How to Become a Private Label Supplier

Bekah Tatem

By Bekah Tatem, Content Writer

Last Updated March 26, 2025

10 min read

In this article, learn about: 

  • The differences between private label, white label, and national brands

  • The benefits of becoming a private label supplier

  • How to connect with retailers and secure private label partnerships

  • Walmart and Target’s private label strategies


Private labeling is when a retailer obtains products from a third party and sells them under its own brand. This strategy is increasingly popular among big retailers. Popular examples include Walmart's Bettergoods, Target's Good & Gather, and Costco's Kirkland Signature. 

For suppliers, being a private label partner can increase revenuestrengthen partnerships with retailers, and offer stable demand. This article will walk you through the foundational steps to becoming a private label supplier, from assessing your capabilities to finding retailer partnerships.

Understanding Private Labeling

Retailers use private labeling to gain more control over pricing, branding, and product quality. In addition, private label products typically provide retailers with higher profit margins than national brands, enabling them to offer lower-priced products to consumers.

It’s worth noting that retailers rarely rely on a single labeling strategy. They often use multiple strategies, such as national brands, private labels, and white labels, to diversify their offerings and meet different consumer needs.

Private Label vs. National Brand

National brand products are created, owned, and marketed by a producer or distributor under a well-known brand name, like PepsiCo, Nestle, or Levi's. Both private label and national brands exist to deliver products to consumers, but they have key differences as well:

  • Ownership: A national brand is owned and sold by the manufacturer. Private label products, like Target's Up & Up, are produced by third-party suppliers but exclusively branded and sold by the retailer.

  • Pricing: Private label products typically cost less than national brands, making them attractive to budget-conscious shoppers. Since there are no manufacturer markups or large-scale marketing costs, private label goods often yield higher margins for retailers.

  • Market Positioning: National brands depend heavily on advertising to build brand recognition, while private label products rely on the retailer’s reputation, convenience, pricing, and shelf placement to drive sales. 

Private Label vs. White Label 

Private and white labeling can often be used interchangeably, but they have differences. Private label products are produced exclusively for one retailer, and the retailer controls branding, packaging, and sometimes even the composition of the products. In contrast, white label items are generic products that a manufacturer may sell to multiple retailers, who then rebrand the product as their own. 

White label products sold across multiple retailers are not differentiated from each other aside from their packaging and branding. The core product remains the same, regardless of which retailer is selling it. Private label products can be tailored to meet a retailer's specific needs—such as unique ingredients, formulas, or exclusive packaging. On the other hand, white label products offer a more standardized solution that multiple retailers can customize with their own logos and marketing.

Key Benefits of Private Labeling

As mentioned above, private labeling has many benefits for the retailer and the supplier. A few key benefits include: 

Financial Benefits

As mentioned earlier, higher profit margins make private label products a big attraction for retailers. For suppliers, providing private label products to a retailer means a more predictable production rate and less money spent on branding and advertising. 

Stronger Retailer Partnerships

Suppliers that enter into private label partnerships have the opportunity to build long-term relationships with retailers, which in turn could lead to repeat and new business opportunities. Another benefit for suppliers is that you are guaranteed shelf space with the retailer’s product offering, whereas national brands might need to compete with competitors. This stability can lend itself to strong partnerships that offer reliable revenue streams. 

Additionally, many private label manufacturers have dedicated design teams, allowing retailers to focus on other aspects of brand development. In categories like apparel and promotional programs, this setup enables the manufacturer to take full ownership of product design while the retailer acts as the final approver. This "set and forget" approach is especially valuable when a retailer's internal design team lacks capacity to manage additional projects.

Product Flexibility

Another major advantage is flexibility in order minimums. Many private label manufacturers offer smaller production minimums, allowing retailers to test products before committing to a full-chain launch. This flexibility helps retailers personalize their assortment and reduce risk when introducing new items.

Brand Growth

Private labels allow retailers to build exclusive product lines that differentiate them from competitors. Over time, strong private label brands can develop consumer trust and loyalty. For suppliers, creating private label goods for major retailers can lead to increased exposure, potential expansion into new categories, and opportunities for scaling production.

A great example of this is Simmons Foods—a supplier of pet food and prepared foods. Walmart's first private label brand, Ol’ Roy, launched in 1983 and was initially produced by Simmons Foods. Over the years, Simmons has continued to expand its private label partnerships, supplying products for multiple retailers while maintaining a strong relationship with Walmart. Today, Simmons also produces select items for Bettergoods, one of Walmart's newest private label brands. This growth highlights how private label suppliers can scale their business and establish themselves as trusted manufacturing partners.

Related Reading: The Benefits of Private Label Brands

Are you Ready to be a Private Label Supplier?

Becoming a private label retailer requires research, planning, and readiness. Retailers seek suppliers capable of meeting their standards, providing consistent quality and service, and offering products at the right price. Here are three key areas to evaluate before taking the plunge into private labeling: 

Assess Manufacturing Capabilities

Do you have the production capacity to meet retailer demand, or can you scale to that level? Retailers expect suppliers to deliver products consistently at the agreed-upon quality and volume. To prepare:

  • Assess your current production capacity and identify any gaps.

  • Ensure you have scalable operations to handle increased demand if necessary.

  • Strengthen your supply chain to avoid disruptions and chargebacks.

Being flexible is also key to being a successful private label supplier. With shifting tariffs and supply chain challenges, suppliers need a flexible manufacturing network that includes both direct import (DI) and domestic (DOM) shipping capabilities. Having strong relationships with multiple manufacturers ensures they can offer retailers adaptable sourcing options. This flexibility helps retailers manage costs, mitigate risk, and adjust to economic changes while maintaining product availability.

Ensure Quality Control and Compliance

Retailers have strict quality and regulatory requirements based on their industry and product category. To be a viable private label supplier, you should:

  • Stay current on industry regulations such as FDAUSDA, or CPSC standards.

  • Implement quality assurance processes, like testing and documentation, to meet retailer expectations.

  • Obtain certifications (e.g., GMP) to demonstrate compliance and reliability.

Consider Financial Implications

Can you offer competitive pricing while maintaining profitability? Consider:

  • Upfront investment costs for equipment, packaging, and sourcing.

  • Retailer payment terms, as some operate on net-30, net-60, or longer cycles, meaning you may need to cover production costs before receiving payment.

  • Scaling costs, ensuring you can increase production without overextending your financial resources.

How to Connect with Retailers for Private Label Opportunities

Typically, major retailers seek out suppliers for their private labels, but suppliers can also take the initiative to position themselves as ideal business partners. Here are some ways to increase your visibility and the potential of securing a private label partnership: 

Understand Retailer Sourcing 

  • Requests for Proposals (RFPs): Retailers, particularly Walmart, may issue RFPs to source suppliers for private label products. In addition to the RFP, you may receive a costing exercise where the retailer shares a current item on their mod/planogram for you to price out. If your price, with margin expectations, matches or beats the current vendor’s price, they may invite you to their next line review.

  • Direct Outreach: Retailers may approach current suppliers who already meet their standards and have a strong partnership. 

  • Trade Shows and Events: Industry expos are a great opportunity for suppliers to promote their products to buyers. 

Related Reading: How to Make the Most of Trade Shows—A Guide for CPG Suppliers

Respond to Retailer Interest

When a retailer expresses interest in your products, be prepared to:

  • Showcase your track record with other private label brands or a national brand. 

  • Provide documentation on your manufacturing processes and quality control practices. 

  • Be flexible and willing to negotiate production and customization options with the retailer. 

Proactively Pitch to Retailers 

While many private label partnerships begin with retailer outreach, suppliers can also take the initiative to:

  • Network at industry events to connect with retail buyers.

  • Research retailer private label programs to identify gaps where your product fits.

  • Reach out with a strong pitch, highlighting manufacturing capabilities, pricing, and product differentiation.

Private Brands at Walmart

Walmart refers to its private label products as Private Brands. These exclusive product lines are designed to offer customers high-quality items at everyday low prices. Some of Walmart’s most popular Private Brands include Great Value, Equate, Bettergoods, Vibrant Life, Time & Tru, and Sam’s Choice.

Walmart outlines these key benefits of being a Private Brand supplier:

  • Access to Walmart's established Private Brand customer base

  • Enjoy Walmart's brand recognition and market influence

  • Introduce unique and innovative products

  • Scale production to meet high-volume demand, if feasible

  • Receive support from Walmart's dedicated Private Brands team

Private Brand suppliers are crucial in Walmart's mission to provide affordable, high-quality products. Walmart works closely with its suppliers to maintain strict quality standards, cost efficiency, and brand consistency across all Private Brand products.

Suppliers interested in working with Walmart must meet federal, state, local, and company-specific requirements. Additionally, they must adhere to Walmart’s expectations for:

  • Quality: Products must meet strict regulatory and safety standards, undergo sensory testing, and maintain consistent customer satisfaction.

  • Cost: Suppliers must maintain Walmart's Everyday Low Cost (EDLC) model by offering competitive pricing and working collaboratively to reduce costs without compromising quality.

  • Packaging & Design: Suppliers must follow Walmart's branding and packaging guidelines to create a cohesive and recognizable product line.

Another key factor for private brands at Walmart is the ability/flexibility to test products before putting them in stores. Most departments require private labels to have a certain amount of online extensions available. This approach minimizes risk for Walmart while providing valuable insights from online testing before making in-store launches.

For questions on becoming a Private Brand supplier, Walmart recommends contacting PBComms@email.wal-mart.com.

Related Reading: What Is Everyday Low Price (EDLP)?

Owned Brands at Target

​Target refers to its private label products as Owned Brands, which are exclusive product lines developed in-house to offer unique, high-quality items to their customers. Examples include Good & Gather, Cat & Jack, A New Day, Boots and Barkley, Heyday, and Threshold.​

Target leverages its Owned Brands to differentiate itself in the retail market by focusing on quality, design, and affordability. These brands allow Target to control product development from conception to shelf, ensuring that offerings align with customer preferences and market trends.

In recent years, Target has shifted its approach to private labeling. While many of its in-house brands were once clearly recognizable as exclusive to Target, the company has rebranded and elevated these private labels. The goal is to make it less evident that the products are owned and created by Target, instead positioning them as premium items "only sold at Target."

Many of Target's brands have become well-loved and built a strong customer base. In May 2024, Target announced plans to make select Owned-Brand products, like Cat & Jack, available for wholesale, extending its reach beyond Target stores and online platforms. The goal of this initiative is to bring Target's exclusive products to new markets and consumers, further solidifying the strength and appeal of its Owned Brands.

Suppliers interested in becoming an Owned Brand supplier at Target can submit a supplier registration form here

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