If you run a small business and want to build your own brand, private label can be a good way to get started without developing a product completely from scratch. But choosing the right product and finding the right supplier can be harder than it looks, especially if this is your first time sourcing from China. Below, I’ll share some practical tips that may help.
What are private label products?
Private label products are made by a manufacturer and sold under your own brand name. If you run a small business, you don’t need to overcomplicate things at the beginning. A lot of brands start with an existing product and make small changes, such as adding their logo, customizing the packaging, or adjusting colors, sizes, and other details. Developing a product from scratch is possible, but it usually takes more time and money, and comes with more risks. Around 80% of the e-commerce sellers we’ve worked with have started this way.
What private label products are suitable for small business?
There’s no way to guarantee 100% that you’ll find the right private label product. Every business has a different budget, product selection strategy, and supplier resources, so what works for one may not work for another. Here are the things our small business clients usually look at when choosing products.
1. Choose products that are easy to ship and store
Small and lightweight products are usually easier to control shipping costs and won’t take up too much storage space. You also need to consider the risk of damage during shipping. For example, a small but fragile glass product may not be a good choice, as it can lead to shipping losses and extra costs.
2. Focus on everyday products with consistent demand
Customers need everyday products year-round, so demand tends to be more stable. This also gives you more time to sell your inventory. Seasonal products, however, only sell during certain holidays or seasons, and once that period ends, you may be left with unsold inventory.
3. Don’t start with too many SKUs
Beginners tend to start with too many SKUs because they want to meet more customer needs. But this can spread your budget and inventory too thin, making it harder to identify which products have real potential. For example, if you sell shoes, you don’t need to stock every size and color. I’d suggest starting with a few options, seeing what sells, and then adding more based on customer feedback.
4. Watch the MOQ and start small
Pay attention to the MOQ when choosing a product. If the MOQ is high, you may have to spend a lot of money on your first order. If it doesn’t sell as expected, that money can be tied up in unsold stock. That’s why I’d suggest looking for suppliers with a lower MOQ when you’re just starting out.
- One more thing to check: patents
Don’t simply trust a Chinese factory when they say a product has no patent issues. They may not know, or their clients may have never had any problems with it. Patent issues can be complicated, and protection varies by country. No patent in China doesn’t mean no risk in the US, Europe, or other markets. I’d suggest having a local lawyer check the relevant patents. You may not get much attention as a small business, but once your product takes off, you could face a takedown or even a patent dispute.
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Real private label examples from our clients
Our US client had a $500 budget to start a nail polish brand and wanted to make a 3-in-1 cat-eye nail polish. We found a factory in Yiwu with 12 years of production experience. The factory can change the formula based on his needs, like the color and consistency. He could also pick a product the factory already had and put his own logo on it. MOQ was only 500 bottles, and each bottle cost around $0.4.
Our client from Australia wanted to launch his own brand of clogs, similar to Crocs. We found a factory in Yiwu with dozens of existing styles, so he could choose the design, colors, and sizes without developing a new mold. We also helped him customize the clogs with different charms and his brand logo. The factory price can be as low as $2 per pair, so he could start with a small batch using the existing molds.
Our client came to us because his current vending machine supplier was too expensive. He needed a beverage machine with a 22-inch screen and a snack vending machine, so we contacted our long-term partner factory in Hunan. Based on his product, payment system, machine size, and usage scenario, the factory customized the right machines for him. Logo customization was included, and the final price was about 20% lower than what he found on his own.
The examples above are just a few of the private label products we’ve helped small businesses with. If you have a product idea, we can help you find the right suppliers for your product and budget, negotiate the price, handle customization and production from start to finish, inspect the goods, and take care of consolidation and shipping to your door. Come talk to us about your project.
Can you find suppliers yourself on Alibaba or other wholesale websites? Of course you can, but it can take a lot of time and effort. Many of our clients had already tried it, but soon ran into problems with high MOQs, communication, and keeping track of customization and production. That’s why they came to us for help. We’ve been doing this for over 10 years, so we’re pretty good at dealing with the problems that come up along the way.
