Private label

Private label is a model where a manufacturer makes a product and the seller sells it under their own brand. The product may be identical to what others sell, or it may be changed slightly, for example a new colour, a better material or a bundled accessory. The seller usually buys stock in bulk and ships from a warehouse or fulfilment partner.

Compared with dropshipping, private label needs more money up front, because you pay for inventory before you sell it. In return you get:

• Higher margins, since bulk buying lowers unit cost and the brand supports a higher price
• Faster shipping from local stock
• Protection from copycats, because your branded product is harder to copy exactly
• A real brand that can earn repeat customers and a better customer lifetime value

Many stores begin by dropshipping to test demand, then switch to private label once a product proves itself. When you research competitors, signs of private label include branded packaging in product photos, custom product names instead of generic supplier titles, and stable pricing over time.