How private label can save quick commerce

Updated on October 11, 2022
In this article
In this article

What is quick commerce?

Quick commerce is an e-commerce business model that prioritizes the fast delivery of goods to customers. In the busy schedule of modern life, people with no time to waste have been looking for companies that fit into their agenda. The idea is a limit of one hour delivery time, focusing on small orders to fulfill the necessities of the consumers.

It’s common that we relate quick commerce to food and supermarket items, as many companies focus on this area, such as Gorillas, but there are many other areas explored by different companies. Gorillas and Flink are perfect examples of supermarket-focused quick commerce successes that conquered space all around Europe, but companies such as Glovo, famous in Portugal, and DoorDash, the American giant, are other examples of markets to explore.

After all, it’s not only groceries that people need on a daily basis, as everyone can relate to that feeling of “I forgot to buy this one thing and now cannot complete my plans”. As consumer behavior changes, the industry must evolve to follow these changes and be able to deliver anything a consumer could think of.

What is private label?

A private label corresponds to a manufacturer who creates customized products for third parties to sell under their brand. In other words, the manufacturer gives you the freedom to choose the formula, customization, or design of the product they manufacture for your brand. This personalized product will then be sold exclusively by this one retailer/re-seller who ordered the product. You get ease in production while being able to do small customizations in your packaging and formula.

Private label production is the best of both worlds. You get the ease of producing a “generic” product, with the option to make customizations and to make your product unique. In other words, the machinery for the production is already set, making it easier and faster to produce and also giving lower minimum order quantities while giving you the opportunity to personalize some aspects of the product.

Good for you, Wonnda is a platform that specializes in finding the perfect private label manufacturer for you and your brand to make sure your final customer will get the highest quality product in their hands in no time.

The advantages of private labels for quick commerce

Expand profit margins

The greatest advantage of opting for private labels as a quick commerce brand is the expansion of the profit margins. If the delivery only includes goods that can be found in other stores and supermarkets, the only profit the quick commerce is making is the delivery fee applied to consumers. If, instead of outsourcing the goods from other brands, the company decides to produce its private label products, the profit margin expands, as now we can keep all the profit from the purchase of the good as well.

Not only that, but since the products are produced by the same company, the company will also have control of the prices of the products, being able to offer competitive pricing to the consumers and not being subject to the choices of other brands.

If the quick commerce company chooses to produce its own private-label products, the company can get the profit margin from the selling of the products themselves and potentially exclude the delivery fee from the consumer’s paysheet, which is a huge advantage in the consumer’s mind.

Differentiation

As the company chooses to produce the goods itself, instead of outsourcing from other companies, it also has control over the production of said goods, allowing differentiation and innovation to play a significant part in the buying process for the consumer.

With private label products, the company can choose what to offer to its customers and sell products that are not available from competitors at competitive pricing while offering differentiation by selling customized products.

Wonnda made sourcing for European manufacturers easier than ever

Sourcing for manufacturers might be an inconvenience for some companies, as it can be a difficult process overall and might come with many challenges. That’s why Wonnda has created a platform to help you find the perfect manufacturer and start production right away.

All you have to do is register on the platform and tell us a little about the product you want to launch, including details about unit quantities, color specifications, size and formula of the product, and expectations regarding production time.

From there, we will match you with the perfect European manufacturer and bring your idea into reality.

Create your private label product line with Wonnda – the European platform for white label, private label, and contract manufacturing

Are you interested in producing your private label products in Europe but don’t know how to get your production up and running? Whether you’re an aspiring startup entrepreneur with an innovative product idea or an existing retailer looking to diversify your assortment with your products, launching your brand through a private label or contract manufacturing could be just the step you need to take your business to the next level.

Here at wonnda, we work with top European producers for private labeling and contract manufacturing. The first step in getting your product to market is probably the most crucial – finding the right production partner for your project. The great advantage of wonnda.com is that you can let us do the heavy lifting. Just tell us quickly about your project or product idea. We will then approach the most suitable producers for your project and connect you with them. Sounds interesting? Then fill out the form!

Create your next product line with Wonnda

Our platform lets you source, launch, and scale your product line with over 250 trusted European suppliers. So whether you’re looking to request products from our private label catalog of over 1,500 items or develop custom products from scratch, Wonnda has everything you need to get started. Best of all, it’s free to start today!

Set up your account in less than 3 minutes and begin your journey with Wonnda. Unlock endless possibilities for your business, bring new products to market and streamline your sourcing process from idea to launch on one single platform.

About the author
Alice Pegorin
Alice Pegorin is a talented writer and a world-citizen who was born and raised in Brazil. In 2019, she moved to Lisbon, Portugal to pursue a BSc in Marketing and Advertising at IADE-UE. Following her passion for business management, Alice moved to Berlin, Germany in 2022 for her Erasmus semester at UE-Germany, where she completed her studies. Alice is a curious and open-minded individual who adapts easily to any environment. She enjoys exploring new cultures and experiences, and is always eager to learn. Currently based in Berlin, Alice travels to Portugal from time to time to visit friends. Her passion for writing and business management makes her an invaluable member of our team at Wonnda, and we're thrilled to have her on board.
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