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!


Assume you have a fantastic idea for a new ecommerce business. Or perhaps you’ve discovered a new product that would be a great addition to your brands. One of the first decisions you’ll have to make is how you’ll get the products you’ll need to put your concept to market. In this blog, we’ll look at nine product sourcing tactics for ecommerce firms, as well as several sorts of product sourcing.

What is Product Sourcing?

Product sourcing involves choosing credible suppliers from whom you can purchase high-quality goods. You may need supplies for the manufacture of your product or intend to resell them. The primary objective is to acquire the top-quality product at the lowest cost. That margin will facilitate your brand’s success.

What To Consider Before Sourcing A Product

Before sourcing a product, here are some things to consider:

DIY Products or Services

The internet has made it easy to sell handmade goods like knitted blankets, handmade jewelry, and hand-drawn paintings. However, you’ll need materials. You may find these in craft stores, large stores, and other outlets. Then you’ll have to figure out how you’ll deliver orders to customers.

Collaboration with Wholesalers or Manufacturers

While your business expands, you will discover you don’t have enough capacity or personnel to create your products; you could decide it’s essential to engage a manufacturer or wholesaler to help you build your product, or at the very minimum, enhance your DIY efforts during peak seasons.

Engaging the Services of a Fulfillment Center

A fulfillment center is a third-party logistics firm or a dropshipper that allows you to buy things from a vendor and sell them on your website. Basically, you’re unloading goods, packaging, and fulfilling orders.

9 Product Sourcing Strategies for Ecommerce Startups

Below are some product sourcing strategies for ecommerce startups:

Do Research

You may believe you have a fantastic product concept. However, the market may not agree. As a result, you’ll need to perform some market research to identify what products interest your customers. Furthermore, don’t just start selling a product because of the huge profit margins; because margins will be meaningless when no one buys.

Be Constantly Sourcing

Although sales may be high and you might believe you have chosen the best product source, it is vital to keep sourcing and searching for opportunities continuously. Being complacent can be disastrous for any business. You can stay relevant to customers while also maintaining profitability when you keep checking out new products and trends in the industry.

Emulate the Successful Vendors

Once it concerns product sourcing, there’s no big deal in emulating the business tactics of other established vendors to be successful yourself. You can place an order with one of your competitors. By inspecting the packaging, you should be able to determine who supplied the product. If you are impressed with the services, including packaging and delivery, the company could probably be ideal for product sourcing.

Go Offline

Why would an online business branch out into the physical world? To perform some research! By attending business conferences, you might be able to identify a good product source. You can also engage product manufacturers, and creators face to face at these events, potentially forming a long-term partnership.

Prepare a Backup Strategy

Having a secondary supplier is understandable, and it doesn’t always imply you don’t appreciate the other supplier. If your primary supplier suffers a disaster, such as a cyberattack, a severe storm, or a defective product, it can drastically disrupt your supply chain. With a backup plan, you can run your business smoothly without any disruption.

Consider the Local Business Environment

Many ecommerce vendors will go to China for production solutions in order to enhance profit margins. However, keeping product sourcing and production local to home may be to your benefit sometimes. Besides, you will have the assurance that the US government regulates the product, and you will also be able to avoid language hurdles and other difficulties. Plus, a “Made in the US label” can also be a significant selling point and product identifier, depending on your target audience.

Remove the Intermediaries

The more the number of entities in your supply line, the higher the product price. If possible, get your products directly from the source or as close to the source as you can; this will help to reduce costs while boosting profits.

Get Acquainted With Your Supplier

You should maintain your relationship with your suppliers such that they easily remember you when they have a new product or quickly attend to you when you’re stocked with a defective product. Furthermore, a good supplier will offer you all of the information about the product, including descriptions, FAQs, and buying tips. Most of this information is incredibly useful to customers, and it might be the difference between generating a sale and losing a customer to a competitor.

Establish Your Own Trend

On the other side, if a market is saturated, hopping on board may not be in your best interests, especially if you don’t want to end up with a lot of unsold goods. After performing some research and consulting with vendors, it may be preferable to venture out on your own and establish your own trends.

Choosing a Reliable Product Sourcing Partner

The importance of finding a trustworthy partner cannot be overemphasized. There are crooks out there attempting to prey on new ecommerce businesses. They usually pose as manufacturers or distributors, buy from someone else and then resell to you at exorbitant prices; this can reduce your profits. So, it’s vital that you do your research to avoid working with the wrong partner.

Contact us today at Fulfillman to know more about our services. We specialize in providing excellent Drop Shipping services, Warehouse fulfillment, China sourcing, Third Party Logistics, and so forth. Our dedicated experts will be available to speak with you and discuss the options available to you. We guarantee you get quality and excellent services that gives 100% client satisfaction.