Private label manufacturing has exploded in popularity, and it’s no surprise: this business model offers the potential for a strong brand and robust profits along with production cost savings.
What is private label manufacturing and how do you do it successfully?
In this article, we’ll discuss everything you need to know about private label manufacturing: how it differs from white label, sourcing, shipping, Amazon FBA, and more.
Looking to ship private label goods?
What are private label products?
Private label products are goods that are manufactured by one company but marketed and sold under the branding of another.
In this arrangement, the manufacturer creates goods according to the specifications of the retailer, allowing the retailer to offer exclusive products without extensive in-house production.
Many industries use private label products, including:
- Personal care
- Food and beverages
- Household goods
For instance, a beauty retailer may offer private label skincare products manufactured by a specialized cosmetics company, or a grocery store might sell private label canned goods produced by a well-known food processing company.
Private label vs. white label
Private label and white label both involve selling goods produced by another manufacturer, but they are not the same.
White label products are produced generically by a manufacturer and sold to various retailers who rebrand and sell them as their own. Unlike private label products, white label items are not created for a single retailer. Instead, they’re manufactured in bulk and different businesses can market them under their own branding.
White label products can save retailers time and money. However, they can appear more generic than private label since they lack brand exclusivity.
Here’s a quick summary:
|Private Label||White Label|
|Produced to be sold by one company||Produced to be sold by multiple companies|
|Retailers can have goods produced according to brand specifications||Retailers can’t change the product but can market with their own branding|
|Creates a strong brand, but takes more time and costs are higher||Saves time and money on product development but harder to establish a brand|
How to find a private label shipping manufacturer and supplier
Sourcing a reliable private label shipping manufacturer and supplier is essential for the success of your business.
Here are some recommendations to help you identify trustworthy partners:
- Research: Get reviews and recommendations both online and off to identify potential manufacturers and suppliers. Look for companies with a proven track record and positive customer reviews.
- Industry expertise: Choose a manufacturer or supplier that specializes in producing the type of products you wish to private label. Industry expertise ensures better product quality and understanding of your specific needs.
- Quality control: Ensure the manufacturer has stringent quality control measures in place to maintain consistent product standards.
- Communication and responsiveness: Opt for partners who are responsive to your inquiries and maintain clear communication throughout the process.
- Capacity and scalability: Assess the manufacturer’s production capacity to ensure they can meet your needs as your business grows.
How to ship private label products
After you source and manufacture your goods, you’ll need to coordinate shipping. Here is a quick guide to shipping private label products:
- Packaging and labeling: Make sure your private label products are packaged securely and professionally to withstand handling and temperature changes during transport. Use sturdy materials and consider any special packaging requirements for fragile items.
- Compliance and legal considerations: Double-check that your private label products comply with all relevant regulations and legal requirements in both the country of origin and the destination. This includes product safety standards, customs regulations, and any necessary certifications.
- Choose the right shipping partner: Selecting a reliable shipping partner is crucial for a successful shipping process. Look for freight forwarders with experience in handling private label items to ensure proper handling and on-time delivery.
- Customs and duties: Research the customs and duties procedures for international shipments. Provide accurate product information and ensure all required documents are included to facilitate smooth customs clearance.
- Customer communication: Keep your customers informed about their order status, shipping updates, and estimated delivery times to provide a positive buying experience.
To simplify the entire shipping process, consider using Freightos.com as your go-to platform. Easily compare quotes from different freight forwarders, track your shipments, receive around-the-clock support, and quickly resolve any issues all in one place.
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Private label shipping pros & cons
Private label shipping offers a number of advantages, including:
- Brand control: Private label shipping allows businesses to have complete control over their brand image and product offerings. They can tailor products to meet their buyers’ specific needs and preferences, fostering brand loyalty.
- Exclusivity: With private label products, retailers can offer unique items not available from competitors, giving them a competitive edge in the market.
- Higher profit margins: Since private label products are exclusive, retailers can price them higher, leading to potentially higher profit margins.
On the other hand, some disadvantages are:
- Upfront investment: Developing private label products requires an initial investment in research, development, and manufacturing, which can be costly.
- Quality control: Maintaining consistent quality across private label products can be challenging, as it requires stringent oversight of the manufacturing process.
- Risks of unsold inventory: If private label products do not perform well in the market, businesses may face the risk of excess unsold inventory.
Private Label Shipping For Amazon FBA
One popular option for private label shipping is to work with Amazon FBA (Fulfillment by Amazon), which allows importers to store their inventory in Amazon’s fulfillment centers and use their last-mile delivery system and customer service.
Here’s how you can ship private label products for Amazon FBA:
- Prepare your products: Ensure your private label products are compliant with Amazon’s guidelines and properly labeled with FBA barcodes for easy tracking.
- Create FBA shipment: Create a shipping plan on your Amazon account, specifying the quantity of each product you want to send to the fulfillment centers.
- Pack and ship to Amazon: Carefully package your private label products according to Amazon’s packing requirements and use a freight forwarder to ship them to the designated fulfillment center.
- Amazon handles the rest: Once your products arrive at Amazon’s fulfillment centers, they take over storage, packing, shipping, and customer service.
If you’re shipping private label products for Amazon FBA, Freightos.com can help streamline your supply chain. The platform allows you to access a network of reliable carriers experienced with FBA and ship directly to Amazon’s fulfillment centers.
To simplify and streamline your private label and Amazon FBA imports, sign up for Freightos.com today.