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What is Private Label? Why You Should Start Selling Today

One of the many hurdles of any budding entrepreneur or small company is finding the right product to sell. But you don’t have to invest thousands into product research and development. Private labels can help you sell already-proven products under your very own brand. In this article we take a look at what is private label and how private labelling can get your new venture off the ground.

What exactly is private labelling?

Private labelling is when a retailer sells products that are manufactured by a third party under a different brand name. Private labelling is very popular in a wide range of consumer product categories. This includes skincare, cosmetics, household cleaners and even food items such as frozen foods and beverages.

What are the advantages of private labelling?

Apart from removing the need to develop your own product, private labelling has two distinct advantages:

  • Full control: with private labelling, you are given full control over production and the manufacturing process. Most private labelling companies will follow your directions in terms of ingredients, quality and product quantities. You also get to dictate your own pricing and branding strategies.
  • Adaptability: having a private label product allows you to react quickly to changing market trends. You can easily fill gaps by asking your private label to manufacture a certain product at commercially viable quantities and costs.

These three advantages all work together to give you higher profit margins, lower operating costs and greater market stability. These are all key things in creating a highly successful business.

What can I expect when working with a private label?

As we continue to take a look at what is private label and its advantages, it’s important to know what exactly a private label company does. Most private labels offer the following services:

  • Formulation and Development: private labels will ensure the development of any product meets a certain standard of quality.
  • Product Design and Marketing: most private label companies will have a default product design which you are free to change depending on your own marketing strategy.
  • Product Packaging and Labelling: private labels also design, print and apply custom labels and packaging to your product.
  • Bottle Filling: For product lines which require bottles, vials or jars (such as skincare products), private labels will also provide bottle filling services.
  • Logistics Management: Once created, private labels will conduct QA, properly store your product and securely ship them out to intended destinations.

A reputable private label will always directly work with you when creating your product. They’ll also involve you in decisions and provide advice when needed.

Start working with a private label company today

With the question of ‘what is private label’ answered – as well as it’s advantages – there’s nothing left to do other than get started creating and selling your own private label brand. Looking to get high-quality private label skincare products and a comprehensive private labelling service? Look no further than H&H Australia. Contact us today to see how we can help you get started today!