Alibaba Private Label: Ultimate Guide

Many brands order inventory from China suppliers. The curiosity arouses when their products have their brand name instead of China suppliers. Does the same question arise in your mind?

The answer is simple— Alibaba private label.

Ten years of sourcing experience have let us work with numerous suppliers providing private-label products. Many suppliers and manufacturers in China allow buyers to attain intellectual property rights and use their own brand labels.

There are some advantages and disadvantages of private labels. You need to know safety standards before going for private-label products. 

Today, we will discuss Alibaba Private Label in detail below.

What Is Alibaba’s Private Label?

Alibaba private label products are those that suppliers manufacture. Private labeling process is really simple and some suppliers on Alibaba do provide such service with additional cost. These products are then labeled with your brand’s company name.

In short, the products are sold under your name. The suppliers that sell their products with your labeling set an amount for it.

The cost of production, including materials, are the responsibility of the supplier. In the end, you get a fully prepared product by your name.

How Does Private Labeling Work?

Private labeling sounds all fancy. But DON’T BE intimidated; we have the scoop on what exactly it involves. It is basically where one company (the manufacturer) makes products for another company (the retailer).

Then the retailer (private label sellers) sells the product under THEIR BRAND. That means getting a business up and running WITHOUT eye-watering investments in manufacturing. Pretty nifty, right?

You had that right! Businesses actually outsource manufacturing to other companies. But they present themselves as the makers of the product.

Your favorite phone accessories, grooming products, and even clothes could be private-label products.

Expert tip: To ensure your own success, conduct proper market research. Alibaba is the BEST PLATFORM for finding private label manufacturers. But investigate to understand your own demand, market trends, and customer preferences. Also be aware of competition and pricing strategy.

Muhammad Bilal, China Sourcing Consultant

Private Labeling & ODM & OEM & White Label

Private labeling, ODM, OEM, and White label; Do all these confuse you? If yes, forget the problem today. I’ll explain them comprehensively to understand the concept of each one.

Advantages & Disadvantages Of Alibaba Private Labeling

1. No manufacturing experience required

Private labeling gives you the products you need without manufacturing experience, enhancing your competitiveness in the market. The factories are better equipped to produce the right private-label products at great efficiency.

For example: 

Leeline Sourcing leverages its EXISTING reliable supplier networks to LOWER manufacturing costs. They can create white-label products at low production costs, resulting in prices you could NEVER do on your own. That's right!

2. Rapid sample production time

We all know how customers LOVE asking for samples. With a private label manufacturer, this DOESN’T have to be an issue. You get samples when you need them. 

Most private label manufacturers already have one already made.

In fact, Leeline Sourcing goes a step FURTHER by finding you the best samples on Alibaba. These champs REDUCE the complexity of RUNNING your own brand.

3. Customize goods

Creatively express your vision in the product design. Adjust anything and everything from colors to materials and dimensions. You even go all out with CUSTOM packaging for your branded products. 

We have been notably helping clients with custom packaging for over a DECADE. The goal is to produce something BESPOKE that speaks to your brand identity.

4. Customer loyalty

Private labeling helps you to establish LASTING CONNECTIONS with your target audience. Picture this….customers gradually developing an AFFINITY for your branded goods. That builds TRUST as the popularity of your products skyrockets.

Both new and loyal customers IDENTIFY your products easily. And voilà! This Alibaba dropshipping business model creates an attachment to your business. Psst! That is brand loyalty right there.

5. Improve profit margins

With a private label business, you get a PROFITABLE BRAND that makes Mr Crabs smile in excitement. You save money with this approach. It’s cheaper than buying products that have already been branded or made. 

You also don’t have to deal with the STRESS of investing in a brand-new manufacturing facility. As a private label seller, roll out new features WITHOUT buying costly equipment.

6. Exclusivity

Worried about other people having access to your designs? RELAX, the intellectual property rights are exclusively yours. 

This, plus the complete control over quality you get, means that your brand stands a foot ABOVE THE REST. With private label manufacturers, you enjoy a unique brand identity and high demand.

7. Language barriers

Most Alibaba private label manufacturers are based in China. Therefore, they may NOT be as conversant in English. Communication will be a little difficult, with the potential for MISUNDERSTANDINGS.

This also extends to interacting with customer service. However, working with folks like Leeline Sourcing eliminates this issue because they understand both English and Chinese. And their customer support works with you 24/7 with clear and efficient communication across different platforms.

8. Shipping times

The extra customization translates to MORE production time. This all adds up with the consultation and shipping time. 

So, if you’re pressed for time, this might be a CONSIDERABLE drawback. A proper Alibaba freight forwarder can help alleviate this.

But, you can always make your orders a month ahead of time in anticipation of your STOCK NEEDS.

9. Quality control

Working with Alibaba private label manufacturers doesn’t guarantee quality. Before you run off scared, The platform is SAFE AND RELIABLE. But there is always a risk that you might get INFERIOR product quality than you ordered.

There is hope, though.

Leeline Sourcing Offers IMPECCABLE quality assurance to guarantee high-quality products.

Start Private Labeling With Alibaba Expert Tips

Step 1: Do a market analysis.

I know that you are excited, but HOLD your horses. You want to get a feel of the market before diving in to sell products. List down your ideas.

Then, do a deep dive MARKET ANALYSIS to see if your white labeling idea will stand a chance.

Check to see if your product is featured on Amazon best sellers list. It will either validate or invalidate your options. Ensure that the market is NOT saturated. And look into your competitors’ marketing strategies in the private labeling business.

Feeling like you are in a movie yet?

Look into your pricing to get a sense of Your potential PROFIT MARGINS. Factor sourcing marketing and advertising costs. Also, understand where you’re selling to; that is your own private label market.

Step 2:  Research Items on Alibaba

The next step in your private label journey is to commit to a particular niche. The winning product should fall within a niche that has MINIMAL COMPETITION.

There should be considerable UPSIDE with proper marketing campaigns.

Dealing with uncomplicated products ensures you don’t get bad reviews or excessive returns. Also, avoid private label products with too many parts and big sizes.

Keep in mind:

Marketing and research complement each other, fortifying your Alibaba private label product. You will often need to CIRCLE BACK to product, market, and even competitor research.

Expert insight: Sustainability and ethical practices are a GROWING INTEREST among customers. So, factor these components into your supply chain and marketing considerations.

RAB NAWAZ, Supply Chain Management Expert

Step 3: Come Up With Your Brand 

After you settle on your product and its potential performance in the market, it’s time to kick things up a notch. I’m talking branding, logo design, and color selection.

The thing is, understanding your TARGET MARKET is key to private labeling here. Go for colors, fonts, and designs that best speak to them.

Expert insight: A private-label product needs a UNIQUE SELLING PROPOSITION to be unique in the market. Potential ways of achieving this include innovation, packaging, and branding.

Jacky Peng, Sourcing & Development Leader

Step 4: Get The Right Private Label Manufacturer 

Now, let’s find you a supplier. Go to your Alibaba account. Then type in your private label products keyword PLUS manufacturer. For example, if you want to sell socks, type in “socks manufacturer.” 

This should bring you a list of manufacturers on the platform with white-label socks. 

Yes I know it’s A LOT of information to wade through. 

Here is what to look out for: 

1. A verification badge (Based on 3rd party site visit, customer reviews and feedback) 

2. A supplier Assessment Procedures tag

3. Minor Customization tag 

If your manufacturer has all three, then you are dealing with a credible manufacturer. You might also wanna opt for a gold supplier (a paid tier) for extra assurance. Alibaba has put in place these guardrails to PROTECT YOU. 

Don’t worry. It’s relatively STRAIGHTFORWARD to find this white-label information on the platform. 

From here, agree on your minimum order quantity and negotiate a price. Then, you want to get your hands on a SAMPLE PRODUCT. 

Expert tip: Some manufacturers might lure you into conducting business OUT of Alibaba. AVOID this to prevent being scammed or use a trusted SOURCING AGENT. These agents are the most secure way of going about it.

高天赋Gao Tianfu, Sourcing and Supply Chain Manager

Private label sourcing agents understand all the in and outs of getting the best product. Plus, they are mainly situated in China, reducing the potential LANGUAGE BARRIER. And they are intimately KNOWLEDGEABLE about the private labels industry.

These agents get you started with your private label business by handling EVERYTHING. For example, Leeline Sourcing finds suppliers and bridges the language gap. Our team also enables smooth payments, provides logistics, and more.

Step 5: Build your brand

Building a brand is a key step In ensuring the success of your private label businesses.

First things FIRST: 

Copyright, trademark, and patent your name, product design, and logo.

This step ensures that you have rights to the intellectual property that you are selling.

Then, REGISTER your ecommerce store. This serves as a virtual STOREFRONT where buyers can access your private-label goods. Develop a robust online presence by creating accounts linked to your store.

Invest in high-quality product photography and videos. Then, UPLOAD this on your storefront accompanied by persuasive PRODUCT DESCRIPTIONS. 

Leverage social media campaigns and targeted ads to generate buzz.

Expert insight: Your brand’s identity and ONLINE PRESENCE easily attract and retain buyers. Collaborate with influencers in your niche to redirect traffic to your accounts/store.

Vino Qian, Senior Sourcing Manager

Step 6: List Your Items on Alibaba 

Before you create a listing, you need an Alibaba SELLER ACCOUNT. All you need for this is your email, name, contacts, and company name.

The platform has a variety of packages to accommodate your needs.

Alibaba takes you through a business verification process to check if you are LEGIT. You also get a consultant who works with you through the process.

Once your business is set up and delivered, POST your products INDIVIDUALLY. Or You can go for the BULK SYSTEM. In all of this, there is a useful AI system called the intelligent posting system.

This optimizes each listing with consumer searches.

It’s time to create your storefront.

You get a dedicated store with MULTIPLE PAGES to display your private-label products. This storefront is accessible globally in 18 auto-translatable languages. Plus, it doesn’t require any technical coding or design knowledge to set up.

Now, you can sell private-label products.

Handle your customer inquiries.

Expect to receive INQUIRIES from potential buyers once your storefront is set up. You can answer them yourself or use a vetted contact person. 

Alternatively, use your private labeling shipping agent. At Leeline Sourcing, we handle such correspondences with our dedicated team.

Choose between the Alibaba seller workbench and the Alisupplier mobile apps. Both are helpful for real-time responses to your customers.

Protect your payments.

Alibaba Gives you an escrow service called trade assurance. They basically hold the money on behalf of the seller until both parties are ok with the transaction.

This approach promotes trust and ensures smoother business operations when selling private-label products.

Step 7: Promote Your Private Label Store

Growing your store is the name of the game here. Get on online events listed on Alibaba to spread the word about your private labels.

You get opportunities at these events to network with competitors, buyers, and manufacturers. Basically, you have all the key players in one place.

Get yourself on those Alibaba trade shows to get verified clients looking at your product. Also, use other methods, such as PPC ads, giveaways, and contests, to engage with your customers. Social media is your friend here. Run Ads and grow A committed following. 

Expert insight: Remain ever adaptable and ready to pivot because consumer preferences change easily. Being adaptable helps secure long-term private labeling success.

Echo Shan, China Sourcing Agent

Step 8: Engage with Your Customers

We all love FAST customer support responses. So why not give your clients the SAME? It will help generate sales, giving you a successful business.

Smooth, fast, and engaging responses secure your BRAND’S REPUTATION. And they guarantee profitable, long-lasting relationships.

Expert tip: Ask for your customer feedback. Then, ITERATIVELY use the information to improve your products and services. This is a way to grow your reputation.

Young SourcingWave, China Sourcing Specialist

What Do I Need To Be Aware Of When Searching For Private Label Manufacturers?

Although private label manufacturers might appear SIMILAR, what they offer differs. So, investigate deeply to know who you are getting in bed with and what you are paying for.

A common thing that catches a lot of small enterprises out is HIGH minimum order quantity. That’s usually because their ecommerce stores are not large enough. Or they don’t know how to buy from Alibaba. But they are dealing with an Alibaba seller who sells to large B2B importers. 

These types of manufacturers may give you the impression that you need a lot of money to start, which is not the case. You can order SMALLER QUANTITIES from businesses dealing with low to no MOQ.

Expert tip: Even if you have a lot of money to begin with, always negotiate a low MOQ. This ensures you have enough operating cash flow and ideal inventory.

Felix (刘菲) Liu, Alibaba Group Vice President

Questions You Should Ask Before Buying Private Label Products

To enable complete control or creative control, you must determine the purpose. Here are some questions that you should ask Alibaba private label manufacturers:

1.  Do You Have Design Drawings?

Design drawings refer to the design of the products. The design and dimensions cannot be changed for private label products.

It will give you the idea of selecting a supplier that best fits your requirements. Based on experience, suppliers that can’t provide design drawings or prototypes are unreliable. So, never skip this question.

2.  Do You Have A Bill Of Materials (BOM)?

The bill of materials or BOM shows a comprehensive summary of the items needed for manufacturing.

It covers various items, including raw materials, assemblies, etc. It shows the average cost. BOM is necessary for private labeling.

3.  Do You Have An Overview Of Material Options?

You need to know what materials are part of the preparation of the items. It is crucial for dairy goods, clothing, etc. It will also help estimate the BOM and compile the entire cost of production.

4.  Do You Own The Molds And Tooling For This Product?

Sometimes, suppliers themselves hire the molds and equipment from other suppliers. In short, they outsource some part of their production.

An increase in the overall production cost from the third party will increase the rates. That is why you should hire the one functioning on its own.

5.  Do You Have Lab Test Reports?

Lab test reports illuminate that the supplier has efficient quality inspection processes.

The quality of the product is the most important for your private label business. You can check the lab tests to assess more control quality.

Suggested reading: Made In China VS Alibaba

Suggested reading: Best China Products To Import

Top 5 Alibaba Private Label Suppliers Online List

Our team tested over 30 private label suppliers in Alibaba. Here are the top 5 companies we found online. Contact them to manufacture private-label products that generate profits! 

1. Guangzhou Jiaxin Cosmetics Company Limited

This firm is the right option if you’re in for cosmetics and makeup products. The company has been in manufacturing since 2003.

It’s a subsidiary of England Anglynea Trading Co Ltd. in China. The firm has an R&D center that researches new formulas for the products. It has over 100 employees and manufactures high-quality makeup products for loyal customers. Find private label manufacturers in trade shows. You might also be able to source locally through trade shows or personal connections.

2. Guangzhou Shiguang Electronic Technology Co., Ltd.

The company specializes in manufacturing auto lighting systems in China. Their success is the exclusive R&D center that ensures superb quality for the products.

Functioning since 2010, the company ensures to provide customers with the finest quality products in no time.

Suggested reading: Shenzhen Electronic Market Guide

3. Shenzhen Yi Rong Sheng Leather Products Co., Ltd.

The company was set up in 2005. Since then, it has been manufacturing high-quality leather products for the market.

It also has a sister company in Cambodia. Apart from that, its quality inspection processes have been verified by Intertek online. The firm has manufactured over 5 million bags monthly and ensures competitive results.

4. Wenzhou Flyer Import And Export Co., Ltd.

The Wenzhou Flyer is a famous company for optical frames and glasses. It has worldwide shipping across different countries, including the USA, Canada, etc.

The company also offers competitive services with high-end quality inspection processes.

5. Guangzhou Binde Electronics Co., Ltd.

The firm was founded in 1999 and has since specialized in adhesive products.

Its R&D processes enable it to ensure high-quality products without compromise. They have over 200 employees and manufacture industrial and domestic use adhesives.

Suggested reading: Taobao Dropshipping

Suggested reading: Best China Dropshipping Suppliers and Dropship Websites

Suggested reading: Guangzhou Wholesale Market

Suggested reading: Wholesale Electronics from China

Best 8 Alibaba Private Label Products For Dropshipping 2022

I’ve helped clients source hundreds of private-label products. Let me introduce the 8 bestsellers for dropshipping in 2022:

• Camera Bags

Carrying your camera can be difficult. You should invest in maintaining a camera bag to make it portable.

Camera bags can easily opt for private labeling as they are generic.

• Reusable Bags

Reusable bags are becoming more popular, with many people investing in protecting the environment.

Being generic in their consumption, you can easily opt for these products for your private label drop shipping.

• Water Bottles

Water bottles have an extensive market.

Hire a supplier that specializes in multiple-sized bottles. Get the bottles designed as you want, and you’ll be able to get things done efficiently.

• Phone Accessories

From back covers to tempered glass, you can quickly build a range of your private label phone accessories.

You might have even come across various online sellers that provide fancy phone covers, headsets, etc.

• LED Lights

LED lights are pretty in demand from the automotive industry. Several brands’ products are already functioning in this domain. 

• Knife Sharpeners

Knifer sharpeners are not pretty common.

That is why it presents an opportunity for launching your brand of knives and knife sharpeners.

• Photo Frames

Photo frames are an excellent choice that you can opt for. These come in all shapes and sizes. The supplier you’re hiring can provide multiple frame sets quickly.

• Alarm Clocks

Alarm clocks are fancy. Even though you can set alarms on your cellphones, people still rely on alarm clocks as they make them move out of their beds.

How To Buy From Alibaba And Sell On Amazon?

Buying from Alibaba will let you enjoy more significant profit margins and lesser product costs. More prominent brands try this strategy to buy products from Alibaba and sell on Amazon FBA to skyrocket their sales with a cost-effective inventory.

Suggested reading: Alibaba Payment

Suggested reading: Sites Like Alibaba : Alibaba Alternative In China

Is it something you are trying to do? If yes, Let me show you the tips and tricks I’ve learned for years as an Alibaba sourcing agent. 

Alibaba Custom Packaging

Alibaba custom packaging allows you many benefits. I know this from helping dozens of clients succeed through custom packaging. 

Furthermore, you have different online business opportunities. So, do you want to know more about Alibaba’s custom packaging? Go through our guide here.

FAQs About Alibaba Private Label

Final Thoughts About Alibaba Private Label

Alibaba private labeling is a beneficial process for improving your sales. You need to hire optional services of a reliable supplier on supplier websites to ensure quality and on-time delivery.

For this purpose, you can even hire a sourcing company such as LeelineSourcing. Apart from that, you need to make a competitive assessment of the products to choose from for private labeling.

With the growing success of your eCommerce store, you might be thinking about providing a more bespoke product offering to your loyal customers, even starting as dropshipper. If you start competing with bigger brands and they see you becoming a threat, expect them to take legal action against you to try and stop or slow down your sales.

Negotiate the pricing with the supplier and focus on improvising for an attractive label. It would help attract customers, improving your overall brand’s performance.