What are Private label products?
Private label products are those products that you have created yourself and now want to let others sell under your label. In simple terms, a Private Label Product is selling third-party brand products under your brand name. In this model, first, you contact the actual brand manufacturer and tell them all the details about the product you wish to sell. Then the brand manufacturer creates the actual product, packs it up according to your specifications, and ship it to your retail store so that you can retail it under your brand name.
Once the product gets to your store, what happens next? There are two options here. You can either take the private label product and sell it on your own, or you can work with a niche partner. For example, if you have created a niche for dog lovers and know a lot about dog training, you could team up with a private label drop shipping company that deals with pet products and find a way to sell dog-related products e-store. Your niche partner will take care of all the logistics - stocking, shipping, etc. - while you concentrate on the marketing and generating sales.
What is FBA?
On the other hand, in the case of an FBA program, you are not taking on another private label manufacturer's help. Still, you are sourcing the goods yourself from a third-party manufacturer. Your e-commerce shop must be hosted on a website that is registered with the FBA. The FBA does not approve private label sellers. However, registering your website with their program gives you some advantages, such as having a domain directly linked to your Shopify store, having a custom login page, and more.
Private labeling is popular with those who are looking for affordable and customizable solutions to their e-commerce problems. With a unique label shop, the customer does not have to look at several sources of products to choose from. With a traditional e-commerce business, it's quite challenging to authority the right products and keeps them in stock. With a white label Shopify program, the customer can access thousands of quality drop shippers, manufacturers, and distributors, all from one portal.
Dropshipping is not the only option for private label products. You may also choose to private manufacturer products on your own. However, some disadvantages are associated with this approach, such as handling, packaging, and shipping the products yourself and dealing with any problems that come about with private label products.
To start sourcing and manufacture your private product, you have two options: register your website with a private product manufacturer or sign up with an FBA program. An FBA program is an authorized third-party seller. By registering with an FBA program, a manufacturer will accept your private product’s orders and ship them to your customer with your company name and label on the packaging. Registering with an FBA program comes with a fee and requires a significant investment in time and resources. When sourcing or manufacturing private products, it's always best to source from an FBA program.