How to Start a Private Label Brand in the UK (2026 Guide)
Private label means selling products made by a manufacturer under your own brand name. It is how most of the brands you see on Amazon and TikTok Shop started. This guide covers how to find a product, the criteria we use before we spend a penny, sourcing, white label, the real fees and how little you actually need to start.
Private label vs reselling vs dropshipping
| Private label | Reselling / wholesale | Dropshipping | |
|---|---|---|---|
| Who owns the brand | You | Someone else | Someone else |
| Profit margin | Highest | Lower | Lowest |
| Price wars | Nobody else can sell your brand | Anyone can undercut you | Anyone can undercut you |
| Control over packaging and quality | Full | None | None |
| Can you sell the business | Yes, you own an asset | Harder | Harder |
| Startup cost and risk | Higher (minimum order quantities) | Lower | Lowest |
The big upside of private label is that you build something you own and can eventually sell. It is also easier to expand: once a product works, you can launch new variations under the same brand. The downsides are more money up front, more moving parts, and the marketing burden. Nobody knows your brand on day one, so you need a plan to get sales.
With TikTok Shop and the AI boom, it has genuinely never been easier to get your foot in the door with a private label brand. This is the golden age for it.
Seller University private label workshopWe split building a brand into three areas: sourcing, branding, and operations and marketing.
Step 1: Find a private label product idea
You should not struggle for ideas. These are the ways we find them:
- Scroll TikTok and Amazon and look for simple products selling at a big markup.
- Browse Alibaba top ranking products and new arrivals for inspiration.
- Look at your own order history and think about problems you would solve for yourself.
- Watch the ads you are shown and ask if you could do it better or cheaper.
- Ask friends and family, and use your own passions.
- Think like a retail arbitrage seller. In a shop, ask: how much would that actually cost to make?
- Use research tools: Helium 10 for Amazon sales data, FastMoss for TikTok Shop, Pinterest and Etsy for gift and niche ideas, and Exploding Topics for trends that are growing fast.
- Go to trade fairs like Spring Fair in the UK or the Canton Fair in China. Read our Canton Fair guide for UK sellers.
Whatever you find, check it against the UK market. Search TikTok Shop and Amazon: is anyone already selling something similar, and at what price? That is your proof of concept.
Step 2: Check it against our product criteria
The checklist we use before launching
- Cost of goods of £5 or less. Cheaper products mean lower minimum orders and cheaper samples. Sending 100 samples to TikTok affiliates costs £300 at £3 a unit, but £1,000 at £10.
- Around 75% gross margin. If it sells for £20, it should cost about £5. Fees will take a chunk (see below).
- Low minimum order. Cheap products often need only 500 to 1,000 units for custom branding.
- Brandable. Would someone pay more for your brand? Nobody pays four times more for a branded hair band.
- Repeat purchase if possible. Selling to the same customer again is far easier.
- Not fragile. Breakages lead to one star reviews, and TikTok Shop penalises sellers with too many bad reviews.
- Low returns. Avoid categories like fashion with sizing headaches.
- Viral potential. Can a creator make a video that people actually stop and watch?
- Simple compliance. Some products cannot be sold on TikTok or shipped easily. Check before you buy.
Saturation is not always bad. Beauty and personal care looks crowded, but the market is so big that a tiny share is still a serious business.
The fees to plan for (TikTok Shop example)
At the time of recording, a product selling for £20 on TikTok Shop would lose roughly another £5 to fees: affiliate commission of around 10 to 20%, the TikTok Shop platform fee, and Fulfilled by TikTok fees if TikTok stores and ships for you. Fees change, so always check the current rates.
Step 3: Source your product
Alibaba is the go to place to source worldwide. Be careful: prices look deceptively low until you add shipping, platform fees and tax, which can push the price up by around 30%. Message several manufacturers, compare quotes, and always get samples.
White label: the faster way to launch
White label means using a manufacturer's existing, tested product or formula and putting your own label on it. Many big brands do exactly this. It is especially useful for cosmetics and supplements, where creating your own formula means lab testing and big costs.
- You can start selling faster, because the product already exists.
- Minimum orders are lower, sometimes around 500 units.
- It is cheaper than a custom formula.
- You can customise the formula later once the brand is proven.
How much money do you need to start a private label brand?
A lot less than most people think. One of our students launched a private label brand for £700. One of our coaches started a faceless honey brand after spotting jars selling for £18 on TikTok. Raw honey from a local beekeeper cost about £2.50 a jar, the total startup cost was around £750, and the first batch sold out in the first month through TikTok videos and live streams without ever showing a face. The brand then grew by adding new honey variations under the same name.
Start small, validate with data, then scale. If you want the complete process from product to launch, watch our full A to Z workshop:
Frequently Asked Questions
What is a private label brand?
A private label brand sells products made by a manufacturer under your own brand name and packaging. You own the brand, set the price, and nobody else can sell it.
How much does it cost to start a private label brand in the UK?
It can be done for under £1,000 with a low cost product and a small first order. One Seller University student launched for £700. More expensive products and custom formulas need deeper pockets.
What makes a good private label product?
Ideally a cost of goods of £5 or less, around a 75% gross margin, a low minimum order, a product people would pay more for as a brand, repeat purchases, low fragility, low returns, viral potential and simple compliance.
What is the difference between private label and white label?
Private label is selling a product under your own brand. White label is one way to do it: you take a manufacturer's existing tested product or formula and add your own branding, which is faster and cheaper than developing your own.
Where can I sell a private label brand?
The main channels are Amazon, TikTok Shop and Shopify, plus Instagram and live selling. TikTok Shop affiliates are one of the fastest ways to get a new brand in front of buyers.
Is private label better than reselling?
Private label has higher margins, no price wars and builds an asset you can sell, but needs more money up front and more marketing. Reselling is cheaper and quicker to start. Many sellers start with reselling and move into private label.
Want help launching your brand?
Seller University helps people launch and grow private label brands on Amazon, TikTok Shop and Shopify. Book a free call and we will map out the best way in for you.
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