One in four consumer-packaged goods is a private label product. And despite a global pandemic, private label products earned $158.8 billion in 2020 alone.
So if you’ve been wanting to start an e-commerce business, then private label products are a great way to go. This is a great option if you’re just starting out and can’t pay to make a product from scratch yet.
But if you’ve started doing some research already, you’ve probably come across the term “white label product” as well.
And if you don’t know the difference between private label vs. white label products? There’s a high chance you’ll end up spending thousands of dollars on a generic product that nobody notices.
Below, we’ll cover these important differences, explain which is the better pick, and more. So if you’re ready to sell the perfect product for your business, keep reading!
What Are Private Label Products?
Private label products are products that are made by a company, but that company doesn’t put its own name on it.
Instead, they put the name of the retailer who is selling it. Common private label items include:
- Clothing
- Cosmetics
- Food items like condiments
- Dairy items
- Household cleaners
For example, if you go to Walmart and buy a tube of toothpaste, the toothpaste will probably say “Walmart” on it.
That’s because Walmart is the retailer that is selling it. They didn’t make the toothpaste themselves.
Another example of private labeling is Amazon Basics. Amazon doesn’t make these products themselves but pays to put their brand name on them.
The Amazon Basics product line is then only available through Amazon. No other company can buy these items and brand them as their own.
One of the big benefits of private label products is that they’re usually cheaper than name-brand products.
That’s because the company or factory making them doesn’t have to spend money on advertising or marketing. They just put the retailer’s name on it and sell it to them at a lower price.
This is great news for brands that are just starting out with their own product lines. It also frees up money for a solid marketing and branding strategy.
What Are White Label Products?
This is where the confusion starts for many people. Although the differences are subtle, the one you choose is very important for your business (and sales).
White labeling is when you take a generic product and put your business name and brand on it.
But with white label products, other companies and shops can also brand the product and sell it as their own. This is a great option if you want to resell a product without having to invest in making it yourself.
But remember, since this product is not exclusive to your brand, it’s going to be harder to compete with other sellers who are selling the same thing.
An example of a white label product would be generic ibuprofen (the name for Advil). Companies like grocery stores often sell these (and other household items) under their own brand name.
Why Private Labels Are Better Than White Labels
You might want to go for a white label product because it’s cheaper than a private label product.
But when you’re starting a new business, private labeling is the better way to go. With private label products, you create your own unique brand and product.
This will help you to stand out from the competition and attract more customers.
White label products are a great option if you want to resell someone else’s product. But since anyone can do this, it’s going to be hard to stand out from the competition. Plus, you’ll have less control over the quality of the product.
With private label products, you’re in charge of everything. This means that you can control the quality of the product, and make sure that it meets your own standards. You can also choose if you want to have a third party do quality control for you.
You also get to choose the design and packaging. This will make your private label product unique and will help you get more customers. You have full control over your pricing strategy as well.
In this way, private labeling is the better option for businesses that are serious about making sales. Having these unique products will also help you win repeat customers.
When To Choose Private Label Vs. White Label
So when should you choose private label products vs white label products for your business? The answer depends on your goals and what you want to achieve.
If you’re serious about making sales and want a product that’s unique, private labeling is the better way to go.
Choose to sell private label products if you have a unique product that you want to bring to the market. This will help your brand establish itself faster instead of being another generic brand in a saturated market.
It’s also a better choice if you have a unique product you want to sell. Private labeling will help you create your dream products while saving you money on production costs.
But you don’t need to make a product that’s unique every time.
White label products are a good choice to complement your business. For example, let’s say you sell private label headphones. You may choose to white label a case for them that you can also sell.
If you only choose white label products, you can run into problems with standing out. You’ll need a strong marketing strategy and a trustworthy brand to convince customers to come to you.
Make Your Product Dreams A Reality Today
In the debate between private label vs. white label products, private label is generally better. This will help you better control the quality of your product and improve your brand’s credibility.
You can then boost your marketing strategy with a few white label products if you’re looking to expand.
Not sure where to start with private labeling your product? China2West Services can help. We have our own IP-protected factory and can help with product development, quality control, and more.
So if you’re ready to expand your business with products, contact us today to get started!
