White label business opportunities allow you to buy generic products or services at wholesale prices, add your brand, and resell them at retail prices. Here’s how to find the right white label business and differentiate yourself from others reselling similar products or services.
What Does White Label Mean in Business
White label items are simply products or services that are packaged plainly, allowing you to repackage them with your own brand and resell them. White label is also known as private label since you are putting your own private name on whatever you resell.
Buying wholesale and selling retail is the backbone of business. So what makes white label products different?
The original concept of buying wholesale and selling retail is that the products you buy wholesale are already branded with the manufacturer’s name or brand.
White label business opportunities are when manufacturers make unbranded products or services and sell them to resellers who brand them with their own names. Unlike a franchise business model in which you follow a company’s branding guidelines, a white label business allows you a lot of flexibility in marketing and branding.
White Label Business Opportunities
Companies have been manufacturing white label products for years. Examples:
- An electronics company can make memory cards or cables so you can resell them under your name (Amazon markets their white label products as Amazon Basics).
- A hair products manufacturer can package their line so you can create private label hair care products.
- A plastics company can mold smartphone cases and add unique designs so you can add your logo easily.
- A stuffed animal manufacturer can create any design so you can launch your own brand of toys.
- A vineyard can offer private label wines so you can resell your own label. For example, Costco doesn’t have its own vineyards or bottle it’s own wine, but is one of the largest wine resellers in the world and even has its own private-label brand.
Sites like Alibaba can help you find products that you can buy at wholesale and rebrand as your own.
Once you acquire a private label product for your small business, you can sell the products on Amazon. Many small businesses thrive on selling their products on Amazon because it has a massive worldwide marketplace for almost every type of product imaginable.
Other White Label Business Ideas
You can white label services as well as products. Many companies offer white label business opportunities for their services. Some white label business ideas include:
- Bookkeeping – an ideal option for accounting firms that don’t want to hire additional staff during busy season; or a small accounting company that wants to offer full service bookkeeping and accounting.
- Payroll and human resources – another easy add-on service for bookkeeping and accounting firms, or even financial consultants.
- Website hosting – graphic designers or IT service providers can make extra money revenue by offering website hosting.
- Search engine optimization – a wonderful option for marketing consultants or web design firms. This allows them to focus on creative work while still offering an in-demand service.
- Computer help desk – a terrific option for small IT service providers who want to offer 24/7 support. They can do so without adding staff or spreading their resources too thin.
Do a Google search on the service you would like to resell. Example:
- Search “white label computer help desk” and you will find many white label business ideas for your small business.
White Label Reseller Business
The concept of a “business in a box” allows you to get a product or service, develop a brand, and resell it without investing in product development. This can save you a lot of money and time, including product testing.
Of all of the types of business opportunities, a white label reseller business can be a great ticket to get your business up and running fast.
When there is no differentiation, there’s no hope of ever making a decent income from your private label product or service.
The risk with a white label reseller business is commoditization. Consumers get confused when they see the same product or service at close to the same price. There is little or no differentiation from one to the next.
It’s like going to a car dealership to buy a car and finding only one kind and color, all at the same price. There is little choice.
How to Differentiate Your White Label Business
When there are many competing products, you must differentiate your business so you don’t get lost in the competition. Here are 4 ways that a white label reseller can stand out from the crowd:
- Differentiate like crazy! One way to do this by tightly defining your niche or by assembling several white label products together.
- Make sure your brand is readily apparent. Don’t just put your logo in your ad. Include a tag line, a slogan or a one-line benefit statement about the product.
- Offer amazing customer service. Consumers today read online reviews before making purchases. If your customer service is fast, responsive and warm, word will spread and you will get positive reviews. Customer satisfaction will generate more sales.
- Use private label products as ancillary products to your main product line-up, not AS your main line-up. That way, your private label products serve as up-sell opportunities for additional profit.