Can You Relabel a Product and Sell it?
In short, yes. A common misconception amongst those just starting out with their own beauty brand is that it can take a significant amount of time to introduce those first products to market. In fact, it can actually be much quicker to take a pre-existing formula and relabeling it as your own. There’s nothing wrong with purchasing formulations and adding your own branding, and you’re not obliged to state whether a product is made by you or not.
It’s called private labeling, or virtual manufacturing in some countries.
If you relabel a product and sell it under your own brand name, you become a private label distributor (PLD). And you won’t be the only one. Perhaps one of the most well known PLDs is Amazon, who has its own AmazonBasics range of electronics and home accessories. These items haven’t been manufactured by Amazon, but they have been purchased, relabeled, and sold on the platform under the AmazonBasics brand.
Take the case of cosmetics brand Glossier. Their Lash Slick mascara took a whopping 248 formulations to perfect; a significant cost and time investment for the company. Relabeling products removes the need for research and development, giving you a ready-made, compliant, expertly made formula that you can instantly sell as your own.
Any company can relabel products and sell them under their own brand. However, there are typically two groups where relabeling is seen as a more frequent activity:
1. Entrepreneurs who are considering venturing into a new market for the very first time. Taking an existing product and relabeling it is an instantaneous business opportunity.
2. Small businesses looking to expand their current product base. Relabeling products is a good way to research what sells before investing in large scale operations.