A white label product is a product of some type that can be rebranded with a new label or company logo and then sold to the public. While one company produces the product, it is then rebranded and resold by another business. Companies manufacturing and distributing white label products intend for them to be used in this manner. This allows the reseller company to sell the product to the consumer as if it is their own. White labeling is not uncommon, and it is one of the best ways for some organizations to become very profitable if it is done properly. In fact, many large companies and big brands are actually resellers of products manufactured by other companies. Here, we’ll go through how white labeling works and what you can expect from the process.
How The Process Works
Why would a company want to make a product but not sell it? Aside from the hassle of marketing and selling directly to consumers, the other benefit here is that the company is able to sell its products through a large network of reseller partners. Many businesses use white label services for this reason. It allows the company’s product to become more accessible to the consumer. For the reseller, the benefit is clear – they don’t have to produce a product from scratch and can instead build a business using an already-manufactured product.
Here’s an example of how it may work. A company creates a new product, perhaps a new type of soap. They sell the soap to a reseller, perhaps one that already has an established consumer base. The reseller puts their label on the product. The consumer buys from them. The reseller handles the marketing and sales while the original manufacturer only has to worry about the actual production process.
Another example is a company like Starbucks. The company is well respected in its industry and quite commonly seems to be the go-to place for a cup of coffee. However, they also sell a wide range of products in their coffee shops. Starbucks doesn’t produce and manufacture those products, though. Rather, another company makes them and Starbucks puts their logo on them. Many types of products can be sold in this manner, from day-to-day products, B2B products, and even things like software. While this is commonly done with products, there are also services that can be set up like this as well.
Why Should You Consider White Labeling?
Whether you are just launching an Amazon seller account or you are working to strengthen the products that you already have available, white labeling can work very well. There are key advantages to using this type of method, including the following:
Get New Product Launched Fast
One of the best reasons to use this service is that it allows you to get a product launched and earning money for you right away. There’s no product development and market testing to worry about when you white label. All of the manufacturing is already complete. This means you can expand your offerings by listing these products quickly.
For those just getting started with white labeling for this purpose, we highly recommend seeking Amazon seller consulting, a service that can help you get set up faster and more effectively (and for less money than doing it on your own).
You Want To Scale Your Business
As a business owner – with an Amazon seller account or not – you will find that your existing product line just will only go so far. While reading business growth quotes to gain inspiration is helpful, you need to take action to see a change. There are going to be times when you need to add something new to get your business to the next level. When you have new products like this, you attract new customers, scaling your company.
You Build Your Brand
As you see your business begin to grow, you’ll want to work on branding it. With new products added like this, you’re going to be able to build your brand more effectively. White label products can help you go from virtually being nonexistent (and truly many companies start at this point) to being a multi-line brand that customers recognize.
White labeling has plenty to offer:
- Diversify your product line up
- Reduce costs by skipping the manufacturing process
- Provide more of what your customers need and want
- Build your brand recognition
- Offer something the competition does not
- Get your business set up and moving forward faster
How To Get Started With A Partner
It’s quite important to choose the right product and partner to work with to achieve these goals. Finding a white label partner is a key component to getting products listed for sale on Amazon or anywhere else. Look for a partner that:
- Offers the same product-type that aligns with your business goals; you may want a very strict type of product, quality, or feature that your customers can later recognize and appreciate.
- Provides a product that you can stand behind and feel comfortable marketing as your own; if you don’t want your logo attached to a specific product they produce, don’t choose that white label partner for any product.
- Has experience working as a white label partner; this reduces your friction and helps ensure you can count on them to provide a reliable product and supply to your customers (otherwise you look bad).
- Agrees to a simple and easy to understand contract; be sure you understand and agree to all terms and requirements in all areas with a clear minimum lock-in period.
- Allows you to try out the product before you sell it; don’t ever not know what you are selling.
White label products like these are fantastic investments when the partnership you have is a strong one. Work to find the right product first.
Getting It Listed On Amazon
Once you are ready with a white label product selected, you can launch your Amazon marketplace business. This is by far one of the most successful methods to building a business on the site and it provides you with numerous benefits along the way. Don’t go it alone, though.
With a bit of Amazon seller consulting help, you can get your business established on the site and then use white label products to grow it. Ask your consultant how to get Amazon reviews to increase sales. The key here is to have the right team by your side to help you. A great partner will be there to support you through this process.