Retailers appreciate private-label goods for their potential for optimized production to suit consumer demand. Retailers can reduce advertising costs and exert better control over the supply chain. Private-label goods also often cost less to manufacture and transport, allowing retailers to pass the savings on to consumers. Those savings make private-label products popular with consumers, as well. People gravitate toward private labels because they offer quality products at competitive prices. Private-label product sales have grown along with e-commerce, and they also tend to thrive during challenging economic times, such as the COVID-19 pandemic.

Just like name-brand goods, many private-label products require testing and Good Manufacturing Practices (GMP) compliance certification before they can enter the North American and other markets. In addition, testing and certification can help mitigate certain risks that come with creating and selling private-label products.