Why Online Retailers Should Start Their Own Private Label Brands

Updated on October 3, 2022
In this article
In this article

Online Retailing: A Modern-Day Marketplace

Online retailing represents a new age of commerce, where companies use the internet to sell their products directly to consumers. As online retailers, these businesses source products in smaller quantities from larger manufacturers or distributors, rebrand them, and make them available for purchase on their websites. They manage all aspects of the transaction, from order processing to delivery, and even quality control.

The scope of online retailing is vast. It can range from large multinational businesses selling a wide variety of products, to small niche retailers who specialize in selling specific types of goods. This digital revolution in retail is reshaping the way businesses operate and consumers shop.

Why Retailers Should Embrace Online Selling

In the digital age, retailers stand to gain a multitude of benefits from selling online. Here are a few key reasons why businesses should consider venturing into online retail:

1. Wider Customer Reach

Traditional brick-and-mortar stores are limited by their geographical location, serving only customers in their immediate vicinity. In contrast, online retailing allows businesses to reach a global audience, increasing the potential for sales and growth.

2. Cost Efficiency

Setting up an online store can often be more cost-effective than maintaining a physical storefront. Rent, utilities, and in-store staff expenses can be significantly reduced or eliminated.

3. Flexibility and Convenience

Online stores operate 24/7, allowing customers to shop at their convenience. This flexibility increases the potential for sales beyond regular business hours.

4. Data Collection

Selling online allows businesses to collect valuable data about their customers, including shopping habits and preferences. This data can be used to tailor marketing strategies and personalize the customer experience, ultimately driving customer loyalty and increasing sales.

5. Better Inventory Management

Online retailing often comes with integrated inventory management systems. These systems provide real-time inventory tracking, helping businesses optimize stock levels and reduce storage costs.

The transition to online retailing can be a game-changer for businesses in the modern marketplace. The potential for a wider customer reach, cost savings, and increased sales make it an enticing strategy for retailers looking to thrive in the digital age. And online retailers can take their businesses to new heights with platforms like Wonnda, which connect brands with private label manufacturers.

Rise of Online Retailing in Europe

With over 5 million companies representing 11.5% of Europe’s total supply chain entities, online retailing has taken a significant leap. As online retailers, these companies purchase smaller quantities from larger manufacturers or distributors, branding and selling products directly to consumers. They take charge of everything from receiving products from manufacturers to managing delivery and ensuring quality control.

Private Labeling: A Game-Changer for Online Retailers

Private label manufacturing, creating customized products for third parties to sell under their brand, presents a golden opportunity for online retailers. This practice allows retailers to choose the product’s formula, customization, and design, offering a level of product exclusivity that can significantly differentiate their brand in the marketplace.

The brilliance of private labeling lies in its best-of-both-worlds approach. It offers the simplicity of creating a “generic” product while also allowing the opportunity for customization to make the product unique. Since the production machinery is pre-set, it provides a faster and more effortless production process. Moreover, it often offers lower minimum order quantities, enabling online retailers to personalize some product aspects.

In this realm, Wonnda emerges as a valuable platform, helping online retailers find the perfect private label manufacturers. It ensures that the end consumer receives a high-quality product, reflecting positively on the retailer’s brand.

Advantages of Starting a Private Label Brand for Online Retailers

One of the challenges online retailers face is the lack of customization and personalization of the products they sell, as they come directly from manufacturers. However, this scenario is changing with the advent of private labeling, which is especially beneficial for smaller retailers. Without investing heavily in production, these retailers can rely on branding and marketing to build a solid consumer base.

As the online retailer’s market presence solidifies and they establish a reliable consumer base, it may be the right time to start a private label brand. By signing a private label contract with a manufacturer, online retailers maintain the ease of production while gaining the authority to decide on product customizations and personalizations.

In summary, the rise of private label brands presents an opportunity for online retailers to deliver uniquely tailored products to their customers, differentiate their brands, and enhance profitability. With the help of platforms like Wonnda, finding the right private label manufacturer to start this journey has never been easier.

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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