A white label product is a product or service produced by one company that other companies rebrand to make it appear as if they had made it.
The name derives from the image of a white label on the packaging that can be filled in with the marketer’s trade dress. Its origins can be traced to vinyl records. Before records were to be released to the public, often before the official artwork was designed and printed, promotional copies were sent out in a white sleeve to DJs to solicit radio and nightclub play, in an effort to build hype and gauge public interest by the record labels, ultimately to better estimate manufacturing quantities. This created a situation where certain respected or well-connected DJs would have exclusive copies of material, immediately increasing demand on certain big records. Occasionally this term refers to records whose labels had been torn off or covered with a white label by competing DJs to conceal which records they were using.
How to Find & Sell Private Label Products in 7 Easy Steps
Private label products are goods made by a manufacturer but sold under a retailer’s brand. The private label process isn’t that different from buying products for resale. You still have to source products and suppliers, build a collection, and market them. However, these products carry your brand, not the manufacturers.
Amazon is increasingly becoming the best choice for private labelers worldwide. In the recent holiday season, Amazon shipped 50% more items for third-party sellers than the prior year. However, success isn’t just guaranteed, you have to get some things right first. For many of those trying to get into the private labeling business, finding the right profitable niche product to sell is the most important part of the job if you want to make it. Many people often rush into things, thinking that private labeling is a simple way of earning so how hard could it be? Even if all other aspects of your business are perfect, having a product that doesn’t sell will still see you lose a lot of money.
There are road bumps along the way to private labeling and this route often takes longer to grow than, let’s say, a drop shipping model.
Therefore, these are the two things you need to consider before starting.
Overseas Manufacturing: As much as you might save on cost, a difficult part of creating a private label brand is manufacturing your products. As a result, this is the biggest barrier to entry. People face fraud or production of poor quality products abroad. You can streamline this with Sourcify.
Upfront Investment: The one downside of starting a private label brand is you have to buy inventory up front, without knowing how much you’ll be able to sell.
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