Amazon is the retail phenomenon which started selling books from a garage almost 25 years ago, research from Mintel (2018) reveals that almost 86% of Brits are Amazon users/shoppers. With, 70% of Amazon customers shopping with the retailer at least once a month, while just under 17% using the retailer on a weekly basis.
US filings show that Amazon's total UK revenues in 2017 hit £8.8bn, up from £7.3bn in 2016.
As we can see Amazon is a behemoth of the e-tailing world most importantly their customer base is open for you to sell to directly, so why wouldn’t you be interested?
Most peoples initial venture into selling on Amazon is they approach a wholesaler, buy stock and place it on Amazon. They may also be selling it at a retail outlet or another platform such as E-Bay. However they soon discover that Amazon is a competitive marketplace, we did talk about the race to the bottom in ‘Amazon Pricing Strategies’ which is a real issue when trading on Amazon with a stock product and to be honest there’s not a lot you can do about this. Herein lies the big problem, no control, even the supplier has little control over the price. If a retailer decides to clear stock that they can’t sell and they do this at a loss the only consolation is, they will only do it whilst they have stock and after this time prices should recover as long as everybody keeps and eye on the price and increases or didn’t drop to match them which would be a crazy thing to do anyway.
What the serious traders are doing these days is buying a white label product, usually in bulk and having that product or range rebranded to create a private label, which is a relatively simple process if you have the contacts.
Private Labelling Benefits
Increased control – By selling your own brand, you have control over packaging, labelling, manufacturing, and ultimately the quality of your products.
Less worry – If you’ve done your research right, you’ll be working with a product where you already know what to expect in terms of quality, the manufacturer, and the target customers.
More profits – Instead of selling a “name” brand product, you sell your brand. This leads to greatly increased margins. You also get full control over pricing and who sells your branded products.
Reduced competition – You’ll avoid having to compete with large companies for sales.
Saves time and money – Selling pre-tested products that already are being manufactured saves massive time and money in development of a product. Your startup costs will also be significantly lower.
The step above this is to develop products that don’t exist on the market or you could bundle together a number of products and rebrand and box together to sell as a set. Developing a new product can be expensive as there will be tooling costs, choosing the correct manufacturer particularly in an other country not speaking your language could be challenging.
So How Can Ryder Hub Help?
With a history of developing products and brands there’s little we haven’t encountered and found a way around. We have offices in China, relationships with factories and manufactures, our own factory and most importantly native population working for us who are bi-lingual, understand the local customs and have a background in procurement.
Ryder Hub have experience in;
Sourcing and manufacturing - we operate on a worldwide scale creating private label product for many High Street names.
Branding and packaging - we have many years experience in creating brands and can advise or create your brand image for you. We also own a packaging plant in China so can pack or repack your products as per your requirements.
Logistics - we are consistently involved with moving products around the globe and getting them to their final destination on time with the minimum amount of fuss.
In the UK we have the facilities to unload and expedite by road to your or your customers location, alternatively we can store at our location in the Midlands until you require them.