8 Essential Tips For Sourcing Private Label Products From China

August 29, 2022 eCommerce TipsEntrepreneurs

According to a new study, private label products are more profitable than their national brand counterparts. Private label products yield 35% profit margins compared to 26% for national brands. Sourcing private label products from China is often seen as an easier and faster way to launch new products. This is quite true, only if done correctly. The benefit of private labeling is that you can create a branded product, without investing too much time, effort, and money in product development and tooling. Therefore, you can launch a product much faster, and at a lower cost. Continue reading to discover 8 essential tips for sourcing private label products from China.

Draw Your Business Plan

This tip may add a little cost but will help you realign your private label business plan with the estimated budget. Starting a private labeling business can cost you between $1,000 -$1,500 – private label budget for small businesses. Among the private labeling costs to include in this budget are manufacturing, logistics, product acquisition, marketing, branding, and licenses. To have a stress-free workable plan, research is needed to evaluate all private label costs.

private label products

Research For A Niche Market

Market saturation and dominance of other brands are among the few market entry barriers you need to overcome from the beginning.  Finding private label products that fill a particular market gap will reduce competition and have smooth market entry. Based on your preferred target market, research for products that people claim to be inferior and plan for a better product. Or, research for products that are out of stock and you can offer an alternative. Among the niches, you’ll likely find private label products to dropship are beauty and cosmetic products, fashion and clothing, gadgets and electronics, etc.

 Get The Best Private Label Manufacturer For Your Private Label Products

Getting the best private label manufacturer who would manufacture the product of your dream isn’t a challenge to wish away. To find a good and reliable manufacturer, you should visit online private label manufacturing directories. After settling on one, make a direct call or send an email to enquire about the company’s manufacturing process and costs. Remember to ask for samples before placing your first order. Also start with a small order and if sales catch up, you continue.

Brand Your Products

Hoping you’ve created your brand and designed a logo, you also have the option to source branding services from your manufacturer or hire a third party. To avoid trademark and patent rights problems, do thorough research on your brand name and logo before using them on your products. A nice and cute packaging, branding, and logo design will contribute to the success of your product. Do the best or hire a top-notch graphic designer.

Capitalize On Online Marketing

How customers find their ideal product has changed and everybody has gone online. Social media platforms like Instagram, Facebook, WhatsApp, etc. have become a marketing hub for many entrepreneurs. Almost all these platforms have an interactive feature that you can use to launch your private label products. Use every online marketing strategy at your disposal to create awareness of your products before releasing them to the market. Initiate, encourage, and carry-on social media discussions about your private label products, branding, and packaging design.

Be Consistent On Quality And Supply

Private labels have control over production and supply chains. Many are tempted to minimize the costs of production by reducing the costly raw materials. The first factor potential customers will consider before buying a product is value. Will your store brand satisfy customers’ needs?
Keep improving your value and build loyalty around it through consistent marketing. Don’t allow gaps to sneak in due to stockouts. Monitor your sales and ensure you have a steady supply from your chosen third-party manufacturer.

Focus On Product Value

What will make customers used to a competitor’s product turn to yours? It takes a lot to convince them to buy a new product unless it’s generic clothing or a water bottle. Ensure your branding describes the value of your products. Cost is the second factor old and new customers will consider. First, hook them with value and they’ll fall into your base. When designing and developing your product, try to add spices that will add real value to your products.

private label products

Be Flexible

Don’t stop after you’ve done first-time branding. After collecting all the reviews about the branding, packaging, quality, and customer experience, do some tweaking to suit your customer’s needs. Enhance the quality, taste, and value of your private label products while keeping your pricing competitive. And since you’ve calculated your costs, remember to offer discounts but don’t go too deep. Otherwise, your brands might be perceived as being inferior.


Before launching your private label brand, you have to strategically position it to break all market entry barriers. With almost every market segment saturated with different product lines, uniqueness and branding will play a significant role in placing your store brand in an elevated position. These 8 essential tips for sourcing private label products from China that have been discussed above will put you on the boat of a flourishing business.

Fulfillman offers dropshipping business owners the opportunity to private label their dropshipping products. Contact us today to know more about our private label dropshipping services. Our dedicated representatives will be available to speak with you and discuss your available options. With us, you are guaranteed to get quality and outstanding services that give 100% client satisfaction. A fantastic experience awaits you!