Home Business Why Retailers Use White Label Products

Why Retailers Use White Label Products

by gbaf mag

White label products are those that are sold without being owned by the seller. The benefit is that only a single business needs to undergo the expensive process of marketing and making a sale of a product to get the full benefits. The downside is that they aren’t as good as if they were sold under your own name. That doesn’t mean you should never use one, but you need to know what you’re getting when you do. Here are a few things to look for when you’re shopping around.

Branding You can’t move forward as effectively if your customers don’t recognize your name. White label solutions can be just as branding as if you used your own brand name, but they lack the personal touch that comes with owning your own products. The best way you can sell in this type of environment is by being seen as an expert. A well-designed and maintained website can help to accomplish that.

Support You won’t find any federal funding for private labeling programs. The United States Food and Drug Administration do not endorse the idea of white labeling since there is not yet clear regulation from the government as to how retailers should proceed. In the meantime, retailers are encouraged to work closely with their vendors and the FDA to address any concerns that might arise. If a site makes outrageous claims that it’s a “fDA Approved” product, stay away from it. Only legitimate vendors with strong track records will survive in this unstable market.

Ownership Once a white label product is sold, the product moves into the hands of a third party. This could be one company acting on the behalf of the retailer or it could be an independent designer or manufacturer. Either way, the retailer still owns the intellectual property rights, so there’s nothing to worry about if you choose to work with one company or another. There are no royalty payments involved since the product simply goes to the new owner and can be resold under its own name.

Internal team It’s important to have an integrated marketing team when setting up a white-label solution. Having internal designers and marketing specialists on board will ensure the success of the business. Not having these experts on hand will make it difficult for the company to effectively market itself and keep customers happy.

Cost Co-branding with other companies isn’t cheap. That’s why manufacturers turn to white label vs co-branding when they need a quick win in the marketplace. But consumers are becoming skeptical of co-branding because they don’t see an added benefit to their own health or the environment. Consumers just don’t see any significant savings from using another company’s product. If a product has both quality and value, then it’s likely to stick around for some time even if it isn’t co-branded.

Branding is everything. You can have the best product in the world but if you aren’t memorable, no one will remember you or your brand. Customers want to buy products that they recognize as being from their favorite manufacturer or that have a familiar logo. The logo, color scheme and packaging design should all be things that consumers can associate with your brand. If the logo looks like another company and the packaging looks like another’s, then chances are customers won’t buy it from either brand.

There are other reasons why retailers prefer white label products as well. Retailers may not want to take on additional inventory, they may want more control over pricing, or they may want to use a particular distribution house for all of their product needs. Whichever reason helps a retailer decides to go with white labeling, they find that it allows them to customize their product, increase their profits and drive sales up. They can also be sure that all of their product is consistent because the company who manufactured it did the white label printing.


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