What is Private Label Production, and What are the Benefits?


Whether you're starting a new business and looking to get goods to market quickly, or you're an established business looking to expand your product range, you've probably come across the term private label products in your research.

There are many different terms that are used in conjunction with private label products, including white label products, custom formulations, and private label manufacturers - and they are all linked. All of these kinds of products are essentially made by outside parties and sold under a brand name. The kind you choose is up to you.

Private label products come with a lot of benefits and many private label manufacturers are now used by well-known brands to manufacture and distribute well-loved products under the brand's own name.

In this article, we're going to explore what a private label business and private label products are, what the benefits of using private label manufacturing services are, and whether this method of product manufacture and distribution is right for your business. To find out more, keep reading now.

What is Private Label Production, and What are the Benefits

What is a private label brand and what are private label products?

So, what is a private label product?

A private label product is manufactured by a private label business that creates products for brands that then go on to sell that product under their own brand name. Selling private label products is very very common, particularly in the cosmetic and personal care industry (think haircare and skincare products), the clothing industry, and the food industry (think store brands of common products like fizzy drinks).

Private labels may make a range of different products, including white label products and custom formulations. A white label product is a product that is already made and a brand will simply buy and add their own labels to it. This kind of product distribution is used commonly by hotels and hair salons.

Private labelling and custom formulations sometimes overlap. With private label products and custom products, you would come up with your own product idea and then take it to a private label brand that would manufacture the product based on your specs. The levels of customization you can have depend upon the kind of product and the private label brands you work with.

To sell private label products, a brand only needs to add its own brand name and labelling, and then it is ready for market. Many cosmetics companies have a private label line and lots of famous brands manufacture in the same private labelling business.

Private labelling comes with many benefits. To find out more about the benefits of private labelling, keep reading now.

The benefits of using a private label business for your brand

Using private label products is very common and can offer many benefits to new and established companies. Take a look below to find out a few of the advantages of using private label products in your business.

Private label products are extremely adaptable

Working with a private label brand gives you the option for adaptability when it comes to your products. A third-party manufacturer will be able to adapt your formulations depending on changes within the market.

This means that if your market research has shown changes in what your customers want, you can adapt a generic private label product into something more suited to your niche market. A reliable manufacturer will be able to offer a quick turnaround too, meaning you can get your new and improved formula to market as quickly as possible. This means, that if there is rising market demand for a vegan product, you can adapt your current product in no time.

Unlike with an in-house manufacturer, fewer tests will be needed when adapting your own private label products because you have already tested the base product out, and a private labelling business will already have the expertise to ensure small tweaks to your product idea can be seen through.

What is Private Label Production, and What are the Benefits

Private label products offer more control over production processes

A private label product line is created with you and so everything within the supply chain, from raw materials to product packaging, can be decided by you. This means you get the exact product you want when you work with a reliable private label manufacturer.

Whether you're selling private label furniture or looking at private label toy ideas, it is an advantage to be able to dictate everything that happens in production. It will help you to keep costs down and ensure that the products you're bringing to your online store are totally your own - even if they're manufactured by someone else!

You have control over price when launching private label products

With more control over the supply chain, comes more control over production costs, materials costs, packaging costs, and every other cost you can think of. In choosing the ingredients in your products and the way they're packaged by the private label business, you can pick and choose where you want to save and where you want to splurge.

Private label products lend themselves to higher profit margins, meaning you can make more money on products when going private label. You may also find that in using a private label brand to conduct the testing and manufacturing parts of creating new products you save money you may not have if you had carried out these processes in-house.

Private label products use custom product branding

Custom branding on private label products means that you can have your name on all private-label goods that you sell. This means that customers see them as the brand's own products, even if they're not manufactured in-house.

Private label products build better brand loyalty

With the increase in quality and consistency of private label products in recent years, many customers now prefer private label products and this kind of product consistently does well on the market.

Creating a private label product that customers know works well and has been consistently good for them can help to encourage customers back to your brand time and time again. Private label products can also target niche markets and build a loyal customer base where other brands may not be able to get a foothold.

With the adaptability of private label products, you can conduct market research and focus on your target market to build a product that these customers want and need without the hassle of having in-house expertise and manufacturing capabilities.

Private label products offer market stability

As previously discussed, private label products consistently do well on the market. This is down to a few things, including the consistency and quality of private label products in recent years as well as the affordability of these products. Being able to set your own price points means being able to create an affordable product for customers that creates revenue that can be reinvested into your online business.

What is Private Label Production, and What are the Benefits

Private label products are quick to market

If you're just starting out a brand and want to get some products onto the market quickly, private label is the way to go. Whether you're a private label electronics brand or looking to sell private label at your own furniture brand, private label products are the quickest route to being able to offer customers products.

Using a reputable and reliable manufacturer to create your private label product ideas means that you can also focus your energies on growing your brand. As a private label seller, you are in the unique position of not having to worry about manufacturing and distribution, giving you all the time in the world to conduct further market research, create incredible marketing campaigns, and come up with new product ideas.

Is using private label manufacturers right for you and your brand?

Private label manufacturers are of great use to eCommerce businesses looking to expand their product line or invest in new product ideas. If you're looking for a way to create a product line and do not have the in-house expertise or manufacturing capabilities to do it yourself, you may want to turn to a private label products brand.

Private label brands come in all shapes and sizes, from clothing manufacturers to private label manufacturers who also deal with supply chain management and product distribution too. A private label business will be able to help you put products out there and help your business gain momentum, especially as you just start out.

Why not search for the best private label manufacturers online today and see if any fit your brand values and needs?


Private label products are products that are already created by a third-party manufacturer to which a brand is able to add their own branding and name and sell it as their own. Private labelling comes in varying formats, but most allow for customization of the formula and branding to suit your needs.

Private label is very common in the cosmetics, clothing, and food industries and can be used to help get products onto the market quickly as well as to cater to niche markets. There are many benefits of using private label products, including their adaptability, control over production and costs, and their market stability.

Why not find out if a private label product line is right for you today?