What Is White Label?

White Label Definition 

White label is the process of one company selling their “blank” product or service to a reseller. The reseller then puts their brand and logo on the product or service. The reseller can sell it B2B or B2C. White label products or services are used in an array of industries including but not limited to retail, food, digital software, and content. 

White Labeling for The Branding Company

In the branding company’s perspective, white labeling allows them to sell the product with their logo, images, and likeness to other businesses or straight to consumers. One reason a reseller will choose to use white labeling is because it can decrease costs such as production and logistics. In addition to decreasing costs another advantage for a reseller is that producing the whole product or service can be time consuming. There may be other products/services that need the company’s focus and buying a product that is premade and only having to put your brand on it saves time. 

Advantages & Disadvantages of White Labeling

There are several advantages and disadvantages when thinking of starting a white label service. An advantage is being able to expand your product offering and scaling up the business to meet the needs of more clients. You can also promote products that are not offered in the white label service. Resellers might be interested in rebuying pre-branded products and customized services. One disadvantage of starting white label is penetrating the market. When you begin to sell your product or service, resellers are unsure if your product/service is of high quality. That’s why building strong brand relationships are important, so once you do obtain a customer, they can spread positive word-of-mouth.