What Is OEM? Benefits & Examples
If you have ever shopped online or tried to order anything in large quantities, you have probably come across the abbreviation OEM. ” We make OEM products” – is, probably, one of the most typical sentences for the abbreviation to be used in. So, what is OEM and why should you care? In thi blog post, we answer all these questions and more.
What is OEM?
It stands for Original Equipment Manufacturer. However, the term mostly comes up not in relation to who makes the product, but rather who the product is made for. OEM products are meant for companies, who will then put their own brand on them, license them, offer customer support and more before offering the products for retail. Quite often, companies might request specific design features or changes to the original product.
Can you give me an example of OEM?
Sure! Let’s say a factory is making toy cars. They will have two versions of the product: one meant for retail (aka “ready to sell”), the other is meant to go to a reseller who wants to sell the product under his own brand. The products in question may be completely identical – especially when it comes to quality – or sport a few differences (usually, requested by the reseller). For instance, they may not have connected cables, be missing logos, come under a different warranty structure and more. Simply put – same product, different purpose.
Is ODM the same as OEM?
You may have come across another abbreviation as well. ODM is a term used almost as frequently in manufacturing. So, is OEM the same as ODM? Not quite. ODM stands for Original Design Manufacturer. That means that the manufacturer is responsible for the design of the product, as well as the actual production. For a more detailed comparison of ODM and OEM check out this info-graphic.
Why would a company want to buy OEM?
There are lots of reasons. The most common one is, of course, because the company in question wants to use its own brand name on the product. They may also offer additional services or add features (for instance, improved software). OEM products also tend to be cheaper than their branded versions – which means you are basically getting the same item with a lower price tag and an opportunity to “make it your own” in the local market.
As an experienced wholesale electronics and gadget supplier, we cooperate with the best OEM factories in China. For more information about our OEM service simply contact our sales team by sending an email to support@chinavasion or browse our online catalogue.”