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The ºÚÁÏÃÅ Blog>White Label vs Private Label: What’s Better for Business

White Label vs Private Label: What’s Better for Business

Posted by Max Komonov

Those already inÌýtheÌýphysical products business orÌýthose considering entering itÌýhave likely heard theÌýterms white label andÌýprivate label. Some may even think that these two models are theÌýsame thing.

However, there are significant differences when itÌýcomes toÌýwhite label vsÌýprivate label. Moreover, each model has its own advantages asÌýwell.

Deciding between these two isÌýanÌýimportant factor inÌýcreating aÌýsuccessful andÌýprofitable physical products business.

Continue below where weÌýwill break down theÌýmajor differences between white label vsÌýprivate label. WeÌýwill also cover theÌýadvantages ofÌýeach toÌýhelp you decide which isÌýright forÌýyour business.

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White Labeling vsÌýPrivate Labeling

First, let’s look atÌýtheÌýdefinitions ofÌýwhite labeling vsÌýprivate labeling toÌýdetermine what sets them apart.

What isÌýWhite Label?

White label means generic products are manufactured byÌýaÌýthird-party company andÌýthen purchased byÌýanother company toÌýsell under their own label. The manufacturing company regularly produces these products andÌýallows other companies toÌýpurchase andÌýrebrand them.

The idea isÌýforÌýother companies toÌýbeÌýable toÌýsell theÌýproduct asÌýtheir own. The term “white label” implies theÌýidea ofÌýaÌýblank label that can beÌýfilled inÌýbyÌýaÌýbrand.

What isÌýPrivate Label?

Private label products are similar toÌýwhite label inÌýthat they are manufactured byÌýaÌýthird party toÌýbeÌýsold under another brand’s label. However, theÌýdifference isÌýthat theÌýbuyer has much more control over theÌýproduct’s manufacture.

They can specify materials, packaging, what goes inÌýtheÌýpackage, andÌýlabel design. InÌýother words, private labeling means theÌýproduct isÌýproduced exclusively forÌýtheÌýcontracting brand toÌýsell.

Private Label vsÌýWhite Label Examples

ToÌýclear upÌýtheÌýdifference between these two types ofÌýproducts, here are aÌýfew examples.

Private Label:

White Label:

The Advantages andÌýDisadvantages ofÌýPrivate Labeling andÌýWhite Labeling

While both ofÌýthese business models can beÌývalid andÌýefficient, each has advantages andÌýdisadvantages.

Let’s take aÌýlook atÌýaÌýfew ofÌýthese toÌýhelp you determine which model isÌýright forÌýyour business.

White Labeling Advantages:

White Label Disadvantages:

Private Label Advantages:

Private Label Disadvantages:

What’s Better: White Label orÌýPrivate Label?

There isÌýnoÌýconcrete answer toÌýwhether white label orÌýprivate label products are theÌýbetter option. ItÌýreally depends onÌýtheÌýparticular business andÌýits goals. Both options make itÌýeasier toÌýlaunch aÌýbusiness byÌýoutsourcing theÌýmeans ofÌýmanufacture toÌýaÌýthird party.

White label can beÌýaÌýgood option forÌýbrands that want toÌýget off theÌýground quickly andÌýwith lower costs. Additionally, itÌýcan beÌýanÌýeasy entry point forÌýlearning theÌýropes ofÌýtheÌýe-commerce world. Some brands may even start with white label andÌýmove onÌýtoÌýprivate label products after they are more established asÌýaÌýbrand.

Private label, onÌýtheÌýother hand, may beÌýaÌýbetter option forÌýbusinesses with aÌýspecific product inÌýmind that they want toÌýhave designed orÌýmodified. Additionally, they may have more capital toÌýinvest inÌýgetting theÌýbusiness off theÌýground.

While private label isÌýmore costly, itÌýoffers much more exclusivity andÌýdifferentiation from theÌýcompetition. This makes itÌýmuch easier toÌýbuild brand loyalty over time.

WeÌýhope this guide helped you learn everything you need toÌýknow about white label andÌýprivate label products. Good luck inÌýyour future ecommerce endeavors!

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Frequently Asked Questions About White Label andÌýPrivate Label

What isÌýtheÌýDifference Between White Label andÌýPrivate Label?

Both white label andÌýprivate label involve contracting aÌýthird-party manufacturer toÌýproduce products. However, white label means generic products theÌýmanufacturer isÌýalready producing, which theÌýbrand then buys andÌýputs its own label on.

Private label products are produced exclusively forÌýtheÌýbrand, andÌýtheÌýbrand also has more say inÌýits design andÌýproduction.

What Has Lower Costs: White Label orÌýPrivate Label?

White label products typically involve lower production andÌýcapital costs because they are generic products that are regularly made byÌýtheÌýmanufacturer.

Private label products, onÌýtheÌýother hand, involve specific designs orÌýmodifications that can make them more costly.

Should IÌýChoose White Label orÌýPrivate Label Products?

The answer toÌýthis question really depends onÌýyour particular business. IfÌýyou are aiming forÌýlower production andÌýstartup costs, then white label can beÌýaÌýgreat option. However, ifÌýyou want aÌýspecific product toÌýbeÌýmade orÌýwant something modified, private label may beÌýtheÌýway toÌýgo.

See theÌýadvantages andÌýdisadvantages ofÌýeach andÌýtheÌý“What’s Better?” section above toÌýlearn more information that can help you make anÌýeducated decision.

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About The Author
Max has been working in the ecommerce industry for the last six years helping brands to establish and level-up content marketing and SEO. Despite that, he has experience with entrepreneurship. He is a fiction writer in his free time.

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