Short answer: An ODM is a manufacturer that designs as well as produces a product. Another company then sells that product under its own brand.
What two sources say about ODM
| Source page | Publisher | What the page says |
|---|---|---|
| Original design manufacturer | Wikipedia | Defines an ODM as a company that designs and makes a product which another company sells under its own brand. Says the manufacturer usually keeps the IP unless the buyer purchases it. |
| OEM vs ODM: Which Model is Right for Your Business? | Megaventory | Describes an ODM as a manufacturer that also handles design and development, taking a product from concept to production. Says the ODM often keeps rights to its own designs. |
| OEM vs ODM manufacturing: What's the difference? | Alibaba.com (Alibaba Seller blog) | Says an ODM can design, develop and make products, which buyers often rebrand as private label goods. Notes OEM clients keep more control, while ODM clients have fewer chances to customise. |
Key points
- The manufacturer handles both design and production. [1, 2, 3]
- Another company sells the finished product under its own brand. [1, 3]
- The manufacturer usually keeps the IP unless the buyer buys it. [1, 2]
- Because the manufacturer keeps the IP, it may sell the same product to competing buyers. [1]
- Buyers often rebrand ODM products as private label goods. [3]
- ODM clients have fewer chances to customise and may worry about their ideas being copied. [3]
ODM compared with OEM (original equipment manufacturer)
| Aspect | ODM | OEM (original equipment manufacturer) | Source |
|---|---|---|---|
| Branding | Another company sells the finished product under its own brand. | The client sells under its own name. | [1] |
Where sources differ
Wikipedia notes some firms fit more than one category and that OEM and ODM are sometimes used interchangeably in trade talk.
Questions to ask a supplier about ODM
- [ ] Is this your own design, and who owns the IP?
- [ ] Can the same design be sold to other buyers?
- [ ] Which parts of the design can we change?
- [ ] Can we buy exclusivity or the IP?
- [ ] How do you protect our changes from being copied?
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Sources: [1] Wikipedia, fetched 2026-11-12; [2] Megaventory, fetched 2026-11-12; [3] Alibaba.com (Alibaba Seller blog), fetched 2026-11-12. As of 2026-11-12. General information, not legal, customs or tax advice. Wording is paraphrased from the pages linked; your written quote and contract govern.