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What are White Label Products?
White Label products are goods that are developed by a third party and then bought by the seller who can resell them as their own. White labeling takes place when the manufacturer of a product adds the seller’s label to the product instead of their own. This allows for the seller to spend more time on other things such as marketing.
White labeling is frequently referred to as "private labeling," although this is not completely correct. White labeling and private labeling are not the same, they differ slightly from each other. In both cases the products are manufactured by a third party and then rebranded for another store, but in the case of private labeling they are branded and exclusively sold by one retailer. Whereas white label products are more generic products and can be sold to different retailers.
With white label products the seller can change the brand, packaging and the marketing. They can however not change the characteristics of the products to fit their needs. White label products allow for lower purchasing costs and could produce higher profits. This happens because the seller or marketer does not need to spend time on creating a new product or product lines, they can shift their time and energy to their marketing efforts.
The White Label Business Model
By now you should be a little bit more familiar with what is meant by the white label business model and how it operates at this stage of the article. A seller or marketer who uses this business model will buy finished generic goods from a supplier or manufacturer and then rebrand the goods using their own brand name and packaging.
Consider that you want to sell electronics and accessories, but you are unable to produce them yourself. You will then be searching for a supplier who can assist you in this circumstance. The supplier or manufacturer will create the electronics and accessories on your behalf, but they won't use their own brand; instead, they'll use yours on the products. You now have products under your own brand that you may offer to your customers. This enables you to concentrate your efforts more on strengthening your marketing and brand.
With this particular business model, you need to keep certain things in mind. Although the white label business model can allow you to quickly obtain products that you can brand as your own and then sell to customers and thus taking away the process of manufacturing these products yourself, it does have some drawbacks you need to be aware of.
Because you’re buying products from a third party manufacturer or supplier, you are not the only one who the manufacturer sells these products too. This means the same products as yours can be sold under different brand names. So you need to find your unique selling point that separates you from the other brands. This can be by having better delivering services, competitive pricing or just having a strong brand name that people trust.
With the white label business model, the manufacturer controls the characteristics of the product. Meaning you can not change any of the ingredients, manufacturing processes or the components. This is different from the private label business model where you have control over the product's characteristics and can change them according to your needs.
1. Cosmetics and Makeup Tools
If you choose cosmetic products as your white label products, you will need to do a bit of research around the type of chemicals that are in the makeup products you want to sell. It is said that only a small number of manufacturers produce the majority of the cosmetics brands currently available on the market. Some of the cosmetic products sold today are created by the same manufacturers. The brand that appears on them and the package that they come in is what separates them from each other. Different types of makeup tools have different processes they need to go through when they get manufactured so look at the different requirements for each and consider that when choosing them as your items to sell.
2. Stationary
There are many stationary items available on the market, and we use them on a daily basis. Because only a few major businesses can independently develop new stationery products, selling stationery products under your own brand using the white label business model can be a better option than producing them yourself.
3. Water Bottles
It will be a difficult task for new small businesses to manufacture their own water bottles to say the least so it is easy to understand why water bottles are a popular choice for white label products. Water bottles can be made from a range of different materials such as stainless steel, plastic and glass. There are also different kinds of water bottles for different purposes. If you already operate a business in the sporting goods industry, adding water bottles made specifically for exercise as a white label product can be a smart move.
4. Children’s Toys
Considering the wide range of different toys available and the different processes going in them to make them is not a simple task. For most new sellers this will be a difficult task to accomplish and that’s why you see more of the toys for sale online are white label products. Selling children’s toys as white label products is normally a popular choice by new sellers or small companies looking to join the market quickly.
5. Clothing
Clothes are always a popular choice as white label products. There are a ton of different clothing product options available to you from T-shirts, pants, dresses, jackets, bras, leggings and many more. If you’re in the fitness niche, you could also add products like sports equipment and yoga mats to your selection.
6. Glasses
Generally the cost of manufacturing glasses is considered to be relatively low so naturally they make for good white label products. They are often a popular choice to be sold by many new sellers or small companies. There are several styles of eye glasses available, so it might be a good idea if you run a clothing company to pair it with the clothing items you already sell.
7. LED Lights
With all the different LED products out there from flashlights to fairy lights they are considered as good products for the white label business model. Due to the complex production requirements, manufacturing these goods as a new company can be challenging, which is why they make great white label products.
8. Backpacks and Handbags
The process of manufacturing these items can be difficult and expensive. That’s why many new companies that are looking to join the market of backpacks and handbags choose to do it with the white label business model. There are different types of backpacks you could sell, for example, laptop backpacks, sling bags, skate backpacks and even hydration backpacks.
9. Electronics and Accessories
We use electronic products on a daily basis. You have a wide range of electronic devices you could pick from to sell, including phone cases, earbuds, power banks, USB cables, phone mounts and many more.
10. Baking Tools
Baking tools are excellent white label products. Certain baking equipment can occasionally be used in the fitness and wellness industry as well. There are numerous options for baking tools that you could think about. Tools including egg separators, baking scales, measuring spoons, measuring cups and many more options.
