What is a private label?

05/11/2019
  • Definitely you have heard about private labels, but if you are not clear about the concept of private label, we, in Oleoshop, are going to clarify this in a minute.

  • If you want to grow in eCommerce, you have to know the concept of private label well.  The thing is that this kind of products and business philosophy will help you most generate the presence of your own brand and get a better performance of your sales. 
  • What is a private label?

  • When an eCommerce or retail uses a product made by a third party but under its own brand, packaging and corporate name, it is said that it is using a private label.

    In some way, it is an opposing concept to that of retail arbitrage because, in this case, we buy from a maker and get involved in the product. Therefore, there is a bigger control of it. There is also an added advantage of having a cheap cost as it does not depend on original brand´s production process 

    Private brands are also frequently found in supermarkets and food stores

    This kind of stores often have products made by their own providers but under the chain´s brand, competing against the maker´s products directly, as they usually have a cheaper price
  • Advantages of private labels

  • The main advantage of a private label is the fact of having a product that works in the market thanks to the experience of a maker that is involved in it. 

    This does not mean we can get red of our own market researches; in fact, they are essential as we are provided with an idea of how successful our private label can be.  

    Besides having a consolidated product in the market, we have the posibility of starting generating our own private label with its resulting branding.

    When the time comes, we can diversify to another areas or, even, lead to an own production with an imperceptible change for customer.  
  • What about you? Do you think private labels will succeed in a coming future? Would you create a private label as part of your business model? Share your thoughts with us.

Laia Ordoñez


Laia Ordóñez is a copywriting & eCommerce content marketing expert. She is Content & Marketing Manager at DueHome, a copywriting & content independent advisor, and Oleoshop's blog's editor-in-chief.

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