What Is a White Label Product? Definition, Benefits, and Examples

Here’s an eye-opening tidbit: Some of the unique products offered by the world’s biggest brand names aren’t actually unique at all.

Instead, they’re a rebranded version of a product manufactured by a different company. This manufacturer will produce identical items for a wide range of businesses and then allow those brands to sell the product under their own name.

This is the concept of white labelling, a common business model that allows businesses to extend their product lines without investing in research and development themselves. In this guide, we’ll show you how white labelling works and how you can use it to grow your own business.

A white label product is a product or service created by one company that other companies rebrand to make it look like they developed the product themselves.

The producer of white label products will typically make identical items for several different companies. While each of the products that hit the shelves might have different prices, packaging, and branding, the actual item is exactly the same.

As part of their service, the manufacturer will also customise the product according to each company’s branding. This means each business receives its product fully packaged and ready for store shelves. All they have to worry about is the marketing and sales process.

As we’ve mentioned, white label products are mass-produced and sold to multiple different businesses to rebrand and resell. In contrast, a private label product is made exclusively for one brand. This means the manufacturer can custom-make the product to the unique specifications of a single business.

Private labelling is more expensive than white labelling (owing to the exclusivity), but it allows the buyer to have more control over things like size, weight, quality, and specifications, all without having to develop the product themselves.

Trying to decide if this business model is right for you? Here are seven advantages of white labelling to consider:

• Saving money - White labelling lets you get your product to market without the R&D investment, saving money that you can invest in other areas of your business.
• Saving time - As you don’t need to develop a new product from scratch, white labelling accelerates time to market, helping you meet demand faster and start profiting.
• Saving resources - With resources freed up, you have space to focus on your core competencies, like sales, branding, and marketing.
• Diversification - White labelling gives you the flexibility to rapidly expand your product line without the constant testing and refining loop of in-house product development.
• Low order quantity - As white labellers create products for multiple brands, they typically accept a low minimum order quantity. This isn’t the case with private labels.
• Brand reputation - With more great products comes more credibility. White labels let you bolster your brand’s offering, helping you build a strong reputation.
• Lower risk - Want to test a new product or service? White labelling lets you dip your feet into a new market with low upfront investment and reduced risk.

In a nutshell, white labelling is a top choice if you want to launch a new product with minimal investment. It’ll help you get in-demand items in your store quickly, diversify your stock, or get your business idea off the ground faster without undertaking significant risk.

Earlier, we mentioned that many top companies in popular industries are already using white labelling to efficiently expand their offerings for less. Here are some examples of common sectors where white label products are particularly popular.

Skincare products like moisturisers, serums, and cleansers can be particularly challenging to make, as they require precise formulations and are subject to rigorous safety standards. This is also true for cosmetic products like mascara, lipstick, and foundation.

As such, many cosmetic and skincare brands rely on white label manufacturers to handle production for them. In some situations, the supplier may add an additional ingredient to differentiate the product (such as adding a scent to a cleanser), but the actual formulation will be identical.

As one example, Solskin Beauty Labs manufactures GMP-certified, premium salon and skincare products for a broad range of brands in Australia. They also take care of white label branding, packaging, and logos, and offer to tweak the formula slightly to help with brand differentiation.

White labelling is particularly common in the software industry, Tech companies often use it to repackage digital solutions under their own branding, such as customer portals, online store builders and SaaS solutions.

Coding from scratch can be time-consuming, so starting with a white label product gives developers a framework to build upon. Businesses will often then add extra services or features to make the finished product unique to them.

For instance, OrionVM offers a wholesale, prebuilt AI cloud infrastructure as a service (IaaS). Salesforce also provides your business with the tools and infrastructure to design your own websites, build custom AI agents, and create customer portals that align with your branding.

White labelling is particularly prevalent in supermarket own brands. Retailers like Coles and Woolworths stock a broad range of budget everyday products under their own name, including pantry staples and cleaning supplies.

Making all of these products independently would require an enormous investment. Opting for white label products lets supermarkets maintain product quality while diversifying their range.

That said, white labelling isn't reserved for the biggest chains. Coffee shops, for instance, often source their branded coffee beans from the same local white label solution. As another example, Whitelabel Brewing sells white label lager and pale ale for bars and stores, customising the beer cans and packaging in the process.

White labelling is commonplace in the pharmaceutical industry, especially for over-the-counter pain relief.

Like cosmetics, making pharmaceuticals is heavily regulated, meaning there isn’t much flexibility for customised formulas. Partnering with a white label manufacturer reduces costs while also helping businesses stay compliant.

The same rules apply in the healthcare industry. Melbourne-based white label supplier ANC Projects provides GMP-certified supplements like multivitamins, probiotics, and protein powders with custom branding, as one example.

White labelling works particularly well in the fashion industry because colourways and logos can make products feel wholly unique, even if the base materials are the same.

For instance, Hongyu Apparel creates a range of plain vests, t-shirts, and hoodies in different fabric weights, colourways, and styles. They’ll then customise the shirt with your brand logo, as well as add your own label to the clothing if requested.

Ready to take the first step toward launching a white label business product range? Here are five straightforward steps to get started.

First, you need to identify a gap that you can fill with a white label product. Start with your target audience. What do they need and what product can you offer to meet that need?

Remember that white labelling works best when it aligns with your pre-existing brand. It’s a good idea to choose a product that will fit seamlessly into your existing portfolio.

Not all suppliers are created equal. You need to be able to trust your provider to uphold your brand reputation and quality, so take the time to find one that is the right fit. Here are some things to look for:

• Transparent processes - You want to know how your product is made and the ingredients or components it contains. It’s essential that your supplier is transparent.
• Compliance - In heavily regulated industries, make sure your supplier is compliant with legislation. For instance, cosmetics white labelling businesses should be GMP certified.
• Specialisation - Choose a provider that specialises in your industry, whether that be healthcare, SaaS, finance, fashion, or food.
• Reliability - Ask for concrete lead times on the manufacturing and delivery process, then cross-check this with reviews to ensure your provider is reliable.
• Customisation - Look for a provider that offers customisation options, such as packaging and branding, plus formula tweaks where applicable.

Once you have a few potential options, request a sample or demo from each provider. This will give you the chance to request adjustments and, just as importantly, check that your supplier will be able to provide the quality you expect.

Branding is the main element of customisation within white labelling, so it’s worth taking the time to get it perfect. Work with your white label supplier to fine-tune how your end product will look, making sure it aligns with your target market and overall business image.

Once you’re happy with the supplier, product, and branding, start negotiating prices and delivery timelines. Keep in mind that many manufacturers will offer a cheaper price per unit if you buy in larger quantities, so this could be an additional way to save money.

One of the biggest pros of white labelling is that it frees up time that you can use to work on your brand story, marketing tactics, and ecommerce business store.

Focus on presenting the product in a way that’s unique to your business. Great packaging, customer-focused brand marketing, and smart positioning can go a long way to differentiate your product and set you apart from any competitors offering the same item.

White labelling provides a powerful way to get new products into the hands of your customers without investing significant time and resources to handle the development process yourself.

If you’re gearing up to sell white label products, the important thing is to have your commerce strategy in situ before you place your first order.

Salesforce Commerce Cloud is an all-in-one solution designed to help you get the best out of your commerce channels, establish your digital storefront, manage your sales, and deliver outstanding customer experiences across every touchpoint - powered by groundbreaking AI.

Watch the demo today to find out more.