A simple Guide for Private Labeling and White Labeling

Private labeling and white labeling can be very lucrative e-commerce strategies, but you must first learn how to differentiate them!

Often used interchangeably (if wrong), private label products and private label products refer to the renaming of pre-made products by the brand itself. You can sell pretty much anything as your own to match your branding and marketing strategies.

Given how well the best white label products of 2021 are selling, now is a great time to learn how to use a white label and/or white label strategy for your brand. This beginner’s guide explains the following basics.

What is private tagging?

A private label product is usually sourced from a clothing manufacturer and then sold for exclusive sale under the retailer’s brand. Retailers can then make changes to the product, such as color or size, to develop their own unique brand identity and suit their specific niche. Private label products tend to be cheaper than national brands and, if marketed correctly, they have the potential to generate large profits.

What is white labeling?

A white label product is a product made by clothes manufacturers for sale through many retailers. Each retailer may resell the generic white label product under their name and trademark. In private label manufacturing, the retailer’s position in the market allows them to charge a premium for the product by adding their existing brand.

Private label vs. white label

While private tagging and white tagging are similar, the two differ in subtle differences.

Private labeling

• Products are manufactured exclusively for a retailer’s brand.

• Retailers have the option to modify the product to create a unique brand.

• Building a brand identity takes time, but it will attract niche audiences.

White letters

• Products are made for multiple retailers

• Retailers cannot make changes to the product but can rename it as their own.

• This is a quick way to get to market, but it will take more work to differentiate your brand.

With white labeling, a garment manufacturer creates a generic white label product for multiple resellers. For example, a private label manufacturer would sell a generic soap to 10 different retailers. Any retailer is free to rename the soap as their own, but basically, they all sell the same soap without change. This is the reason why convenience store brand products sometimes look the same, even if they come from two different convenience stores.

White labeling is a quick way to get to market, but your products will be more or less different from other retailers. Since nothing but the label distinguishes your products, your focus should be on differentiating your brand.

However, with private labeling, the product is created exclusively for sale by a single reseller. In the soap example, the private label retailer would have the option to customize it to suit their branding and selling needs. Modified soap is unique to that particular retailer and, unlike generic white label products, can sometimes even be customized with the retailer’s brand logo or colors.

Private labeling requires a bit more effort than the white label solution, but you can use it specifically to take advantage of trending products, such as the best-selling niches of 2021.

Advantages of both

With any of the e-commerce business models, you don’t have to deal with the trials and difficulties of making a product. Without investing in product design and creation, you save time and money. In return, you can focus on marketing and branding the product for your target audience without trying too hard.

Because they are less expensive, private labeling and white labeling are ideal for sellers who want to experiment with new products or on new sales platforms. It is also an attractive model for marketers looking to build an e-commerce business on the sidelines.