Is it Worth Developing Custom Private Label Products?


If you are in the process of establishing an online business, your own brand or presence, the next step for you will be to introduce your own products. This may sound like an intimidating procedure, to begin with, but there are ways that you can develop a product idea without great stress and with low costs.

Enter private label manufacturers; the perfect way to kickstart your private label brand. Put simply, a private label manufacturer is a third-party manufacturer that helps you create your own private label products. 

They will work in accordance with the private label business owner to deliver the correct ingredient formulations and quality of produce. 

In this article, we will take you through the process of starting your private label brand, the benefits of doing an ecommerce business this way, and how you can get started.

Is it Worth Developing Custom Private Label Products?

How to get started with your private label brand

So, at this point, you will likely have a business concept and a goal to sell online. But, getting to the point of creating products may feel like a pipeline dream. This is far from the truth, and there are a few steps you can take to get yourself ready to start your own private label business. 

Conduct market research 

It is essential that you first look into the market you would like to occupy. For example, maybe your product is part of a niche market, or you only want to use certain ingredients. These are all things you should consider while paying attention to competitors in the same market. 

Whether you're selling private label furniture, wanting to become a private label electronics brand, or dreaming of private label toy ideas, there will be a way that you can jet propel yourself into launching private label products.  

Locate private label manufacturers

Once you know which product you want to sell, you need to find a suitable manufacturer. Many private label manufacturers sell cosmetics and clothing, so if you are entering these industries, you should be able to find a manufacturer quickly. Make sure they are a reputable and reliable manufacturer with experience in ecommerce business.

Once you have decided on the best private label manufacturers, you can then order samples and test out the products to ensure they are definitely the right for you so that you can finalize your decision. 

During this process, you will need to have a hands-on approach when curating ingredient lists and production methods to guarantee your private label goods hold power to be successful in both a niche market and a huge market. Tapping into popular formulations is the best way to ensure your private label products directly meet the needs of your target market.

Private label manufacturing services will also allow you to complete product testing, which helps you see if the shelf life claims are accurate and if your consumer base likes the feeling of the product on their skin. 

Begin working with a private label manufacturer

After a few attempts and renditions, you should land on samples that are accurate and align with your goals, putting you in the perfect position to start selling your very own private label products officially! 

You will be able to place a bulk order from the manufacturer and should pursue quality control checks when you receive the private label products. You can then assess how you wish to keep up with stocking your product line, whether you want to place orders when you need them or in anticipation of your supply needs. 

Is it Worth Developing Custom Private Label Products?

Inject your own brand into the product line

It is important to note that when you receive the product from your private label manufacturer, you will then be responsible for the next steps of your private labeling journey. You will need to execute branded packaging that represents your business while highlighting the best parts of the product itself. 

Throughout your time working closely with private label manufacturing services, you will become highly educated on the formulations and selling points of the private label products. Tap into these aspects to ensure your line stands out and doesn't come across as a generic private label product


Deciding on a solid pricing strategy is vital to creating a successful private label. You can price private label products up to a minimum of two times more than your manufacturing cost to ensure you make a sufficient profit. This is a good starting point, as your private label products won't be unreasonable but will still be priced at a point that makes you a profit. 

Over time, you can increase your selling costs once you have a loyal clientele enjoying your product line. Using a reliable private label manufacturer means that you will likely be delivering products with the benefits of those in the high-end industries, so there is no reason that your pricing shouldn't reflect that. 

Benefits of selling private label products

Now that you know how to go about the process of starting your private label business, you may be wondering what the benefits are. To help you gain an understanding of this, we have put together a list of the main benefits that you should keep in mind;

  • You have complete creative control of your private label product, directly working with third party manufacturers to ensure that the ingredients and quality are up to the standard you expect. 
  • When private labeling, you can anticipate the needs of your target market by keeping track of a few trending products currently on the market. This ensures that you can keep up with rising market demand for specific ingredients and formulas, which helps you to make your private label profitable. 
  • Marketing campaigns and branding elements such as brand name and color palette are in your control, meaning that the manufacturer doesn't have control of the final private label product you sell. 
  • You can optimize production costs by delegating a price strategy that ensures your profit margin is sufficient. 

Final thoughts

It is clear that at the beginning of becoming an ecommerce business, creating custom private label products is a great way to enter niche markets and help your business gain momentum while introducing new customers to your brand. 

Private labeling is a reliable means of generating a high-profit margin and an excellent way to gain full creative control of your private label product line. 

Frequently Asked Questions

Can you make money private Labelling?

Private labeling is a great way to earn money for small businesses that don't have the funds to work with big corporate suppliers. It is a genuinely profitable ecommerce business strategy and allows you to take full creative control of a product idea.

Is a private label owned by a manufacturer?

Private label products are made by third party manufacturers but are sold under the retailers' names. The private label seller is responsible for pretty much everything to do with the product - from ingredient lists, packaging, branding, and costs. 

Why do retailers prefer private labeling?

Private labeling is a preference for many retailers as they can optimize production costs while still providing their clientele with high-quality products under their brand name. 

What is the most important need for private labels?

Private labels should focus on anticipating customer needs and their target market, which will ensure that they can form customer relationships leading to brand loyalty. In addition, having a reliable manufacturer is also advisable to guarantee that product supply will be consistent.