In 2022, there may be many changes in the way businesses are run. So, you should know something about white label products, a popular business model that most people choose.
White label products will be an excellent option for businesses just starting because it allows them to create their own brand without investing in building their product from scratch.
In this article, we will explain white label products and what types of businesses use them. Moreover, we will also share 10 examples of white label products you can start selling online today.
What Is a White Label Product?
White label products are marketed with the reseller’s brand and logo. However, it is actually a third party that produces these products. White labeling occurs when the manufacturer uses the brand at the reseller’s request rather than their own.
Simply put, a white label product is an unbranded product manufactured by one company but packaged and sold under another company’s brand name. They are usually made from scratch to the customer’s specifications and are not branded.
How Does White Label Product Work?
We found that white label products are re-brandable and re-sellable items produced by third parties. Now let’s see how this business model works.
Step 1. Supplier makes a white label product. Let’s assume it is a cell phone accessory. This phone case is completely unbranded, without a logo, name, or label.
Step 2. The supplier sells their product to a reseller, possibly another company or individual. They are welcome to customize it to their needs, place the logo and adapt it to the brand.
Step 3. The reseller sells the product to their customer. The key to white label products is anonymity because customers don’t know that the phone case was ever a white label product.
Why Should I Choose White Label Products?
White label products save time, effort, and money in production and marketing. This is true for both manufacturers and resellers.
1. Manufacturers
White label products allow manufacturers to expand their reseller network and thus sell more of their products.
By doing so, manufacturers do not need to invest in marketing strategies, such as finding customers or understanding their buying habits. As long as they work with reliable resellers, they can sell their products to many customers.
2. Resellers
By utilizing products from different manufacturers or multiple manufacturers, resellers can create a whole new brand based on white label products, diversify their offerings, and test new products without creating another product line.
Moreover, there are many other reasons to choose white label products, including:
- Superior quality
- Established marketing campaigns
- Low price for purchasing power
- Limited risk
- Great opportunity to show off creativity
- Wide selection of products
Are White Label Products Profitable?
Well, it’s up to you! White label products are very profitable if you sell the right product and find the right manufacturer. Since white label products usually cost less than wholesale products, they are more profitable to sell.
It is generally expected that wholesalers will get between 10% and 25% of the profit they can make on Amazon, while reselling white label products may be as much as 40% of the profit.
Types of Businesses That Use White Label Products
While white label solutions are available to most businesses, white label products tend to focus on the following business types:
1. Retailers
White label products can be found in any industry or sector, but large retailers do quite well. Companies like Whole Foods and Walmart have benefited by selling their own branded products created by other manufacturers.
2. Electronics industry
In addition to large retailers, white labeling has worked well for electronic manufacturers of popular smartphones, computers, and tablets. To increase their sales, they put their own brands on low-priced white label products.
3. Bulk merchandisers
Bulk merchandisers like Tesco are also proponents of the white label. The company uses white label products to target specific customer segments in different categories, such as apparel, home decor, arts and crafts supplies, family-friendly staples, and household essentials.
White Label Products Pros and Cons
White label products offer great pros to businesses and some cons, but with a better understanding of how white label products work, you can proactively avoid problems.
Pros
Here are some pros of white label products compared with creating new products on your own:
1. More options
No matter what white label product you want to make, there are certainly many options. You just need to research and decide which one best suits your needs and your customers so that it sells.
2. Saves time and money
Anyone who has ever developed from scratch knows how much effort it takes to create a high-quality, functional product. It takes time, investment, knowledge, and continuous support and improvement to keep the product at a certain level.
3. Work with an expert
You will receive expert services through a price agreed upon with the manufacturer, who is responsible for testing the product, revision, troubleshooting, and other fine-tuning processes. You just have to sit back and enjoy their quality work under your brand name.
4. Reduce stress
If something goes wrong, in most cases, the manufacturer will be the one to fix the problem. Not only do they provide customer support services, but they also take care of fixing the actual errors and faults of the product itself.
5. Increase customer loyalty
Introducing a new product (developed by the manufacturer) will give your existing customers something that will make them more attached to you.
6. Attract new customers
Once you start offering a new product, it will definitely attract new customers. New customers may expand their needs to other aspects of your business if they like it.
Cons
Here are some cons of white label products, but you can avoid these problems entirely:
1. Hard to make changes
White label provides ready-made products and services, and then put your brand and sell to your customers. So, if you want to change something in the finished product, it may be hard to make substantial changes yourself.
2. Fierce competition
When dealing with white label products, the competition is often fierce. Due to white label products being generic, consumers have many choices.
If you have found the perfect product for white labeling, it is likely that some of your competitors have as well.
3. Misunderstanding what you want
A common problem with white label products is that your white label manufacturer may not properly understand exactly what you are looking for.
They may provide you with a white label solution that does not actually meet the specifications you require.
10 Examples of White Label Products to Sell Online
Let’s see some of the best white label products to add to your store in 2022. From custom phone cases to unique LED lights, there’s a white label product for your store.
1. Cosmetics
Cosmetics is one of the oldest products and one of the most profitable white label products. There are many different types of cosmetics, each with additional profit potential.
One of the main factors that affect the profit potential of a particular cosmetic product is how well it is packaged.
When you hold it in your hand, the look and feel of the packaging can influence your decision to buy. If the box is not attractive or feels cheap, you will not buy it.
2. Stainless steel water bottle
Stainless steel water bottles are a good example of white label product. These water bottles are ubiquitous and sold in thousands of retail stores worldwide.
Water bottles can also be white labeling with a simple logo for branding purposes.
For example, if you sell digital fitness content, such as online yoga classes or virtual personal training. Branded water bottles offer a diverse way to make a relevant, physical product.
3. Mobile phone accessories
With the booming cell phone accessories market, smartphone accessories have become very popular because they help people personalize their phones without paying extra for branded products.
For example, phone cases are a great option to showcase pieces on an affordable accessory, and other accessories such as cords or car mounts can be easily re-branded.
4. Tote bags
Reusable bags are also a top seller nowadays and are suitable for all kinds of businesses. Customized with your brand, you can make these bags for your customers as gifts for their loyal customers.
Tote bags are inexpensive to manufacture, with prices starting at $0.75.
5. Underwear
Don’t miss the opportunity to have underwear represent white label products because almost everyone’s drawer is filled with all different types of underwear.
From fun and silly to everyday and nighttime sexy, white label underwear products can add color to a well-rounded closet to make it perfect.
6. Fitness clothing and accessories
Fitness clothing and accessories are becoming increasingly popular as many people lead sedentary lifestyles.
Most of these products are unbranded, so you can use them to create your own business or to promote other companies’ products.
There are many different kinds of fitness clothing and accessories. These include exercise mats, stretching bands, ankle braces, weight training equipment, books, dumbbells, etc.
7. Eyewear
Eyewear is one of the top products in the white label model. There are many eyeglasses, such as sunglasses, 3D glasses, and presbyopic glasses, with different styles, materials, and functions.
Usually, eyeglasses are produced in large quantities, so many small companies choose the white label model.
At the same time, the single cost of eyeglasses is very low compared with other products. So, this white label product is profitable for new beginners.
8. LED lights
White label LED light is a great way to offer a large variety and choice. White label manufacturers produce different types of LED lights, including fairy lights, LED light-up sneakers, solar-powered camp lights, flashlights, unique lights, etc.
LED light production is more complex than common products, requiring a more specialized level of technology and production.
So, most sellers who want to sell LED lights will choose the white label products before they can become independent and powerful companies.
9. Infant and children’s clothing
Baby clothing is a multi-billion dollar industry, and one relies heavily on white label products. Most baby clothing is a white label product, allowing you to produce some really fun, cute designs that your customers will love.
For many parents, the baby clothing market is an area where they loosen up their wallets, often buying new items monthly or even weekly.
10. Essential Oils
The market for essential oils is huge. Some will sell popular brands with fancy labels, and others will sell unbranded essential oils.
In addition, diffusers and bath products made with essential oils can all be white labeling and sold online.
Generally, if you buy from a good supplier, you should get high-quality essential oils at a fraction of the price. Then, you can retail them at a higher price and make a good profit.
How to Find White Label Product Suppliers?
If your goal is to start a white label e-commerce business, you will need a high-quality white label product supplier to source your products from.
There are many options on the market, but only a few are of the highest caliber.
To make it easier for you to get started, here are some tips for finding a manufacturer for your white label products:
- Ask for product samples to verify quality
- Verify that delivery is prompt and in good condition
- Total manufacturing cost and if there are any hidden costs
- Review how they handle product defects and damaged goods
Reputable wholesale websites are a good place to look for manufacturers, and these platforms will review who is listed so that you can ensure a certain level of quality.
In particular, you can start with these wholesale websites:
You may learn more on our blog for China Wholesale Websites for details below:
Complete List 2022: Top 30 Best China Wholesale Websites
In short, the suppliers you find will be ranked based on various factors, including customer service, pricing, product selection, quality, and more. This way, you can make sure you’ve made a good choice.
Private Label Vs. White Label Products: What’s the Difference?
Private and white labels are similar, but the two have subtle differences. Below are the main differences between private label and white label products:
| Private Label | White Label |
|---|---|
| Products are manufactured exclusively for a retailers brand | Products are manufactured for multiple retailers |
| Retailers have the ability to modify the product to develop a unique brand | Retailers can't make changes to the product, but they can rebrand it as their own |
| Creating a brand identity takes time, but it will attract niche audiences | This is a fast way to enter the market, but will require more work to diffrentiate your brand |
| Product prices are usually higher | Product prices are usually lower |
White Label Products FAQ
1. Is white labeling legal?
Absolutely. White labeling is a term that focuses on the manufacturing process through which labels are not applied to the product.
2. Are white label products safe?
There is always at least a little risk when starting any business. But as long as you do your homework and protect your brand, the risk of white label products is relatively low.
Since white label products will be customized with your logo or design, they will be hard to return. So, research any company you decide to work with and ask for samples before committing.
3. What are examples of white label products?
Some of the best examples of white label products, and the easiest to spot, can be found on the shelves of your local supermarket, such as baked beans, baby food, and wine.
4. Where can I find white label products?
One of the most obvious places to find white label products is the Alibaba website, which is one of the largest B2B marketplaces in the world. Of course, you can also search on Google.
5. How do I start selling white label products?
There are a few simple steps to get started:
- Choose a product
- Find a supplier
- Create a brand and brand equity for your business
- Set up a Shopify store and sales channel
- Get started now!
White Label Products Conclusion
The white label business model allows manufacturers to maximize their efforts to design quality products, while resellers can focus entirely on developing markets for their brands.
There are many reasons why you are definitely worth every penny spent on white label products. If you are looking to source white label products and would like some expert support, please leave a comment below.
I am Yan, the founder of Yansourcing, the best sourcing agent in China, who can quickly and safely help you buy and import from China. If you have any questions about importing from China, don’t hesitate to contact us.
