Table of Contents
- What is a private label?
- Why is dropshipping an easy way to sell private label products?
- What is Alibaba’s private label?
- What do I need to be aware of when searching for private label manufacturers?
- Which categories are great for private labeling?
- Advantages of private label
- Disadvantages of private labels
- How to find good private label manufacturers on Alibaba?
With the growing success of your eCommerce store, you might be thinking about providing a more bespoke product offering to your loyal customers, even started as dropshipper. Maybe it’s sneakers with unique graffiti, or hair dryer with special attachments.
Dropshippers might find that AliExpress sellers don’t provide such service, and they start to look at Alibaba’s private labeling service. So what exactly is private labeling, how does it work, what can you do with Alibaba private labeling, and more importantly, how do you find Alibaba private label manufacturers?
Before we get into the real details, let’s start by discovering the brief answer.
How do you find Alibaba private label manufacturers? Be sure to research the companies fully first and find out if there is a minimum order quantity. Also make sure you understand exactly what service they offer in terms of customization, quality, prices, delivery, and shipping. The simplest way is to use a trusted agent to manage it all for you.
Ok, so now we’ve got the quick answer to get you started, so we can understand a little more fully about where to find Alibaba private label manufacturers, let’s unearth a few details as to exactly what a private label is and how it can help grow your dropshipping business.
What is a private label?
Private labeling is when a manufacturer creates a product exclusively for a retailer who will sell it under its own brand.
For example, Hair salons often create their own branded line of shampoos, conditioners, and styling products for their customers to buy and take home.
Usually, private label products are usually less expensive than national brands. There are great benefits not only for your customers in terms of lower-cost goods but also for you as the store owner.
With a great marketing strategy, private label products can be lucrative for dropshippers.
Why is dropshipping an easy way to sell private label products?
If you’re an online store owner, you can find suppliers from Alibaba, will sell products exclusively to you and will add your own branding.
So you might be wondering how it all works? Let’s find out what Alibaba’s private label is and what can do with Alibaba’s private labeling.
Let’s find out a little more below.
What is Alibaba’s private label?
Alibaba is China’s largest online commerce company. It’s a trio of sites, Taobao, Tmall, AliExpress, and Alibaba.com, connects hundreds of millions of merchants and users, and manages business more than any other e-commerce company.
Alibaba.com is the B2B marketplace that connects Chinese factories with non-Chinese buyers. Business owners are able to buy products in bulk and add the following customization, to provide a bespoke design freeing to your customers. A few of the types of customization available are listed below:
- Labeling, customized packaging
- Unique products, which will include unique molds, dimensions, and designs
What do I need to be aware of when searching for private label manufacturers?
Although many private label manufacturers offer up the services above, each supplier will have its own set of offerings. So do make sure you check thoroughly so you know exactly what kind of private label customization you will be paying for.
High minimum order quantity
It’s also important to understand that some eCommerce store orders might be not large enough in terms of order quantity in comparison with bigger B2B importers. So it might be that some Alibaba sellers won’t offer private label services or indeed any kind of ordering facility for those purchasing smaller quantities. Some sellers have a very large minimum order quantity (or MOQ) which could be thousands of units.
So which categories of goods work best for private labeling? Let’s find out.
“Some sellers have a very large minimum order quantity
(or MOQ) which could be thousands of units.”
Now you have understood a little more easily about the kinds of things to watch out for when sourcing Chinese private label manufacturers, you might be wondering if your offering would work with a private label. Let’s take a look and find out.
Which categories are great for private labeling?
Generic products such as:
- Skincare products
- Home decor
- Kitchenware products
Let’s discover what some of the main advantages there are to finding Chinese private label manufacturers.
Advantages of private label
Private labeling offers a wide variety of advantages. Some of which include:
- Stand out from the crowd – By adding a bespoke look to your store, you are able to offer a more unique product. Also, you will be able to offer, for example, a range of colors or fabric designs for your product which could attract more business for products your competitors aren’t able to offer.
- Perfect for generic products – Generic products such as electronics, shoes, clothes, etc. are a good option for private labeling. Many dropshippers will realize the value of generic goods as they are lower in price, which may more easily attract customers. This way, private labeling for generic products can help to reduce your costs and increase profits.
- Customization – One of the chief objectives for most eCommerce store owners is that private labeling allows customization of the products and establishes your brand. The ability to order products in a range of designs means it’s possible to launch a range of products under your own business name.
- No Mold or Tooling Costs (sometimes) – Some suppliers don’t charge no mold or tooling costs involved in private labeling. The supplier is responsible for handling the production.
So now we’ve seen some of the best reasons to find Chinese private label manufacturers, so you can get a more rounded picture, let’s look at some of the disadvantages.
Disadvantages of private labels
- Slower communication language barriers can create difficulty in communicating and customer service
- More upfront costs With the need to stock up on inventory will result in a bigger hit to your cash flow with upfront costs
- More dots to connect Most Alibaba suppliers only offer production, so you will need to find a warehouse in China who offers a service for labeling, photography, freight forwarder/ shipping service provider, and other procedures
So now you’ve checked out the benefits of private labeling and also discovered what you need to consider, you might be wondering how to find a good private labeling manufacturer or Alibaba.
Let’s discover more below.
How to find good private label manufacturers on Alibaba?
Before you go ahead with a private label order from an Alibaba manufacturer, there are few considerations to make sure you fully understand before you part with any money and begin customizing with a private label seller.
First of all, search and shortlist a bunch of candidate suppliers. Make sure to check their profiles and trading histories, and if they are certificated suppliers. Ask any questions you might have and narrow down the list further.
When communicating your needs with Alibaba manufacturers, bear below in mind:
- Quality Investigate fully the quality of the product by asking for samples
- Prices Check there are no hidden extra costs that you might be unaware of and ensure you have checked out other manufacturers prices for comparison
- Delivery and shipping Make sure you have fully understood the delivery times and shipping as this could prove disastrous if your expectations for shipping are way off the mark.
Work with an agent for a one-stop private label solution
The most secure way of choosing a Chinese private label manufacturer is to use a trusted agent.
A reliable agent will understand all the important considerations of choosing the best suppliers and can manually do this for you. They are often based in China or set office in China, and they are familiar with the industry and what questions to ask.
A dependable and credible dropshipping agent can handle everything you need to begin your own customized label offering. They help sellers overcome language and other issues for best outcome.
They will be able to find the best quality suppliers and will also be able to communicate effectively and easily without language issues and can work with you and your supplier to ensure smooth payment processes, organize the logistics, and more!
“The most secure way of choosing a Chinese private
label manufacturer is to use a trusted agent.”