Ecwid is officially Lightspeed! It’s business as usual, only better. Learn More

Ecwid Ecommerce Glossary

Private Label

Promo image

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. Private-label products are available in a wide range of industries and are often sold at a lower cost.

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 private-label brand

To avoid the drawbacks of private labeling, do your research on customer preference before you invest in private-labeled products.

Ecwid blog

Discover more about ecommerce with Ecwid Blog

Promo image

Start selling online for free

Get started

no credit card required

Search for your term

We use cookies and similar technologies to remember your preferences, measure effectiveness of our campaigns, and analyze depersonalized data to improve performance of our site. By choosing «Accept», you consent to the use of cookies.