How to Boost Customer Trust for your Private Labels

Private label products are becoming more and more popular. Selling a private label product generally means that you buy a generic product that is already selling well and market it better than your competitors. But it is also possible to invent your own product and private label it, which can have even more advantages, as there are no identical market competitors. Private label selling has become quite a large industry, with practically all of private label selling taking place through the Amazon marketplace due to its advanced platform, delivery speed and customer service. In the small to medium sized business sector, the private label economy is booming. The Amazon infrastructure has made much of this possible as these small and medium sized companies no longer need to invest in storage or transport with the Amazon facilities provided.

It is interesting that the majority of customers like the concept of private labels, but the majority of customers also trust national brands more, especially in industries such as cosmetics and food products. But people in general seem to like brands that they are familiar with. Many are willing to pay more money simply because they know they can trust the brand. And because of this it is important to get customers on board in order for them to trust your private labels more. There are three main steps to boosting customer trust for your private labels.

A Functional Product

The most important thing that you can do as a seller is to get a working, functional, fit for the task product. Nothing will break customer trust quicker than a product which does not work, aside from not resolving the problem when the product does not work. It is impossible to generate trust for your product when the product is faulty. The only way to avoid this is to get trustworthy private label manufacturers. The best way to ensure that a reliable private label manufacturer is attained is via a third party who specializes in these kinds of arrangements. It is possible to find good private label manufacturers on your own, but it takes a large amount of knowledge and time to commit to the right one. It may be risky to try and source your own manufacturer. If you are new to the game, especially if you are trying to obtain a reliable oversees manufacturer. This comes with an additional set of risks which requires additional skills to negotiate a fair contract.  It is recommended to do your research and due diligence in finding an appropriate manufacturer for your product. If the product is not fit for its purpose you do not have a business. Once you’ve decided on a manufacturer, it’s time to choose the products you’ll sell. Start by using this FBA revenue calculator. It’ll look at the current sales of a product on Amazon and then estimate the monthly sales volume and potential revenue for Amazon products.

Good Reviews

The main priority (aside from manufacturing a working, safe product) in boosting customer trust for your private labels is to simply get good reviews. It is also a good idea to avoid silly mistakes when promoting your brand, such as inaccurate product descriptions which tends to frustrate consumers who then go on to leave frustrated reviews. Attaining positive reviews can be achieved in a number of ways. Your first number of sales have to run smoothly. You can set the price tag extremely low for these sales and it is best to use Fulfilled by Amazon (FBA). Fulfilled by Amazon means that the products are stored in Amazon warehouse, and packed and delivered to customers by Amazon. They even provide customer service. This will ensure that the customers are happy with your product and that there are no mishaps which could destroy trust before any trust has been established. After this it is important that you ask for feedback. A tasteful email along the lines of:

“Hi, this is Mary from Mary’s New Company, Incorporated. We are a new business and are looking to get feedback on our service. We would really appreciate it if you could take the time to help us out with some feedback on our performance, and offer 10% off your next purchase should you choose to do so…”

It goes without saying that the email sent out will have to be tailored to suit your particular business and the above is a very generic outline. But it is a good idea to politely ask customers to submit feedback and to tell them you would really appreciate it, as customers are more likely to respond to genuine requests instead of bland automated emails from an autoresponder. After the first ten or so customers submit exceptional feedback you are well on the way to boosting trust for your private label products. Almost 90% of people now trust reviews as much as personal recommendations. Feedback Five is an effective software program that can aid in generating positive feedback, as most people do not bother to leave any feedback on Amazon. Good product reviews are the number one way to gain trust and ultimately increase sales of your product. Most customers simply would not bother to consider a product with less than 4 stars, and with good reason. Review rating is the ultimate sign of a good or bad product. To boost the credibility of your product even further, you can network with some of Amazons top reviewers, which are more well respected than standard reviewers. They will have this top reviewer designation next to their name when they review products. Reach out to these people and ask if they would be willing to leave a review, as their opinions are weighted more heavily than others. Contacting them is as simple as going to the Amazon top reviewers page. Their contact information is visible on their profiles which can include their website, email address, LinkedIn account and other information.

Make the brand you own

Another way to establish trust for your private label is to integrate your own story into the business as much as possible. If you are a former athlete you are selling these shoes because they represent the best in functional footwear, and you are speaking from passionate experience. If you were a former model you are marketing this product because you have tried them all and the one you are selling works the best. Maybe you are a stay at home mom/dad with a passion for a certain fitness device or cleaning product which solved a problem you have struggled with for years. Whatever it is, try to make a personal story out of it so you can build up trust and a relationship with clients as well as a brand for the company. This makes your product unique, as it will resonate with potential sports athletes, models and stay at home moms and dads.

Your customers have a gap in knowledge that is there to be filled. Fill this gap by illustrating that there is no real difference between your less expensive product and its competitors. If you have a product that is the same but better, highlight this fact to customers in any way you deem fit. Advertise the fact that customers are paying 20% more (in many cases) for identical (or worse) products. This does not make sense from a consumer perspective. You have to differentiate your goods from your competitors; otherwise you won’t have a business for long. Trust is ultimately built up over time when you prove that your product is just as good as anything else on the market at a more competitive price.

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Sarah Kaiser is a digital marketing manager at casino global sourcing, the sourcing division of a French retailer Groupe Casino. She’s in charge of godirek.com, the digital product catalog of casino global sourcing, which offers helps and handles inquiries about private label manufacturing and sourcing. See how further your private label business can grow by having a free inquiry on their online catalog, godirek.com or follow @Godirek on twitter.