Starting a private label business on TikTok Shop? Let’s break down two of the most important factors for success:
➡ Estimation Costing: What Will It Cost? 💰
When launching a private label product, it’s essential to plan your budget wisely. Let me show you an example of what it looks like for a product with a $10 per unit cost from China to the USA.
🔹 Product Sourcing:
For a product with a $6 unit cost, you’ll likely order a minimum of 500 units to start. $6/unit x 500 units = $3,000 for inventory.
🔹 Packaging & Branding
You’ll want to create unique packaging to stand out. Let’s estimate branding and packaging costs at $2 per unit.
500 units x $2 = $1,000 for packaging and branding.
🔹 Shipping & Logistics
Shipping by air is recommended for your first batch to get to market quickly, estimated at $2 per unit.
500 units x $2 = $1,000 for air shipping.
🔹 Paid Ads & Collaborations
➡ To drive traffic and boost sales, you’ll need to invest in TikTok ads and influencer collaborations. A starting budget of $1,500 should be allocated for this.
💡Total Estimated Cost (Air Shipping)
Product Sourcing: $3,000
Packaging & Branding: $1,000
Shipping & Logistics: $1,000 (air shipping)
Paid Ads & Collaborations: $1,500
Total Cost: $6,500
💡 Optional: Sea Shipping
If you’re looking to cut down logistics costs, shipping by sea will reduce the cost by around half, bringing shipping expenses to $1 per unit, but the timeline for shipping will increase to 40 days.
Total Cost (Sea Shipping) $6,000
(example) With this investment, if you sell the product at a $30 price point and sell all 500 units, you could generate $15,000 in revenue. Gross profit would be around $8,500 with air shipping or $9,000 with sea shipping, before other operating expenses or returns.
2️⃣ Updated Timeline: How Long Will It Take? ⏳
Launching a private label product takes planning, but here’s a streamlined timeline for air and sea shipping:
➡ Product Research (1 Week) Quickly find the right product and reliable suppliers.
➡ Branding & Packaging Design (1 Week) Finalize your logo, packaging, and product branding.
➡ Production (2-4 Weeks) This is the time needed to manufacture your first batch.
➡ Shipping Air Shipping (12 Days) Faster but more expensive option to get your product to market quickly.
➡ Sea Shipping (40 Days): Slower but cheaper option to cut logistics costs in half.
➡ TikTok Shop Setup, Marketing & Launch (1 Week) Build your store, set up marketing, and launch your product!
📅 Total Timeline
Air Shipping: 6-8 weeks from idea to launch.
Sea Shipping: 10-12 weeks from idea to launch.
Final Thoughts: Successfully launching a private label on TikTok Shop involves strategic budgeting and planning. Air shipping provides quicker access to the market, while sea shipping is more cost-effective. Each step plays a crucial role in establishing a thriving brand!
