Buyer’s Guide to Private Label Manufacturers and Suppliers

April 7, 2018, Posted By : Team Yomillio

As a store owner or retail chain business, you have hundreds or maybe even thousands of products on the racks. How much is your profit margin on one unit of each product, and how much do you make on the product as a whole? Wholesalers typically double the manufacturer’s selling price, and retailers will go beyond that to 2.1 to 2.4 times the wholesale price. But if you are moving large volumes of a product, it might be a good idea to go private label.

In case you don’t know what is a private label or brand, we’ve already explored it in detail here. The general concept is that you either manufacture or get it manufactured and put your own label on it, and sell it exclusively through your outlets. That’s what makes it a private label.

private label branding

The benefits, including the cost savings and branding, are obvious. So there are plenty of buyers who want to create their own private label brands for all kinds of products, and they’re looking for manufacturers and suppliers who can give them quality products to sell under the buyer’s own private label.

If you’re a buyer, how or where would you go about finding a private label manufacturer or supplier for your label? How about packaging, shipping and logistics? How about the online or store sales and fulfillment part? Use markets listed below to source your private label products and packaging, and then the fulfillment and eCommerce website and storefront solutions.

1. Alibaba private label products and suppliers.

Alibaba is by far the largest and most active B2B marketplace in the world. It began as a gateway for buyers from around the world who wanted to connect with Chinese manufacturers and suppliers. But it’s now pretty much a global marketplace, or at least more of an Asian gateway. There are over 82,000 private label products and suppliers on Alibaba, so you will be able to source just about anything.

In case you’re wondering if it’s safe, there’s no easy answer. But Alibaba does have over 17,000 certified vendors that have ISO9001 certification, so it depends on the standards you set.

2. Indiamart private labeling services.

Indiamart is India’s B2B answer to Alibaba. Every business that wants to connect with buyers from distant markets, both domestic and foreign, is listed on Indiamart. Just contact the manufacturer or supplier who produces or sells what you need, and ask them if they can provide you with a private label solution. There are hundreds who already advertise their private label products and services.

3. Bstock private label liquidation marketplace.

Want to buy private label and brand consumer goods in bulk? Bstock is where you can get it. These are liquidation auctions of unsold inventory by the world’s largest brands including Walmart, Electrolux, Wolverine, John Lewis, Best Buy, Whirlpool, Lowe’s, Frigidaire, Macy’s and other department stores,

4. Amazon FBA logistics for private label fulfillment.

AmazonBasics is Amazon’s own private label storefront, where it sells hundreds of products under the “amazonbasics” brand. The private label supplier to this $450 million business division of Amazon is Cloudtail India Private Limited, a joint venture between Inc. and Catamaran Ventures. One of the Catamaran founders is Infosys Ltd co-founder N.R. Narayana Murthy. As a private label buyer, what you need to know here is Amazon’s FBA (Fullfillment by Amazon) service.

Way it works is that you find and engage with a private label supplier or manufacturer from one of the above marketplaces. You simply tell them to deliver to an Amazon fulfillment center, and they will then use their network of fullfilment and distribution centers and logistics infrastructure to deliver your private label product to your customers anywhere across the country.

Of course, the requirement is that you have to be a registered Amazon seller, so this arrangement with Amazon FBA works when you are starting a private label shopfront with products that you buy on Alibaba or Indiamart or some other supplier, and then sell through Amazon.

5. WooCommerce website for private label sales through Amazon FBA

Now you have the private label supplier you were looking for. You have an Amazon Pro Seller merchant account, with active Fulfillment by Amazon (FBA) service. All you have to do is set up a WooCommerce website, and toggle the product fulfillment mode for all products or an individual product for which you want to use Amazon FBA. It’s compatible with all Amazon regions across the world, and you can also connect it to a single region.

The bottomline is that once you have a private label supplier, a WooCommerce website, and Amazon FBA active on it, then Amazon will pick up the order directly from your site, ship it and track it for you. All you have to do is bring the customers.

WooCommerce Amazon Fulfillment

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