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LETS GET DOWN TO BUSINESS.

Question :
Hi, I’m planning to start a nature, health, and wellness Biz. For the initial months, I want to have an ecommerce store (website), selling only few items to gauge interest. So I planned to create a natural items basket with healthy living products. The products don’t have to necessarily be created by me, or my biz. I’m simply planning to use other brand items, but set them up in a basket. This basket created, will be the product by our business. I’m not sure if this plan is legitimate. Is this way of approach, ok? I’m thinking of the following ways to create my basket. Either of these may be the right option. Please guide.. :1st case) If its legally OK to use other brand products, in my basket, WITH their labelling, then I can do it this way.The issue is, why would anyone want to buy from me, if I have simply added existing brand items in my basket. What else can I do to make this basket sellable? Or, 2nd case) if its legally OK if I use other brands items, WITHOUT their labels, Then I can choose this way.My reasoning is that, as I have already paid for an existing Brand product, and so now this product belongs to me, so I can use it in my way, in my basket, without the need of that brand’s labels. Is it ok or not?I’m confused how people to do it? I’m wondering, does everyone always create their own items, to create baskets? I know a business based on selling gift baskets, consisting of stationery items, toys, goodies. This baskets were for different occasions, to be bought as gifts. I could easily tell that the items in the basket were not products created from scratch by the same business?Sometimes, some items, do not necessarily have the brand name/label on the item, as the brand name is present only on the packaging. So obviously, I don’t have to worry in this case. I can easily remove the packaging, and include in my basket. Again, is this OK? 3rd case) I can create my own little products for the basket. As it’s a wellness biz, I’m planning to create a natural house cleaner.The issue here is, do I have to mention all the ingredients in that homemade cleaner? Do I need to get it approved by some regulation agency? Do I need to ho through a rigorous process of creating and using licenses or something?This will be a very difficult task, as I have nothing really unique to create, but a lot of hurdles, before I get to any buyers, if at all…. I’m just intending to start a small business, with some ideas, some existing stuff, and then see how it goes from there.Can I simply be a reseller or something, yet have my own label and branding?Please help me with ideas to approach this. 

Question submitted 14/07/20 @ 10:44am
Industry: New Product Development / R&D
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  • Hi there,
    Sounds as if you have an interesting product idea that you are developing for the future. My thoughts…
    – it will be hard to ascertain the interest in your future product by selling other products.
    – absolutely creating and selling baskets of products is a legitimate business. Examples include My Food Bag and https://www.giftbaskets.co.nz/christmas-food-box- they are clear about the value they add (My Food Bag takes the complexity around deciding on a recipe and shopping for example)
    – yes you can be a reseller of other products with your branding – you would need to approach suppliers, get them to agree to supply you with a MOQ, price, delivery details, etc and a plan for how you will label, buy the labels, etc
    – you will need to work out how to forecast sales to establish how much volume you will buy off the suppliers
    – alternatively if you wish to sell baskets of other branded product, you will need to get those brands to agree to sell to you, again agree MOQ, volumes, etc.
    – it will be harder to buy a product, remove the label and put your own label on and I would not recommend this
    – creating a new product – yes if you wish to make any claims like ‘natural’ you will need to understand the regulations around labelling in NZ – Commerce Commission requirements, Fair Trading Act, etc and a specific regulations for the claims wish to make. You will need to research the requirements, identify how you will meet them and may need independent testing and verification from a third party body such as Assure Quality.
    – branding you will need to create a brand or license from some one – creation is often easy and cheaper but has no leverage to start
    Hope I’ve covered everything off…good luck! Vicky

    Hi there – the only thing I would like to share is this concept of A/B testing – and what that means to me is ‘test’ your hypothesis around what people like and engage on, and buy – do lots and lots of tests and you will learn from that. Hopefully that will enable you to focus, harness and ultimately scale. Good luck. Andy

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