Thank you, for checking out this Private Label tutorial. In the following pages, we will be covering everything from the factories on Alibaba to building out a brand from scratch.
If you are reading this and don’t already have a product sourced then please check out my China Import Guide and that will get you to this point in the best and easiest way possible.
I really hope you enjoy this tutorial and if you want to take things to the next level then check out this free webinar below.
Its hosted by my good friends the StartupBros and is awesome!
So without further ado let’s get cracking…
This is a great industry to be in, and you’re getting in really on the ground floor. You will be amazed at how many people still do not shop online, but Amazon is growing by the second. Ebay is well, eBay is kinda breathing Amazon’s dust, if you ask me and has been unable to compete at all but is still worth having a presence on.
There are many other E-commerce stores and marketplaces and areas that you can sell your products. Facebook is getting in on the action now and E-commerce is a massive growth industry. If you have done your product research correctly, sourced from a reliable factory and developed a good relationship then you are well on your way to private labelling your products and developing a brand that comes with so many more benefits.
The difference between private labelling and having a brand is you can just get a factory to slap your logo on the box and product and you have in essence private labelled your product but building a brand is exactly that. It takes time and lots of work to develop but will give your business a customer following for life.
What is private labelling?
Well, if you type, “What is private labelling?” Into Google, you will be met with a result from Wikipedia, which is: “Private label products or services are typically those manufactured or provided by one company under another company’s brand. Private label goods and services are available in a wide range of industries, from foods, cosmetics, to Web hosting.” Now, the last one’s an interesting one, Web hosting. It does show that private labelling isn’t just stuff you can slap on Amazon. It can be anything.
And a lot of companies out there including all of the big ones, most of their products on their shelves are privately labelled
The Minority Supplies the Majority
There is only a certain amount of factories in this world. And then there is an awful lot more people selling.
For example, Web hosting, you will see lots of hosting companies online. You can type that into Google and see there are hundreds, thousands, of Web hosting companies. But there are only a few people who have the ability to host a huge amount of websites.
So, you can go onto GoDaddy, and type in “reseller,” and you can use their hosting, and slap your brand on it, have your own website, start your own Web hosting company. But everything that you host, and all of your customers’ websites you host, will be done on GoDaddy’s hosting services. And you’ll just be a middleman, per se.
Example: Whey protein is a hugely private labelled product on Amazon.
As you can see from the image above this is just the first third of the page, there is a ton of competition and it’s tough to stand out. What you will also notice is that aside from the label a lot of these products come in very similar packaging. This is not a coincidence most of the listings you see there all come from a few factories.
Let’s look at Alibaba.com and see exactly how many.
If you are new to Alibaba click here for the grand tour.
In the search, we’re gonna type in “whey protein”
As you can see there are 11,669 product listings on Alibaba that sell whey protein. But we are not here to look for the product, we need the suppliers.
So by clicking on the Suppliers tab, also select the Gold and access suppliers as filters. This will give us the factories that meet the Alibaba Gold standard. Assessed Suppliers have an Alibaba representative visit to make sure they’re not operating out of their garden shed.
We’re now down to 79 suppliers that supply whey protein to the world!
Now I know what your thinking… “there could be other suppliers elsewhere Danny”. Your right here could be but Alibaba is the biggest, busiest and best factory/wholesale directory in the world so I’m going to guess that 99% of them are on here.
But the data gets more defined when you take into account resellers that buy tons of the stuff at discount and then resell it (there’s a lot of that on Alibaba). Also, some of the results will be incorrect and show unrelated products.
Therefore it is fair to say that out of 79 half of them will be resellers and incorrect listings. This takes our total down closer to 40 actual whey protein factories on this planet.
A stark difference to the huge number of whey protein private label sellers on Amazon.
Which is why standing out from the crowd, niching down and offering more are more important than ever.
The key points to take away when looking at saturated niches on Alibaba like whey protein are:
- Everyone is sourcing from the same factories. Unless modifications have been done, its the same product in a different coloured tub.
- These saturated markets are just the beginning. You will see way more big money niches get saturated to with products that are all the same.
- Just putting a logo on something and throwing it out there is not enough anymore. You need to offer more, be different and have more than just a product listing (website, social following etc
- We will go into detail on how to build out a brand that will perform no matter what the conditions.
So what is next I hear you ask?
Check out the webinar below! This is live, FREE and will leave no stone unturned.
We will cover everything to turn your fledgeling product into private label and build a brand around it.
This will take time, work and a lot of effort. Yes, it’s probably going to cost some money too but this is all investment and the return is amazing.