There is no doubt that under the phenomenon of today’s increasingly homogeneous products. Private label customization of products and packaging is an effective way to differentiate your products from others, as well as increase the added value of your products and increase profits.
In more than ten years of industry experience, countless customers have asked us to provide customized services for private brands, and we have actually met their needs. If you have any questions about private label, you can take a look at this article. Hopefully our decades of private label experience can give you some tips and help.
We divide the content into three large sections, each with many smaller sections:
- What kind of private label customization is right for you?
- How to find a suitable private label supplier?
- How to obtain the most beneficial private brand service for you?
These three sections are based on our decades of experience with private label services, and it is impossible to cover all the content and details. If you have different opinions or additions to some content in the article, you are welcome to leave a message below the comment area. If you are interested in our own brand service, you can send us an inquiry by mail. Let us now formally enter the main body of this article.
What Private Label Customization is Right for You?
Private label customization generally includes three aspects. Product logo customization, gift box customization and product customization. Because of the difficulty of production, these three customization methods also have different requirements for orders. We will next make recommendations based on customer type.
We divide different customers into several types.
1.Small Sellers Who Have Their Own Store on Amazon or have An Independent Online Station.
According to our experience, this type of seller has limited funds and needs to prepare a wide enough variety of products to improve the attractiveness of their store. Therefore, the number of orders for a single type of product is often small, probably more than 50 and less than 500, and there are also big constraints in terms of budget.
If you are this type of seller, choosing product logo customization is a better choice. The order MOQ requirements are low, the unit cost is the lowest, and the customization cycle is the shortest. is the least risky option.
2.Large Online Sales Websites, or Supermarket Chains. Such as Sephora, Ulta and so on.
Such a large online sales site. They have greater requirements for the particularity of products, even if it is the same product, they also hope to be able to differentiate from other brands in some details. According to our dealings with these customers, they often choose a complete set of customization: product logo, packaging and the product itself will be customized.
The increase in customized content also leads to higher costs and higher order quantity requirements. Of course, for sellers of this size, they have enough funds to support their choices. If you think you have the financial backing and are confident about the future, then a full-scale customization service is the solution that best highlights your product’s uniqueness.
3.Small and Medium-sized Sellers with Their Own Physical Stores Locally. Like a Massage Spa Center.
This type of seller has a higher demand for the uniqueness of the product than the first type of seller. However, due to the limitations of funds and the number of customers, they often do not choose to carry out a full range of customized services. If you are this type of seller, logo customization plus packaging customization is the best option. Orders are in moderate demand and can reflect your brand from the outside to the inside, increasing product differentiation.
Of course, different industries will also lead to different customization requirements. Some industries have low requirements, so it is not impossible for a small and medium-sized seller to carry out a full set of customization. However, some industries are extremely demanding in terms of customization. In this case, large sellers will think twice when choosing a full set of customization. Therefore, it is best for you to understand the basic requirements of customized services in your industry before you consider them.
How to Find the Right Private Label Supplier?
Before you enter your new private label business, there are a few things to consider.
The first and most important thing is to be clear about what you are selling. The great thing about private label is that you can find just about anything you could possibly want, including beauty products, homewares, and groceries.
As you review your options, consider what you’re trying to sell — but be sure to balance your personal preferences with some market research. Maybe you’ll be very disappointed to find out that people don’t like your product as much as you do!
Here’s how you can do some market research to “validate” your idea and try to make sure people are actually interested:
Google Trends. Enter your thoughts and see if these items are trending up, down, or stable.
Uber suggested. This tool will show you activity metrics, such as how many people are searching for these terms each month.
Amazon bestseller. Which product is more popular now? You can search in different categories to focus on your work.
Competitor research. Who is selling similar products? Investigate their website, social media and reviews.
And after knowing and confirming the product you need, here are a few ways to find a private label supplier that can give you some tips:
1.Google Search.
You can find almost everything you need on Google. From big machinery to small pencils and more, there’s nothing you won’t find. So googling is a good option. And there’s an added bonus to googling. Compared to well-known wholesale platforms such as Alibaba, Google search organic rankings are more trustworthy, but just in case, double check that their website is trustworthy. Remember to include private labeling when searching to ensure more accurate information.
2.Alibaba
Alibaba is one of the largest e-commerce companies in the world. Alibaba, with about $72 billion in revenue in 2020, thrives by offering one of the most comprehensive supplier directories, connecting merchants with suppliers everywhere. Through Alibaba’s catalog, you can access a variety of suppliers selling items in categories such as agricultural products, food and beverages, textiles, jewelry, and more.
While Alibaba doesn’t offer a Shopify app, there are so many private label manufacturers involved that it’s worth a look. You can print custom logos and designs on almost any product, and you can buy items in bulk to reduce inventory costs.
But like we mentioned earlier, Alibaba’s search rankings don’t always seem convincing. What you hope to search is the source custom factory, but it may be displayed in front of you by various trading companies, they are not necessarily untrustworthy, but you can’t get the best price through them, because they also need benefits .
3.AOP+ Easy On-Demand Printing
AOP+ Easy Print on Demand is an excellent choice for sourcing products from manufacturers in the US, UK and EU. It focuses on clothing and accessories and is perfect for those looking to open an online boutique.
AOP+ does all the printing itself and will even work with you to create your own custom private label products. You don’t have to pay for inventory and storage because the manufacturer handles it for you. All you have to do is choose the items you want to sell, work with manufacturers to customize your products, and list them on your Shopify store via the AOP+ Shopify app.
The app is easy to use and also automates order processing and fulfillment for merchants.
There are many more ways for you to choose, but due to space constraints, we will only focus on these three ways. How to choose these three ways? If you want to get the best price, googling to find a custom chemical factory at the source is the best choice, but you may need many different factories, such as product factories, packaging factories, and logo engraving factories. But there is no shortage of factories that provide one-stop customized services, they will provide one-stop private labeling services, from products, packaging and logos, they will help you solve. For example, our company, we not only provide our own products, but also solve all customized content including packaging and logo for you.
If you want to get the most suppliers to compare, Alibaba might be a good choice. If you want to source products from suppliers such as the US, UK and EU, AOP+ Easy Print on Demand is a better choice.
Which Private Lavbel Solution is Best for You?
More Favorable Payment Methods
Cash flow stability is critical to all companies, whether it’s you or our suppliers.
Let’s say you’re an Amazon seller and you receive a fully paid shipment from your supplier. The total production and shipping time is about a month, and it usually takes you 2 months to sell the item in full. The money is then issued by Amazon (let’s say 30 days), so your payback period is about four months, which seems hard to keep your business growing at a high rate. Payback period is too long.
But if you maintain a long-term relationship with the same supplier, they may accept payment terms that are more favorable to you, such as:
T/T (30% deposit, 70% before shipment)
That is 30% of the deposit. After the production of the goods is completed, after you pay 70% of the balance, the supplier will arrange the delivery for you. This allows you to reduce your payback period by about 10 days compared to paying in full.
T/T (30% deposit, 70% before arrival)
i.e. 30% deposit, the supplier starts producing the product and shipping. You need to pay the balance before the goods arrive at the port of destination. In this way, you can shorten your ROI cycle by about a month.
LC and OA
Simply put, a letter of credit is a promise of payment issued by a bank at the request of an importer. That is, the importer promises to pay the supplier sometime in the future, so the letter of credit has the potential to act as a financing guarantee.
OA is not a common payment method. Under this clause, you pay the supplier after the product arrives. There are high requirements on the credit of importers and the flow of funds from suppliers. Walmart generally uses OA.
So this way provides the second option for most importers to wire 30% 70% (before reaching the port).
Then, in the process of cooperating with suppliers, if you are a new partnership, it is recommended that you strive for wire transfer (30% deposit, 70% before delivery), which is ok for most suppliers including us Accepted. Payment methods, even for new customers. As the cooperation deepens, you can consider negotiating with the supplier for payment methods of secondary wire transfer or even LC and OA. If you require new suppliers to accept both payment methods from the start, it is unlikely that any supplier will accept them.
How to Save Cost?
You may wish to have sufficient stock to support your business. But you may find some problems. With the increase in product inventory, the corresponding storage costs, labor costs, etc. will also increase. These costs are all potentially dangerous factors when you’re not sure how your product will sell.
How to save storage and labor costs? Holding the goods temporarily with the supplier is a good option. But only if the supplier has its own warehouse and is happy to accept the request. For example, our company, as the source factory, we have our own warehouse and management personnel, so we are happy to help you solve these problems, you can temporarily store the products in our warehouse, and we basically do not charge any storage fees. If you want to perform private labeling service for facial beauty tools such as jade scraping board, please choose us!
For those trading companies, they generally do not have separate warehouses and management personnel, so they often do not provide these services. If they do, they will also require a certain amount of storage fees, and the cost will not necessarily be lower than your own cost.
Seek Advice From Suppliers.
Do you doubt whether your own private label customization will be welcomed by the market? Maybe you can try asking your supplier. They often have very rich experience in private customization. So the supplier can have a basic judgment on the market popularity of your private label solution. Logo color, small differences in size and position may form completely different reactions.
Don’t think this will bother the supplier. Because suppliers will also find useful content from the inquiries provided by various customers to improve their products, which is actually a win-win process.
Private Label: The Best Choice for Ecommerce Businesses
Many new and seasoned entrepreneurs find that private label is the proverbial “best option” for starting an e-commerce business.
They don’t have to spend the time and money designing and building their product line from scratch, but they still have the flexibility to design their own custom branding to stand out from their competitors.
With some solid research and strategic planning, you have plenty of options for dreaming up and creating your next e-commerce company.
For those mature or mature companies, private label customization is a key factor to maintain corporate profit growth and improve product competitiveness.
