Private Label:

In private label, we sell our own branded products through various online platforms like amazon. If we are selling on Amazon, then we have to work from scratch to the highest level of business. We cannot add our product to any running listing but we have to create a new listing for a Private label.

Wholesale Products:

In wholesale products, we only purchase existing products directly from the manufacturer of the product in bulk and then sell that product as a re-seller on amazon. We don’t have a need to create a new listing for our products, as we sell by adding our product to the existing product listing.

Usage and effectiveness of both models:

A usage, the effectiveness of Private Label and Wholesale Product depends upon the various factors.

Private Label:

If you have more than enough capital and can manage all the affiliated things like creating Amazon ASINs, product detail pages, and branding elements such as Amazon Stores. Advertising cost is also very high because you are starting your business brand as a new entity so you have to spend a lot to advertise your brand.  Then surely you can go for the Private label as the return in Private label are also very higher.

Wholesale Products:

In Wholesale Products, there are a low barrier to entry and less time taking process as compared to Private Label. The most important thing in it is that your business will be very effective if you found a reliable manufacturer for your product. There is as such no restriction that you can purchase the products in lower quantity as the first order.