The Best Guide for White Label Products & Solutions
If you want to keep your business away from cut and throat competition, then White Label Solution is a crucial tool for you. Now, in 2021, you don’t necessarily have to develop your online tools. You can go for White label Solutions.
In this blog, I will explain about White Label Solutions and how it works.
Table of Contents
- What is White Label Products?
- Pros of White Labeling for Manufactures
- Cons of White labeling for Manufacturers
- Pros of White labeling for Retailers
- Cons of White labeling for Retailers
- 5 Best Products for white Labeling
- Source of White Label Products
- Where to Sell White Label Products
- How White Labeling Works
What is White Label Product?
A product or service produced by one company and another company rebrands it and sells it. These products are sold by retailers with their trademark. But, products are not manufactured by retailers. White-label products are often produced for large consumption.
For instance, electronic goods, software applications and Self-grooming products.
The retailers use a white label to create a successful brand which offers service without investing in production. Without a doubt, manufacturers don’t spend a single buck on marketing and advertisements. Many software companies provide white label software services to customers or agencies.
For example, many financial banks depend on White label service providers for gathering the field information.
Benefits of White Labeling For Manufacturing Company
- Increases Effectiveness
It scrimps time, energy and money of manufacturing companies. Due to exemption from branding, companies can produce more new products.
- Easy Distribution for White Label clients
White label clients make out more customers with lower cost. Because of, they don’t have worries about cut and throat competition in the market.
- No Duty of Service Management
As well as, your white label partner does everything which is a support system for providing service or product to customers. Service management is the costliest part of services provided to customers.
Cons of White-label Products for Manufacturing Companies
- No direct communication
There is not any direct relationship with your customers. There is lack of communication between manufacturers and customers.
- Less Revenue Generation
If you are a manufacturer, then you will get a lower price per customer. Your White Label Clients get a lower price compared to the retailer. Because of this, they spend a lot of money on products, on marketing and sales costs.
- Less Risk
The white labelling businesses are able to transmit the concerned risk to retailers. The retailers inherit 100% control of each aspect of the product.
Pros of White Labeling for retailers
- Focus on one aspect of production:- Retailer don’t have extra pressure of production, wages and raw materials. Moreover, they only focus on marketing.
- Skips product development phase:- It allows retailers to skip the lengthy and costly product development phase. It opens window for new opportunity.
- Ride the trend wave:- For example, selling grooming and hygienic product in pandemic is great business.
Cons of White Labeling for retailers
- Competition:- For retailers, competition might be high. If you have a small business and want to be world of white label. Then, kill the competitors with your branding and marketing.
- Quality Control:- The retailers don’t have access to the production of product. They always rely on manufacturing company. So, they can not work for improving quality for product.
How White Labeling Works
A retailer and manufacturer signs a legal agreement for white labeling. The supplier or seller produce a good quality item for retailer. After that, retailer rebrands it and then sells to customer. A retailer’s duty is to do marketing and selling the product in market.
The White label agreement consists following points.
- Relationship between manufacturing company and supplier
- Authority and premises of both parties.
- Product details of Manufacturing company
- Description of packaging
- Documentation of warranty or guaranty policy
- Terms and conditions of payment process
- Quality control, Customer support etc.
5 white Label Products that are Worth Selling in 2022
1. Stainless Steel Water Bottles:- According to Transparency Market Research, reusable water bottles remain extensively prevalent. This market will reach over $10.19 billion by 2024.
2. Cosmetics:- Seed beauty is a manufacturing company. It works for Kylie Jenner’s brand. To make a start with white-label cosmetics, try to concentrate on one product, namely mascara, eyeliner or lip-glossy etc. For example, VLCC is a beauty parlour. It offers its own branded serum and beauty products. In fact, everyday its business is flourishing.
3. Essential Oils:- In 2020, after the pandemic, self-care products have increased in demand. The market value of essential oil is expected to grow over $27 billion by this year. Branded essential oils have great scope for rebranding. In that case, investment in essential oil will make profit.
4. Phone accessories:- Now, everyone uses the Phone. They need a phone case. Phone cases are a great option for manufacturers. It can be easily rebranded.
5. Coffee:- Today, everyone is fond of coffee. Why don’t you sell your own branded coffee beans? It has a great business environment in 2022.
Sources of White Label Products?
It is not easy to find a manufacturer. There are a lot of manufacturing companies who produce white label products. Alibaba is the most explicit place to find a supplier of white label products. Hktdc.com sourcing website also provides a manufacturing company.
Where Should I Sell My White Label Products?
It has a simple answer. It totally depends on where you want to sell. First, you can sell through your set-up store. Also, you can sell them through your website, like Instagram Shopping, Meesho app, Flipkart etc. You can set up a wholesale channel for sale.
How you can start selling white label products?
There are a few simple steps to starting white labelling products.
1. Choose a Product:- Just decide the product which you have to sell. It can also be a service. There are endless products for sale, such as self-grooming, health and wellness products and electronic products etc. You can study the market and seek different niches.
2. Search for a Supplier:- If you have determined what you will sell, then find your supplier. Suppliers should be concerned about the product which you want to sell. Ask the suppliers to send samples. Research into product and price.
3. Create a Brand:- The story is vital element for branding. It should be word of mouth. Determine your target audience. Choose a logo and slogan.
4. Set up a store:- Organize a store and channels for sales. Link your supplier to your store, if there is no problem.
5. As a result, you are eligible to sell a product with your logo and brand.
Is there Any Risk Involved in White Labeling?
There is always risk involved in business. If you are taking a risk, then you will have a chance to make an excess profit. To minimise risk, you can do work on a few points.
- For legal consideration, always investigate the manufacturing process of a product. Research about a manufacturing company. Ask them to send some samples of the product before committing.
- Is the supplier venerable? He/She should not be involved in any illegal affair such as trafficking, drug supply and black marketing etc.
- Do read the laws related to your business. Check that you are following all the guidelines. Otherwise, you could be liable to pay a fine or imprisonment.
- Be moral and genuine with your sayings regarding your products. Always have transparency with your customers. It will create goodwill for your business.
Briefly, white labelling is selling products or services of another company by their own identity, such as logo, motto and packaging etc. Generally, it has reduced the cost of a company. Due to this, many companies have increased their competency and efficiency.