal to try and  dissuade people from buying them, because they made a loss.  (I don’t really believe that story, though it is interesting it became common currency.) Also, if you do a google image search for Tesco Value – you can see it is has become a bit of a cult brand, with many ‘humours internet modification, like the Tesco Value Valentines card.)
In recent years, Tesco value dropped its ’super-cheap’ image and made its packing less different to ordinary products. There is an attempt to promote quality rather than  the ‘ultra cheap’ – private label.
Tesco finest. Another type of private label brand is to mimic the packaging of better known brands to try and give impression of a similar quality.
Here Tesco is directly challenging the most expensive and best known brands of tea. It shows the confidence of supermarkets that they can try and compete in this way. It would be hard to imagine this a few decades ago.
For private label brands, if they give very similar packing impression as better known brands, they can increase sales. Using very similar packaging is known as ‘copy-cating’ or mimicking. It is illegal to copy brand packaging – so private label brands have to be careful to be sufficiently differentiated and not mislead consumers.
Tesco’s Value brand is the worst of all the “low price” ranges, reflecting the demise of Tesco itself.
Ingredients are bulked out with non food items e.g. Glucose Syrup (look at the “Value” baked beans for example, truly disgusting). This is reflected throughout the range.
Lidl/Aldi/Iceland knock Tesco into a cocked hat on the lower end of the food spectrum, Whilst Waitrose, and M&S do the same on the upper end of the scale. Tesco has become a victim of it’s own success…it became contemptuous of it’s customers, and is now paying the price.. (pun v.much intended!)
the above brand are good but not that much value,,, came to know first time about this brand,,,
Basically, by buying a private label product, you are purchasing the same product, but for less than what a brand name product is asking for. This is the reason why more and more people are purchasing such products. Then only things that would deter anyone would be if the cost difference was not significant and if the quality was not the same. I really think this is a great move on the part of retail store that benefits not only them, but also their clients.
Can anyone tell me the company that manufacturers Morrisons Private Label Beans?
which places are mostly selling brand and it’s company
I’m looking for Private Label Baked Beans, we are looking to launch a Bake Beans line in 2020. We are Triple D’s BBQ Sauce, and yes we make the best BBQ sauce on either side of the Mississippi.
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