Struggles When Developing Private Label Products

The process of procuring products from foreign countries is a constant struggle for many entrepreneurs that are trying to establish their business. This specific process is integral in many business models such as white label, private label, sourcing, and product development.

When determining the supplier, many points of agreements are taken into consideration such as their production capacity, the ability to accomplish the requirements and specifications, and most importantly the minimum order quantity. In this blog, we will be discussing one of the most common struggles the brand owner will face; product diversification and the ability to source a variety of products with different specifications and requirements from China.

Unraveling the Private Label Challenges

MOQ (minimum order quantity) is a term that refers to the least number of products needed to be produced for a specific purchaser. Having a strategic plan such as bundling and product diversification will differentiate your brand while giving you a competitive advantage.

Ordinarily, entrepreneurs, brand owners, and many companies directly contact manufacturers and vendors for the procurement and production of a desired product depending on their targeted location. To execute a product based on your specifications, you must reach out to multiple manufacturers before choosing the ideal one. By producing various products and contacting numerous vendors, the process and supply chain management becomes extremely complicated, which increases the possibility of receiving an incorrect product.

One of the solutions is contacting a third party agent. The agent takes the responsibility of monitoring, discussing, and completing the manufacturing process of the needed products. However, it is known that agents tend to increase prices by at least 20%, and they don’t take responsibility for any faulty products.

At Welabel, our solution for this particular obstacle is to simplify the process for our customers. We provide a holistic approach for various types of products from different suppliers. Moreover, whether the business model was private label, white labeling, or sourcing, our team will find the ideal vendors for your business that can provide you with the desired products and specifications depending on the scope of work statement that is created through our input phase. By collaborating together, we develop the final SOW.

Furthermore, many products can be procured from different regions of China depending on the product category. For example, Shenzhen can be a great city to develop or import products that can be related to electronics or IOT. Yiwu, is a city that’s well known for the diversification of product categories. Many products of different types and attributes can only be found by locals; they can purchase low product quantities and prepare the packaging of your choice to be sourced by the customer.

Supply chain agility and resilience is a must for planning internal logistics smoothly in China, for combining all products at a specific warehouse to be ready for shipping. Regional transportation increases the occurrence of issues, such as mishandling product packages and delivering the wrong product quantities. By contracting with our specialized firm, each process is monitored by a professional logistics team that can eliminate the risk of receiving defective products.

Success Factors for Product Owners

Multifunctioning is undoubtedly needed for entrepreneurs and brand owners at the early stages of their development. While many of the mentioned positions handle the whole process by themselves to avoid additional costs, many understand that managing their time and having their main priority of developing their sales is the main necessity for succeeding in their field. Professional service providers can save you major headaches while obtaining better prices and value, which as a result can help you import products without the hassle of direct manufacturer miscommunications. Also, they will extensively monitor multiple vendors to ensure your specifications and requirements have been met.

By comparing a private professional service provider such as WeLabel vs Chinese suppliers, you will be able to see the difference in pricing. Keep in mind that the overall cost is calculated by time, sample prices, logistics, shipping, and product prices. Hiring a service provider will save you money and time while receiving a guaranteed product.

Procuring multiple products from China can be a great plan to penetrate the market; however the process can be complex and risky. Having a professional service provider acting as your eyes in China makes the whole process straightforward and uncomplicated while reducing costs, allowing you to focus on your sales growth and branding.