What is private label?
Private labeling is selling products a company makes under another company’s or business’s brand.
Private label products are the products manufactured by one company for sale under another company’s brand.
The advantages of private labeling:
- a loyal customer base
- high margins compared to reselling products
- an opportunity to operate as a wholesaler for your brand
- separating yourself from your competitors
The disadvantages of private labeling:
- a requirement of minimum orders
- a possibility of unsold inventory
- customers often trust a brand they’ve used for a long time, as opposed to a little known
To avoid the drawbacks of private labeling, do your research on customer preference before you invest in