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What Is a White Label?

3PL Glossary > White Label

White Label Definition | TLDR

White label refers to a product or service that is produced or provided by one company but sold under the brand name of another company, allowing the latter to offer the product or service as its own without investing in product development or production.

White Label Meaning

White label refers to a business practice where a product or service is produced by one company (the producer or manufacturer) and is then rebranded and sold by another company (the retailer or reseller) under their own brand name. Essentially, the end product appears as if the retailer itself had produced it, with no visible indication of the original manufacturer. This strategy is particularly common in industries where creating or maintaining a product from scratch may be costly or time-consuming for the reselling entity.

What does the term 'White Label' refer to in the context of business and products?

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White label refers to a business practice where a product or service is produced by one company (the producer or manufacturer) and is then rebranded and sold by another company (the retailer or reseller) under their own brand name. Essentially, the end product appears as if the retailer itself had produced it, with no visible indication of the original manufacturer. This strategy is particularly common in industries where creating or maintaining a product from scratch may be costly or time-consuming for the reselling entity.

The white label model offers several advantages. For retailers, it provides a faster time-to-market for products or services without the need for extensive development or research. It also allows them to offer a broader range of offerings without investing heavily in diversifying their production capabilities. On the other side, manufacturers benefit from increased sales volumes and market reach without the complexities of establishing a consumer-facing brand. However, it's vital for both parties to have a clear agreement on quality standards, branding guidelines, and communication to ensure a seamless partnership and positive customer experience. The success of a white label strategy often hinges on the collaboration and trust between the producer and the retailer.

FAQs

Yes, White Labeling is a common practice across diverse industries. It allows companies to rebrand and sell products or services produced by another company under their own brand name, fostering flexibility and efficiency in the marketplace.

Yes, White Labeling can offer significant cost and time benefits for businesses. By leveraging existing products or services, companies can avoid the development and production costs, as well as the time required for creating new offerings, enabling them to focus on marketing and sales.

Yes, White Labeling can enhance brand presence and expand product offerings. It allows businesses to quickly diversify their product line without extensive development efforts, potentially reaching new customer segments and markets under their own brand umbrella.

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