White Label Product

Publication Date :

07 Jun, 2025

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Table of Contents

White Label Product Meaning

White label product refers to goods sold by retailers that are originally produced or manufactured by a third party. The retailer applies their own logo, design, and packaging and sells it under their own brand name. Manufacturers often do white labeling to avoid advertising and selling costs.

The process used by white label product manufacturers is similar to outsourcing. Manufacturers produce the goods in huge batches, which retailers then customize. However, manufacturers do not provide any branding. As a result, the final product sold to end consumers appears as if the retailer themselves produced it.

Key Takeaways

White label products are items manufactured by one party and then supplied to retailers for branding, labeling, and marketing purposes. The retailers then distribute these products to end consumers.
Examples of these products include generic household products, clothes, accessories, electronics, and others. They are offered at average price ranges.
Due to customization, retailers can add their labels and packaging to improve the product's appearance.
These products differ from black and private label products. cater to premium and selective audiences, unlike white label products that target the general market.

White Label Product Explained

White label products are essentially outsourced products manufactured by others and then given to retailers for re-branding purposes. Retailers include a new design for the already-made products and re-sell them to customers. These products are mostly found on the store shelves with the retailer's name on them. As a result, they can recover demand from the market.

The whole mechanism utilized in such products works on customization. It allows suppliers to set a new benchmark for non-branded products in the market. White label product manufacturers produce the items in their factories and then pass them on to retailers to complete the rest. Retailers then package these products with a new label, logo, or brand and sell them to the end customers. This practice is common in electronics, accessories, coffee, skincare, software, and services. For instance, a clothing plant may manufacture large quantities of t-shirts and contract a brand to add their label to them and sell further.

However, the concept of white labeling also includes dropshipping. In this model, sellers do not keep stock on hand. Instead, they accept orders from customers and then inform the manufacturer to supply the product directly. With adequate labeling and branding, the product is then delivered to the customers. As a result, the cost of handling inventory for white label product suppliers also stabilizes.

Examples

Let us look at some examples of white label product ideas to understand the concept in a better way:

Example #1

Suppose Samuel is a textile manufacturer who produces various clothing accessories. His business caters to all age groups, from children to women and men. Although he had created prints and designs, he did not have enough funds to market his business. At this point, his friend Kevin came to the rescue. Kevin owned a store that primarily did seasonal business but had recently expanded into clothing lines. However, he lacked the infrastructure to manufacture the clothing. As a result, Samuel and Kevin decided to enter into the white labeling business.

As per their deal, Samuel manufactured a large quantity of shirts and t-shirts and supplied them to Kevin. However, it had no label or price tag on it. The order was in bulk, and standard market prices were applied. Kevin added his brand label to the products and listed them on e-commerce sites. Within a few weeks, a significant number of orders were received. As the orders continued to come in, Samuel kept manufacturing and fulfilling the demand.

Example #2

According to a news update as of October 2023, the financial institution BNY Mellon announced a new white-labeling product for the LiquidityDirect platform. It intends to provide liquidity management solutions to clients as per their needs. Also, it promises to include short-term investments and a better user experience for clients. Furthermore, Morgan Stanley will be the first white label product supplier to adopt this solution.

Advantages And Disadvantages

Following are the pros and cons of such products in different markets. Let us look at them:

Advantages	Disadvantages
It helps manufacturers to focus on their main business instead of post-production methods.	The possibility of similar products or rivals always exists in such places.
They gain an added advantage over others in their product portfolio.	There might be inconsistent quality or no control measures in the inventory levels.
Businesses can quickly scale product lines with this method.	Retailers have no right to control the manufactured units. They are restricted over branding and advertising areas.
There is a lower margin cost per unit required. Also, the risk of launching the product is low.
The cost of branding and advertising the product is minimal or zero.

White Label Product Vs. Black Label Product Vs. Private Label Product

Let us look at the differences between white label, black label, and private label products:

Basis	White Label Product	Black Label Product	Private Label Product
Meaning	It refers to the products manufactured by a producer but labeled and sold by another seller.	Black label products are high-ranged items sold to specific audiences.	In private label products, most products are made for one specific retailer, and not all.
Type of branding	In this method, the branding is generic.	The branding is premium as it caters to medium to upper-range audiences.	In this case, the retailer performs customized branding.
Distribution	The products are distributed to multiple retailers or suppliers.	The supplier range is limited or selective.	Only one supplier is owning these products.
Price range	The price range is average or minimal.	The products have a high price.	It is customized and varies accordingly.
Examples	Clothes, accessories, electronics, and more.	Premium products like alcohol, perfumes, oils, and more.	Store-brand products.