Private labeling has grown in popularity in recent years as a result of the profits it can generate and the value it provides to customers.
Selling your own private label products is the best way to build a recognizable e-commerce brand.
So, let’s talk about the article’s main subject. Exactly what does “private label” mean? Where do I start if I want to launch my own private label?
Find out the details by reading the article.
What Is Private Label
Private labeling is when a generic product bears a company’s name and logo. As a means of setting your wares apart from those of similarly ilk sellers and competitors.
The idea is to establish yourself as a unique entity in the marketplace. In the case of a dropshipper’s private label product, the supplier makes the item and the dropshipper sells it under the dropshipper’s label.
More and more vendors, both on and off e-commerce platforms, are developing brands as a means of differentiating themselves from larger competitors.
Private Label Benefits
Your brand and products have built customer loyalty.
A private label allows you to run your company exactly how you want to. Private labeling allows you to establish your own identity in the marketplace, which is important for advertising and can lead to increased client retention and revenue.
If you run a business on Amazon, you can get an extra leg up by registering your brand with the brand registry.
You may choose the prices, decide what information is included, and choose who sells your goods. Enhanced brand material can also be used to boost Amazon conversions and sales.
You don’t need any prior expertise or training in product design to start a private label business.
In the end, a private label will set your company apart from the crowd. It lets you target a specific group of buyers and get greater agency over your business.
To put it another way, despite the lip service, the competition remains tough. You have to know what you’re doing if you want to be successful. To launch a successful private label, you should have the necessary knowledge, tools, and funding at your disposal.
Start to finish instructions are provided here.
Let’s begin with the more accessible options. The following strategies won’t require a hefty financial outlay on your part. These are the simplest methods to test out for your brand, so keep that in mind if you’re just getting started with dropshipping.
When compared to other private labeling options, stickers offer the best value.
It’s universal and can be used with any product out there. The product’s packaging sticker will do in a pinch if you don’t have the actual product on hand. Stickers are fine as long as you can find a good surface to put them on.
However, if a sticker is poorly designed, it can give the impression that the product is of lower quality.
Hang Tag/Paper Card
If you are unable to meet the minimum order quantity (MOQ) for other delivery methods, you may want to consider using hang tags or paper cards instead.
You don’t have to change the way you’re thinking about your product’s design to incorporate them.
Cards, however, are an excellent option if you need to include details that don’t belong on the actual product.
There’s a lot of room to explore when it comes to cardboard containers. The task of private labeling can be accomplished with as little as a box printed with your brand. It’s a practical and inexpensive option for private label production.
The pricing and minimum order quantity, however, will vary.
You can set yourself out from the pack by designing a spectacular mechanism for the box. Asking for a discount is completely out of the question.
For the first run, I suggest sticking to the basics: a box with your logo and maybe some basic patterns. Then, as your company expands, you can move up to higher-level positions.
Let’s move on to discussing some additional, trickier approaches. They are either more complicated to implement or have a higher minimum order quantity.
Those aren’t the kinds of strategies we often advise for beginner dropshippers. The following advice is for more established brands, so if that describes you, read on.
Nowadays, silkscreen-printed logos on T-shirts are ubiquitous. That approach to printing has been around for quite some time and is now considered obsolete.
The term “SilkScreen” refers to a specific type of stencil printing in which ink is transferred onto a substrate through a mesh except in predetermined regions where a blocking stencil prevents ink from reaching the substrate.
Since there are fewer moving parts and fewer colors involved, it’s a cost-effective option for printing logos. Silkscreening costs more per color than it does for a single color.
Consider the cost of printing a two-color LOGO on T-shirts: $30 (15 USD) for the mold, or $15 USD per color. Since the ink is black, we will not be charging extra for black text.
Silkscreen has a minimum order quantity (MOQ) just like the other methods we discussed. About 10 pieces is the norm. The overall cost to you would consist of the mold charge, silkscreen printing cost, and unit pricing.
One more great option for private labeling is embroidery.
It’s a nice way to put a personal stamp on your product. Additionally, it helps bring people closer together.
When compared to older methods of needlework, the new technique’s utilization of machines allows for more productivity. Additionally, numerous patterns are at your disposal for creation and implementation.
Even so, we’ll use t-shirts as our illustration. The average cost of embroidery is about $0.2 per item. The minimum order quantity for a Silkscreen order is 10 units.
Private labeling also makes extensive use of heat transfer. Invariably, it’s confused with SilkScreen.
Heat Transfer allows for a more professional look with a wide range of vibrant colors.
This method surpasses Silkscreen in terms of social acceptability if a dropshipper applies a highly detailed image or logo to a product. As expected, more quality carries a heftier price tag.
On the other hand, unlike Silkscreen, heat transfer printing on, say, t-shirts, does not necessitate the payment of a mold fee. And it doesn’t matter how many hues you’ll be employing. The cost will not change.
The Woven Label is a type of labeling commonly found on clothing and stuffed animals. Every major trouser manufacturer uses it, and you can detect it in their products.
It’s a clever method for private labeling that doesn’t require major changes to the product’s aesthetic.
A Woven label, in contrast to embroidered branding, has a more commercial feel. It also emphasizes your company’s long history as a trusted brand.
As with all private label approaches I’ve rolled out, the price varies. It all comes down to label size, type of material, and quantity of products. The current going rate is between $0.01 and $0.30.
Let’s say you run a business where people may purchase metal, glass, or organic materials like leather. Customization of your goods is easy with laser engraving.
Brand recognition and expert presentation can be achieved by engraving the logo onto the goods.
The practice of drop shipment frequently employs this strategy. On account of how well it holds up under regular use. However, not all manufacturers have access to this sort of engraving equipment.
Your maker probably hired an engraving firm to do this for them.
Pricing is scaled to the scope of your order. However, the standard price per unit is only a penny.
A private label dropshipping program is a great method to increase sales and bond with customers.