Logistics for private labels - how to do it with your head?

Online creators are increasingly able to monetise their work online, using social media and streaming services. They are also increasingly choosing to promote and sell their own products, which gives them independence and increases their profits. However, creating a private label requires careful planning, especially in the logistical area. When launching your own original products, it makes sense to use services such as fulfilment.

Monetisation of online creativity

Social media and streaming sites are not only a source of entertainment, but also of earnings. Every online creator whose consistent efforts have turned into an image success knows this. The ability to broadly reach a diverse audience with their content means, for web creators a permanent audience for the content created, as well as an opportunity to monetise online activities.

One method of earning money online, for example, is by charging for ad views in front of YouTube videos. Paid partnerships, such as advertising a particular product or service on social media or in the main medium of their online business, such as a blog or podcast, also form a significant part of earnings for online influencers. Earning from a created personal brand is also increasingly common.

The world's biggest private labels

Global private label market is dominated by show business stars . Kylie Jenner's Kylie Cosmetics brand brings in an estimated $375 million a year, while her sister Kim Kardashian's SKIMS brand is in turn $275 million. However, the August 2022 TOP100 Creator Brands list also includes gems from creators not directly linked to mainstream media: Ipsy (Michelle Phan's cosmetics brand) with $500 million a year, Huda Beauty (Huda Kattan cosmetics) with $250 million, or MrBeast Burger (fast-food ordered online from MrBeast) with $100 million. [1] .

Influencers' own brands grew quite organically until 2017, but the real booster was 2019-2020, where the The growth of this market has taken a nosedive thanks to the covidien restrictions on traditional sales and increased consumption of online content.

Źródło: Top 100 Creator Brands Report, influencermarketinghub.com

The most popular product category among content creators is cosmetics, followed by clothing and accessories. Apps (mainly mobile) also have a fairly high share.

Źródło: Top 100 Creator Brands Report, influencermarketinghub.com

In Poland, too, influencers are doing quite well, with top figures boasting millions of followers [2] :

• Robert Lewandowski - number of fans: 62.26 million
• Anna Lewandowska - number of fans: 8.70 million
• Wersow (Veronika Sowa) - number of fans: 7.69 million

High reach, on the other hand, opens up the field for the launch of new products signed with the name of an influencer or celebrity. This is a form of revenue diversification and reinforcement of the private label.

An alternative approach to online earnings

National and European regulations somewhat inhibit the unfettered earning of money from promoting products and services online. Among other things, the legislation prohibits all forms of surreptitious advertising that is, misleading consumers through the promotion of products without a clear message to the consumer that the promotion has been paid for [3] .

This means in practice that any form of paid promotion carried out by the web developer should be clearly identified. In light of such limitations, creators are increasingly choosing to create and promote their own brand . This not only gives a sense of greater independence, authenticity, but also real profits in the form of trade margins on the products sold.

Consumer satisfaction and fan trust will depend on which logistics partners the influencer chooses.

Many influencers start their sales adventure by producing garments with a graphic/logo or slogan they have created. It is also common to create a series of products thematically linked to an online business, e.g. e-commerce with accessories produced by influencers on children, medicine, travel, sport&fitness and many others.

What's more, its own The brand may or may not be related to the owner's web creations. For several years now, there has been a cosmetics line on the market sold under the Pat&Rub private label, created by journalist and presenter Kinga Rusin. Many influencers also choose to publish their book. It is therefore irrelevant what medium the influencer works in or what subject he or she deals with, as their products are likely to be successful thanks to the audience they already have.

Private label creation and its challenges

Creating a personal brand from scratch can be a challenge. The situation is different when the online creator already enjoys recognition and a large number of fans who willingly consume the content he or she publishes. Then the creation of the product itself can follow different routes, such as:

• approaching a so-called "white brand" manufacturer , i.e. a manufacturer who has finished recipes or products for branding
• development of a proprietary product or service line , e.g. selling one's own book, participating in the design of clothing, developing leading ingredients in a cosmetics line with experts.

In addition, in the case of physical products, an element of the whole is the product packaging, the look and quality of which the influencer also wants to directly influence, if only by ordering a dedicated shape, finish or product graphics.

It is the logistics partner who is responsible for a large part of the shopping experience of the end customer: the quality and timing of the delivery, the way the product is packed for shipping, the correctness of picking. .

Selling a private label is a process involving a staff of people and it is difficult to expect the online creator to manage it all personally, while any stumbles at the production or distribution stage directly hit his or her popularity and credibility. In most cases, the production process and logistics are completely outsourced, placed in the hands of external companies. Consumer satisfaction and fan trust will depend on which logistics partners the influencer chooses.

Distribution logistics for private label products

From the perspective of the entire sales process, the final point is the selection of the right logistics partner. This is responsible for a large part of the purchasing experience experienced by the end customer: the quality and time of delivery, the way the product is packed for shipping, the correctness of picking.

The right logistics partner takes many potential problems and responsibilities off the influencer's shoulders that are not directly related to the core business. This means ceding to the fulfillment provider not only the handling of warehousing and the so-called last mile, but also a number of extremely important ancillary activities:

• organisation of transport from the producer to the warehouse (both domestic and international)
• visual quality control at the warehouse entrance
• detailed inspection based on agreed standards
• stock control for best-before dates (cosmetics, food products)
• collection of logistical data (weights and dimensions of products for the description on the website)
• professional product photography (packshots, arrangements)
• Handling of hotlines and customer enquiries
• handling returns and complaints

As part of the InPost Fulfillment service, the private label owner can benefit from all of the above services, as well as receiving support in many other areas, such as:

• market analyses: product, price, competition activity analyses
• advice on marketing strategies
• IT audits and support for the development of sales platforms

InPost Fulfillment is a comprehensive package of benefits that, in a holistic way, allows online creators to focus on their most important area of activity, which is providing valuable content for their audience. All thanks to modern tools and a specialised team.

Thanks to the specialists at InPost, every influencer offering their own brand will be able to focus on the core objectives of their business. InPost Fulfillment's professional staff will take care of the following as part of their comprehensive online sales service. buyers of products sold by online creators experienced the best possible shopping and logistical experience.