private label

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Private label definition

A product with a private label is a product that is produced by a third party and purchased from a retailer, but it is sold under the retailers brand name, and the retailer controls the retail sales of the product. This control includes product specifications, how Packaging and other things are done. After that, the product is delivered to the retailer with a private label.Private labeling is widely used in todays ecommerce

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Advantages of private label:

 Create a competitive price

If you own a retail store and have to price your products at a competitive level compared to other sellers, then private label products will be beneficial for you.

 Increase in profit

Prominent brands spend more money on marketing and advertising as they have more demand in the market; Therefore, the total price of this type of products in retail stores is high in order to cover the costs, while a retailer by buying products without labels and using a personal label can save a lot of money spent on marketing and advertising to save.

 Strengthening the sales team

The profit margin for products sold under a private label is higher compared to name brand products; Depending on the location of this profit, you can strengthen them by paying your sales team. Also, the cost of buying unbranded products is lower compared to brand products, and sometimes you can offer your own brand products to customers at the same price as other products.

 Brand building

Using this method, you start building your brand

Maintaining customer loyalty

Today, people prefer to buy products with their favorite labels over other products. If people are interested in the products distributed under your label, then you are definitely the only source they will turn to for purchases.


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Disadvantages of private label

Minimum order
Creating unusable inventory
Difficulty gaining customer trust

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Arah company gives its customers the opportunity to design the packaging of the materials according to their taste and print and package any information such as name, logo, address and any other information according to their needs.


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