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OEM vs ODM: Which Do You Need?

What OEM and ODM mean, and a five-question chooser that says which one fits your product, plus the questions to ask the supplier.

The OEM vs ODM chooser is a free tool that helps you decide whether an OEM or an ODM supplier fits your product. It asks five questions about who holds the design, what you want to change, whether the design must be exclusive to you, whether you can pay for development, and how fast you need to start. Based on your answers, it suggests OEM, suggests ODM, or says either could work and you should ask suppliers what they offer.

Everything runs in your browser, and nothing you enter is uploaded. Use the result as a starting point before you contact factories. It cannot tell you whether a particular factory does OEM, ODM or both.

Oem vs odm example

How to use the OEM vs ODM chooser

  1. Open the chooser at the top of this page.
  2. Under “Where is your product design?”, pick one option: I have drawings, specifications or a tech pack; I have an idea or a reference product; or I have no design; I want a ready-made product.
  3. Under “What do you want to change on the product?”, pick A new design of my own, Changes to an existing product (colour, material, size), or Only my brand and packaging.
  4. Under “Must the design be exclusive to you?”, pick Yes, only I should sell it, Not sure, or No, it can be a standard product.
  5. Under “Can you pay for development (samples, tooling)?”, pick Yes or No, I want to keep it small.
  6. Under “How fast do you need to start?”, pick I can wait or As soon as possible.
  7. Read the result: OEM, ODM, or either could work.
  8. Check how each answer counted and the four questions to ask the supplier.

Each answer adds points to OEM or ODM, and the result shows those points, so you can see which answers decided the outcome. If you are unsure about one answer, change it and see whether the result moves.

What is the difference between OEM and ODM?

The key difference is who holds the design. With OEM (original equipment manufacturer), you bring the specification, usually drawings, a tech pack and a bill of materials, and the factory builds to it. With ODM (original design manufacturer), the manufacturer supplies the design, and you sell the product under your own brand.

The term OEM has several meanings. This page covers only the buying and manufacturing sense: a factory building to a customer’s specification. Some ODMs start as OEMs and later become OBMs (original brand manufacturers), which design and make their own branded products. Some manufacturers do both kinds of work and earn part of their revenue from each.

Which should I choose for my product?

Choose OEM if you already have a design you want to own and have built. Choose ODM if you want a manufacturer to design or adapt a product that you then brand and sell. The chooser turns these ideas into points.

Drawings or specifications score 3 for OEM, and an idea or reference product scores 1 for OEM. A new design of your own scores 2 for OEM, and an exclusive design scores 2 for OEM. For ODM, having no design scores 3, and an idea or reference scores 1. Only brand and packaging scores 2 for ODM, and changes to an existing product score 1. A limited development budget scores 1 for ODM, and starting as soon as possible scores 1 for ODM.

If one side leads by 3 or more points, the chooser names that side. Otherwise it says either could work. For example, an idea, changes to a product, an exclusive design, a budget you can pay, and a willingness to wait score 3 for OEM and 2 for ODM, so the result is either. In that case, ask each supplier what they offer and compare their answers.

Sources read for this page

Opened on the dates shown; notes say where we used a substitute.

Frequently asked questions

What is OEM?

An OEM (original equipment manufacturer) is a factory that makes a product to the specifications of its customer. The customer supplies the drawings, tech pack or bill of materials, and the factory builds it.

What is ODM?

An ODM (original design manufacturer) is a company that designs and manufactures a product for another company to sell. The buyer sells it under their own brand, and the design comes from the manufacturer.

What is the difference between OEM and ODM?

With OEM, you supply the specification and the factory builds it. With ODM, the manufacturer supplies the design and you sell it under your brand. See the section above for more detail.

Which should I choose for my product?

Choose OEM if you have a design you want built, and ODM if you want a manufacturer to design or adapt a product for you. If the chooser says either could work, ask suppliers what they offer and compare their answers.

Is the chooser free and is anything uploaded?

The chooser is free to use. Everything runs in your browser, and nothing is uploaded.

Does the chooser decide who owns my design or tooling?

No. The chooser does not give legal advice and does not tell you who owns a design or tooling. Get those terms in writing from each supplier.