Why online retailers should start their own private label brands

private label for online retailers

Online retailing

Being a retailer is the reality of more than 5 million companies in Europe, representing 11,5% of the total supply chain companies in Europe. A retailer is a company that will buy smaller quantities from bigger manufacturers or distributors to brand and sell directly to consumers. These companies can be online or offline, meaning they can sell their products to their customers in a physical brick-and-mortar store or through a website on the internet.

Online retailers will receive the product from the manufacturer and will sell them online directly to their consumers, being responsible for delivery and quality control.

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.

Starting your private label brand as a retailer

The greatest disadvantage for retailers is the lack of customization and personalization of the product they sell since it comes directly from the manufacturer. This is a positive side for smaller retailers, who don’t have the budget to invest in their production and will rely on branding and marketing to build a consumer base for themselves.

Once the online retailer is established on the market and has a consumer base that they can rely on, it might be time to consider starting your private label brand. By making a private label contract with a manufacturer, the retailer still gets the ease of production while being allowed to decide on customizations and personalizations of the product.

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!

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