If you have a solid plan, it is never too late to start your own business. It becomes even more important when you are living in a country where there is hyperinflation and it is hard to make ends meet on a meager salary.
Speaking of a “solid plan”, starting a private label brand can be a good idea as many startups in Pakistan are opting for this option and OLX Pakistan is the best platform for this purpose.
Confused? This is what we are trying to say – you can start a private label brand business on OLX Pakistan. Simple.
Now that you know WHAT to do, HOW to do it must be your next question. And this guide has got you covered.
Let’s begin with the definition and explanation of the term “private label”.
What is a private label brand and product?
Products made by one company that another business can sell under its own label / brand name are known as private label products. The business selling these rebranded items is known as the private label brand.
Example: X business buys jackets from a Y manufacturer and puts its own branding details / logo / tags / labels on it. The customer will think that the product is manufactured by X company. Many brands in Pakistan were once using this tactic and some of them are still following this practice successfully.
Curious to know the process to start a private label business? Here is a step-by-step guide:
Things to consider before starting a private label brand on OLX Pakistan
It is important that you read the following information very carefully or you may not be able to succeed.
1) Analyze all the costs
Analyzing the costs of starting a business is the first step towards success. Different types of costs for a startup might include equipment, supplies, advertising, promotion, employee, license, registration, permit fees, research, travel, technological, inventory, and many others. For this purpose, you need to see how much capital you want to invest. Sources of capital (self or borrowing) are also important to identify at this stage.
Tip → A good businessman has the capital to meet the expenses for at least 6 months.
2) Product selection for your online business in Pakistan
Market research is essential at this stage to choose the right product for your business. You can see which products are high in demand on OLX Pakistan. Another important thing is to see the supply. If many people are selling a high demand item, it is better to avoid it due to intense competition. Instead, select a suitable product from numerous categories on OLX Pakistan.
The following categories are available on OLX Pakistan.
Business, Industrial & Agriculture
You can explore them as they have numerous sub-categories that can help you in selecting the right product. It is essential to do proper research at this step.
3) Determine your target audience
After you are done choosing the product, now is the time to determine the target audience. You can also combine this step with the first one. Audiences can be categorized on the basis of demographics, psychographics, behavior, and geographical location. It is important to choose the right audience to target as your sales are mainly dependent on this step.
4) Purchase decision (manufactured, customized, or readymade)
Now is the time to make your purchase decision on whether to buy a manufactured product and customize it or get it manufactured. If you need specific features, qualities, specs, or any other element in your items, you can look for a supplier that sells the product having all of those. If you are unable to find the readymade item of your choice, you can get it manufactured.
Many established companies have reseller programs that allow the startups or small businesses to sell their products under private label. So, don’t worry about the source. Focus on the product USPs (unique selling points).
A major thing that can help you in decision making is the cost (financial or time). You can select an item based on the lowest cost and most benefits formula.
5) Source the product cleverly
It doesn’t matter if you are going to purchase a ready made or manufactured product; sourcing has huge significance in both cases. It will determine the basic cost of your items. Here are some popular product sourcing platforms.
- OLX Pakistan
Pakistan’s No.1 online marketplace, OLX Pakistan is the most popular platform for sourcing numerous products. It has numerous sellers for each category from which many are manufacturers and wholesalers. This platform gives you the opportunity to contact them directly through call, email, or chat.
- Domestic wholesalers
Domestic wholesalers are there for you if you don’t find the supplier on OLX Pakistan. You can visit the nearest wholesale market for your item. Almost every major city has a big wholesale market for different types of products.
- Local manufacturers
Local manufacturers are beneficial if you are looking for the cheapest yet customized items. You need to see business listings, directories, search on the internet, and ask your friends and family to know which manufacturer is reputable for the products you are selling.
- Overseas manufacturers or suppliers
Manufacturing cost of some locally produced items is higher as compared to their cost when you buy them from the overseas manufacturers. Thankfully, the biggest and most economical manufacturing region China is a neighboring country. You can get different items manufactured from there if their cost (including duties and taxes) is still less than the locally produced items.
Tips for sourcing the product
These tips are beneficial for sourcing the items efficiently.
- Build contacts
- Research is essential
- Compare different suppliers (price and quality)
- Check the supplier’s reputation
- Asking for samples is necessary
- Always keep good relations even if you are not purchasing
- Shipping time and cost
- Taxes and duties
- Have a plan B for emergency situations (sudden increase in demand, etc.)
6) Your branding is crucial
It is a crucial step in the entire process as you will be adding your branding to the unbranded product. Analyze all the branding elements and choose the most suitable one or combination for your item. Logo, color scheme, font style, tagline, images, etc. are different branding elements you can use in different ways on your goods. The best thing is to use a combination of logo and other elements to enhance your recognition. Adding a few lines can also help increase awareness about your business. Follow the best and most suitable strategy for this purpose.
- Packaging plays an important role
Packaging is an important part of marketing and branding that can help in differentiating you from your competitors. Get high quality packages (packs, custom boxes, luxury packaging, Kraft bags, etc.) for your item. You can find many businesses providing packages with custom printing services. A good packaging is effective for increasing sales, recognition, and reputation of companies.
7) Develop your fulfillment strategy
Developing your fulfillment strategy is an essential part in this process. You have to get plans from different logistics, shipping or delivery companies. Choosing a good third party logistics partner is important as your product safety and timely delivery relies on it. Compare the rates and reputation of various companies operating locally and select the most suitable one for your business.
Private label brand requirements
To avoid paying taxes, many new entrepreneurs start their business without registration. This is a bad strategy. It is essential to fulfill all the legal requirements. First of all, you might need to register your business or obtain a license from FBR, SECP (in the case of a company), or from other government entities depending upon the nature of your business. Trademark and logo registration is necessary for protection purposes. Government is easing the process by allowing online registration in some cases. So, get acquainted with the federal and provincial laws.
Is a private label brand the best business in Pakistan?
A private label brand is a good way to start your business as it has many advantages for the freshers. Many are already doing this successfully. But success depends upon various factors.
The following indicate why it is a great option.
Advantages of a private label brand
- No need to own a manufacturing plant
- Operate from home
- Easier control over marketing and branding
- Save money by cutting machinery, equipments, and other related costs
- Higher profit margins
Why choose OLX Pakistan for starting a private label brand?
Reasons to choose OLX Pakistan for starting a private label brand are many. Here are some of the most important ones.
- Availability of many manufacturers and suppliers
Numerous manufacturers and suppliers trust OLX Pakistan and list their products and services on this platform. You can check them out to source the item you need.
- Numerous product categories
OLX Pakistan has numerous product categories and sub-categories. You can choose the product that seems most suitable and list it in a specific category.
- A large number of existing users
OLX Pakistan has millions of users (potential customers) that visit the platform every month. That means you can show your item to a large number of potential customers. Thousands of products are sold everyday on this platform. That can make things easy for your business.
- Buy from OLX Pakistan and also sell on it
As the heading suggests, you can rely on a single platform to buy from manufacturers and wholesalers and sell the item as a retailer under your own brand name.
How can you sell your products on OLX Pakistan as a private label business?
Here comes the most important part. The answer to this question is divided into two sections. First, create a listing / ad and the second, to rank it. Here are both of them in detail.
Create impressive listings / ads on OLX Pakistan
First of all, you need to register yourself with OLX Pakistan. Then, create listings for your products. If you have more than one type of product or the product has multiple variants, creating multiple listings is useful. Some people use single listing to post images of all the product types or variants which is not a good practice when you want to establish a brand. Upload high-resolution product images for each ad. And create multiple ads to show your brand’s worth to customers.
You can buy packages available at OLX Pakistan to post more ads.
Promotion and product ranking is beneficial
Promotion and marketing are essential for sales as a private label brand. Don’t worry as OLX Pakistan has made it easier for you to reach numerous potential customers as per the product category.
You can buy a featured ad service to make your listing visible to potential buyers searching for your product type.
Service to take your ad “back on top” is also available that can help show your product listing on the top of the category page like a new ad.
In short, OLX Pakistan has made it easier for many people to start their business. Starting a private label brand can be a good option for reasons given above. This platform offers a lot of services and tools to help make your business successful.
Which private label product has high chances of success on OLX Pakistan in your opinion? Share your thoughts in the comment section.
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