Be careful when approaching vendors for private labeling. Make sure that your vendor provides full product design and liability support, as you may be liable in the case of product failures.

According to the recent Facing the Forces of Change© - Lead the Way in the Supply Chain, published by the NAW Institute for Distribution Excellence (www.naw.org), a key future trend will be wholesaler-distributors marketing their own private label products, i.e., products manufactured for the wholesaler-distributor under contract for sale under the wholesaler-distributor's brand name.

Private labeling may be an attractive business strategy for a host of reasons. However, this business opportunity has some legal and financial risks, particularly for the U.S. wholesaler-distributor who sources product from overseas for resale in the U.S.

Link to full article.