Finding Trustworthy Private Label Manufacturers in the USA

What Is Private Labeling and How Does It Work?

A private label product is created by one company to be branded and sold by another. Private labeling often happens when a company is in need of a certain product, and, instead of producing or manufacturing the product on their end, they simply buy the product and sell it as their own private label. Common examples of private label products are food and beverages, clothing items, cosmetics, and more.

According to Supermarket News, U.S. private label sales were projected to hit a record $199 billion in 2021. And private label sales picked up just where they left off at the end of last year as the sector entered 2022, gaining 4.2% in dollar volume across all U.S. retailing channels in January compared to the same period in 2021. 

Why Does Private Labeling Happen?

Trying to create and sell manufactured products can be expensive and overwhelming. That’s why private labeling was born. It can eliminate the risk of failure by offering greater control over product quality at a fraction of the cost. Private label historically has been highly profitable for businesses selling to brick and mortar businesses and across the e-commerce world.

With private labeling, companies have more control over creating and branding custom products for customers. Another benefit of private labeling is businesses can exercise control over all product marketing, finding quality space on supermarket shelves, and more. In wholesaling, you may face restrictions around receiving inventory, and there often is minimal control over quality and/or pricing.

Advantages of Private Labeling

As mentioned, private label products have advantages that go well beyond simplifying the product development process. A few of these advantages include:

Control Over Production — When you work with a third party manufacturer, you’ll receive direct orders including detailed information on materials, ingredients, production rate timelines, quality assurance, and more.

Pricing Control — Since you’re the seller, you determine the pricing. You also can optimize the production costs to leave more room for a better profit margin.

Adaptability — With private labeling, it’s easier for smaller retailers to respond to a rise in market demands by selling private label products. This may not be possible with larger companies pursuing a niche product category.

Better Control Over Branding and Marketing — You get to decide on marketing channels and ways to promote your products before they're available for sale.

How to Find Trustworthy Private Label Manufacturers in the USA

Finding a trustworthy private label manufacturers isn’t easy, but here are some of the best ways of finding one:

Search Engines

In this day and age, finding a private label supplier can be done by using search engines such as Google and Bing, or other online tools. However, you should always double-check and make sure you are receiving trustworthy and valid information about the sellers before committing to a partnership.

Reaching Out to an International Trading Company Like ATI 

Trading companies like American Trading International have formed partnerships with many private label manufacturers over the years. ATI has helped a vast portfolio of companies create their own private labels.

Take a look at their private label American Classic Foods as a prime example. They know the private label business inside out, and using a trading company with years of expertise can save you trouble, time, money, and effort.

Qualities to Look for When Picking a Private Label Manufacturer

Finding a private label manufacturer that you can trust isn’t the end of your journey. You should also check if they have the following qualities:

Direct-to-Retail Relationships

Ascertain that the manufacturer collaborates directly with retailers to maintain greater control over product quality and production costs. Direct-to-retail relationships enable companies to work directly with the top retailers in each market, allowing control over brand representation while keeping consumer costs low.

Companies can see benefits like designated shelf space overseas and more by working with a manufacturer that prioritizes relationships with retailers. 

Foreign Language & Cross-Cultural Knowledge

Many overseas retailers require foreign language and cross-cultural knowledge to gain access. Finding an international and multilingual team that speaks multiple languages and can communicate with retailers worldwide is critical to ensuring that your brand is never misrepresented.

Understanding of Overseas Logistics

Look for a partner who offers a full range of express solutions, including sea and air freight for exporting and importing, as well as port delivery. Shipping international orders can be complicated, not to mention expensive and time-consuming, but with the right technology, fulfillment infrastructure, and logistics expertise, you can quickly enter global markets.

Overseas markets frequently necessitate a wide range of complex and unusual documentation. Finding a partner with a logistics team with experience creating and providing even the most specific documentation to access global markets will make your life easier.

Ability to Produce Quality Products

After performing all the necessary verifications and receiving a quality response from a company that confirms all the information is accurate and meets your expectations, you need to request a sample product.

Samples are crucial as they allow you to gauge the overall quality of your future products. Procuring a sample gives you an idea of what you would be selling before you pay for a bulk order.

While some suppliers would be happy to provide you with free samples, in the case of an international manufacturer, you may have to spend some money. Most of the time, you will need to cover the cost of international shipping.

If it’s your first time, be sure that the products you create are scalable and simple. In this way, you can avoid having to reinvent the wheel.

Long Term Partnerships

When entering into a partnership with a private label manufacturer, understanding that you are creating a long-term partnership is essential for scaling your business in most cases. Finding a punctual partner who delivers products efficiently, is communicative, and has a problem-solving attitude is crucial to growing.

ATI’s Expertise in Private Labeling

ATI is a global trading company that has been growing for almost three decades. The company has developed more than 30 private labels around the world. The labels range from top import distributors to large direct retailers in the international market.

With around 2,000 SKUs working on private labels, ATI has all the capabilities you need to meet all your pirate label production and development needs.

Questions on what ATI can do for your business? Call us today at +1 (310) 445-2000 or fill out our form on the contact us page.

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