What Is White Labelling?

What Is White Labelling?
Find out what is white labelling and how does white labelling work. Discover the advantages & disadvantages along with 10 products to sell. Visit Square.
by Square May 11, 2022 — 7 min read
What Is White Labelling?

If you’re an entrepreneur facing challenges in your business, your first instinct may be to build your own solution. However, in the world of modern online commerce, there’s no longer any need to reinvent the wheel and make the same mistakes as others have in the process.

Enter the world of white labelling – a novel solution where you can rely on solutions created by other people, while at the same time branding and marketing it as your own.

Below, we’ll explain everything you need to know about white labelling. This will include what it is how it works, what the advantages are and some examples of white label products you can buy.

What is white labelling?

The term “white label” refers to products and services made by one company but sold by another.

With such a strategy, you can ask a company to produce products for you, and you, in turn, rebrand and resell them as your own to your target audience. It can play an integral role in your marketing plan as you grow your business.

White labelling is an effective way to offer more products and services without having your own workforce in the creation process. When it comes to white label platforms, you can grow with less time, effort, and money.

Sell products made by another company

Whitelabelling allows you to sell products made by another company under your brand name.

Set your own prices

White labelling also allows you to set your own price points. If successful in white labelling, you can grow your revenue fast and offer more products in the future.

Above all, white labelling allows you to sell more products and services while focusing on the core fundamentals of your organisation, including marketing, building a strong reputation for your business and boosting your customer database.

How does white labelling work?

First, a supplier will make a product for you. Let us say it is a water bottle. This product is totally unbranded. It has no label, name, or logo.

Then they will sell you the product they have made for you. You can customise it as per your needs, place a logo on it, and adjust it per your branding.

Finally, you can sell the product to your target market. Anonymity is the key to such an arrangement, as your customers have no idea that the product they are sourcing from you is white-labelled.

The arrangement works similarly with drop shipping, where two companies formed an agreement. One company passes the sales order to another company that, in turn, will retrieve the stocks and deliver it to the buyer.

It is also similar to drop shipping in that your supplier sells the product to you at a lower price. In turn, you can sell at a price point you want to sell it exclusively as your own.

Advantages of white label products

White labelling brings incredible benefits to businesses. There are some disadvantages, but with a deeper understanding of how the system works, you can be proactive to avoid problems.

White label solutions have several benefits than trying to create alone, namely:

1. Fast way to establish your brand

If you’re starting a new business, white labelling is a great way to establish your brand. With the white labelling agency’s premium products and services, you can start building a brand that is seen as reliable and reputable in the market.

2. Get fast solutions

With white label partners, you can get quick solutions, as they have teams of experts and dependable resources.

3. Save money and time

Having a partner to produce products and services means you do not have to hire tech experts. It also means you can save time which you can devote to other important matters in your business. Product Development requires resources and time, and the white label approach has both.

4. Increase your portfolio

It is not easy to produce all products and services that your market wants on your own due to insufficient resources, but with your partner at your side, you can do it. You can provide all the things that your clients want, and you can even increase your client base.

5. Lower your risk

Doing everything on your own comes with a high risk. But with the expertise and experience that another company can provide, you can lower the risk. Also, perfection is achievable because that company can meet the requirements you specify.

By purchasing white label products, your business can take advantage of buying from an expert manufacturer known as a quality producer of that particular product.

Buying and selling goods this way allows your business to avoid manufacturing products altogether, and it saves time and money. By saving time and money this way, you can allocate resources geared at creating value for your customers.

Overall, the technique can strengthen loyalty between your customers and your business and create repeat purchases, a tactic that supermarkets have become effective at.

Disadvantages of white label products

Misunderstanding and conflicting branding are some of the disadvantages of white labelling, but you can avoid these disadvantages.

1. Hard to make changes

White labelling gives ready-made products and services, which you then brand and then sell to your customers. So it may be difficult to make substantial modifications yourself if you want to change something in the finished product.

The problem arises because you may not have the technical details of the process that manufactured your product. Even if you do, you’ll still need to spend time and money to apply the changes you want.

Avoid this kind of scenario by monitoring the production of your product from beginning to end.

2. Misunderstanding of what you want

A common problem with white labelling is that your white label manufacturer may not properly understand exactly what you are looking for. They may then deliver you a white labelling solution that does not actually meet your required specifications. You can take steps to avoid this if you communicate with the people working on your project. This will help you avoid unwanted problems.

3. Conflicting branding

The company that creates your products must understand the objective of your business. Make sure that they understand and synchronise with your brand.

Top 10 white label products to sell

Many white label products have been successful, so keep a close eye on these products to get ideas on how to make your own.

1. Messaging app

Messaging apps can be useful if your business is looking for a unique way to communicate with its staff, customer or client base. Companies like Zangi specialise in creating messaging apps with your company’s branding, such as your logo, colours and features.

2. Stainless steel bottles

Reusable water bottles remain highly popular, with sales reaching $10 billion by 2024. These are popular products because they can keep hot drinks hot for six hours and cold drinks cold for 24 hours.

With these products to sell, you can highlight your company’s commitment to keeping the environment healthy.

3. Yoga gear

Yoga Gear will continue to be bestsellers among enthusiasts these pandemic days and beyond when people are stuck at home due to lockdowns.

Yoga white label products you can sell include:

4. Tote bags

Reusable bags are also top-selling products nowadays, and they are for all kinds of businesses. Customised with your branding, you can make these bags for your clients to give as gifts to their loyal customers.

Tote bags are not expensive to manufacture, with prices starting from $0.75.

5. Phone accessories

Phone accessories are also not expensive to produce, and they are easily customisable. Phone cases are great for artists and designers for showcasing their work on an affordable accessory.

6. Pet accessories

Another effect of the pandemic is the increase in pet adoptions. Employers who work remotely need to combat loneliness by adopting furry companions.

So, why not white label pet products, such as toys and beds? If you express love for the pets they own, they will express their love back to you by supporting your pet accessory business.

7. LED light

White labelling LED lights is a great way to provide lots of varieties and options. White label manufacturers manufacture different types of LED lights:

Invest in setting your LED light brand, marketing, and website apart from your competitors.

8. Cosmetics and skincare

With the push for healthier skin products, the door is wide open for you to embrace the shift and make your own mark in the cosmetic industry. The goal is to attract shoppers that support the change.

Products you can sell in this category include:

9. Packaged food

White label food brands target health-conscious people who mostly stay at home while working. For this category, think non-GMO, vegan, gluten-free, and organic.

You can start building a brand that offers gluten-free snacks and fresh and frozen fruits and vegetables. Low-fat yogurt and cheeses are great options to sell on your online store, along with whole-grain bread, cereals, and crackers.

10. Trimmers

A great white product to sell nowadays is body trimmers. These personal shaving tools are used to thin and contour hair on areas of the body.

One company successful in selling these products is Manscaped, so you can visit their site to get inspiration for your own branding.

How to find white label manufacturers

Finding the best suppliers for white label products and services is easy. These manufacturers can be found on the internet and searched on browsers like Google, Alibaba, and Thomasnet.

Sift through the many options to find the right one for your business.

You can also use Thomasnet. That’s a site that lists suppliers’ directories that you can use for free. You can search manufacturers by product and by location.

Type “(your product) white label manufacturers Australia,” for example. The results will give you manufacturers’ certification and the products they manufacture and sell.

Another way to find white label manufacturers is through an Alibaba search. Input your keyword or your product. The results will show you the manufacturers of the products you are trying to white label, along with third-party certifications and verifications of the companies.

Tips for selling white label products

Follow these tips for boosting sales on white label products:

Identify price points with low competition

Most white label sellers do not compete at the lowest price range. Rather, they focus on price points that consumers are willing to spend.

Know the features that matter to your target market

Your product should offer a lot of features and many options. Even within a narrow category, opportunities for providing different options and features can be vast.

Products under the same category but with different features look different from one another in the eyes of the buyer.

Stay on top of your game

Use the free online platform, such as Square Online, and use the opportunities provided by free online selling platforms to boost your sales.

With one of these platforms to aid your online marketing, you can:

The Bottom Line is brought to you by a global team of collaborators who believe that anyone should be able to participate and thrive in the economy.


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