When we refer to some websites or visit furniture fairs, it is commonly to see that many suppliers claim to offer ‘OEM service’ or ‘ODM products’. In this article, we will clearly explain the definition of OEM and ODM, and the difference between them.

The Definition of Original Equipment Manufacturing (OEM)

An OEM product is made according to the buyer’s product specification. For example, any product with a customized design, material, dimensions, functions or even colours can be classified as OEM.

Sometimes OEM means a product that is designed entirely based on the buyer specification, while others classify even the slightest modification of an existing ODM product design, as OEM. Simply to say, the primary definition of an OEM product, is a product for which tooling (like welding molds) must be produced before production can start.

The Definition of Original Design Manufacturing (ODM)

An ODM product is based on an existing design, developed by the manufacturer. An ODM product can either be the result of the suppliers own R&D, or a (legal or illegal) replica of another product or brand.

ODM products, which are often called ‘private label products’, can be branded with the buyer’s logo. This practice has been very common in recent years among Amazon sellers and other eCommerce companies.