Labeling is taking a specific product and placing your name or brand on it. many people will usually confuse the difference between white labels and private labels or simply use the wording interchangeably, when they are two different beasts.
What Exactly Is Private Labeling?
Private labeling is purchasing a premade product and then enhancing or modifying it in a specific way and then simply placing a brand name on it. A prime example of a private label company is Nike. They buy their products in bulk from a manufacturer and then modify it to fit their brand, place the Nike name on it and sell it for top dollar. Sounds like a pretty easy business model, doesn’t it? There is quite a bit more to private labeling!
It can actually be a rather long process due to marketing, hiring a development team to enhance the product, finding a suitable market and ultimately creating brand awareness. While this is a more difficult process, it allows greater control over a product as opposed to white labeling. In addition to controlling the production of the product, you have control over pricing.
Understanding White Labelling
White labeling is the process of buying from a manufacturer and placing your name on the service or product with absolutely no changes. With white labeling, you are forced to compete with several direct buyers. An example of this process would be Rihanna’s Fenty Beauty line, which is produced by Kenodo. While they produce all of the items for her makeup line, they are also producing for her direct competitors including Bite Beauty, Marc Jacobs, Lip lab, Kat Von D, and countless others.
White labeling is less expensive than private labeling at there is not as much time in production or planning. The only thing you need to concern yourself with white labeling is the brand name! The product is made, you simply need to market it and sell it!
When considering white labels, you are not the only one who will be buying like with a private label. The manufacturer is going to sell to many people as well as wholesalers. This is ultimately how they stay in business and remain profitable.
While white labeling is going to save you time and money, it is also going to help improve client loyalty. While customers continue to purchase a product that has your name and brand on it, it shows repeated success with your products.
White label vs Private label: Which Is The Best Option
If you are looking for the fastest way to get started with as little time needed to market and research, in addition to sampling and enhancing various products, white labeling is going to be the best option to get started and begin making a profit. While white labeling is the fastest route available, you will not have the flexibility to grow with your product. However, if you have the extra time and resources to hire a developer, fulfil a marketing strategy, a private label may be the key to success.
It basically comes down to choosing the best option for your brand and business. Think about your overall goals and resources and decide which is the best option. Regardless of the type of product or service you decide to sell, you understand your business and goals better than anyone. If you need further advice in considering an option, please feel free to consult with one of out Product Specialists here. They know all about selling on Amazon and would love to discuss your options further. Do not let your fear stop you from reaching your goals as an Amazon seller!