White Label: A Customized-Brand Business

Hermes_Fang

White label products (also known as private label products) are pre-existing items that have been branded as your own. Supermarket sodas are the finest example (they don't make colas; instead, they slap their label on them).

It's a profitable way to sell. Many individuals earn six to seven figures with them. However, it is not suitable for everyone, so we wrote this essay. You'll understand the benefits and drawbacks of this company strategy and evaluate whether you're a good match.

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The Pros of White Label Businesses

#1 Easy and Quick to Start Selling

On the one hand, there's no need for a prototype. You won't need to begin conceptualizing and prototyping how your product will appear because you're purchasing everyday things to sell. Instead, you order your stuff from Alibaba and call it a day. That saves you a lot of time and work.

On the other hand, you’re entering a proven market. When you establish a white label firm, you won't have to guess whether or not it will sell. You just need to worry about marketing because the product already has a market.

#2 You can customize your products

One of the drawbacks of dropshipping is that you cannot change your goods. You cannot add your own logo or modify materials or colors. However, with white labeling, all of this is feasible. Because you're not reselling the same goods, you'll be able to stand apart in the market.

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The Cons of White Label Businesses

#1 High Cost to Entry

While it may not be as expensive as selling your own items, selling white-label products in your Shopify or Shoplazza shop is far more costly than drop-shipped ones.

This is because you will require some inventory beforehand and might add at least $1,000 to your startup budget, which may not be optimal for first-time eCommerce businesses.

But it isn't even the worst part! If your items do not sell, you will have a significant inventory of things sitting around collecting dust.

#2 You're not selling a unique product

While you can alter a few components of the product, the problem is that it will be nothing out of the norm. If you choose a successful product (which you should), you will have tens (if not hundreds) of rivals offering the same thing.

This might make it more difficult to launch your firm because competitors provide similar items for less money or with greater marketing.

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Is White Label Business Right for You?

You may wonder if this business model is suitable for you now that you understand its benefits and disadvantages.

If you want our opinion, we'd say that we wouldn't recommend it if this is your first business. The prices are too high, and alternative eCommerce business models, such as print-on-demand or dropshipping, are less expensive to begin with.

You run the danger of squandering thousands of dollars rather than a few hundred if you do. However, if you have prior expertise with eCommerce and a budget of at least a few thousand dollars, then go ahead!

Conclusion

That's what white labeling is all about! To summarize, the white label company is lovely because it allows you to offer a branded product at a low cost to a well-established market. However, one of its drawbacks is that it is costly to begin, and you will not have a distinctive product to sell.

(Contributed by Andreas Ojala & Hermes Fang)

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5 years experience in digital marketing. A gracious loser, not a lousy winner.

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