Suppose, you are a businessman and you’re producing products which are taking you a lot of time, effort and money. The manufacturing cost is also too high which at times makes you feel like shutting down your business. You might have faced this situation in your real life too, I know. However, you no need to do so. I have a solution for you “White Label Products”. So, have you ever heard about white label products?
In this guide, you will get to know everything about white label products. Let’s get started.
What are white-label products?
In simple words, the white-label product is when you take someone else’s product and put your name on it. In this way, you’re directly selling a product that is developed, controlled, and serviced by someone else. A white label is a product or service of one company which can be rebranded or re-sold by another company. The white label provider develops a product or service in order to be rebranded by a re-seller company so that the re-seller can re-sell it as their own product to the end customer.
Let’s see the examples of white label products:
- Company A, a white label marketing web app provider, sells its marketing web app to Company B, an agency to re-sell it.
- Company B then rebrands the marketing web app with its own logo and design and sells it to Company C to use.
Types of white labels
1. B2B White Label
In this, a product or service is provided by a white label company and is sold to the seller to re-sell it to end-user or a company.
2. B2C White Label
Here a product or service that is sold by a company, resold the end-user or customer.
How white labeling works?
As I already told you those white label products are developed by a company to rebrand or resold them to the end customers. In this case, white labeling gives providers access to a large distribution network through their reseller partners. In this way, the reseller can expand their products and services lines easily without producing their own goods.
Furthermore, the consumer who buys white label products isn’t aware that it was originally developed by a white-label provider.
Do you know why companies go for white-labeling? Why do companies feel the need for a product to get rebranded? So, it’s time to answer all these questions.
Why companies need white labeling for their products?
We all want success in every field no matter what. In the same way, businesses also want to propagate their products and services to a wider audience. If we apply this concept here in white labeling then the key concept of white labeling is anonymity as customers are not aware of the original producer of the product.
Let’s understand it with an example:
Have you ever bought a product that had a brand name you never heard of? Now consider such a brand as ABC. Now, if the producer of ABC sells the product to popular brands now what happens the same product is labeled under a big brand. Now, would you like to buy it? Of course! You will definitely. You will not realize that this product is originally from ABC Company or brand. Here ABC is known as the provider of the white-label product.
In the concluding note, I just want to say that both the manufacturing company and the selling company benefit through the process of white labeling.
Although there are fewer profit margins for the manufacturers yet they get a faster payment to cover the cost of producing the products. So, folks if you find white labeling a good process to get your product sell in the market under the branded name or a company then you must try out this method. It may yield your high revenue.
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