The world’s most iconic brands sometimes sell items more alike than you might think. A selection of branded products are white label—meaning, manufactured by an outside company that produces generic goods for any number of brands to sell under their own names.
In today’s global economy, white labeling is common among many categories of consumer products. Learn about the benefits and drawbacks of white labeling to determine if it’s right for your business.
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What is white labeling?
White labeling is when one company manufactures products to be branded and sold by multiple other businesses. This process allows retailers to sell products under their own brands without investing in product development. It also benefits manufacturers as an additional revenue stream.
For Tique Chandler of Chandler Honey, white labeling provides steady income that allows her to focus on developing her own brand.
“Because I’ve already invested in a production space and have this CFIA [Canadian Food Inspection Agency] certification, [and] I have access to honey, if needed, from my parents’ farm, I’ve got all of these strengths that allow me to work with people who want their own honey brands [but do] not have honey,” founder Tique Chandler says on Shopify Masters.
“That’s a great recurring customer. Customers that continually keep paying me to help me pay my bills so that I can not worry about rent and I can just work [and] worry about growing my own business.”
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The 13 Best White Label Products To Sell
Take inspiration for your business from this list of the best white label products to sell.
White label vs. private label vs. print on demand
There are a number of business models that allow retailers to quickly bring a custom or semi-custom product to market, with white label, private label, and print on demand (POD) as the most popular. Here are some of the key differences:
| White label | Private label | Print on demand | |
| Product customization and uniqueness | Any number of businesses sell the same exact product under different brand names. | One business has the exclusive rights to sell a specific product or variation. | A unique design or logo is printed on a generic item, like a t-shirt. |
| Production speed | Typically fast, because the manufacturer is simply adding a new label to an existing product. | Slower, since the manufacturer has to develop a custom product. | Fast, because the printer is adding a design to an existing product. |
| Upfront costs | Sellers usually purchase white label products upfront. | Sellers almost always purchase products upfront and must meet minimum order quantities (MOQ). | No upfront costs. The seller gets a cut of the profits after each item is sold. |
| Shipping and warehousing | Sellers typically handle shipping and warehousing. | Sellers handle shipping and warehousing. | POD companies handle shipping and warehousing, similar to dropshipping. |
| Product types | Any type of product, especially food and beauty but also software and services | Any type of product, especially consumer packaged goods (CPG). | POD products can easily be printed on, such as apparel and home décor |
Industries that use white labeling
White label products are popular in sectors with complex manufacturing or where branding and marketing determine consumer purchase decisions. Here are a few:
Food and beverage
Step into your local big box retailer and you’re bound to find a number of white label grocery items. Costco, for example, is famous for its high-quality yet affordable white label products sold under the name Kirkland Signature.
White labeling isn’t just for major chains. Small businesses use white labeling all the time; one of the most common use cases is coffee.
Roasting your own beans is a major undertaking, so many cafés, hotels, and other small businesses sell branded coffee from a white label coffee producer like Roastify.
Roastify offers both white label and private label products, in addition to coffee dropshipping options that make it easy to sell coffee online. White label customers choose from 15 different blends, then add a custom product packaging design.
Tip:How To Start Dropshipping Coffee
Fashion and apparel
White labeling lets brands try new styles, prints, and colorways in a cost-effective way. The manufacturers design the clothing and source fabric, then add tags with the seller’s logo.
UK-based fashion brand Whispering Smith offers wholesale clothing alongside what it calls “garment re-processing,” which involves adding branded elements (like care labels, swing tags, barcodes, and even branded buttons and zippers) to existing pieces.
Skin care and beauty
Skin care is another sector where white labeling is prevalent. A single manufacturer might produce moisturizers, serums, and other products, while various skin care companies package and brand them differently.
Depending on their relationship with a supplier, skin care companies may incorporate a unique ingredient to differentiate their product, but the base formula remains the same.
For example, NourishUs Naturals is a white label skin care company with various product categories that allow for slight product customization. It also features a ready-to-label section.
Many cosmetics brands also use white label manufacturers for their makeup products, allowing them to offer a wide range of colors and formulations. This strategy also reduces investments in extensive product research, development, manufacturing, or cosmetic fulfillment facilities.
Software
White labeling software is a common practice in the tech industry. Companies add their branding to a software application that third-party programmers make.
This is particularly common in the SaaS (Software-as-a-Service) industry, with core features developed by a single company, then repackaged and sold by various other companies that may add additional features or services.
Mailmunch is a white label marketing solution that offers hundreds of templates and lets businesses pick features like contact management, lead generation, and email automation.
White label benefits
White label branding has benefits for manufacturers and sellers. Each can focus on their area of specialization (production for manufacturers and marketing and branding for sellers) and leverage the other’s expertise.
Some of the main advantages of the white label model include:
- Low barrier to entry. Sellers can enter new markets without knowing the intricacies of producing a regulated or niche product.
- Core competency focus. Manufacturers can sell more products without needing to open more brick-and-mortar stores.
- Lower cost per unit. A white label manufacturer can bring down per-unit costs with large production runs, selling in batches to many retailers.
- Increased product appeal. While a generic product may function well, branding the product may boost its perceived value.
- Consistent quality control. White label manufacturers often have established quality assurance processes, ensuring consistent product quality across different brands.
- Market adaptability. White labeling allows brands to quickly respond to consumer trends and changing economic conditions, benefiting from distributional economies of scale.
When is white labeling a good idea?
White label companies can set up a brand around an existing product without investing in product development. That means skipping steep production costs and more quickly setting up an online store or selling on social media.
Read:What Is TikTok Shop & How It Works for Sellers Now
Selling white-label products might be a good option if you want to:
- Sell a trending product
- Start a business or new product line quickly
- Launch a brand with lower upfront investment
- Add a branded product line to your retail store
- Capitalize on a prominent market position
- Monetize your blog or social media accounts with branded merchandise
What are the drawbacks to white labeling?
With other brands selling the same product, the main drawback to white labeling is competition. There may be little differentiation between products beyond retail price and brand name, leading to pricing wars where sellers decrease their profit margins as much as possible to win consumers.
This challenge extends to packaging and branding as well. White label sellers must carefully navigate the fine line between creating appealing packaging and avoiding legal issues related to “copycatting,” or using designs too similar to established brands, which can be illegal in some cases.
While efficient, white labeling is also a restrictive retail model. White label sellers work within the constraints set by white label suppliers, which often limits their ability to fully customize products. For more extensive customization, retailers commission private label products or use print-on-demand services.
A blank canvas
White labeling is a powerful business model that lets retailers put their brand on proven products. It offers a low barrier to entry and allows you to leverage other companies’ manufacturing resources.
If you can avoid predatory pricing wars and reach customers before competitors, white labeling is one strategy for building a thriving retail business.
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White label FAQ
Why is it called white label?
The phrase “white label” suggests a blank label that’s ready to be personalized. Manufacturers who specialize in creating generic goods make white-label products businesses can customize and sell under their brand names.
What is white label vs. black label?
White labeling is where one company manufactures a product, but another entity adds its own branding and sells it. Black label refers to premium or exclusive products branded by the original manufacturer or company.
Is white labeling illegal?
White labeling isn’t illegal. It’s when companies brand and sell existing products under their own names, provided they follow the relevant regulations and intellectual property laws. For example, you must be mindful of trademarks and patents, and cannot infringe on existing brand names or technologies.
How do I start a white label business?
Starting a white label business involves finding a reliable manufacturer and developing your brand. You’ll also need to create a strategy for reaching customers before other white label businesses, as you’ll be competing to sell the same products.
Can I white label services instead of products?
You can white label services. This is common in industries like digital marketing, where agencies will white label services such as SEO or social media management. The agency provides the service under its own brand, while white label providers do the work.
Can you make money with a white label?
Yes, you can make money with a white label. It can be a cost-effective way to sell products because you don’t have to spend money on production and are able to launch more quickly.
