White labeling is a partnership between a manufacturer and a retailers.
An e-commerce company gives another company the finished products to be sold with its branding. The e-commerce company then markets the product and sells it at a markup, and both companies make money.
How to help your ecommerce business grow with white label products
1.Reduces manufacturing costs
One of the main reasons businesses choose to sell white label products is because it significantly reduces manufacturing costs, which allows you to invest more revenue back into selling more products
If you outsource production, your business doesn’t have to pay a factory, employees, legal fees or raw materials.
By operating as a white label store, your business will be able to be run lean, as you aren’t locked into high manufacturing costs and have fewer employees on the payroll.
It’s essential that your business operates efficiently and can pivot quickly to adjust to the current market.
3.Improved customer experience
The number of customers who are attracted by the price of something is more than 6 times that of those who are attracted by quality. If your organization offers white label products, you can reach a more diverse range of people.
4.Instant access to knowledgeable staff
In this instance, a good partner will understand the product inside and out, reducing your own investment in (and financial responsibility for) staff training. In most cases, your partner will have years of experience with the product you’re selling, as well as
For example, you may want to know about the advantages and disadvantages of a certain material. Your white label partner should be an expert in this area, and can advise you depending on your brand’s goals.
5.Ideal for rapid growth
If you’re starting out, you may not have the capacity to manufacture multiple products. However, by partnering with a manufacturer, you have instant access to their entire line of products.
6.Test product lines risk-free
If you’re a young company that ultimately plans to private label, you can still make great progress by white labeling.
Selling white label products takes a few short weeks, whereas private label selling may take months, if not years, to start selling as it requires you to find a factory, contract employees, create designs and purchase raw materials.
7.The bottom line
White labeling is one of the easiest ways to get started selling. With white labeling, you don’t have to risk a lot of money on product development or worry about shipping and handling.
If your strengths are in sales, customer success and marketing, a white label partnership may be just the boost your ecommerce business needs.