With the increasing homogeneity of cross-border e-commerce products, how can products stand out, or how to make products different from other products through their own logos? This is where the power of the brand emerges. With the blessing of the brand, your product can sell at a higher price, and the success of the brand will also bring a certain amount of exposure for your next product.
Private Label is such a business model. With private labeling, you can partner with third-party manufacturers to create your own custom branded products. For brands with established audiences looking to generate passive income online through product sales, private label is the way to go.
Private Label products are similar to OEM products in that they are manufactured by one company and then branded and sold under another company's name. Merchants who sell private label products are looking for products that can be branded and sold under their own brand name. The most common private label products include clothing, cosmetics, etc. Some condiments on convenience store shelves are also private label products.
Total retail sales of private label products in the U.S. reached $5.47 trillion in 2019 and are expected to reach $5.94 trillion by 2024, according to Statista. In fact, you can see private label products in many large retail stores, so this data is not surprising. For example, Archer Farms is Target's own brand, Great Value is Walmart's own brand, and Kirkland is Costco's own brand.
Advantages of own brand
In addition to simplifying the product development process, private label offers many other benefits, including:
Control production. You can guide third-party manufacturers on materials and ingredients, quality and productivity
Control pricing. As a seller, you can decide your own pricing strategy and strategies to optimize production costs, which help create healthy profit margins
Adaptable. Smaller retailers can quickly buy private-label products in response to growing market demand for new features, while larger companies may not set their sights on niche products
Take control of your marketing campaigns and brand image. You can choose how to promote your private label products and how to package them before going on sale.
There are many benefits of own labels, but there are also many challenges:
Heavy reliance on the manufacturer. Since it is produced by a third-party manufacturer, you are largely at their disposal. That's why you must work with a reputable and reliable manufacturer.
Building loyalty is harder. Creating a brand from scratch can take a while to capture the attention of consumers. Because of this, private label products are ideal for individuals and brands who have established established audiences.
Bad reviews among consumers. The perception of private label products is usually low price and poor quality. However, this perception is changing. Many consumers around the world believe that the quality of private label products is improving.
China warehouse logistics value-added services comprehensive solution
Cloud warehouse goods storage agent delivery designated logistics service provider solution:
This plan fundamentally solves the management difficulties of cross-border e-commerce sellers' self-building and high cost while meeting its online sales platform to buyers promised logistics channel choice. It is currently a relatively mature choice for cross-border sellers or businesses.
Cloud warehouse goods storage forwarding PFCShip Recommended preferred logistics solution:
On the basis of scheme A, this scheme largely provides the best logistics choice for cross-border e-commerce sellers according to the category characteristics of goods. In terms of cost and transportation time, it is predicted based on more than 10 years of logistics experience of PFCShip, which is the most selected scheme for cooperative cross-border e-commerce sellers or companies.
Based on A B solutions to provide more comprehensive and flexible value-added service solution:
Value-added service packages are not limited to: design of customized product logo, customized special product packaging box, inspection and quality inspection of goods to warehouse, classification and post SKU bar code labels according to cloud instructions, return and exchange of residual products, fine calculation and preferred logistics, independent storage space and other services. The service type of this scheme is still being continuously updated, and it is the ultimate service solution for cross-border cloud warehouse.
Parcel from China