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What is “Private labeling” and should you?

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Received a question asking what is private labeling and is it something we should get involved with?

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20 thoughts on “What is “Private labeling” and should you?”

  1. That’s always the issue not only with many sellers but also businesses in general. They come up with a name and then don’t want to spend the money to trademark it or don’t do enough research and end up with someone else registering and taking their name or being sued by someone whonis already using their name.

  2. Hi Neil,I have a private label product that is currently selling on amazon in the U.S. I’m a newbie and had the product made in China and from there it was sent to an amazon warehouse in Texas.The main issues I did not understand or had never heard of was the importance of getting reviews in a legal way for your product.Also one needs to spend money on advertising campaigns to help get your product seen in the amazon search engine.Hope this helps for people thinking about selling on amazon.I’ve been selling for six weeks and am averaging 2 sales a day.Product sells at $29.98.Cheers Brian.

    1. I nearly bought into the Amazon push but asn’t prepared to risk and money, something didn’t seem right about it and i wasn’t prepared to take the risk. What is your product? and do you have re-sellers in Australia? I’m keen to start on ebay again as i have sold on their for 18 years, but when i sold businesses i had to let the ebay site go with them. Now i’m starting a fresh site hopefully with the tip’s Neil has to offer. I already have imported from China, so that’s no challenge. But taping into ebay again, with the Asian Invasion on ebay in Australia, now that’s my challenge!

  3. Hi Neil,This is the conclusion I have reached after 9 months research and 3 courses on Amazon.I have met people who invest huge amounts on one product and rely on “hope-ium”
    It rarely works.
    I am looking forward to talking with you tomorrow and starting my Ebay dropshipping business to get some relatively risk free experience with your Dropshipping Mentoring Course

    Many thanks
    Tony

  4. Thanks Neil. Some great tips on private labelling there.
    Interesting stat that $36,000 investment to produce $1,000 profit per week.
    Do you mean on average importers need to invest $36,000 EACH week to produce $1000 profit per week? If so, wouldn’t you would be better off sticking the $36k in the bank at 3% and save yourself all the risk and effort? Are you able to clarify please? cheers

    1. Hi Andrew, 3% would only give you $1080 after 12 months of interest.
      Well actually a bit more because of the compound effect of monthly interest.
      Whereas $1000 per week profit can potentially give you $52,000 profit over 12 months.

      1. Hi Neil,
        Yes $36,000 invested at 3% would give you $1,080 interest after 12 months.
        But $36,000 invested at 3% *each week* would give you over $27,000 after 12 months.
        That’s why I was hoping you could clarify whether you meant $36k per year or $36k each week. How many weeks profit of $1,000 do you get in return for your initial $36k investment? Cheers

          1. Ok. So an investment of $36k will yield an average profit of $1,000 per week for 90 days. Approx 35% roi which is quite attractive. Thanks.

    1. Sorry to burst you bubble about Australian dropshippers, i deal with most of them. They not only dropship your products, but also sell on ebay themselves, at lower than your buying prices in most cases is my experience!

  5. Everything you have said is 100% correct. I have sold both used and New from Dropshippers on ebay. I have had accounts since 1998 but have recently sold a Business and had to let the site go with it, with approx 500+ positive feedback. Previous to that, i sold direct from a Dropshipper and was turning over $6000-$18000- per month until the market became saturated and ebay started cross promotions with paid advertisers. Then i went to Gumtree and now, Gumtree is swamped with these same dropshippers. Last financial, i did however manage to turn over $25K just dropshipping, but i have taken off 3 months sick leave and now, it is impossible to get any sales on Gumtree. What is going on, any idea’s?
    I have recently opened up yet another new account on ebay, and am blown away with the ever increasing rules and policies. Have you got a recommended dropship list fro Overseas at all? Or do you recommend the old avenues i have been using to buy from China, Taiwan and Hong Kong? I had sold and Imported LED Automotive lighting for 3 years, the market is swamped, so i got out early. But made damn good money on Ebay and Gumtree from it! Cheers George

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