If you’ve been involved in e-commerce for any length of time, you are aware that the majority of sellers import their goods from China. China actually produces almost a third of the world’s goods in large quantities and is the world’s leading manufacturing power. However, a large number of third-party sellers still favor maintaining the supply chain as close to their homes as feasible.
We’ll list some of the best US manufacturers in this guide so you can find suppliers for your private label goods.
In this article you will know:
- How Is Private Labeling Implemented?
- Why Would You Want to Look Into Domestic Sourcing?
- The US’s Top 5 Private Labeling Factors
- CONCLUSIONS
How Is Private Labeling Implemented?
First things first, then. Private labeling: what is it?
When a business owner pays a manufacturer to produce a product under their brand and logo, this is known as private labeling. There is a chance that this business plan will result in larger profits.
Business owners have the option to create their own products rather than simply reselling pre-existing ones, which enables them to improve and set themselves apart from the competition.
Due to its ability to produce a steady stream of revenue, private labeling has become the primary business model for more and more entrepreneurs in recent years.
One company that uses private label manufacturers is Amazon. With about 88 private label brands in its portfolio, the e-commerce behemoth is fiercely competitive.
Why Would You Want to Look Into Domestic Sourcing?
For many years, China has been the top exporter of goods to online retailers. It’s highly likely that you source your products from China if you sell on Amazon. This is because doing so usually results in lower costs and gives you a wider selection of suppliers as they are typically concentrated in the same areas.
On the other hand, sourcing from the US has numerous benefits.
The benefits and drawbacks of sourcing locally are outlined in the following table:
The US’s Top 5 Private Labeling Factors
Local manufacturer profiles can be found in the following supplier directories, which are among the most widely used ones.
Thomasnet
Thomasnet is a free online marketplace that links buyers and sellers of products with manufacturers in the US and Canada. You can use it to find manufacturers based on product and localization.
There are numerous manufacturer listings in this directory, where you can find all the details of each.
Additionally, you can visit their company website, email them, or request a quote if you’re interested in getting in touch with one or a few of them.
The Maker’s Row
Another online marketplace that links companies with American manufacturers is called Maker’s Row, which debuted in November 2012.
Additionally, you can visit their company website, email them, or request a quote if you’re interested in getting in touch with one or a few of them.
The organization offers a comprehensive database of vendors and goods that spans the whole geographic region of North America.
This platform’s drawback is that it costs money. You’ll have to pay a fee to access all of its features (from searching factories, and accessing project files, to messaging factories), which ranges from $60 to $150/per month or $576 to $1,440 per year.
MFG
Another well-known manufacturer directory, MFG was established in 1999 and serves sellers in the US, Canada, Asia, Europe, and South America.
Simply go to the directory and look through the profiles of the manufacturers. Additionally, you can sign up for a free buyer account, after which you’ll have access to additional features like messaging the business and requesting quotes, among others.
With Kompass, a free international B2B portal, you can communicate with millions of companies across 60 countries that have registered.
Even though Kompass isn’t as big as some of the other directories listed above, it functions similarly to them and extends outside of North America.
SaleHoo
SaleHoo is a supplier directory, online community, and tool for conducting market research for dropshippers and e-commerce businesses.
Above all, more than 8,000 suppliers are listed in SaleHoo’s directory, many of whom offer private labeling. It also provides tools for market research so you can compare product ideas and identify the best one.
CONCLUSIONS
Selecting the ideal manufacturer is one of the most difficult initial tasks for online retailers. It requires a great deal of research, a great deal of back and forth, and some negotiation skills. It’s not an easy task.
Few private label sellers have attempted local sourcing; the majority still prefer to source from abroad. Consider what you would expect from a Chinese supplier if they were based in your home nation before working with them.
Have you tried purchasing goods locally in the United States? Which benefits did you find most significant? Tell us about it in the space provided for comments below.