The purpose of this lesson is to provide you with some examples of resources you can use to find Private Label (PL) and Wholesale (WS) products.
This particular site lists lots different products, including such categories as home products, electronics, technology products, clothes, etc.
Unlike some sites, you are able to buy directly from dealextreme.com. A lot of the products come from Hong Kong but can be shipped anywhere in the world. The site offers cheap prices on products, many with bulk discounts.
A site like this one can work well for you because a lot of people are still not familiar with such sites or the business model that such a site works in. There is still some thought that ordering from overseas requires large quantities in order to fill pallet requirements, something that is not really true for a good portion of products.
Here is an example of the opportunity that can be found on a site like this.
First, a search is performed on the site using “pink ipad pu leather case”. One of the products on the results list is “Stylish Protective PU Leather Case Pouch for iPad / iPad 2 – deep pink”. At the time of this search, that particular product sold for $8.60 with reduced pricing based on bulk quantities, such as $7.50 shipped for 3+ units, $7.40 shipped for 5+ units and $7.30 shipped for 10+ units.
Now go over to Amazon and perform a search using “pink ipad pu leather case”. You may not find the exact product you found on DealExtreme but that’s not the point. What you will see is a results list showing the kinds of prices for similar products. In this example, the prices were higher than the price at which you can buy them, so this presents an opportunity. With a healthy margin for markup, a reasonable profit could be made competing with similar products on Amazon.
Another good point in this example is that the case on DealExtreme did not have a label, so this presents the added opportunity to turn this into a PL item or perhaps even a branding for a line of iPad cases.
A similar site to DealExtreme, this site provides plenty of different products in plenty of different markets. It ships from China but, like DealExtreme, is able to ship to just about anywhere in the world.
An added feature of the site is that there is another portal – factorydhgate.com. This is similar to worldwidebrands.com which is mentioned in the Drop-Ship module. You do not buy directly from the site but you are provided access to distributors and manufacturers that you can contact directly.
As with the first two sources, alibaba.com is able to ship just about anywhere in the world. A distinct difference, though, is that the products come from all kinds of different places.
As with factorydhgate.com, you are not able to buy direct but you can directly contact buyers to order the product. You are even able to find U.S. distributors and manufactu rers for products listed here.
An interesting example of potential on this site is the product “clapping hands”. One supplier provides 5000 units at $0.03 – $0.25 / piece (probably based on how many are ordered at one time). The equivalent product on Amazon is selling for $9.99 / 12pcs or $0.83 / piece. That allows you a markup opportunity of upwards of 27-28 times. With many sellers trying to achieve a 50% markup, this particular product’s markup opportunity makes it quite attractive.
Of course, this may not be the best example as the price point could be considered too low, but it does illustrate well the differences that can be found comparing Amazon products against similar products found on sites like this one.
Using search engines is another great source for researching sources for products. Consider the fact that a lot of people are doing PL products because of the benefit of that business … you can be sure there are plenty of businesses out there that you may be able to partner with.
For example, do a search on “private label green products”. Scrolling through the results you may find a site or two that has products you could do a good business with.
This is an interesting but viable resource for PL products. The products that are listed here are usually small scale, small seller items such as handmade crafts, furniture, etc. You’re usually able to contact the people directly and order directly from them.
This could make for an excellent partnership where you do the marketing and selling on their behalf, and they do the creating of the product. A good example of such a product would be custom built farmhouse set of 2 nightstands.
It is also probable that when you sell these items on Amazon, you’re the only one doing so, thus reducing or eliminating competition altogether.
A great resource for natural or health-related products, this site provides excellent opportunities for PL or WS products, especially since a lot of the product suppliers allow for PL or WS pricing. Researching this site might result in finding a low competition market opportunity.
Sometimes you don’t have to look any further than your own community. You may know of or learn of individuals or businesses (doctors, retail stores, etc.) that sell products that may be candidates for low-to-no competition products on Amazon. Be creative and forward enough to connect with these individuals as you may discover yet another great opportunity.
These are just a few of the resources that may be available. Be creative in finding PL or WS product sources, be forward in making contact, and be diligent in researching the opportunities (e.g. comparing against Amazon products). By being so, great opportunities will present themselves.