You’re looking to start an ecommerce brand, and you’re considering the private label model.
Private labeling is the process of purchasing a product that’s already being made by a factory, and putting your own brand on it. For example: a portable fan with no branding. You have the factory producing that fan make a special batch for you with your own logo on it.
The major difference between private labeling and dropshipping is that with private labeling, you actually store the inventory, package the orders, and control the entire process yourself. With dropshipping, the factory or supplier handles the shipping for you.
Now that you have a better idea of what private labeling is, here’s the guide, broken into three pillars: sourcing, shipping, and branding. That should give you the basics to get started, and all of it is explained here for free.
1. Sourcing
You’ve chosen the perfect product, done your research, and you have an idea of what you want.
Sourcing is one of the most important steps. Bad product quality means bad brand reputation, and you’ll be building on bad ground.
For ecommerce, sourcing is usually best done through Alibaba.com for small quantities under $10-20k in stock value. There you’ll find almost every product manufactured in China, listed by multiple suppliers. This is an important point, because that doesn’t mean all suppliers maintain the same quality or price.
That’s why, before choosing a supplier, it’s important to negotiate prices, negotiate minimum order quantity, and order a sample before committing, so you can test the product yourself.
2. Shipping
After sourcing, product sampling, and agreement, comes shipping. Although it might seem complicated, it’s actually quite simple.
It splits into two legs: supplier to shipping agent, then shipping agent to Lebanon.
A shipping agent is a shipping company that receives your order in China and ships it to Lebanon. There are a lot of these companies in Lebanon, so it’s important to choose one that actually has people on the ground in China and can act if anything goes wrong with your shipment.
There are two shipping methods: by air or by sea. For small products, air is recommended for faster turnaround, while sea is better for larger, battery-packed, or liquid-containing products, since air shipping gets extremely expensive for those.
Air shipping is charged by weight, at a rate per kg. Sea shipping is charged by space in the container, at a rate per CBM. Rates vary depending on fuel costs and air/sea traffic.
3. Branding and Marketing
Once you have a private labeled product in hand, it’s time to take advantage of that with professional branding: packaging, website, social media, and video content or ads. The goal is to create a premium feel for the product, and tie it to a brand people can trust, rather than a generic product.
This step is probably the most complex of the three, and it could easily fill 10-20 blogs on its own without covering every angle. To keep this guide simple, that’s as far as it goes here, so check out other posts on this blog for more depth on this step and the ones before it.
With this general view of how ecommerce and private labeling work in Lebanon, you should be able, with some research, to shape an idea or a plan to get started. This guide is meant to be simple, but information packed.
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