Private Label Product Wholesale

Create private label products sourcing from manufacturers and selling wholesale to retailers under exclusive or white-label brands

Startup Cost
$80,000-$350,000
Difficulty
Advanced
Time to Profit
12-24 months
Profit Potential
$16,000-$166,000/month

Overview

Private label wholesalers develop branded products - sourcing from manufacturers and selling wholesale to retailers under private label or white-label brands creating unique product offerings.

Private label margins typically 40-70% on manufacturing cost.

Distributing $500K-$3M annually in private label products generates $200,000-$2M+ gross profit with 15-30% net margins.

Target customers include retailers wanting exclusive products, Amazon FBA sellers, boutiques and specialty stores, subscription box companies, corporate gifts and promotional products, and white-label resellers.

Services include product development and sourcing, private label branding and packaging, minimum order quantity flexibility, wholesale pricing and terms, product customization options, and marketing support materials.

Success requires product development and sourcing expertise, relationships with contract manufacturers, understanding retail product positioning, branding and packaging capabilities, quality control, and building retail customer base for private label products.

Required Skills

  • Product Development
  • Manufacturing Sourcing
  • Branding
  • Quality Control
  • Retail Partnerships

Pros and Cons

Pros

  • Higher margins on private label
  • Product differentiation from commodity wholesale
  • Can build brand equity
  • Exclusive products reduce competition
  • Growing private label market

Cons

  • Product development risk and costs
  • Inventory investment in private label
  • Minimum order quantities from manufacturers
  • Building brand recognition takes time
  • Quality control critical for brand

How to Get Started

  1. Identify private label product opportunity
  2. Source contract manufacturers
  3. Develop product and branding
  4. Create packaging and marketing materials
  5. Build retail and reseller customer base
  6. Manage inventory and fulfillment
  7. Expand product line over time

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