Are you interested in starting your own private label business but don't know how or where to begin? Maybe you’re looking for an app development partner who can take care of everything from design to marketing. Or maybe you want to sell the same products as other successful brands, but without having to pay hefty fees. This article will explain what a white label is and why it's so important to many entrepreneurs today.
We'll also show you some great options that let you create your own product line at no extra charge. These tools make it easy to get started with private label branding right away! But first, here’s what a “white label” means in the world of online businesses: A “private label” refers to selling something under another brand name. For example, if someone wants to use Uber instead of Lyft, they could buy a car through UberX, which would be branded “Uber.” If they wanted to purchase one of these cars by using a different credit card, they wouldn’t have to worry about getting scammed because Uber says they aren’t affiliated with any particular bank. They simply need to enter a code when making payment.
The term “white label” comes from the fact that all elements (including logo designs) on the website look like those belonging to the original brand. When customers click a link to learn more about a service or purchase a product, there isn’t even a hint that they’ve entered another site. It feels just like visiting the official page of the company itself—without paying anything extra. That’s essentially what a white label is. You’ll see more details below.
As mentioned above, a white label provides access to services or products offered by third-party sellers while maintaining full control over every aspect of the end user experience. The concept is similar to buying a book from Amazon rather than going out and finding one yourself. In both cases, you're still able to read the material and receive support from customer service representatives. But in the case of Amazon, the publisher doesn't actually provide content. Instead, the content appears as part of the whole package sold by Amazon as a digital download.
In short, a white label allows you to tap into a market that otherwise might not exist yet, or offer a similar product to existing competitors without risking legal issues. And since it looks exactly like the original version, you can easily gain trust among users who already trust the brand.
Here are three ways to set up a white label business:
1. Use a prebuilt solution
There are several solutions available that allow you to build your entire web presence within minutes. Some include templates designed specifically for creating websites, eCommerce stores, blogs, landing pages, social media profiles, and more. Others give you complete freedom to customize them to meet your specific needs. Here are some popular ones:
2. Buy a readymade template
You may prefer to skip the hassle of building from scratch and choose a readymade option instead. There are thousands of templates available to suit almost any industry imaginable. Most come fully customizable, allowing you to add custom logos, colors, fonts, images, links, etc.
3. Create a new platform
If none of the above fits your needs perfectly, you can always create your own platform. There are plenty of platforms available that allow you to quickly publish content, manage orders, communicate with clients, and collect payments. Examples range from WordPress plugins to Shopify themes and Woo Commerce extensions.
All of these methods are useful depending on what type of project you're working on. Let's explore each method further.
One common misconception is that only developers can apply the white label model. However, anyone can use white labels to launch their own mobile apps. Apps built on top of Android or iOS operating systems run natively on phones, tablets, and smartwatches. Therefore, you won’t incur additional costs associated with developing separate versions for desktop computers and mobile devices. As long as you develop your app correctly, you should be able to deploy it to multiple channels simultaneously.
To ensure compatibility between the web and mobile versions of your app, keep in mind that most modern browsers require JavaScript. So, avoid loading unnecessary scripts that slow down performance. Also, remember that Apple requires apps to work offline unless the developer adds special features such as push notifications.
Another advantage of applying the white label approach to mobile applications is that users can enjoy seamless navigation across all supported devices. With this strategy, you can focus solely on improving the quality of your app and leave technical aspects to experts. After all, the goal is to deliver an amazing user experience regardless of device.
Once you've decided whether to go ahead with creating a white label solution or buy a prebuilt platform, the next step is choosing the best tool. While many people opt for a simple drag-and-drop builder, others prefer to jump straight into coding. Whichever route you decide to follow, we recommend spending time researching various alternatives before launching your project. Make sure you consider things like cost, ease of use, speed, security, customization capabilities, support system, and overall reliability.
For instance, you might notice that some builders have better interfaces than others. Also, some providers offer more advanced features such as automatic updates, SSL certificates, analytics, and backup & restore. Depending on your expertise level, you may feel comfortable installing and configuring the tools needed to finish your project. Alternatively, you may want professional assistance during installation and configuration phases. Either way, you’ll likely spend less time and money setting up your application compared to hiring a team of programmers.
Also, bear in mind that if you plan to hire employees, outsourcing could save you valuable resources. Since you won't necessarily need to train workers or oversee their progress, you can dedicate more time to growing your business. Another benefit of outsourcing is that you can scale your operations rapidly. Your workforce could grow alongside your sales volume, giving rise to greater profits.
Finally, note that many white label solutions offer training sessions along with tutorials explaining how to install the necessary components and configure settings. Take advantage of these offerings to boost your productivity and reduce frustration levels.
Some entrepreneurs prefer to build a small business around their idea, whereas others prefer to rely on established brands to expand their reach. Regardless of which path you select, it pays off to conduct thorough research prior to taking action. Start by asking questions such as: How big must my company become? What steps will I need to take? Who else has done what I'm planning to accomplish? How do I compare myself against competitors?
It's essential to understand how other companies operate and the challenges they face. By gaining insight into their experiences, you can tailor your plans accordingly. Once you gather information, proceed accordingly. Otherwise, you risk wasting precious time chasing after dead ends.
Next, determine whether you'd rather build or acquire a business. If you decide to start from scratch, you'll need to identify potential partners, secure funding, register a domain, and obtain licenses required by local authorities. On the flip side, acquiring an established business involves negotiating terms and conditions, completing due diligence checks, and signing contracts. All of these steps can take weeks or months to resolve.
However, once you've made your decision, you shouldn't hesitate to act. Even though it takes longer to establish a standalone enterprise, it ultimately offers far greater flexibility and room for growth. Plus, it gives you the opportunity to test your ideas and refine strategies in real life.
Lastly, think carefully about how you intend to compete with other businesses. Will you try to imitate existing models? Or will you strive to innovate? Perhaps you'd like to combine two approaches. Whatever you decide to do, stay true to your vision and stick to your guns until you achieve success.
A quick Google search reveals hundreds of articles offering advice on how to start a business. Many of these guides suggest investing tens of thousands of dollars upfront to fund your endeavor. Fortunately, the truth is quite different. You can successfully launch a profitable niche business without breaking the bank.
Let’s say you want to start a label manufacturing business. To succeed, you'll need to invest $300-$400 per month in materials and labor expenses. Assuming you can earn 10% profit margin, you'll need to generate approximately $40k/year in revenues from day 1. That translates to roughly $500 monthly income. Sounds good, huh?
Of course, you could raise capital by borrowing funds from banks or investors. However, this option carries serious risks. Banks tend to lend based on collateral values, which fluctuate constantly. Investors often demand high rates of return. Meanwhile, business loans typically require lengthy repayment periods.
As we all know, the internet is one of the greatest inventions in history. It has transformed our lives, allowing us to buy anything from anywhere at any time for very little or nothing. However, there's one thing that hasn't changed since the beginning of the web - people still need things. And if they don't have what they want, they'll go somewhere else where they can get it.
The internet has created many different industries including ecommerce (online stores), affiliate marketing (where bloggers earn commissions by promoting other companies' goods on their own sites) and direct selling (companies sell products directly to customers). One of these new markets has been around for decades but has recently become extremely popular as consumers look for ways to save money and cut out middlemen. That market is called third-party fulfillment.
Third party fulfillment allows businesses to create custom branded items without having to invest thousands into creating inventory themselves. These products can be sold online through multiple channels like Amazon Marketplace, eBay, Etsy, Shopify and others. The products can also be sent via traditional mail services such as USPS, Fedex, UPS and DHL. This makes them highly customizable because brands can choose everything from color schemes to product types and even packaging styles.
But how exactly do companies use third party fulfillment to generate sales when not every customer will ever see or touch the final product? They hire independent sellers who work for commission instead of salary. Those sellers represent the company’s brand and fulfill orders placed by customers who then receive the item. Companies offer various tiers of seller accounts depending on how big the order needs to be fulfilled and whether the seller wants to take over shipping duties too. Some sellers may only handle receiving shipments while others may ship packages themselves.
Many companies use third party fulfillment platforms to manage their operations. You might already know about some of the most well known ones like Active Campaign, Weblium, DashThis, Shift4Shop, etc… but did you know there are dozens of other options available? Here are three reasons why third party fulfillment is so beneficial for small businesses looking to expand their reach.
A few years ago, starting your own private label was something only large retailers could afford. But now, anyone can launch their own brand simply by signing up with a reputable platform provider like Active Campaign, Weblium, DashThis, Shift4Shop, etc.. These providers typically charge a setup fee followed by monthly fees based on the number of active users on each account. There's no limit to the amount of inventory that can be purchased and shipped. If you're interested in learning more, here are four questions you should ask before investing in a private label solution.
1. What kind of support do I get once I sign up? Do you provide live chat assistance 24/7?
2. How long does it usually take to set up my store? Is it fast enough for me to test drive?
3. Can I customize the look of my site?
4. Will I have access to special tools to grow my audience? Are there social media integrations?
If you answered “yes" to all those questions, congratulations! Now comes the hard part – finding a profitable niche. Once you've decided which type of products you'd like to sell, it's time to move onto step two – choosing a name for your brand. A great place to start is Google Trends. Searching for "niche ideas" will bring up several suggestions. For example, searching for "cheap men's shirts" brought up results for names like Men's Shirts On Sale and Cheap Mens Shirt Store. From there, you just need to pick a name that sounds good and matches your target demographic. Remember, branding is important. People remember companies that sound professional rather than generic.
Once you've chosen a name, it's time to decide on a logo design. In fact, research suggests that logos play a huge role in determining success for brands. So, make sure your logo looks sharp and communicates clearly what your brand stands for. After that, you can begin building your website using templates provided by the service provider. Depending on how much you plan to spend on advertising, you can either go full steam ahead right away or first try testing out smaller promotions to gauge interest. Either way, be prepared for some initial setbacks. As mentioned above, launching a successful private label means being patient and consistent.
Private labeling isn't limited to electronics and home decor anymore. Clothing brands are increasingly turning to third party fulfillment solutions to give shoppers more choices and lower prices. In 2014 alone, apparel accounted for 5% of total US retail sales according to Statista. While clothing tends to be less expensive to produce compared to other consumer goods, it's far more difficult to ship due to its weight and size.
There are plenty of options for getting started in the fashion industry. Companies like Modcloth, Zulily and Gilt Group allow entrepreneurs to build websites similar to traditional shopping carts. Allowing customers to add merchandise to virtual wish lists gives the impression of unlimited shopping possibilities. Customers can browse hundreds of designer outfits for sale within minutes.
You can also opt for a subscription model which allows buyers to pay per month for certain pieces. Another option is to focus on high quality items that aren't necessarily trendy. Many times, customers will purchase the same piece year after year regardless of fads or trends. By offering timeless designs that never go out of style, you'll attract repeat clients.
Another advantage to buying clothes privately labeled is that you can avoid paying taxes. Since clothing is considered personal property under tax law, individuals won't owe federal income taxes on profits made from resale activities. Additionally, you can deduct costs associated with setting up your storefront (like hiring employees and renting space) as expenses on your taxes.
Finally, you might consider partnering with another brand owner. Instead of listing your items separately on a single retailer's site, you can list them together as part of a co-branded collection. Your buyer receives both brands simultaneously and doesn't realize that she's actually purchasing from two separate vendors. This strategy works best when the two partners share complementary offerings and complement each other's strengths.
For instance, a jewelry manufacturer would benefit greatly from a fashion accessory line. Both items appeal strongly to women who enjoy dressing up and wearing beautiful accessories. This partnership is perfect for a company whose main focus is on jewelry.
However, if you're thinking of pursuing this route, be aware that it takes a lot of effort and planning to coordinate logistics between two totally different entities. Also, the process isn't always smooth sailing. Sometimes, partnerships end abruptly and sometimes, items on both sides are defective. Make sure to thoroughly vet potential partners before diving headfirst into a multi-brand venture.
Yes! Selling private labels can definitely lead to profit. Just keep in mind that it takes patience and consistency to succeed. You must stay focused and dedicated to growing your brand. Otherwise, customers may lose faith in your ability to deliver consistently high-quality products.
One last note... There are countless advantages of owning a private label business versus working for someone else. Private label owners retain 100 percent control over pricing, production schedules and delivery dates. Moreover, they can dictate how often they release new collections and how frequently they update their catalogues. Most importantly, they determine how often they promote their brand to maximize exposure to prospective buyers.
While private label businesses require a significant investment upfront, the rewards outweigh the risks. Not only can private labelers reap financial gains from their efforts, they can also gain valuable experience and connections along the way. Plus, they often get to travel the world visiting factories and meeting top designers. Lastly, they get to develop lifelong friendships with fellow entrepreneurs who understand firsthand what it feels like to struggle day-in and day-out trying to meet deadlines and beat competitors.
To learn more about how to achieve success with a private label business, check out our guide below.
1. Decide on a unique niche. Research shows that customers are more likely to trust a brand that appeals to them personally.
2. Choose a name that reflects your values and personality.
3. Design a logo that represents your brand.
4. Create a website that showcases your latest creations.
5. Build relationships with suppliers and manufacturers.
6. Start collecting samples or buy existing stock.
7. Set up a distribution system.
8. Hire team members to assist you.
9. Offer discounts and coupons to entice visitors to shop.
10. Launch your sales campaign.
11. Monitor traffic and performance metrics.
12. Adjust your tactics accordingly.
A white label reseller program (WLRP) allows you to sell products under your own name, instead of the name of another company.
In other words, when someone refers to "your product," they mean one that's marketed by you. When it comes to marketing, WLRP offers several advantages over selling through an affiliate network.
Let's take a look at what makes these types of marketplaces so appealing.
If you had to choose just one word to describe a WLRP, I'd say "flexible." These services allow partners to easily create their own brands with unique designs, images, colors, text, logos, etc., all without having to pay for design templates or hire graphic designers.
You can also customize pricing tiers based on how many units you're trying to sell; if you want to offer different prices for premium customers or those who need larger quantities than standard orders require, you can do that too. With most WLPRs there's no limit on the number of licenses you can buy in bulk. You could even set up multiple accounts within one WLRP account.
The flexibility offered by a WLRP means that you don't have to worry about setting up separate websites for each of your brands. This saves time and money since you won't be forced into creating multiple sites from scratch. In addition, you'll save resources because there will only be one sales funnel to manage.
Another advantage of using a WLRP is that it gives you complete control over your inventory levels, which is crucial for any online retailer. If you decide to stop offering certain items later down the line, you can simply remove them from your site and continue operating as usual. On top of that, you get to determine exactly how much profit you make per sale.
Private label branding involves selling products under your own name. The term originated in retail where stores would use their own labels rather than stocking goods from suppliers. It was then adopted by e-commerce sellers looking for ways to differentiate themselves from competitors.
With a WLRP, however, you still work directly with the manufacturer of the product being sold. A private label brand is essentially a type of WLRP but with additional restrictions such as exclusivity agreements. For instance, some vendors may not permit you to distribute their products anywhere else unless you've signed a contract stating otherwise. Others may restrict you to selling specific models or versions of a given item.
When you sign onto a WLRP, you agree to follow the rules laid out by the vendor. So while you might think of yourself as a private label supplier, technically speaking your role remains unchanged. Your job is still to promote the product and generate leads.
One company that uses a WLRP model is Active Campaign. They specialize in email marketing solutions designed specifically for small businesses. Their flagship product, called MailChimp, has been around for years and is used by thousands of companies worldwide.
However, unlike traditional third party providers of similar services, Active Campaign doesn't charge its clients anything extra beyond the price of the service itself. Instead, they earn commissions whenever users purchase add-on features like auto responders and autoresponders.
As part of the partnership agreement, Active Campaign reserves the right to terminate the relationship at any point in time. However, this clause isn't a deal breaker because the company typically renews contracts every year anyway. And should you ever wish to leave the program, you'll receive full credit towards the purchase of future subscriptions.
Another popular example of a private label solution is Shopify. Unlike Active Campaign though, Shopify does charge its clients monthly fees to operate in the platform. But regardless of whether or not you opt for the subscription plan, you'll always be able to run your store independently.
And although you must abide by all policies outlined by the developer, you retain 100% ownership of your website once you accept payment. You can even change your mind at any moment and shut off access to your shop altogether.
Finally, let's talk about something called a private label saas marketplace. Essentially, a private label SaaS provider sells software applications that run on a cloud-based system. Because you're working with the same vendor behind the scenes, everything runs smoothly and seamlessly.
For instance, if you were thinking of starting a new project management app, you wouldn't go ahead with development until you found a reliable cloud hosting provider capable of handling large volumes of traffic. That way, you know that your application will function properly 24/7.
Similarly, you can rest assured knowing that when you upgrade your existing product to version 2.0, you won't experience downtime. The vendor ensures that the back end is fully compatible with the latest release.
While we've talked about private label branding, you might wonder why anyone cares if you call your product "private" instead of "white label." After all, both terms basically refer to the same thing—a branded product that's available exclusively from a single source.
It turns out though, that the two phrases carry slightly different connotations. Here's a breakdown of the differences between private labeling and white labelling:
Private branding implies that you're the sole distributor of a particular product. While it sounds great, in practice this usually causes problems for retailers. As mentioned above, it can lead to conflicts with other vendors that compete against you. Plus, you risk alienating current customers who prefer purchasing from other sources.
On the flip side, a WLRP is less restrictive. Since you aren't required to stick to a strict list of exclusions, you generally enjoy greater freedom when it comes to promoting your products.
At the same time, a WLRP could prove beneficial to smaller companies that lack the funds necessary to build a proper distribution channel. By allowing them to skip the middleman entirely, you give them the chance to reach potential buyers directly.
Lastly, a private label product often requires extensive customization efforts before you can start advertising it. Even after that initial process is complete, you'll still have to perform ongoing maintenance tasks to keep things running smoothly.
By contrast, a WLRP lets you focus on building relationships with customers instead of spending endless hours tweaking code. Not only will this reduce the amount of effort involved, it also increases your chances of hitting the jackpot.
That's because you'll be competing head-to-head with bigger players who already have established customer bases. Therefore, it pays to spend as little time as possible developing your marketing strategy and focusing on generating leads instead.
All information in this article is provided solely for educational purposes and does not constitute medical advice. All claims made along with recommendations and suggestions herein are subject to proof-of-concept testing and evaluation by the reader. Any results achieved during such testing and evaluation cannot be claimed to represent typical results achievable by persons following the instructions contained herein.
Just follow our battle-tested guidelines and rake in the profits.