There are many reasons why white labeling is good for business. It can provide a way to expand your business with reliable products. But, crucially, a lot of the work is done for you. You just need to deliver sales using guidelines and templates developed by another company, like a franchise. So here are some of the best reasons to source white label products.
A Ready-Packaged Solution, Ready to Go
The whole point of the white label concept is that another company has a product to sell. And they have no issue with you using it as your own, under your name, and with your branding. There are many white label products, from cheese and wine to smartphone apps and software. Top Casino Solutions, for example, offers a ready-built framework for implementing a betting system into your iGaming startup. You can do this with such things as affiliation, games, and payment solutions. All of which would be challenging and costly to develop on your own.
No Research is Required on Your Part
Since there is already a product available for you to sell, there is also a market. So you don’t need to spend time with data analytics, studying trends, and trying to find key demographics. Again, using gaming as an example, you already know that people want to (responsibly) gamble online. And there is a white label product there, waiting for you to use it. All you need to do is creatively think of how you can market it so it can make you money. However, most white label companies also offer marketing tips and advice for selling their products anyway.
White Labeling is Good for Reducing Costs
The average business spends between 12% and 25% on marketing alone. That’s a considerable amount to spend. So, as a business, you are probably looking for ways to keep costs at a minimum. With white label products, almost all the cost has already been written off by your supplier. The cost of research, development, and support is their responsibility and not yours. Simply put, you get all of the benefits by selling the product without any of its risks. Even the dreaded customer support is typically handled by a third party. Good times!
You Get Expert Products to Sell as Your Own
Another commendable reason for choosing white label is that the products are often (but not always) of very high quality. This is because experts in the field craft them. For example, suppose you wanted to make a specific product. There’s no guarantee that it will turn out well after your research, development, manufacture, and marketing investment. Well, this is all taken care of with white label products. All you need to do is perform due diligence in making sure your supplier is reputable and offers a quality product, to begin with. Or you will lose money.
It Covers a Wide Range of Sectors
The beauty of white labels is that there is no limit to what you can source. Any product you can imagine is available as a white label. Therefore, it’s an excellent solution for expanding your business across your industry. Some of the most popular white labels include:
- Reusable water bottles: these are trending because of sustainability awareness.
- Sustainable shopping bags: global efforts to reduce single-use plastic are popular.
- Essential oils: wellness and relaxation are big business in eCommerce stores.
- Software frameworks: software development is expensive and time-consuming.
- Office stationery: planned obsolescence is a great business model that pays.
- Reseller web hosting: there are 500 million blogs and counting.
- Smartphone accessories: customization is an evergreen business.
These are some trending examples that are hot at the moment. But of course, there are many more white label products you can choose from. So, if you want to make a little more money without any of the hassles of developing a product, consider adding them to your store.
There’s a Lot of Choice for What You Offer
Many individual white label developers are competing for your custom. And this is good for you as a professional consumer because you have a wide choice of white-label brands to choose from. And some may offer deals to stay ahead of their competition. But there are some things to consider first. For instance, if you were looking for white label cosmetics, you might look for ethical sourcing of ingredients, the manufacturing process, and the overall quality and safety of the product. White labeling makes it easier, but you still need to do some work.
You Don’t Need to Deal with Customer Service
Customer service is a necessary part of doing business these days. It helps consumers air their grievances and helps a company know if something is wrong. However, it’s also an added expense and a logistical nightmare. However, with almost every white label product, a third party deals with customer service on behalf of your supplier. So all you need to do is provide their contact details on your brand packaging, website, or other points of interaction with your customers. And white label customer service is also available, such as Live Chat software.
You Can Expand Your Product Range
Many of the world’s most successful businesses started small and grew over time. You can do the same with white labeling. Beginning with a single product, the reduced time and cost resources makes it easier for you to expand your product range across your physical or eCommerce sites. For example, you might begin selling a white label organic soap. With the profits you make, you can then branch out into organic shampoo and conditioner and eventually offer a vast selection of eco-friendly products for the home. The clean sky really is the limit.
You Know the Product Works and is Tested
Product testing and real time consumer analysis are among the most challenging and costly parts of launching a product. Take products for human consumption, for example, such as vitamins and supplements. Getting approval from agencies like the USDA can take more than ten years in some cases. Yet white label products have already undergone all the legal and consumer tests necessary. Therefore, you don’t have to spend the time and money doing any of these. Instead, you are sourcing a product that you know works, and you might even use it.
There’s Minimal Risk to You
Because a company spends its resources developing and is therefore responsible for the product, they also assume all the risk. So while you can place your branding on a white label product, it isn’t yours. A third party makes and maintains the product. So they have to deal with the manufacturing process, health and safety obligations, and even insurance liabilities. However, it is ethical on your part to go out of your way to ensure your supplier is above board and does all they can to make products fairly and legally, with minimal harm to the environment.
eCommerce Makes White Labeling Good for Customers
Online retail has grown significantly over the past two years during COVID. Experts predict that the market will be worth over $7 trillion by 2025. eCommerce accounts for just over 20% of all online transactions and is one of the most effective ways to package, market, and sell white-label goods. You can also establish your brand and develop an online presence as your eCommerce site grows, using products someone else has made. Therefore, you’re not bogged down with the most complex tasks and can focus your efforts on marketing and branding.
Extensive Scalability isn’t an Issue
Like expanding your product range, white-label goods are also helpful for expanding your business as a whole. You can grow your company into a regional, national or international empire through an online presence or physical stores. Expert branding from digital marketing agencies will help you make the most of your sourced products by promoting them in various ways. Since white-label goods are already established, you don’t need to worry about things like testing for health and safety. You can get on with managing your business, not the items.
It’s Easier than Ever to Get Started
You would be forgiven for thinking growing a successful business is easy. It isn’t. It’s always been a challenge and always will be. However, with tools for white labeling, a myriad of suppliers, and user-friendly site builders, it’s easier than ever to get started with a business. You can find white label goods for almost any type of business. And your supplier will usually offer expert tips for marketing and selling their products. All you need is a willingness to put all your effort into growing a business and developing your brand across eCommerce or the real world.
Summary
White labeling is a great solution for starting, maintaining, or expanding a business. It’s a cost effective solution for sales and marketing because all the heavy lifting is already done. Research, development, manufacture and testing are already complete. So, you don’t need to worry about safety, logistics or customer service. Instead, you find a product and sell it.