Mastering private labeling and dropshiping become imperative for 2019 entrepreneur because selling under another man trademark can put some level of restrictions on your marketing ideas and you dont have total control over such product , in other to avoid such trouble you must learn how to sell others people product under your own label,which is called private labelling
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So let see what private labeling is:
Private labeling is basically a process to build your own brand and sell product under that brand.what that mean is that you look for a name, create a logo,register the name with the goverment. then you look for a manufacturer who could produce a product under your brand's name
Private labeling involve several steps which will make it a success .
(1) product research
(2) manufacturer sourcing
(3) Product package
(4) product demand
(5) profit calculation
(6) product fulfillment All this six step is what you must know before you can become a private labeller. So let me begin with number one
PRODUCT RESEARCH
Product research is the first step to take in the act of private labelling, and is also the most important.When you choose the wrong product, every other things you are going to do is useless.
now let take it from the buyer perspective, when you go to the market and you buy something that is well package, but of a low quality, will you like to buy such product again the next time you went to the market..NO!. which mean everybody want to spend their money on something that give them value for their money.
When you are researching for a products you have two options:
(1)offline method
(2) online method
Here is how to do offline product research:
Start asking family or friends things they find annoying and wish were solved.
Do a questionaire and start distributing it in your area about things that gives people problem on daily basis. from your questionaire, make sure you product choose a product that has the highest number of problems to be solved.this will give you high coverage of product ideas and it also reveal the popularity of the product
The online method
we are going to do this Using amazon best selller account
- Type amazon best seller account in your browser.and type your product in the search box.
Here are the best selling product base on the category i choose
The products display above answered the question of whether the product is in high demand or not.because amazon only show high demanding products in the best selling catalogue.it means those products that sells few 100 to a 1000 copies everyday.
Now that will have known the level of popularity the product has, the next thing we need to know is the level of competition, since we have several best selling product, but we are looking for high demanding with low competition product.
Now let go and look for the competition level of our product,the tools we are going to use is this chrome extension. copy it into your chrome broswer and install, after activating it, login to amazon and search for your product, just like the picture below
Amazon then gives the break down of the the general ranking and th e specific ranking in that category
1. The star rating tell people recommendation of the product, so if a product has 1 or 2 star rating, it mean the product did not have high satisfactory status. But when the product has 4 or 5 star, it means it is a product that people are well satisfied with. So you need to choose one of the product with 4 or 5 star rating
The interpretation of amazon ranking is different from normal search engine ranking, in the sense that the lower the rank , the better a product is selling. so choose a product with a with lower rank.
Decent Profit Margin
Make sure the profit margin between the cost of production and sales is encouraging, do not choose a product that is not profitable.Light Weight
The product must be light weight, in other to reduce shipping cost to your customer after production.
Evergreen
Choosing an evergreen product will increase your sales after it is been manufacture.
Here are example of Evergreen niches
1.ADHD
2.Acne
3.Adoption
4.Alzheimers
5.Anger Management
6.Anti Aging
7.Antiquing
8.Anxiety
9.Archaeology
10.Arthritis
11.Asthma
12.Astronomy
13.)Back Pain
14.Backpacking
15.Bass Fishing
16.Become A Nurse
17.Bird Training/Train Your Bird to Talk
18.)Boating & Sailing
19.Bowling
20.Boxing
Look for a good product around this area and look a manufacturer, that will produce good and high quality product for you.
Manufacturer sourcing
Finding a manufacturer can be pretty hard - especially when you aren't ordering huge numbers to start with and need to keep your costs down. I always recommend looking in your own country first for manufacturers - that way you can get the product made quickly and avoid long postage times and customs fees.
Another way to source for manufacturer is to look for oversees manufacturer, you can alway sources from china to get cheap and quality product.If you are getting a product from china to repackage or resell then you will have to check Alibaba, Aliexpress and other retailing websiteto make sure it is availables. Always check the sellers account age, status and reviews before buying.
The international sourcing can also be done using local manufacturer in a particular country Instead of using retail websites like Alibaba and AliExpress.But to go through this route, you must know someone who lives in china- which is a Better option and cheaper, or you can also use websites that only deals with locals in that country.they don't deal with international customer.example of such websites is taoboa.jig.com e.tc for China.
Product Packaging
So you have your product in your hand - exciting! Now all you really want to do is sell it. But whether you are going into retail stores or simply selling online your customer should be receiving a product that has a consistent brand and packaging is essential for this. Over the years I have found a few tips to creating amazing packaging quickly and easily that is retail ready.Always check first with your manufacturer to see if they have any recommended packaging suppliers or if they do this themselves. It's always better to keep everything in one place where possible. I recommend, like the manufacturer, to find a packaging supplier in the country you're in to start with. Yes it is much cheaper overseas but a lot of the time you are looking to get the product out to consumers quickly and there is no time to wait for shipping etc. You can always move it overseas once you are happy with how it looks - this is good as it means if your product is profitable when everything is done in your own country then you know that you can start bringing your cost price down thus further increasing your profits.
OK let take our shoe as example, due to the sizing and shape we would have to use a box to package this - possibly one with a window that shows the user what's inside. You may also want to have a Euro slot holder built into the top so your product can be hung on rails.
Search for "custom box retail packaging and go through the different options available. It is always cheaper if your box is already created by the packaging company as it means you are ready to simply send them your design. If it isn't you will have to sketch out your box shape and it's dimensions and send this to them so they can create a new die cutter for your box. They will charge you a premium for this though. Always get quotes from a range of different companies and samples before you commit to a large order. So boxes work for a huge range of products but might not always be what you are looking for. For example you may want to package up something very thin.
You have two further options that are very cost effective (assuming you use pre made sizes): blister packs and display cello bags. Blister packs come in a range on different sizes and can be very cheap - they self seal to create an incredibly professional retail ready finish. You can have a cardboard insert printed that fits perfectly inside. Search for stock blister packaging" and as always get samples before committing. Display cello bags are see through plastic bags that have a seal at the bottom and a Euro slot holder at the top.
You can put printed cardboard in these with your product inside and it looks very professional. They are incredibly cheap and a great option for a wide range of products. Before you start designing your packaging you will need to think carefully about all aspects of it: Make sure you use "buying" colours throughout your design. Yellows and reds for example are incredibly eye catching. Make sure your product is instantly understandable and users aren't having to pick it up and read the back to understand what it is. Check with friends and family that it works before committing. Make sure if you are using images on your product that they are high quality as you don't want a blurry finish. If you are selling to retail stores you will need a barcode on your product.
You need one barcode per product variation. They need to be in EAN and UPC format to be able to be read by almost all tills. They are pretty cheap you shouldn't pay any more than $5 for one. When you are sending the company your designs always ask for a template for the product first. Then mock your design up in photoshop or illustrator.
If you don't know how to do this then use the design service that most packaging printers provide. If they don't provide this use Fiverr. If you are reselling a product or shipping it over from overseas and don't want their designed packaging (usually has horrendous English, looks pretty rubbish, doesn't contain barcode etc) then search for OEM and your product name - most sellers will provide a customised packaging option. Again make sure you use a template they provide and that your artwork is high quality. If you don't want to wait for a packaging sample ask them to create one and take pictures of it.
Product Pricing
It is essential that you keep a full list of your costs from start to finish so that you know exactly where you stand when it comes to what you need to charge. This can be quite difficult and you should always take into account your time as well as overheads you wouldn't think about like postage tape or office rent.Shipping company to get your product to the customer.
(1) Epacket express
(2) Yanwen Logistics
(3) deutchepost Royalmail
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