E-Commerce Dictionary
Private Label
Definition
Products manufactured by one company for sale under another company's brand.
Deep Dive
Private Label refers to products manufactured by one company (the manufacturer) but sold under another company's brand name (typically a retailer or distributor). In this arrangement, the retailer contracts a third party to produce goods according to their specifications, which are then exclusively branded and marketed by the retailer. This business model allows retailers to build their own brand identity, differentiate their offerings from national brands, and often achieve higher profit margins by controlling the product's design, quality, and pricing without the overhead of manufacturing facilities.
Examples & Use Cases
- 1Costco's Kirkland Signature brand
- 2Amazon Basics for electronics and home goods
- 3Walmart's Great Value food products
Related Terms
White LabelOEM (Original Equipment Manufacturer)Branding