White Label Products: Definition and Meaning

Have you ever seen a product that you thought was so good, you wished you could sell it under your own brand name? With white label products, you can. A white label product is a ready-made product that’s produced by a factory outside your business and shipped to you for retail sale under your own brand. All that you need to do is buy the product, and you’ve got something to sell that’s uniquely your own – at least, that’s the dream. 

The reality is that selling products in any retail sector is a potentially enormous challenge, and that’s doubly true with white label products for reasons we’ll discuss in this guide. One of the biggest benefits of selling white label products is that the cost of entry is often surprisingly low. That, however, is precisely the reason why so many other entrepreneurs have also dabbled in this industry. 

So, have you always wanted to create a brand and begin selling your own products? Buying white label products is the fastest way to do it. Before you jump in, though, it’s important for you to understand the challenges and realities associated with selling products that other businesses are also free to sell. This is your introduction to the world of white label products.

What Are the Benefits of Selling White Label Products?

If you have good business sense but lack the connections or skills to design your own products from scratch, selling white label products is the fastest way to get a brand launched and bring products to the market because the products are already designed and produced for you. White label products also tend to cost less than products designed in house because designing a product from scratch will typically incur significant development expenses. 

Although selling white label products is the fastest way to get a new brand started, it’s worthwhile to remember that those items don’t have to be your primary products; they can also be ancillary products. Suppose, for instance, that you own a vape shop and sell products like the OXVA Xlim. In this case, it’s worthwhile to consider selling accessories such as charging cables under your own brand name because people always need replacement parts for vaping devices. Every white label product that you sell will essentially become an advertisement for your store.

What Are the Sources of White Label Products?

The sources of white label products are typically the factories that make them, which are usually based overseas and are most commonly in China. If you’ve never sourced products from an international company before, there’s no need to feel intimidated or worry about a potential communication gap. Many Chinese manufacturers deal primarily with customers in western nations, so you’ll be working with someone who speaks fluent English. In addition, it’s likely that much of the ordering process will take place online.

What Are the Challenges of Selling White Label Products?

The biggest challenge of selling white label products is the fact that anyone else can jump in and start selling the same products you’re selling. The only barrier for entry is the cost of the products. Since there won’t be anything fundamentally different about your products compared to what your competitors are selling, establishing a strong brand will be particularly important if you want to be successful. If you can’t do that, you’ll have difficulty standing out. This is an area in which you can enjoy a significant advantage if you’re able to find a completely new type of product and be among the first sellers to bring that product to the market.

If you decide to sell a white label product that other merchants are already selling, getting noticed won’t be your only challenge. Even if your business is noticed, you’ll still have to sell your product at a price that allows you to make a profit – and that’s not easy when other companies are selling the same thing. You’ll have to find a way to differentiate your brand and your product if you don’t want to get caught up in a price war. Once again, this is a situation in which being among the first companies to sell a particular type of product can be a major advantage.

What Do You Need to Get Started with White Label Products?

To begin selling white label products, all you need to do is find a factory that produces the products. That’s easy enough to do by searching the web for “white label” followed by the type of product that you’re interested in selling. 

When you begin your search for white label products, you’ll find that different customization options will be available for different types of products. You might be able to choose the color of the product, and you may also be able to put your logo on it. In many cases, the factory that produces the product will also supply a fully customized retail box. It’s wise to have some idea of what you want your product’s box to look like before you get started, and you will definitely need to have a logo as well. Some producers of white label products may have designers on staff who can help with some aspects of this process.

You should prepare for the fact that having a white label product made for you will cost at least a few thousand dollars, depending on the type of product. Because of the significant resources that go into producing something with a custom color, logo and packaging, a factory will generally require a minimum order of hundreds of units.

White Label Products: A Risky but Potentially Great Opportunity

In any entrepreneurial endeavor, it’s crucial to understand the competitive landscape and to have a rock-solid marketing strategy before you get started. Those things are particularly important, though, if you want to sell white label products because it’s potentially very risky to enter an industry in which there are already many other retailers selling the same item that you want to sell. If you choose the right product and have a good way of marketing it, though, white label products have the potential to be extremely profitable. Without question, it’s the fastest and most affordable way to bring a product with your company’s name and logo to the market – and if you have a knack for building a brand, that may be all you need.

Interesting Related Article: “The Essential Guide To White Label Product Manufacturing