An Introduction to Selling Private Label Products Online

Eric Pong
selling private label products online- Floship

There are lots of ways to make money online.
Selling private label products is one of them and a ridiculous amount of products of this nature are being marketed via Amazon. These two marketplaces are popular with individuals and business trying to make money online by selling private label products.
One reason is that going this route can help keep initial costs down and these two giants of online retailing make it even easier for online business newbies by taking care of most of the marketing work.

What Are Private Label Products?

Private label products are produced by a specialist manufacturer primarily to be sold under brand names owned by other people.
Diet pills and other health and wellness supplements are a good example. Producing diet pills is a highly specialized field. The average aspiring online retailer who wants to break into this market would not have the money or resources to research and develop products of this nature and then carry out the manufacturing process.
Another (and far simpler) option is to buy a product already developed by a supplement manufacturer willing to let others take credit for their product and sell it as their own. This is the beauty of private label marketing and it doesn’t just work out well for the those who are selling private label products. It can be profitable for the private label product supplier as well.
When a brand owned by a company marketing private label products takes off, the fact that the product is selling so well provides the real manufacturer with an ongoing supply of orders.
That pushes up their revenue, and the manufacturer will not have had to worry about sales and marketing costs. However, it has to be remembered, the private label products online sellers sell under their brand name will not be unique.
Other sellers will have the same opportunity to market the same product under their own brand name as well. This is the cold hard truth, but it’s not a cause for concern. That is because end consumers are unlikely to learn that what they are buying are clones of other products sold under a different brand name.
Furthermore, this is not a significant detail because, if the quality of the chosen private label product fulfills the customer’s needs, they will be happy and the brand will flourish.

Some Private Label Products You See Every Day

Private label products are all around us and they are not only sold online, they can be found on the shelves of supermarkets and large chain-stores all over the world.
Think about all those supermarket own-label products. Do you think the supermarkets own cookie manufacturing factories or have the facilities necessary to produce their own-label personal hygiene products, detergents, and canned food goods?
It would not be practical and the costs of setting up such an array of manufacturing plants would be astronomical. All those own-label products are, in reality, private label products.
Selling private label products under their own brand names makes things easier for the supermarkets and it’s easier still to sell private label products online because even sellers who decide to set-up their own websites will have minimal start-up costs.

Some Popular Private Label Product Categories

There are private label manufacturers producing just about everything under the sun, some of which may be unsuitable for newbie online sellers.
Selling private label frozen peas may work well for supermarkets, but it’s not a viable option for the average online marketer, so the frozen food category is out. However, many other options can work well online.
Some good examples include:

  • Vitamins and minerals
  • Sports supplements
  • Diet pills and other weight management products
  • Cosmetics/beauty products
  • Baby care products
  • Organic/eco-friendly cleaning products

Target's private label organic product line

A Closer Look at the Advantages of Selling Private Label Products Online

One significant advantage of selling private label products online is it provides sellers with the opportunity to break into niches they could not dream about entering if they had to go it alone.
They can also set their own price. Obviously, the price has to be high enough to cover the cost of paying for their product to have the appropriate branding applied, but sellers who succeed in building successful brands can raise their prices considerably.
Many people are willing to pay slightly more for popular brands. Nike and Adidas trainers are not necessarily better quality than lesser-known brands. They just have the advantage of being more established and respected.
Other private label advantages include:

  • Minimum start-up costs
  • Suitable for selling on Amazon and eBay
  • Large choice of private label manufacturers to work with
  • No need to place large orders
  • Suitable for large companies and for people working from home

Final Thoughts

Selling private label products online is not for everyone, but it offers capable sellers a good way to make money online with the minimum of effort and resources.
It’s also worth noting that businesses built around private label products are as easy to wind down and stop as they are to set up. That can be handy for sellers who find this kind of online venture is not for them or decide to focus on other online money making opportunities instead.
However, with some patience and hard work, the sky’s the limit and it’s worth bearing in mind the fact that some of the best-selling product on Amazon are private label products. They may not be unique, but they are still successful, and that’s all that counts.

Find out how to Automate your Amazon Order Fulfillment process with the Amazon + Floship Integration here!

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