Beginner's guide to finding private label manufacturers in 2025
Last updated: 10.02.2025
Searching for a private label manufacturer for your business? Take a look at our ultimate guide
Key takeaways
- The private label market is projected to grow from $742 billion in 2022 to $2049 billion by 2032, with a 10.8% annual growth rate
- Partnering with reliable private label manufacturers lets you focus on marketing, branding, and product development
- Product quality, reliability, and manufacturer reviews are key factors when choosing private label manufacturers
- Alibaba and 1688 are the top platforms for sourcing private label products
Introduction
The estimated value of the private label market was $742 billion in 2022. The market is expected to reach $2049 billion by 2032, with a CAGR of 10.8%. In 2023, 24.7% of all the unit sales were from private label brands.
Private labelling products give you the opportunity to stand out from the competition and build healthy profit margins without needing to get into a fierce price war with generic, non-labeled products in the same category.
Choosing to partner with a reliable private label manufacturer gives you the opportunity to focus on product development, marketing, brand building, and other key aspects of your business.
In this article, we take a look at the benefits of working with a private-labelled manufacturer and the best ways to find a reliable manufacturer.
Table of Contents
What is a private label?
A product with a private label is manufactured and supplied by one company and then marketed and retailed by another company. When you source private labelled products from a manufacturer, they give you the exclusive right to sell these products. You can decide on the branding, pricing, and even product customization.
Though, getting a private label product doesn’t mean your competitors won’t be able to sell similar products or the manufacturer won’t sell these products to another company. Unless your product idea is truly unique and you have a patent for the design, the manufacturer may sell similar products with different customizations to other companies.
With a private label product, you can:
- Bring your ideas to life by using your product prototype or unique design to mass produce products
- Establish total exclusivity with private label products to stand apart from the competition
- Get more control over production and collaborate closely with manufacturers
Examples of private label products
Private label products can span across different product categories, from skincare to clothes, and electronics.
For instance, here’s a generic electronic body weight scale that can be private labelled by customizing the product design and adding your logo.
The manufacturer can also customise the pattern, colour, and other details to create a more unique product for your private-label brand.
Here’s another example of a private label beauty product. You can add your own brand name, logo, and other details to this facial spray.
What are private label manufacturers?
Private label manufacturers produce products ready to be customized, labelled, and sold under another company’s brand name. While some manufacturers may only offer private labelling and basic customization services, others let you fully customize/ formulate products. Manufacturers can also assist you with customized packaging and boxes for your products.
Benefits and risks of private labelled products
Benefits
Bigger profit margins: Customers often perceive branded products as superior to generic ones, even if the brand is relatively unknown. This perception allows you to set higher prices compared to generic counterparts, resulting in larger profit margins.
Standout from the competition: Private labelled products allow you to stand apart from the competition without getting lost in the sea of similar-looking products.
Branding: Selling private labelled products helps you build a brand that you own. It allows you to improve brand recognition and loyalty through a strong customer base. If the customers like a product they bought from you, they may specifically check other products sold under your brand name.
More control: Outsourcing product manufacturing gives you more control over the entire supply chain without excessively increasing upfront investment costs. You can customize products and scale the production up or down without worrying about increasing costs.
Risks
Product quality and reliability: One of the biggest concerns businesses face when sourcing private labelled manufacturers is product quality. You’re essentially putting your brand name on a product you haven’t created from scratch. That is why partnering with reliable manufacturers with a good track record is paramount.
Liability: When customers receive poor quality products, they will blame your brand and not the manufacturers. In case of any issues, you will be liable for the products that you’re selling. This can be risky if you’re sourcing fragile products like electronics, safety equipment, and food. Even skincare products can be risky if they aren’t sourced from a reliable and certified supplier.
Anyone can private label products: Your private label manufacturer can also supply products to your competition, making it difficult for you to stand out. Of course, your competition would add their own branding, but the products could be very similar–unless you’re going to sell a patented product.
For instance, you’ll find various smart weighing scales on Amazon Australia. Most look the same, with panel customization and colours being the only differentiating factors.
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What to look for in a private label manufacturer?
Here are the main factors you should consider when looking for a private label manufacturer:
Quality: Always order a sample before placing a private label order to ensure the product quality meets your expectations. Replacing private labelled products is usually more expensive and time-consuming.
Reviews: Look into the manufacturer’s reviews to better understand others’ experiences with them. You can usually find manufacturer reviews on Google or marketplaces from where you’re sourcing the products.
Price: Find out the exact labelling and manufacturing costs that you’ll be charged. You should also ask about any discounts for large quantity orders. Always compare prices from multiple manufacturers before making a decision.
Payment terms: Discuss all the payment terms before you even sign an agreement. While some manufacturers may ask for the entire payment upfront, others may offer a line of credit.
Specialisation: The manufacturer you choose should be specialised in the type of products you require. After all, not all manufacturers are the same. They won’t have the same experience either. Look for manufacturers with proven track records in your particular niche.
Low defects: Look through the manufacturer’s reviews online and ask for multiple samples to assess the average defect rate. You should also assess how the manufacturer takes feedback.
How to find private label manufacturers
Start your search for private label manufacturers on Google. Look into the top results and read the Google reviews of different manufacturers. Though if you’re looking for private label manufacturers in China, you may not be able to find their websites that easily.
Alibaba
Alibaba is a B2B marketplace based in China where you can find suppliers sourcing ready to sell and private labelled products. The marketplace caters to a global audience and has a dedicated page for private label products that you can use to quickly find relevant products. You can compare prices, check features, scan through customer reviews, communicate with suppliers directly and make payments through Alibaba.
Alternatively, you can search for products using the ‘OEM’ (original equipment manufacturer) keyword. So, if you are looking for private label socks, you can search for ‘oem socks.’
1688
1688 is another B2B marketplace based in China that you can use to find private labelled products. Also a part of the Alibaba group, 1688 targets domestic buyers in China and helps them connect with manufacturers and wholesalers. The website is entirely in Mandarin, considering its target audience. As a result, you may find it challenging to find private label products and even communicate with the suppliers–who may only have basic English proficiency. Since private labelling products can require a lot of back-and-forth communication, it would be beneficial to work with a translator to help streamline the communication.
1688 only supports domestic payment methods. As an international buyer, you can pay 1688 suppliers directly from the platform through World Pay – the authorised international payment partner of 1688.
→ Take a look at our complete guide on how to buy from 1688 and 1688 vs Alibaba comparison to understand the differences between the two B2B e-commerce platforms.
Sourcing agents
You can also partner with sourcing agents who can help you find private label products and manage the entire sourcing process on your behalf. Most sourcing agents have their own network of suppliers and shipping companies that they leverage to streamline sourcing for your business. Though sourcing agents usually charge their own commissions over the usual product charges.
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Disclaimer: The information contained is general only and largely our views. Before acting on the information you should consider whether it is appropriate for you, in light of your objectives, financial situation or needs. Although information has been obtained from and is based upon multiple sources the author believes to be reliable, we do not guarantee its accuracy and it may be incomplete or condensed. All opinions, estimates, mentioned products/services and referenced material constitute the author’s own judgement as of the date of the briefing and are subject to change without notice. WorldFirst shall not be responsible for any losses or damages arising from your reliance of such information.
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