A private label product is manufactured by a third-party manufacturer and sold under a retailer’s brand name. As the retailer, you could specify everything about the product – what goes in it, how it’s packaged, what the label looks like and add any value-added gifts – and pay the manufacturer to have it produced and delivered to you, or to your final customers if you are doing dropshipping. This is in contrast to buying products from other companies with their brand names/tags on them. Customers will only see your logo and label on the products with private labeling.

Many big retailers are implementing private labeling. Some popular examples of private label products include Walmart’s Great Value brand, Target’s Mainstays, and Amazon’s Amazon Essentials. Almost all product categories have private label offerings: household cleaning products, personal care products, food categories and cosmetics products are some common categories for private labeling, and this is a good news for dropshippers because you can always find something to fit your store niche.

Many dropshippers might be more familiar with POD than with private labeling, and there are indeed some differences between these two. Print-on-demand product is when you print designs on products according to the end customer after getting an order from the customer which will then be shipped to the destination. For example, if you are selling this hoody and your end customer want to add a logo on the hoody, that would be a POD product. POD does not bring extra value to the product except for the customization; there’s no brand value to it.

Unlike POD, private label creates a unique brand and give products extra brand value. Private label basically means that the manufacturer will produce the item based on your specifications, and the specifications are more than just adding a logo. Moreover, the item will be properly packaged with customized packaging, and some other value-added items can be included in the package, too. Once completed, they will be sent to your customers. Private labeling creates more value for dropshippers because it’s helping you building a brand.