Private label sourcing for an e-tailer with agency selling and service provision

•This paper fills a research gap by thoroughly studying whether an e-tailer should introduce a private label (PL) product.•If yes, when should the e-tailer manufacture it in-house or outsource if from a national brand (NB) or another third-party manufacturer?•It shows the e-tailer would charge the highest agency fee and provide the highest service level when sourcing from the NB manufacturer•It shows that there is always a sourcing strategy that can benefit the NB manufacturer and the e-tailer.•It shows the robustness of the analytic findings by considering model extensions.