Private label products have a wide range of applications, from food to cosmetics to e-products such as eBooks or videos. What are private label products? PLP are products that are manufactured by one company but labeled and branded as another company.
You may have noticed that on Amazon there are many similar products that are under different brands, those are the private label products. Almost every retail stores have their own private label products, usually they are offered as a low-cost alternatives to national or international brands, and displayed right beside those branded peers.
This blog focuses on making money online, so let’s only talk about how to produce private label products and resell them through internet.
Find the right private label products
Find the right product is very important. If there is colossal demand for a product, then you won’t mind that several sellers are already selling it, it can still generate income for you in sales each month. If you come across a product that has little or no competition, you may be able to make fast money. Also certain products have more profit margin than others. The best products to sell are those that can be easily “private labeled”.
There are two types of private label products: physical products and digital products.
For selling physical private label products, you can find suppliers to produce them with your own company’s logo and label. They could be almost anything you like to sell, such as cosmetic goods, cell phone accessories, kitchen supplies, kids clothes, etc. Have you ever noticed that corn flakes taste the same regardless of their brands, the reason behind this is that many brands ordered their own products from the same private label supplier.
If you are interested in selling digital private label products, often called private label rights, or PLR, you should pay attention to what rights you are purchasing and how you can resell them. Some of them can be packaged with other PLR as a bundle, some can be edited completely and put your own name on it as author. Some has resale rights, some has master resale rights.
You don’t have to be an expert of a certain area, but if you acquired quality digital private label products, you can still take the full advantage of professional research that have been done behind the products and resell them for profits.
Check out this brilliant website for tons of PLRs you can choose from.
So what is Master Resale Rights (MRR)? When you purchase a digital private label product with Resale Rights, you can resell it to a customer who use it for him/herself; however, if you have Master Resale Rights for a product, you can sell your own private label rights to other business owners, and they can therefore package it and sell it again to their own end users.
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Private Label Products Strategies
Private label products are not just generic version of famous brands. There are also high quality private label products that can demand higher prices over their branded competitors. What strategy do you apply is really up to your own market analysis. There are also some retailers offer different levels of private label products to target different segments of the market.
What if you could build your own business with your own branded private label products and have someone else make, ship and market your products for you?
The answer is to sell private label products on Amazon utilizing Amazon FBA program.
[AMAZONPRODUCTS asin=”B00QU4BHFM, B00TZ8K792,B00O9EH80S” listprice=”1″]
How to choose suppliers for private label products?
Once you settled on your private label products, you need to find the right supplier to make the products for you. There are many suppliers to produce the same products, so who to choose to work with?
Choose suppliers that are easy to communicate with. If you use websites such as Alibaba or other importing websites to source your suppliers, clear communication is the key to make successful business with suppliers who don’t speak your language.
Also important to consider is to have an acceptable Mimimum Order Quantity (MOQ), a good lead time. Of course the most important is to be able to private label your products with acceptable quality and a decent per unit price.
Currently, popular countries for source private label products are China, Peru, Japan, India, UK, US and Vietnam etc.
If you don’t want to directly deal with foreign suppliers, you can source products from you local importing companies.
Where to find private label products suppliers?
Search on Google, using keywords like private label, supplier, wholesale, private label manufacturer…
Another way is to go to oDesk and search for “sourcing” or “procurement“. You may be able to find a person in china to do sourcing products for you, including on-site inspections for a very affordable price.
Design logos and labels for private label products
99designs is a great place to find designers to design your company’s labels, packaging, and logos. you can run a design competition and have many designers submit their designs for free and pick the winner, and only to pay to the winner, usually $300 to $600.
**Disclosure of Material Connection:
Some of the links in the post above are “affiliate links.” This means if you click on the link and purchase the item, I will receive an affiliate commission. Regardless, I only recommend products or services I use personally or believe will add value to my readers. I am disclosing this in accordance with the Federal Trade Commission’s 16 CFR, Part 255: “Guides Concerning the Use of Endorsements and Testimonials.”