Not Enough Demand for the Product
A typical private label mistake, especially among beginners, is selling a product without proper research. Typically this happens if the seller is inexperienced or the business is a part-time side hustle. There is nothing wrong with testing the waters, but you are most likely to waste your time and money without preliminary research.
Insteads, investigating beforehand whether your private label has a possible audience is a more realistic way to estimate your new venture's success. A trending product might have demand, but upon further inspection, you realize the niche is already oversaturated. It would not be easy to go head to head with competitors who already have established their place. You could use a tool like Helium 10 to help with your product research and analysis to identify promising opportunities.