The concept of buying wholesale and selling retail has been a model for a very long time, but that’s selling other manufacturerers branded products. What is white label business opportunity? Well its selling an unbranded product from that manufacturer under your branded label.  You wil be surprised how many big brands you buy that you think are produced by your favourite label only to find they have been rebranded without you realising it. 

These three cars are essentially the same…. the chassis and engine etc are all made by the same manufacturer, but are branded by three different car companies – Seat, Volkwagen and Ford. The Alhambra, Sharan and Galaxy. Not exactly white label as we know it, but a very good example ! 

White labelling is perfectly legal and literally means whiting out something previously written to be written again.  

Supermarkets frequently white label products, and you have probably thought it a coincidence that your favourite chopped fruit or yoghurt from two different stores are packed in the same packaging… not a coincidence, they probably get it from the same supplier and brand it themselves. 

Costco accounts for nearly 30% of all US private label groceries. They use white label products to fill voids in their product line and boost bottom lines. For example, their Kirkland Signature brand sells batteries… batteries that are made by Duracell.  House brands now are not really cheaper alternatives but the quality has risen. Costco’s Kirkland Signature Coffee is roasted by Starbucks and their supreme diapers made by Kimberley Clark. This is big business but its not unique to big businesses, it is something that can be scaled and there are so many products and services to be white labelled.  Its the perfect way to start a business without the overheads of producing a product or service that would require months of testing.  

Don’t get confused with Private Label products, they are slightly different in that they are products made by a supplier for a reseller’s specific requirements.  This would be more in the vein of Jungle Scout’s Drop Shipping…. which is another great way to start a business – What Is Drop Shipping About?

For example…. I design natural skincare products, mainly natural soaps.  I have various soap recipes that have gone through the toxicology testing phases required to be regulated. I make several variations of these recipes with different essential oils and decorative tops. Within my collection I have the ability to offer some soaps for private label and for one of my customers, I offer just that. They have a cottage rental business and wanted some guest soaps to put into each cottage for their guests. But they didnt want just round bars, they wanted to keep the natural, rustic appearance of my soaps, so we designed a unique mould that would achieve this for them…..Private Label small scale !  

 

 

Why White Label?

Many established companies choose to white label products. But whether you are on a side hustle and starting up your own business, or Walmart, the reasons re probably very similar. 

📍Start Your Business –  It takes time to build a brand, get your own quality products and white labelling products in your chosen niche will grt you up and running rapidly, giving you time to work on your own unique products. 

📍Expand Your Products Quickly – This is another aspect of starting up a business that takes time, but also you want to attract new customers and keep your regular customers coming back for more. 

📍Enhance Your Company’s Brand – You need quality products, quickly, that will enhance your brand and without having to sell other brands that will dilute yours and confuse your customers. 

📍Save Time And Energy – Developing new lines or products takes time and costs. This is a way of still keeping the quality of your products and brand without having to go through the research, development or production of new products. 

 

                                 Pros

Diversify into products you might otherwise not be able to include in your itinerary.

Adds new revenue streams.

Get ahead of your competition.

Bypass the legwork, research and development of a new product. 

Easy to brand.

More cost effective than developing your own products.

Sales and support material are provided.

Expanding your brand and build trust and reputation.

Minimal risk in the new product. 

 

 

                                Cons

Any problems with the products will be associated with you.

There may be branding restrictions. 

There may be labelling regulations.

The white label provider might be a competitor or another competitor is white labelling the same products. 

You may not have control over the price or mark up. 

Would You Like To Start Your Own White Label Business?

Follow the seven step process to start your own white label business. 

Potential Issues/Hurdles

There will be issues with any new business, and understanding them at the outset will enable  you to field any problems before they become an issue…

📌 Not The Right Product  –  This should not be a real problem if you have done steps 1& 2 correctly. You understand your audience, what they are looking for so you shouldn’t get into this situation.

📌 Supplier Quality Not Up To The Job –  You have no control over this, but you can monitor your stock and take action should the quality drop.  Its your brand on the line, so important should it become an issue.

📌The Right Packaging – I know myself that the packaging is crucial. Not only does it need to be suitable for the product, fulfil any ethical requirements of your busines but also be appealing to your audience.  I trialed several different packaging options for my soaps before I found the right one.

📌 Consider Profitable Pricing – Start as you mean to go on and price your products competitively using your research of your competitors.

📌 Keep Up With Your Market – Keep up with your competitors.. what they are doing, prices, any shift in the market so you are prepared and can move with the trends.

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