A private label business sells products made by a manufacturer under your own brand: kitchen gadgets, pet products, skincare, supplements, fitness gear, home goods, apparel and more. You control branding, packaging and marketing, while manufacturers handle production, and you sell through Amazon, other marketplaces, your own website and retailers.
Because your brand is on the product, you are responsible for compliance: many consumer products need certificates of conformity under CPSC rules, children’s products need third-party testing, cosmetics and supplements have FDA requirements and California’s Proposition 65 may require warnings. A registered trademark protects your brand and unlocks marketplace brand programs. This guide covers product selection, sourcing, branding, compliance, importing, channels, a worked example and a 90-day plan.
A private label products business at a glance
Table of Contents
| Topic | What to expect |
|---|---|
| Startup cost | Moderate: samples, first inventory order, testing, packaging design, trademark filing, photography, marketing and insurance |
| Brand protection | Trademark search and USPTO registration; marketplaces such as Amazon offer brand registry for registered or pending marks |
| Product compliance | CPSC certificates (GCC or CPC), FDA rules for cosmetics and supplements, Prop 65 and accurate origin claims |
| Importing | Customs, duties and changing tariffs for overseas manufacturing |
| Best for | Product-minded entrepreneurs comfortable with suppliers, compliance and marketing |
Who private label suits
It suits entrepreneurs who like product development, negotiating with suppliers, analyzing numbers and marketing. It requires capital for inventory and patience with compliance and supply chains.
Choosing products
Look for products with steady demand, room to improve on competitors, reasonable size and weight for shipping and manageable compliance. Heavily regulated categories, such as children’s products, supplements, cosmetics and electronics, require more testing and expertise. Check current tariffs before choosing overseas products.
Finding and vetting manufacturers
Find manufacturers through supplier platforms, trade shows and sourcing agents. Order samples, compare quality, write detailed specifications, negotiate minimum order quantities and use pre-shipment inspections. See our sourcing agent guide for factory vetting.
Trademarks and brand protection
Search existing trademarks before choosing a brand name, then file with the USPTO. Marketplaces such as Amazon offer brand registry programs for brands with registered or pending trademarks, providing tools against counterfeits and hijacked listings.
Product safety and certificates
Under CPSC rules, many consumer products subject to safety standards require a General Certificate of Conformity (GCC), issued by the importer or domestic manufacturer, and children’s products require third-party testing and a Children’s Product Certificate (CPC) plus tracking labels. Even unregulated products must be safe; defective products can trigger recalls.
Cosmetics, supplements and other regulated products
Cosmetics must meet FDA requirements, including MoCRA rules on facility registration, product listing and adverse event reporting (with exemptions for certain small businesses). Dietary supplements must be made under good manufacturing practices, labeled correctly and marketed without disease claims. Food, electronics and other categories have their own rules.
Prop 65 and origin claims
California’s Proposition 65 requires warnings for products that expose consumers to listed chemicals above safe harbor levels, and marketplaces may require compliance for products sold to California. "Made in USA" claims must meet the FTC’s standard, and imported products need country of origin marking.
Importing and tariffs
Overseas manufacturing means customs entries, bonds, duties and freight. Tariffs changed frequently in 2025 and 2026, so check current rates and include duties in landed costs. Work with a customs broker and freight forwarder; see our import business guide.
Startup costs to plan for
| Item | What to budget for |
|---|---|
| Samples and development | Multiple samples, design changes |
| First inventory order | Minimum order quantity, freight, duties |
| Testing and certification | Lab testing, certificates |
| Branding and packaging | Logo, packaging design, inserts |
| Trademark | USPTO filing fees and attorney help |
| Launch marketing | Photography, listings, ads, insurance |
Use our startup cost calculator for your total.
Pricing and margins

Calculate landed cost, marketplace fees, fulfillment, advertising, returns and storage before ordering. Many sellers aim for product landed costs well under a third of the selling price to leave room for fees and ads. Use our pricing calculator.
A worked example: a home and kitchen brand
These are illustrative assumptions for an established brand selling home and kitchen products, not predictions.
| Assumption | Monthly | |
|---|---|---|
| Marketplace sales | 1,400 units averaging $29 | $40,600 |
| Direct-to-consumer and wholesale sales | $8,000 | |
| Revenue | $48,600 | |
| Product cost landed | Including freight and duties, about 30% of sales | $(14,600) |
| Marketplace referral and fulfillment fees | $(13,000) | |
| Advertising | $(6,500) | |
| Testing, insurance and compliance | Averaged monthly | $(600) |
| Software, photography and design | $(700) | |
| Storage and returns | $(1,200) | |
| Profit before owner pay and taxes | $12,000 |
That leaves about $12,000 a month before the owner’s pay and taxes, on about $48,600 of revenue. Fees, advertising and landed costs consume much of each sale, so margins must be planned before ordering inventory.
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Sales channels
- Amazon and other marketplaces with fulfillment programs.
- Your own website for higher margins and customer data.
- Wholesale to retailers and boutiques.
- Social commerce and influencer partnerships, with proper disclosures.
Product liability insurance
Because your brand is on the product, carry product liability insurance; many marketplaces and retailers require it above certain sales levels. Keep testing records and supplier documentation.
Listings and conversion
Professional photos, clear benefits, accurate specifications and keyword-rich titles help products rank and convert. On marketplaces, enhanced brand content and videos are available to registered brands.
Reviews and FTC rules
Reviews drive marketplace sales, but buying fake reviews, offering incentives for positive reviews or suppressing negative ones violates FTC rules, including the 2024 rule banning fake reviews, and marketplace policies. Earn reviews through great products, follow-up emails within platform rules and approved review programs.
Inventory planning
Running out of stock hurts rankings, while overstock ties up cash and incurs storage fees. Forecast sales, account for manufacturing and shipping lead times and reorder before inventory runs low.
Packaging
Packaging protects products, communicates your brand and must include required labels, such as warnings, country of origin and contact information. Test packaging for shipping durability and marketplace requirements.
Quality control
Inspect production before shipment, check samples against specifications and track defect rates and returns. Quality problems lead to bad reviews, returns and possible safety issues, so build inspections into every order.
Scaling the brand
Grow by adding related products for the same customers, expanding to your own website and retail stores and building email and social audiences. A brand with several complementary products is more valuable than a single listing.
Marketplace policies
Marketplaces set rules for product categories, packaging, labeling, safety documentation and insurance. Some categories require approval before listing. Review policies before ordering inventory so products are not blocked or removed.
Customer service
Respond quickly to questions, resolve problems generously and use feedback to improve products and listings. Strong customer service protects ratings, which drive marketplace visibility.
Common mistakes to avoid
- Ordering inventory before calculating fees and landed costs.
- Skipping trademark searches.
- Selling children’s products without third-party testing.
- Disease claims for supplements or cosmetics.
- No quality inspection before shipping.
Your first 90 days
- Days 1-30: research products, demand and compliance requirements and model margins.
- Days 31-60: order samples, file a trademark, design packaging and arrange testing.
- Days 61-90: place a first order with inspections, prepare listings and plan the launch.
Frequently asked questions
What is private label?
Products made by a manufacturer and sold under your own brand.
Do I need a trademark for a private label brand?
It is strongly recommended, and marketplaces such as Amazon use trademarks for brand registry.
What is a General Certificate of Conformity?
A CPSC-required certificate showing a regulated consumer product complies with applicable safety rules.
Do private label cosmetics need FDA approval?
Cosmetics do not need premarket approval, but must meet FDA rules, including MoCRA requirements.
How much money do I need to start private label?
Enough for samples, a first inventory order, testing, branding and marketing.
Do I need product liability insurance?
Yes. Your brand is responsible, and many marketplaces and retailers require coverage.
Is private label profitable?
It can be, but fees, advertising and landed costs are significant, so careful product selection matters.
Can I private label products from domestic manufacturers?
Yes. Domestic manufacturers can reduce lead times and tariff exposure, often at higher unit costs.
What products are best for private label?
Products with steady demand, improvement opportunities, manageable size and weight and reasonable compliance requirements.
Do I need a business license?
Usually yes, plus sales tax registration where required and any import or product-specific requirements.
What is the difference between white label and private label?
White label products are generic items sold by many brands, while private label products are often customized for one brand.
How long does it take to launch a private label product?
Often several months for research, samples, testing, production and shipping.
How do I find a manufacturer?
Through supplier platforms, trade shows, industry directories and sourcing agents, followed by samples and vetting.
Do private label sellers need testing?
Many products do, especially children’s products and items subject to CPSC rules.
What is landed cost?
The total cost of a product delivered to your warehouse, including freight, duties and fees.
Can I sell private label products on my own website?
Yes. Direct-to-consumer stores offer higher margins and customer data alongside marketplaces.
Keep learning
- E-commerce industry data
- How to start an import business
- How to start a sourcing agent business
- Pricing calculator
Sources
- USPTO, Trademark basics
- CPSC, General Certificate of Conformity
- CPSC, Children's products: testing, certificates and tracking labels
- FDA, Modernization of Cosmetics Regulation Act (MoCRA)
- FDA, Dietary supplements: manufacturing and labeling
- California OEHHA, Proposition 65 warnings for businesses
- U.S. Customs and Border Protection, Importing into the United States
Last reviewed November 4, 2026. Startup costs are estimates; check local prices, licensing and tax rules before you commit money.


