Every part of the process, every step you take towards success in private label retail is just as important as the next and missing even one can spell disaster. It’s difficult to say which one has the biggest impact on your profits. Marketing, shipping and logistics, customer satisfaction; they all eventually lead to the bottom line. However, there is one step in getting your private label business off the ground if you’re a beginner or leaping off a stagnant plateau if you’ve been in the game for a while: the manufacturer. Finding the right product supplier for your private label online store has a HUGE impact on your profit margin and we’ve got some tips to find yours!
The Why…
When it comes to explaining why a supplier can make or break the bank for a private labeler, the short answer is MONEY. This may be the part of the private label process that requires a bit more effort and research on your part. You’ll need to compare production costs, shipping options, ease of contact, ability to customize; all of these things lead to the right supplier that will product quality products at a reasonable cost for you to resell on your online store at a high margin for profit.
The Canton Fair
The hard part is wading through the thousands of different product suppliers and often dealing with a language barrier since most are overseas. The best place to meet the best of the best is at the Canton Fair in April. When you go on our expertly guided Canton Fair trip you’ll have access to our team to help you navigate the entire process.
One big thing to remember when working with Chinese suppliers is their holiday calendar. Manufacturers and suppliers take several more days off during the Christmas season, and that could affect your shipping and fulfilment times. Be aware before you begin working with Chinese suppliers so that you can start early enough to receive your inventory for Black Friday.
Where NOT to Go
Even beginners in the private label industry have heard of Alibaba. In 2014, Alibaba was the world’s largest eCommerce company, and that’s even over Amazon and eBay combined! It wouldn’t surprise anyone if they were your first choice when sourcing manufacturers for YOUR private labeled products, and they’re actually great for those new to the scene.
However, when it comes to cultivating longevity for your company as well as profit, you’ll have to cultivate quality relationships with those that are manufacturing your products. With Alibaba, contact with the actual manufacturer is limited, often leading to miscommunication with product specifications as well as their quality. The relationships you’ll make with the manufacturers on our trip to the Canton Fair will far surpass anything you could ever gain from Alibaba.
Tariffs
You can’t turn on the news these days without hearing about tariffs. Considering the country the vast majority of those tariffs is affecting is also where almost all private label products are produced, it’s understandable to wonder how it will affect your business. Having the right support with decades of experience behind you will ensure you’re informed and prepared for any type of cost increases indirectly caused by the higher taxes.
What to Look For
There are a few main points about your preferred supplier that you should prioritize. First and foremost, the goods you’ll actually need produced and whether they’re able to handle it. Second, you’ll need to negotiate the lowest prices for factory direct products. Which brings us to the third point: the quality of said products. It will be a fine line to navigate to get the highest quality products for the lowest price. Next, you’ll have to verify their ability to deliver your products on time and in good condition. Which brings us to the last point of inquiring about their history with product defects and damage to goods due to poor shipping practices.
We understand that this is a lot to remember, especially since we’re emphasizing just how important it is to find the right product suppliers. That’s why we’re here to offer our years of experience to help those that are in need of a bit of guidance and provide the introduction to the best pool of suppliers with a helping hand, every step of the way. Get a leg up on the competition by checking out some of our online courses to prepare you for the exciting days ahead.
