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Conflict of interest?

by jbthemummy
6 replies
  • ECOMMERCE
    • |
Hi Guys,

So I found a product that might do fairly well (According to my numbers).

The thing is the brand is already established.

In a few weeks, my site (ecommerce ready) should be up there competing with them under the same keywords (I will be drop shipping their product).

Now is it a good idea to continue using their brand or private label it (Which they also offer. So I would be advertising my self as an offical reseller) and go against them (At the end, we both make money anyways).

Let me know your thoughts.

I think both parties should win because it just makes the brand stronger. Love to hear from someone who has had experience in this kind of scenario.
#conflict #interest
  • Profile picture of the author webitemsllc
    if its trademarked or if you signed a non compete agreement, you will have legal issues. I would notify them prior. Keeping the idea in the dark from your supplier is a bad idea.
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    • Profile picture of the author jbthemummy
      Thanks for your reply webitemslic,

      I guess I wasn't clear enough.

      The company knows and I know as well (We have been in talks for weeks).

      I just wanted to know marketing wise, what would be the best strategy for us to move forward with. Private Label the product or build more on the existing brand.

      Cheers!

      JB
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  • Profile picture of the author Daniel J
    Where are you selling (your own website or a marketplace?) If you are selling somewhere like Amazon, your advantage is that the listing is likely already getting sales. If you can sell in one of the top 3 spots, you'll make money immediately. The downside is that competition could start lowering their price and eliminate your profit. If it were me, I would private label the product. The downside of this is the work it will take to get your product ranked and to build up your own "brand." If you're selling on your own website, you'll likely have to work even harder to get traffic, but the same principles apply. Hope this helps!
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  • Profile picture of the author Solid Commerce
    I think this also depends on a few other things:

    - the product, and the marketplace that exists around it
    - your expertise/influence within that marketplace.

    These factors are going to affect how tough a time you have actually marketing your inventory and doing the work to get that traffic and make those conversions.

    _ Sean
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  • Profile picture of the author jbthemummy
    Thanks for the reply guys. Yeah unfortunatley the marketplace definitley requires credibility, that's why I'm leaning towards selling as an "Authorized Reseller" and keeping the brand.
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  • Profile picture of the author Daniel J
    I think this is a great choice- and the quickest way to see a return (and lowest risk!) Keep us updated on how it goes!
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