Are you interested in starting your own business but don’t want to take on the risk and investment of creating a product from scratch?
The white-label business model might be an excellent option for you. White labeling allows you to put your branding on products that another company already creates.
It means you don’t have to worry about creating the product, keeping inventory, or fulfilling orders. However, navigating the world of white-labeling can be overwhelming, so we’ve created this comprehensive guide.
This guide breaks down the white-label meaning, explains how it works, and gives tips for succeeding with white-label products. Keep reading to learn how you can start your own white-label business today!
White label meaning
White-label means you directly sell a product with your brand name to a manufacturer or supplier. Let’s dig deeper.
Generally, during dropshipping, the vendor gets products from the manufacturer and sells them under the manufacturer’s name.
On the other hand, white-label dropshipping involves the vendor re-branding the product under your name or brand before selling it to the client. The transaction between you and the manufacturer under this type of drop shipping is fully anonymous.
According to Columbine Label, White-label / private label is positioned to surge for the foreseeable future with a projected $60.8 billion in size and growth rates north of 41 percent.
White label products meaning
White-label products
, are produced by one company and sold by another company under your branding. These products can be physical or digital.
The company buying the white-label product can then sell the product without creating the product from scratch. The white-label product is usually sold at a higher price than the original product.
Is white labeling the same as private labeling?
White labeling and private labeling differ regarding product exclusivity and market competition.
White labeling is a concept used in eCommerce frequently confused with private labeling. They function similarly in that the manufacturer will let you resell the product under your name, but they differ in some respects.
The manufacturer produces a generic product that companies can purchase and label without changing product features. It means several sellers can sell the same goods under their brand name.
In a private labeling deal, on the other hand, the manufacturer will produce a product that will be marketed solely by the buying brand. It allows the brand to customize the goods to its taste and sell them in the market without fear of competitors offering the same item.
How does white label dropshipping work?
White-label dropshipping works similarly to regular dropshipping. The only difference is that the product is a white-label product.
The entrepreneur finds a supplier who produces white-label products and adds them to their online store. When a customer orders a product, the entrepreneur places an order with the supplier, and the supplier ships the product directly to the customer.
The product is shipped with the entrepreneur’s branding, making it look like it was produced and shipped.
Examples of white-label products
Now that you know the white-labeling meaning, here are a few products that are widely white-labeled
- Apparel like T-shirts, Hoodies, Kid’s and Fitness wear
- Phone cases and accessories
- Postcards, poster frames, keychains
- Home and living products like pillow covers, mugs, etc.
Benefits of white-label business
The white-label business has many benefits, including:
1.Low investment:
The entrepreneur doesn’t have to invest in creating a product from scratch. They can simply buy a white-label product and add their branding.
2.No inventory:
The entrepreneur doesn’t have to keep inventory or fulfill orders. The supplier takes care of everything.
3.Faster time to market:
The entrepreneur can start selling products immediately without spending time creating the product.
4.Branding:
The entrepreneur can build their brand without creating a product from scratch.
Challenges of white-label business
Limited creative control
We sell exactly what we obtain from vendors because white-label products are mass-produced. Furthermore, the suppliers have complete control over the manufacturing process.
In other words, we don’t get unique features that differentiate the product from the competition. As a result, white-label dropshipping limits our creative freedom.
Branding restrictions
Because white-label products are widely available in the market, it is difficult to establish a strong brand. That is why, to improve sales, we must optimize our marketing plan.
Increased competition
Due to low entry hurdles, thousands of dropshippers are selling white-label products. As a result, white-label dropshipping is highly competitive.
Explore from wide range of custom products
How to start a white-label business? Brief guide
Starting a white-label business on dropshipping can be a great way to enter the world of entrepreneurship without the upfront investment required to create a product from scratch. White labeling allows you to sell products already created by another company but with your branding. Here’s a brief guide on how to start a white-label business:
1. Identify your niche:
To start a successful white-label business, you need to identify a niche that you’re passionate about and has market demand. It could be anything from fashion to technology or home goods.
2. Find a white label supplier
Once you’ve identified your niche, you need to find a white-label supplier that offers products that align with your brand. Many white-label suppliers are available online, so research to find one that meets your needs..
3. Brand your products
Once you’ve found a supplier, it’s time to build a brand for your products. It includes creating a logo, packaging, and other branding materials to make your products stand out.
4. Create your online store
With your products branded, it’s time to create your online store. This can be done using an e-commerce platform like Shopify or WooCommerce.
5. Launch your business
Once your store is set up, it’s time to launch your business. Start by marketing your products to your target audience and building a solid customer base.
Build a free white label business with Qikink.
Qikink is an excellent platform for building a free white-label business. With Qikink, you can easily create and sell branded products without any upfront investment.
Qikink offers a wide range of print on demand products and customization options, making creating unique products that meet your customers’ needs easy.
The platform also handles order fulfillment and shipping, so you can focus on growing your business. Whether you’re looking to start a side hustle or launch your own full-time business, Qikink is an excellent choice for anyone looking to enter the world of white-labeling.
Conclusion - Final thoughts and recommendations
White-label products are an excellent way for entrepreneurs to start a business without investing much money or time. With white-label dropshipping, entrepreneurs can start selling products immediately without keeping inventory or fulfilling orders. However, entrepreneurs must be aware of the challenges of white-label business, such as quality control and limited customization. Platforms like Qikink make it easy for entrepreneurs to start a white-label business for free.
Read more
- Creating Stunning Print On Demand Posters with Shopify: Your Complete Guide
- How to Start Print on Demand with Shopify: A Step-by-Step Guide for Success
- How To Add Products To Shopify Store – Print On Demand
- Shopify Launch Checklist: 11 Easy & Quick Steps to Get Started
- The Ultimate Guide to Starting Your Custom T-Shirt Business with Dropshipping
Frequently Asked Questions
What exactly is white labeling in the context of dropshipping?
White-labeling in dropshipping involves rebranding a product created by another company and selling it under your brand name. It allows you to sell products without having to make them from scratch.
How does white labeling differ from private labeling in dropshipping?
White labeling involves rebranding a generic product and selling it under your name, while private labeling involves creating a unique product sold exclusively under your brand name. Private labeling provides more control over the product.
Can you provide examples of successful white-label dropshipping businesses?
Some examples of successful white-label dropshipping businesses include Printful, AliExpress, and Oberlo. These platforms allow entrepreneurs to sell white-label products without investing in inventory or fulfillment.
What are the key benefits of incorporating white-label products into your dropshipping strategy?
The key benefits of incorporating white-label products into your dropshipping strategy include low investment, no inventory management, faster time to market, and the ability to build your brand without creating a product from scratch.
Are there any potential challenges or drawbacks associated with white-label dropshipping?
Potential challenges or drawbacks associated with white-label dropshipping include limited creative control over the product, branding restrictions due to the availability of white-label products in the market, and increased competition due to low entry barriers.
With over 6+ years of experience in the industry, Ayushi excels in building strong customer relationships and guiding clients toward growth as a Brand Partnership Manager. She enjoys sharing her experience in her content.
