Launch Your Own Private-Label Brand

"Sourced directly from a manufacturer, private-label brands remove one or more layers of intermediaries from the supply chain, usually distributors or other brands. A nearly identical private brand can earn more margin, even at a low price."

"Private label goods are manufactured to a retailer's specifications and sold exclusively under its brand. The retailer controls features, materials, packaging, and positioning."

"The retailer can select a manufacturer, define the product's specifications, negotiate minimum order quantities, and align lead times with peak demand."

Retailers like Amazon, Walmart, and Target create private-label brands to improve unit economics through three mechanisms: increased profit by eliminating intermediaries in the supply chain, enhanced supply chain control through direct manufacturer relationships, and product differentiation via exclusive offerings. Private-label products differ from white-label products in customization and exclusivity—private labels are manufactured to retailer specifications and sold exclusively under the retailer's brand, while white-label products are generic items produced by manufacturers and sold to multiple brands. Launching private-label products involves complex processes with potential complications at multiple stages.

Read at Practical Ecommerce