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Published on August 13th, 2019 | by Evan Morris

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A Guide to Starting a Private Label Brand from Ground Up

There are many customer advantages to private labelling. The number of sellers who have started building their own brands have skyrocketed. It makes sense because it is a good way to differentiate yourself from your competitors. The competition itself, however, is pretty cut-throat and hence you need to have a strategic approach in building a successful label.

This guide can help you navigate through the competition and reap the benefits of owning your own private label brands.

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How private labelling helps

Private labelling is the commercial act of putting your logo and brand on a generic product. Such form of selling makes that product stand out to the customers who recognise it as yours. In this way you can exercise complete control over that aspect of your business with its unique branding USP.

This, in turn, gives you an edge for customer retention and smart marketing, because customers are often loyal to brands, not products or individuals. A private label gives you the leeway to build customer loyalty and enhance repeat business potential.

Stats check

Around 50% of amazon sellers are involved in private labelling, and you can too. Private labelling on Amazon allows you to make a separate product listing for your product exclusively. This provides a foothold exclusively for your brand and also ensures that you are not competing for the ‘Buy Box’ against your competitors.

You have the option of applying for a brand registry, through which you can control the content, sellers and price of your product. There is another option called Enhanced Brand Content, which helps with sales and conversions on Amazon.

The reason customers gravitate towards private labels is because they receive greater value. Products with private labels are sold in a way that is cheaper for the same quality found with major retailers. Almost 98% of consumers are loyal to one type of private label product or another.

Here is how to start your own successful private label

1. Keep in mind the costs of private labelling

Private labelling, unfortunately, is more expensive that drop shipping or reselling. The good news is that the input capital generates higher returns on your investment in the long term.

  • Brand: You need capital to design your own brand and also have a graphic designer hired to create your logo and package design. Also consider building a content strategy to embolden your brand’s voice.
  • Manufacturing: Keep in mind that you will have to pay for all the regular production costs like materials, labour, manufacturing and shipping. Take into account how much the customisation fee costs.
  • Marketing: Arguably one of the most important parts of private labelling is the marketing, because if customers are not aware of your brand there will be no sales. Make sure to gain visibility through sponsored or boosted posts, which may cost a lot but will be worth it. Remember to buy a website builder and domain name.

Be prepared for any other expense like unexpected fees or changes that come up.

2. Choose the products you want to sell

When it comes to products you want to sell under your brand, think of something that can be used regularly and repeatedly like private label air fresheners can be considered. These can be used at home, in the car, in the workplace and a lot of times in the bathroom. The connecting factor is that they are practically universal, so people can see them everywhere. The sheer variety too adds to the appeal of air fresheners as a viable private label product to target.

This is how you can get more exposure and hence more sales. The best part about air fresheners is that it is used often, and people go through them quickly. If they know they can rely on your brand, they are going to come back for more. This is a great product to start off a business with and scale up fast.

Keeping that in mind, think about other such products that will retain customers’ interest, have a repeat value, and build customer loyalty.

3. Understand who your target market is

Think about the product you are selling and its message. Now correlate it with the kind of customer you want to sell it to and who is most likely to buy your product. This is how you define your target audience.

For instance, if you cater to home-based air fragrance, then you need to list popular fragrances like rose, lavender, jasmine, and citrus. For offices, it makes sense to list fragrances that have subtle notes without being too overpowering for the office surroundings. This way, aligning the product to the target audience has a greater potential of success.

4. Make yourself stand out

Always look at your competitors and what they are doing. This will give you the leverage to figure out how to make yourself stand out from the others. Wherever they are focusing or lagging, will be of utmost importance to you. You can become a strong differentiator just by making yourself stand apart from the other brands.

5. Create a brand look

Your content and aesthetics are unique to you and it is how your customers will recognise and remember it. Try making a memorable and creative logo, something that catches the eye and yet stands apart from other logos. It needs to be pleasing to the eye while also telling customers that your brand is credible and reliable.

6. Get a supplier

You need to have a strong supplier to support your private labelling. The manufacturer you hire should have extensive experience in private labelling to help you get profits for your product. Overseas factories help a lot with generic products created for a number of clients and customising the label.

7. Build the brand

Here is how you are going to move forward:

  • Get a copyright name and logo
  • Create a website
  • Be present on social media
  • Form an LLC

After all, this is a formal business.

Takeaway

Private labelling is in excellent marketing strategy if done right. Remember to keep all the points above in mind, and ask someone with more experience for help if you are still confused or do not know where to start. When you do it right, your profits can skyrocket and needless to say, that your venture reaches the top!

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About the Author

Known for his boundless energy and enthusiasm, Evan works as a Freelance Networking Analyst, an avid blog writer, particularly around technology, cybersecurity and forthcoming threats which can compromise sensitive data. With a  vast experience of ethical hacking, Evan’s been able to express his views articulately.



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