White Label: From where to start and finding the right product
Before we go into further details on how to find the right product, let’s go back a little bit. Understanding the White Label concept clearly, to make sure that you do the job right. White Label is a product manufactured by a third party and sold to retailers under their brand name. For instance;
1. Company A, the food manufacturer, sells their food products to company B to re-sell.
2. Company B then rebrands the product with their own logo and sells it to the end consumer.
Or let’s put it in a real example.
- Company A, the food manufacturer, sells their Roasted Pistachio to company B to re-sell.
- Company B then rebrands the product packaging with its own logo and sells it to the end consumer.
I think by now, it’s very clear.
From Where to Start
First, you must choose the method you want to sell your products. There are 2 methods of doing this business successfully, it all depends on your budget and your experience. (Both are online-based).
1. Dropshipping: I don’t think I have to explain it. It’s just dealing with a supplier who produces the product, packaging, labels and shipping your finished product to your customer directly without any hassle from your side.
2. E-Trading: When you purchase a product in bulk, and you do the packaging, labeling, and shipping in-house.
Choose carefully, it all depends on your experience in the food business. For beginners they must go with Dropshipping to learn the market better, especially when they make a mistake, it doesn’t cost too much to fix it.
The E-Trading method is for experienced people because there are a few points they must pay attention to all the time on like; expiry date, how to store the products (each product there is a certain temp. level that must be stored in otherwise it will be ruined easily), how much quantity they should store, when they have excess in the monthly capacity what they will do, and many things.
So, think of it carefully and evaluate yourself before starting anything.
Finding the right product
After you choose the selling method that fits you, start thinking of a demographic, your target customers, the customer’s persona.
Read here: How to Create Detailed Buyer Personas for Your Business [Free Persona Template]
I know that they always say, pick a niche product to be successful, but in my opinion, you don’t need a niche, you need a strategic sales and marketing plan. Pick a product that solves a problem for the consumer, even if this product is not a niche. Find a problem in this product and solve it.
In my previous post on how you can start a small business selling edible beans, I mentioned a demographic that not many people are serving them, the individual consumers. Individual consumers are now an important part of society, and in this pandemic, they started to look over themselves, their health, body, and especially what they put in their mouth.
You cannot find Dropshippers that do such products, but with a little extra work, it can happen. Start slow and small. Believe me, nothing good comes when it’s fast, always take things slow. In the end, we’re all going to reach there.
Food Dropshipping suppliers have products that are trending right now like, healthy snacks, and functional food.
If you want to go with E-Trading and you don’t have the experience, start small with a product that doesn’t need much care. If you live in a country the temperature doesn’t go above 40C, you can store most of the products easily in any place away from the sun.
The beginnings will be hard but remember to take it slow and easy, keep your cool and continue forging your way to the top.
