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Just contributing my not so experienced thoughts.

I’ve bought from merchants before and once I started seeing that they sold their own branded merchandise I felt like they were only after my money and I became less inclined to buy their products.

Creating your own product will definitely make you more profit as your not paying reseller fees. And if you just subtly promote your own product over the other merchandise in your store I believe also you would make more money in the long run.

Most of the products you resell would have their own vendor websites? Why not setup a new vendor website for your product also.