Private Label Products
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Key highlights
Private label products allow ecommerce businesses to control pricing, branding, and margins without owning manufacturing infrastructure.
High-performing private brands of consumer goods in the U.S. have seen constant growth in market share, going from 18% in 2019 to close to 21% by 2024.
Small and mid-sized ecommerce brands can successfully launch private label products by focusing on lightweight, repeat-purchase items.
Market research, supplier vetting, and brand differentiation are the primary factors that separate profitable private labels from failed launches.
Growing consumer demand across categories like supplements, home goods, and eco-friendly products continues to expand private label opportunities.
As online and digital sales continue to become more prevalent, businesses worldwide are looking for new opportunities to increase sales while cutting back on overhead and manufacturing costs.
Insert private label products.
Selling private label brands and products is increasingly becoming one of the most profitable ecommerce business models. In fact, private brands of U.S. consumer goods have seen constant growth in market share, going from 18% in 2019 to close to 21% by 2024.
For ecommerce brands using platforms like BigCommerce, private labelling offers a way to increase margins, differentiate product catalogues, and build long-term brand equity without owning manufacturing facilities.
What are private label products?
Private label products are goods manufactured by a third party but sold under a retailer’s own brand name. For ecommerce companies, private labelling enables full control over branding, packaging, pricing, and product specifications while avoiding the complexity of in-house production.
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Why businesses choose private label products
Businesses choose private label products because they offer greater control over margins, brand identity, and customer experience. Unlike reselling established brands, private labelling allows ecommerce companies to differentiate their offerings while building proprietary product lines that support long-term growth.
If you’re interested in private label selling, it’s smart to start with conducting your own market research.
Real-world examples of private label products include common grocery store items (like store-brand food), electronics, apparel, and cosmetics. Some brands you may have seen are Kirkland Signature and Amazon Basics.
Looking broadly at the entire category of private labels, many brands choose to source and sell these products due to a few key factors:
Profit margins.
Selling private label products begins with considering profit margins; the manufacturing process, location that a product is made in, and product quality all play a part in determining what profit margins a business can expect to make.
In the United States sellers on Amazon see a wide range of profit margins, but most fall within the 21% to 30% range (on per-product sale for 19% of small sellers, based on a study conducted in 2025). A few of the most top-performing, high-margin categories for sellers with products on Amazon FBA include wellness supplements, electronics, phone accessories, and eco-friendly products.
Shipping and storage costs.
The best private label products for managing shipping and storage costs are small, lightweight, non-fragile items, including personal care products, skincare products, supplements, apparel, and accessories. These product categories allow for lower freight and warehouse fees, and reduce the chance of breakage during storage and shipping.
Ease of manufacturing.
Ecommerce businesses also base their product selection on things like ease of manufacturing and quality control. The contractor manufacturer chosen must oftentimes meet strict requirements for private labelling work, especially when products involve formulations that could spoil or “go bad” if not kept at the right temperature. Think products like supplements, hair care items, and deodorant, to name a few.
Repeat purchase potential.
Of course, your customer base also plays a part in which private label manufacturers you choose to partner with. On one hand, lower priced items may be quicker to sell to your target market. But ecommerce businesses that have a longer term strategy often opt to sell products that can be purchased multiple times, e.g., cosmetics, supplements, and cleaning products.
Online demand trends.
There’s always pressure to “strike while the iron is hot,” and for private label products that means staying up to date on popular trends and items that are highly sought after. Businesses can research what’s popular via social media and Google Trends.
The 13 most lucrative sectors for private labelling
Certain product categories consistently outperform others when it comes to private labeling. Based on demand trends, production feasibility, and margin potential, the following sectors represent some of the strongest opportunities for ecommerce brands building private label product lines.
1. Electronics.
The consumer electronics industry is one of the largest and fastest growing in the nation, forecasted to grow to more than $565 billion in 2026. The story remains the same beyond the U.S., with ecommerce websites like Alibaba specialising in and promoting thousands of private label electronics.
From handheld electronics to workout wristbands and headsets, the product ideas for private labelling are ever-changing and ever-expanding.
2. Supplements.
Supplements have become one of the fast-growing markets over the last decade. In 2021, 80% of US adults took dietary supplements — a record-high.
With so many different categories of supplements available, from essential oils and creams to gluten-free options, there are bound to be market gaps available for industrious entrepreneurs.
3. Cosmetics.
The beauty and cosmetics industry is a massive one, with nearly $101 billion worth of sales in the United States in 2024 going toward beauty products and skin care.
Cosmetics are often bound to trends, especially in the online sphere. By understanding trending products through social media research, organisations can take advantage of a significant opportunity for private labeling.
4. Clothing.
Clothing is an ever-present need for customers. It’s estimated that in 2026 the apparel market in the U.S. will grow to upwards of $372 billion.
For companies looking to get into private labelling, clothing could be an easy win, with its multitude of potential options, from T-shirts to jackets to jeans.
5. Shoes.
Just like clothing, shoes are also an essential need for customers and there will always maintain a high demand for new products.
For those interested in starting their own shoe lines, private labelling can significantly help with the manufacturing side; you design the shoe, brand it, and then send it to a manufacturer to build. From there, it is yours to market and sell.
6. Kitchenware.
Spend any time on television, and you’ll notice the number of advertisements for new and improved kitchen products. In 2023, the country's average expenditure on tableware and non-electric kitchenware amounted to $25.83 U.S. dollars per consumer unit.
Anything ware you see on television is a possibility for private label products. If it’s a niche you’re interested in, you can find quick success with the right marketing strategy.
7. Gardening tools.
One byproduct of the COVID-19 pandemic and the rise of remote work was the growing popularity of gardening and outdoor maintenance.
From flowerpots and seeds to gardening tools, the new generation of gardeners could make an ideal target audience for private label business owners.
8. Home decor.
Like many other industries related to home goods supplies, the value of the home decor market has skyrocketed — with virtually no end in sight.
For creative entrepreneurs, private label home decor products could be an opportunity to combine artistic designs with an ever-expanding supply of options, whether wall paint, frames, candles, or cushions.
9. Camping accessories.
Consumer interest in outdoor recreation increased significantly during and after the pandemic, driving sustained demand for camping and outdoor accessories. Private label opportunities in this category include multi-use backpacks, tent accessories, and compact hiking gear designed for portability and durability.
This represents another significant opportunity for companies looking into outdoor and camping retail. Potential private label goods include camping gear such as multi-use backpacks, tent supplies and hiking books.
10. Toys.
Wherever you find a child, you’ll find a desire and demand for children’s toys. From outdoor and sports toys to dolls and action figures, there is a significant market and plenty of children looking for things to play with.
The toy industry is potentially lucrative for private labels, with larger companies such as Walmart using private label product lines to increase their profit margins by relying on the functionality of smaller manufacturers.
11. Yoga accessories.
With more than 37 million yoga participants in the United States alone — and with most items being home-friendly — building out a base of yoga accessories is a potential grand slam as a private label product.
Just cheque out the search volume on marketplaces such as Amazon to see the popularity of yoga accessories, whether easy-to-make yoga mats or yoga pants.
12. Workout equipment.
Despite a drop in 2020 due to the COVID pandemic, the value of the global fitness market has been steadily increasing, with projects of more than $14 billion by 2028.
The easy part of selling workout equipment? The incredible diversity of products available for private labelling, including dumbbells, kettlebells, water bottles, resistance bands, and more.
13. Eco-friendly cleaning supplies.
Top private label eco-friendly cleaning products focus on sustainable, biodegradable, and (sometimes) plant-based formulae. Popular options include all-purpose cleaners, laundry detergents, dish soaps, and even concentrated cleaning tablets.
Another great aspect of selling cleaning products is the fact that they’re often repeat purchases, boosting sales when customers love your items.
The final word
Private labelling continues to be a powerful growth strategy for ecommerce businesses seeking higher margins and stronger brand control. By owning product specifications, pricing, and customer experience, retailers can build differentiated catalogues that scale over time.
For brands selling through flexible ecommerce platforms like BigCommerce, private label products support long-term growth by combining operational control with brand ownership.
FAQs about private label products
Choosing a private label product starts with identifying a niche where demand exists and competition is manageable. From there, businesses should vet manufacturers, order samples, and validate quality before committing to production. Testing demand with small initial orders helps reduce financial risk.
Many companies that you are aware of use private label products for their in-house store brands, including:
Amazon Private Label and Fulfilment by Amazon (FBA)
Walmart Great Value
Costco’s Kirkland Signature
Even some grocery stores will use private label sourcing, whether it’s Whole Foods or Kroger.
It is easy to get confused by the differences between these three product models. To make it easier, consider the following definitions:
Private label products: Products that a retailer gets produced by a third party but sells under its own brand name. Private label products are sold exclusively through a single retailer.
White label products: Like private labels, white label products are sold by retailers with their own branding and manufactured elsewhere. However, white labelling a product involves selling a generic product to multiple retailers — each of whom can brand it accordingly.
Wholesale products: Wholesale is a business model where instead of selling your own products individually to consumers, you sell them in bulk and at a discount to other businesses. Here, companies find high-quality products under a brand name and buy these in bulk to sell online or offline.
Private labelling is highly profitable for small businesses and startups, often seeing higher margins due to lower manufacturing costs and brand exclusivity. Key factors for profitability:
Higher margins: Products can be sold with 3 to 4 times markup due to the fact that you don’t have to pay for the brand equity of a third party.
Brand ownership and loyalty: Since you own the product, this eliminates competition on the same listing and encourages repeat, exclusive purchases.
Lower production costs: Sourcing directly from manufacturers lowers costs compared to selling established brands.
Selling private label products does come with some risks, like quality control failures, high initial inventory costs, and brand reputation damage.
Mitigation requires thorough supplier vetting, strict quality assurance, legal trademark cheques, and testing demand with small initial order volumes.
Below are some of the biggest risks and ways to mitigate them:
Quality control issues: Products may be defective, inconsistent, or unsafe, causing recalls and destroying brand trust. How to avoid this: Order samples before committing to large orders, conduct third-party inspections, and build strict, written quality standards with the manufacturer.
Inventory and financial risk: High Minimum Order Quantities (MOQs) can tie up capital, while inventory expires or becomes obsolete. How to avoid this: Start with smaller orders; use data-driven forecasting; and negotiate lower MOQs initially.
Intellectual property and legal risks: Unknowingly infringing on trademarks or patents can lead to account suspensions (e.g., on Amazon) and even costly lawsuits. How to avoid this: Perform in-depth trademark and patent searches before manufacturing.
Dependency on manufacturer: Relying on a single supplier risks delays or production failures. How to avoid this: Diversify the vetted manufacturers you work with, and build strong communication channels.
Low brand differentiation: Products may struggle to stand out — the result is often lower margins. How to avoid this: Invest in unique, high-quality packaging and branding to stand out from competitors.
Reputational damage: A bad product reflects directly on the seller. How to avoid this: Monitor customer reviews and address issues immediately.
Starting a private label brand usually costs between $2,500 and $10,000 for a minimum viable launch, depending largely on inventory, branding, and marketing. While some sellers can start with less than $2,000 for simple products, a comfortable launch with professional branding and inventory typically requires a $5,000 to $8,000 investment.
Launching a private label product varies, but usually takes three to six months from initial idaea to the first sale. With experience and efficient manufacturers/supply chains, the time it takes to launch can be reduced (and in many cases, may only take four to eight weeks).
The timeline greatly depends on product complexity, speed of manufacturing, shipping times, and custom branding requirements, with 90 days being a common benchmark for a standard launch.
Validating demand for a private label product involves researching competitors, analysing search trends, and thoroughly testing the market with a low-cost MVP (Minimum Viable Product) or landing page. You can do this by using Google Trends and keyword tools to confirm search volume, running small-budget test ads, and soliciting feedback through surveys or pre-orders from your customers.
Selling private label products requires managing intellectual property (IP), strict regulatory compliance, and overall product liability.
Important steps to consider before launching your label:
Conduct comprehensive trademark searches to avoid infringement.
Ensure products meet safety standards (like FDA, FCC, or CE) with verified, third-party lab testing.
Establish detailed, legally-binding contracts with manufacturers that define IP ownership and quality control.
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