People who want to sell physical products online should go with a private label brand, and finding reliable private label manufacturers to partner with is a critical step in this business plan.
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Also, though some experts make it sound very complex and hard, it is not really. Sellers do not have pay great amounts of money to learn how to find suppliers and source products; they can find a manufacturer in a very short time if they know where to look and what to avoid. This guide explains how to understand those things, gives ideas on modifications to make, and manufacturers in that niche.
Why Private Label?
Trying to squeeze margins out of generic products will cause a business to fail quickly, but private labeling can help eliminate this because sellers have control over the quality of their products. It’s also one of the most profitable ecommerce business models as sellers can rank as a unique brand with it, and be able to control customer experience by planning product specifics.
Another benefit is being able to make all the decisions because the seller is in control, unlike wholesaling another brand’s product. Wholesaling may have restrictions on how inventory is received, and sellers cannot control quality or price. Big brands are also tapping into this. Amazon has private label brands among the top ranking brands on their site in sales.
Warning: to succeed on the haul, a brand needs to live outside of Amazon, or they could burst a seller’s bubble at some point as they can use the marketplace machine much more than a private seller can.
A private label business is nice but it can be complicated to run. Sellers need to be vigilant and have a legal team ready to make sure the manufacturer remains honest. But those who have searched for private label products that have market opportunity and are 100% sure they have a sellable modification should read on.
How to Find Private Label Manufacturers
It is not hard to find suppliers that deliver standard products, as they are on the internet, but sellers wouldn’t get much information in this regard out of Oberlo, AliExpress, and other dropship directories or tools. Search on sites like Google, Thomasnet, and Alibaba to find manufacturers’ information from search results. For example, searching for “handbag private label” will bring a lot of results. Sellers can sift through to get what they want, which requires digging and could involve a lot of trial and error to get to the right one.
A good method to use is a supplier’s directory, such as Thomasnet. It’s free and users can search for manufacturers by product and location by typing in “private label manufacturers USA” or the product. Search results will show manufacturers’ certifications and the products they sell.
Another good place to search for private label manufacturers is Alibaba instead of AliExpress. Enter the keyword or product desired, and see third-party verifications of the product and certifications of the company. This allows sellers to be certain of what they are getting. There are many products in the US and are less expensive as they are made overseas. The downside of this method is having to contact non-native English speakers and the language barrier can be frustrating.
For Ecommerce CEO members, check out finding suppliers, one of the paid courses on Alibaba.
What to Look Out For When Selecting a Manufacturer:
It’s not enough to find a supplier; sellers have to know who and what to filter out. The process is divided in three.
Before Contacting the Manufacturers
Reading reviews can bring up some sketchy manufacturers, so when looking at reviews of those products, look out for the way they handle negative feedback and at the verifications.
Check their product specialization, and look at images of the exact work they have done and sales made of them help to know if they specialize in producing what sellers want to sell.
Also check out the manufacturer’s price, as sellers don’t want to order an item that is $20 when the best seller is sold on Amazon for $20 or lower. Shop around to compare with other suppliers. It’s also good to see their minimum order quantity, and find out about shipping.
Things to consider about shipping:
- What it costs to ship in bulk
- What will be saved in shipping in bulk overseas
- Whether they ship to the seller’s country of residence
- The turnaround time on any order
Another thing to do before making contact is to have a business license and banks account. Suing personal details may make sellers not be taken seriously by good suppliers and fall into the hands of sketchy ones. This goes for the suppliers as well. When contacting them, make sure they give a verified business name, bank account, licenses, and certifications.
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During Initial Contact
After gathering all that information, reach out to potential suppliers to confirm if the information is accurate. Next verify if they private label, white label, or both. Some suppliers use “private label” on their websites but actually white label.
Also take care of inventory and fulfillment. Amazon FBA is a good option for those who don’t want to be stressed out with fulfilling orders. Sellers need to find out how they’d be shipping from their lab to Amazon or their warehouse.
After a Positive Response
After receiving a response from a company confirming all of this information and giving details aligned with expectations, request a sample. Samples are very important for sourcing products, as sellers need to see what they plan on selling before they make a bulk order.
Some companies give free samples but shipping from an overseas manufacturer can be costly as sellers will have to pay for shipping. Make sure that products are simple and scalable.
While vetting the quality, shipping, and price, understand that there are legal risks involved in running a private label business which come from regulations, trademarks, or the materials of the products. Some brands have been sued for this, so it is recommended to use a private label lawyer, and sellers should educate themselves before doing anything.
In addition, before rushing into working with suppliers, sign on the dotted line; don’t just have a conversation. No matter how trustworthy a contractor may seem, get a contract as this will prevent future problems.
Clothing, Shoes and Accessories Manufacturers
The ecommerce fashion industry expands every year and is predicted to rise to $712.9 billion by 2022. The CAGR for apparel alone is expected to keep to 8.8% in the USA, 8.7% in Europe, and 14.1% in China. Shoes, accessories, and bags continue to grow in double digits and are predicted to keep growing for years.
It’s not hard to tap into this; sellers just have to think of the modifications they can make. Presently, personalization and cruelty-free materials are big deals.
In keeping things simple, sellers may prefer these other modifications that suppliers typically make:
- Add finishing options like zippers, buttons, or pom-poms
- Choose the style and color of finishing options
- Change the product color or fabric weight
- Add fabric customization
The suppliers below can be contacted to get more information.
Moshi Leather Bag
Those who want to private label leather bags can go with Moshi Leather Bags, who have it down. Sellers can customize bag designs, leather materials, color, fabric lining, and zipper options. Their response time is fast and they also offer dropshipping and white label services.
Hawthorn is a good pick for sellers who want full control of their designs and extra modifications. Request for custom hardware like branded rivets, zips, and buttons. The company uses laser engravings for logos. This supplier does not do white labeling, though, only private labeling.
By Paige is good for sellers wishing to start with low volume, as the order quantity is 60. They manufacture shoes, handbags, wallets, caps, flasks, and eyeglasses cases. Sellers interested in dropshipping or white labeling should contact them to find out if they do that.
Another good choice for low-mid volume startups, as an order minimum is 250. Sellers can customize bags, protective clothing, cover for industrial products, pillows and cushions. The supplier also customizes uniforms, costumes, bicycle apparel, hair and head clothing, etc.
Craft and Supplies Manufacturers
The US crafts industry is worth over $44 billion and has shown a 45% increase in the past six years with no sign of slowing down. The supplies industry has gone from being in millions of dollars to being a billion dollar industry because of the increase in sales of an interest in craft products.
There are many modifications to be made here depending on the product. For example, candle sellers can change the mold design. Other modifications suppliers typically do include:
- Adding/removing colors in a face/body paint
- Modifying the design/shape of a jar, bottle, or cup
- Changing a fragrance
- Adding inscriptions or pictures on jar candles and t-shirts
These are some of the private label manufacturers in the industry.
Dehua Better Arts and Crafts
Sellers who wish to sell jars, bottles, or cookware will find Dehua Better Arts and Crafts a good fit. The China-based manufacturer supplies all sorts of terracotta, ceramic, and porcelain cups, bowls, and cookware. A minimum order is 840-2000. The supplier white labels and responds quickly to inquiries.
Just Vision It
Sellers wishing to private label t-shirts, pillow covers, rugs, curtains, and other home décor items will find Just Vision It a good fit. Based in the US, the suppliers specialize in custom fabrication of apparel, home décor products, and soft signages, among other things. They dropship and white label.
Welburn Candles Private Limited
A great fit for sellers wishing to start a low-volume private label candle business. An Indian-based company, Welborn Candles private labels jar candles, pillar candles, votives, decorative candles, tea light candles, and tin candles. MOQ is just 100 and they white label.
Dongguan Zhengxiang color Film and Arts
A good fit for sellers looking to private label door and body stickers. The supplier specializes in body tattoo stickers and nail art, and have a good number of door stickers in their store. They white label. The MOQ is 3000 pieces for a majority of their products, though some of their products have an MOQ of 500.
A good high volume manufacturer in the USA is Globaltech Industries. Their MOQ is 5000, and they accept up to 20,000 orders of their jar candle fills per day. Sellers can request for a new mold design. They also white label.
The global electronics accessories market is projected to reach 65.3 billion by 2025, and the CAGR is around 9.5% for the next few years. This market is so large because people are very connected to their smartphones, laptops, and pushing their businesses. This results in accessories like smart watched, earphones, electric cables and projectors selling like crazy.
A seller’s logo can be engraved into the body of these accessories, and some manufacturers also handle packaging.
Suppliers can typically modify:
- Adding quotes or artwork
- Changing the color
Some suppliers in this industry are:
Krystalinks is a good fit for sellers wishing to private label all sorts of accessories. The supplier can print a logo on the product, use a customized color, and give a unique product package. They specialize in cables, Bluetooth products, cameras and accessories, charging devices, and more. The MOQ varies. The supplier white lables, but contact them for dropshipping.
Shenzhen Pengchu Industries
This supplier is good for selling power accessories and are a specialized power cable and adaptor supplier. The MOQ is 500, and they dropship and white label.
Lider Mobile Accessories
A good fit for selling mobile phone accessories. The supplier private labels cell phone chargers, phone cases and protector covers, and data cables. They also white label.
A good fit for sellers looking to start a low volume car accessories business, as they manufacture car DVR, GPS, infrared night vision, and rearview mirrors. MOQ is 500. The supplier does not dropship, and they should be contacted concerning white labeling.
Food/Pre Packaged Product Manufacturers
The global packaged food market is predicted to reach about $2.64 trillion by 2019. Private brands are a big part of this. An important part of food selling, as in any other industry, is the packaging. Find out what sort of packaging a manufacturer offers. Think about the design used, as it has to draw attention and connect with what is being sold. For example, candy wrappers look edible.
Suppliers in this industry can typically modify:
- Food processing
- Ingredients – chemical/organic
- Add/remove a spice or flavor
Guang Zhou Yilin Foodstuff Co.
For private labeling seasoning and sauce, especially those of Asian origin, Guang Zhou Yilin Foodstuff is a good fit. MOQ is 50 – 500 cartons, depending on the product. They white label.
A good fit for sellers who don’t want to look outside of the US. They can create new recipes or modify old ones. They produce sauces, dressings, marinades, and other food products for brands in the US. Contact them for details on their MOQ.
Dream Chocolate is a good fit for private labeling solid chocolate. They produce chocolate with different recipes in different formats from slabs to nibs to bars. They private label and white label.
Good for selling healthy snacks, as they produce bars from fruits, nuts, and natural products, with gluten free and vegan options, among others. MOQ is 3000 individual bars. The supplier white labels, but contact them for dropshipping.
Health and Beauty Product Manufacturers
This industry is predicted to reach up to $750 billion by 2024, and has a 2.81% CAGR. One of the most popular industries is cosmetics, so this is a good one to go into. Sellers can modify lip gloss and add new shades, and do the same with blush and setting powder. Harmful chemicals can be replaces with organic products like shea butter.
These are some of the modifications that suppliers typically offer:
- Add/remove fragrance
- Increase/reduce the quantity of certain materials for performance
- Use only organic and/or cruelty-free materials
- Change the color or add more shades
Moosberry is a good fit for low-volume startups. MOQ is 48. The supplier specializes in manufacturing soaps and body washes, shampoos, oils and creams, common scents and beard products. They white label and dropship.
This supplier makes naturally sources products, and has an MOQ of 72 per product with a minimum opening order of $5000. The response time is fast.
Crafting Beauty is a good fit for those wanting to work with a specialized fragrance companies. They manufacture scented products for the body and environment. MOQ is 1000 units for personal fragrance and 500 units for candles.
Home and Garden Suppliers
The global home and garden industry maintains steady growth with a CAGR of 2%, and the US market is valued at $272 billion with an upwards slope during coming years.
Take advantage of this by selling private labeled products with the following modifications:
- Design change
- Material – fabric and wood
- Finishing specifications like spraying
- Add/remove extra storage spaces
IGH Global Corporation
IGH Global is a good fit for low-volume bed, bath, living, and dining products, as well as loungewear, towels, and pillows. MOQ is 100, and they do not dropship or white label.
Nature Design Crafts
Nature Design Crafts manufacturers all kinds of home and garden products, and sellers can customize cake stands, umbrella stands, and coffee tables. MOQ is 100.
Sellers can get tablecloths with custom designs from A1Table. Draw up a design/pattern or use/modify one of theirs. They have a variety of fabrics to chose from.
Manufactures disinfectants, cleaning agents, food service chemicals, and aerosols with white labeling.
Supplements and Nutrition Manufacturers
The global dietary supplements industry is growing quickly as thousands of people are looking for products to improve general health and lose weight. This market is predicted to reach $278 billion by 2024 at a CAGR of 9.6%.
Suppliers typically modify:
- Package design
- Supplement designs (e.g. gummy bear vitamins)
A good low-volume startup option, this supplier produces various dietary supplements from amino acids to enzymes. MOQ is 48, and the supplier does white labeling.
The supplier offers no minimum order, and they produce supplements from branched-chain amino acids and blends, to muscle stimulator and recovery products. They dropship and white label.
This supplier makes organic, vegan, or gluten-free products from capsules, tablets, liquids, creams, lotions, and gel. MOQ is just 100 and they white label.
Totally Natural Remedies
A good fit for weight loss, anti-aging and cleaning remedies. They white label and dropship, and MOQ is 100.
So What’s Next?
After choosing the product to sell online and confirming with suppliers who will private label, reach out to them for estimates and samples. This will allow sellers to know whose fees they can work with, and how well the product can represent the idea and brand.