Private Label Definition: What Does Private Label Mean?

Private labelling is when a supplier or manufacturer produces goods that are retailed, packaged, and sold exclusively by a third party. This means that the first company profits by selling goods to third parties, and the third party profits by selling to consumers. Private labeling is used widely in today’s eCommerce landscape.

White Label vs. Private Label

Note that private labeling is different from white labeling. Private labeling is when a product line is sold exclusively through one retailer, like AmazonBasics. White labeling is the process of selling a generic product to multiple retailers, who brand and price the product for their target market.