Updated: October 21, 2019
There is no doubt that the white label industry is a very attractive market to be in right now. In fact, if you or your business have the capabilities to get involved and you have decided against it — what are you doing?
As mentioned in our previous article, the white label value market share in the U.S. has increased by 28% in just 4 years, increasing from 41% in 2014 to 52.50% in 2018. Entering this industry can be difficult, but if you have a well thought out plan of action you can experience little issues on your way to success. The question stands; how do you construct the most effective plan to achieve your goals?
1. Identify Your Product And Its Market
As we all know, knowing what product you want to sell is vital. Equally, understanding that entering a saturated market will be a waste of time as there will be a vast number of competitors to be competing against. So, the first step to selling white label products is to study potential markets and the products you will be selling. JungleScout is an essential tool to use when identifying whether a product is a worthwhile investment and whether its market will be responsive to it by creating monthly sales estimates and pricing data.
If you think you have found the perfect product to sell, it is of the utmost importance to consider: price, shipping, sourceability, seasonality and demand before you settle on an idea.
2. Find The Best Possible Supplier
Finding the best supplier for your business’ needs is as important as establishing the product you want to sell. If you try and sell poor-quality, cheap goods, you will experience poor quality sales.
It is as simple as that.
There are a number of online marketplaces that offer access to millions of manufacturers around the world; these include Alibaba and IndiaMart. Alternatively, exhibitions are a great way to meet hundreds of suppliers all in the same place on the same day.
3. Pick And Design Your Products
This step will require you to contact all of your potential suppliers and request quotes and sample products to be sent back to you. This is where you will identify whether the products match your specifications on price and quality (make sure you take shipping costs and import duties into account so you don’t experience surprise costs).
Following on from this, you will need to add value to the product in order to sell on with a profit. This could come in the form of adding your logo or full-scale packaging, anything to pass value onto your own customers.
4. Figure Out Your Fulfilment
A quick definition of this is the receiving, processing and delivering of orders to the end customers. You must figure out whether you want to complete the orders in-house, use Amazon’s FBA program, or use third-party fulfilment centres. Again, considering the costs involved is a vital step in making profits on your white label products.
As an Amazon seller, your shipping and fulfilment process will be critiqued directly from your customers, so you will need to ensure you are using the most efficient supply chain and delivery techniques to offer the perfect buying experience.
5. Selling And Advertising
As you know, in order to sell on Amazon you will have to list your product for your potential customers to see. For your product to be seen amongst the vast amount of equivalent rival products, you will need to stand out. The best ways to achieve this are by advertising via social media or paid Amazon advertisements, or to gain multiple high rated reviews from customers as time goes on. If you want to gain additional clicks onto your Amazon page, you can add your URL to the packaging of your product to direct existing customers to further products. It is vital to understand that following the five steps will not grant you instant success.
But if you follow and adapt it to suit your own personal wants and needs, you will be far more successful than if you jumped straight in head first.
If your business wants to exhibit your high-quality products, check out what the White Label World Expo can do for you. This U.S. leading event for resellers of white label goods brings manufacturers and white label professionals in front of thousands of market-leading Amazon and eBay sellers, decision-makers from businesses around the U.S. The White Label Expo is not only the place for product exposure but it is also a great opportunity for startups to find the right knowledge, products and services to propel their business in the white and private label sectors.
For White Label Expo Las Vegas sponsorship and exhibiting opportunities, please contact the Event Director John Richard on John.Richard@prysmgroup.com or 702.707.7627 - extension 6004. Register below to secure your Free Ticket and get access to all important information and updates to the show!