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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So time ago, I was madly interested in dropshipping and I saw an option to customise the products plus rebrand them if I want to. I never had an idea that this act is called white label.
I am planning to sell AT paper in the future considering the fact that the demand is high here especially in school and I have seen where I can get them for very cheap price. White label option is available. I’d build a website along side to make my paper business outstanding. Thanks for sharing your recommendations.
Great Idea! Im glad you are building your white label business.
this is informative, I have worked in a warehouse and have seen food products that are exactly the same but with different labels and radical differences in price out at the shops, soo, for example, I know some products that I can buy for half the price and is still the same product but not the classic brand. I think more and more of the big companies do this and have a couple of brands in different price ranges just to take up more space in the store.
It is a great idea but I can sometimes see this as sort of a scam, but what business is not a scam in some way?
I don’t think its a scan Andreas. Im not thinking of the food business necessarily, as there are a lot of markups on food stuffs, but in my business with natural soap, it happens often and is a perfectly legitimate. Making soap is a difficult process using products that are quite dangerous, so often resellers dont want to make them themselves but do want to build a business. There are tons of white label products that would create amazing new businesses,
I know that White label products are sold by retailers with their own branding and logo but the products themselves are manufactured by a third party. White labeling occurs when the manufacturer of an item uses the branding requested by the purchaser, or marketer, instead of its own. The end product appears as though it has been produced by the purchaser. But I want it know can this style of business be done world wide,That is can a white label products from USA be sold in the UK?
Thanks alot for sharing this awesome article I know it would be of great help to the public as it has been on of help to me.
I think the issue you would have with white label products from the USA being sold in the UK would depend on exactly what you were wanting to sell. With the trade between the UK and USA changing since Brexit, I think the opportunities will increase. The other aspect of this would come in the shipping. If it was a product that had unique qualities, then of course its possible.
Wow, I had no idea about white labeling. To think that Volkswagen is considered such a good car when the manufaturer of the chassis and engine is the same for Ford. I like Volkswagen but I don’t like Ford that much. That just made me think 😉
In Costco for example, I always thought that Kirkland had good quality products, and they were priced cheaper. Now, after reading your article, I know why, those products were made by good companies. That is so interesting. And good business. Do you have a website for your soap bars?
I wonder how easy it is to start a white labelling business … You pointed out the steps, but I would like to know how long it takes to get white labelling for a product approved.
Approval will depend on what products you are white labelling. For example with the soap, I already have all the regulations required so if I were to make soap for some one else, they would not need to carry out any regulatory testing themselves because I have already done it. Other products might be different but usually any approval for the product will have taken place with the manufacturer. This is sort of what is expected when white labelling.
Finding this post is perfect timing for me because I’ve been thinking about expanding my business beyond affiliate marketing and starting to source and sell my own products but I wasn’t really sure about how to go about it. I’d be interested in knowing more about how to go about finding a white label manufacturer for my business, which is tea. Any pointers or tips would be much appreciated.
There are a lot of tea suppliers available on the internet, a great idea to start your own tea label. Think about how you can make your product stand out, something special to you that would attract your audience to your products.
Thank you for a really interesting article on white label products. It sounds like a great way to develop your own brand. I have some questions: how would I go about finding products that I could put my own label on? Also, how could I find out how many other businesses were selling the same products?
There are a few places you can go to check out your competition and research which products will sell well, places such as Amazon marketplace and keyword Finder Tool on Google Ads – Jaaxy also is great place to check out great products to white label.
Hi,
Thanks for this new concept, I have heard of drop shop products and the concept but have never heard about the white label business but found it to be very educational, especially if selling products. What I like about it is I could use it if I am working on my own product to sale.
I had no idea that Kirkland by Costco was a white label product, I always use that brand and find it to be great.
Where do you go to research labeling regulations?
Best Regard!
Audrey
Thanks for your comments Audrey, I think the regulations will depend on the products you are going to be white labelling. As far as soap is concerned, if I was to produce soap for white labelling, I would have all the regulations and labelling details for the white label reseller to put onto the soap when they brand and label up. So to be honest it would depend on the white label product.
wow this is cool! One interesting features I love about white labeling is that it allows businesses an easy way to expand their service offerings to their clients without having to develop the product or service themselves. I think I should start building my white label business. Thanks for reviewing this! I love it!
Its an interesting business model and with due dilligence, a profitable business.
Good site, getting your site make me understand some hiden stuff in business line, that’s cool to help and. Enlightened through your write up, I just understand your point on- 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, it’s big point for your write up and nice website. Keep it up.
Thankyou for your comments, its a good business model for new starters.
Hi,
Thanks a lot for sharing this great article and I am surprised that white label business is legal. In my country that is not legal most small shops or White label owners are being closed and shop owners arrested or fined for selling White label products, If it was allowed in my country I would definitely look into having my own White label business it is a great business after all we all want to make money know one loses as I will be buy and re-branding.Great article I know it would be of great help to the public and it will promote unemployment.
Wishing you all the best !
This is a a legal business model, but its not rebranding…. It is taking products that have not been branded – products that have been made by a manufacturer for the purpose of being white labelled by a reseller. Usually the reseller purchases in bulk, at a wholesale price, for them to brand, label correctly and sell at a retail price. Im sorry your country doesn’t allow it. There is nothing illegal in this practice.
Thank you so much for sharing such an excellent article with us. Your article was very interesting and informative. I have got a lot of information about White Label Business Opportunity. It takes time and expense to develop a new line or product. It’s still a way to maintain the quality of my product and brand without having to go through new product research, development or production. I will share your article with my friends so that my friends can benefit from reading your article. Thanks
Thankyou for your comments. White label does give a new starter a better chance in getting their business off the ground. Its a worry for new businesses be successful and with white label opportunities can help with this.
Thank you so much for such an informative post. I know that some big retailers practice this, in Thailand there is one big manufacturer for the fish sauce and you just have to go there with your own label and the bottle the sign. I feel that whit label is a perfect way for me to practice my entrepreneurship and after that I can move up to another scale. I will have to look into that. Cheers!
Glad that I was able to help and definitely a good way to start in business until you are confident in producing your own products from scratch.
This is a wonderful way to create a profitable business . The explanation of the White Label business is clear and to the point. The post engages the reader into fallowing the details on becoming an entrepreneur.
Many years ago I worked for a manufacture that put potatoes chips into A&P bags. The supermarket sold them as their brand .The post convince me that this is a good business to look into. Thank you for all the vital information that you have provided .