White label products are those which are rebranded and sold by companies or people who did not manufacture those products themselves. It might sound complicated, but it is very simple. Let’s suppose your friend has manufactured a sweater at his/her home. You buy that sweater from them, package it and put your own brand’s logo and design on the packaging and sell that sweater as your own. The term white label refers to the white label on top of the packaging. You can put any logo or trademark on top of that label. This process is known as white labeling products and that product will become yours. Let’s explore about the white label products to sell with pros and cons.
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White Label Products to Sell on Where and How?
The best global platform to find white label products to sell is Alibaba. Whereas the best online store to sell white label products is Shopify. Simply subscribe to a seller plan on Shopify (or try their 14-Day trial), set up a store, and start selling.
People who prefer Amazon will be wondering how to sell white label products on Amazon. The answer is that selling a white labeled product on Amazon, or reselling a product on Amazon FBA is a lot more complicated than it is on Shopify. There are many reasons behind that. First, buying cheap Chinese products and shipping them to an Amazon store in North America incurs huge shipping fees, which in many cases kills the profit margin. Second, due to bad diplomatic relations between China and USA and also due to strict requirements set by Amazon for packaging and shipping products to its warehouses, it is very hard to meet those requirements for white labeling brands.
How to White Label a Product
White labeling products and selling them has become very simple thanks to modern E-Commerce platforms that offer a great degree of customization.
- You first need to identify the product you want to sell and then find a trusted manufacturer who supplies the designated product whenever you demand. Choose whether you want to buy the item in inventory, through dropshipping, or on a Print on Demand basis. Some of the best white label products currently are in the women’s apparel, cosmetics, and video game accessories categories.
- It is important to know the intentions of your supplier and the legality of your actions. Only choose suppliers who are not interested in branding, marketing, and selling their products themselves. In case they change their mind later on or register the product with their own branding and label, you might get into legal trouble.
- After the supply chain and legalities are sorted out, you will then need to establish your own brand, white label all products under that brand, and market them to attract more customers.
- Then choose an E-Commerce marketplace or store that you prefer (Shopify is recommended), subscribe and set up a premium account, and start your white label business.
White Label Products Wholesale Concept
Recently, selling white labels on a wholesale basis has become very popular among sellers. This has been made possible due to relatively cheap products produced in China, buying them in bulk through easily accessible online platforms like Alibaba, and selling those products under new labels in developed countries (such as Europe and North America) where those products fetch attractive prices. This business model was indeed implemented with great success by early adapters. However, in more recent times, wholesale white labeling has seen diminishing returns due to market saturation and tightening regulations in western countries against rebranded Chinese products.
Advantages of White Label Product
- Manufacturers can stop worrying about marketing and selling aspects, and work to refine their production and shipping processes.
- Allows aspiring sellers and marketers to start a business around a trending product without worrying about manufacturing.
- Customers get products that are relatively cheaper.
Disadvantages of White Label Product
- Manufacturers may see that the products they made are being sold at very high prices, while they only received a fraction of that.
- Sellers and marketers could get into trouble if they try to white-label big brands, or if their manufacturer finds a legal loophole to claim the product as their own after it finds success in the market.
- It is very hard for customers to get detailed information about these products and their manufacturers. Also, the quality of these products is not guaranteed in most cases.
Frequently Asked Questions
Final Conclusions
White Labeling is one of several ways of making money in the booming E-Commerce sector. If you are able to get a high-demand product from a trusted supplier and market it to the right kind of customers, the sky is the limit. Like any other form of business though, white labeling has its downsides as well. A successful seller is one who manages to take advantage of this business model and avoid the expected pitfalls.
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