Definition
White label refers to products manufactured by one company but sold by another company under its own brand name.
Explanation
In dropshipping, white label products allow store owners to build a branded business without creating products from scratch. The supplier produces a standard product, while the seller adds their own brand name, logo, or packaging.
This model is popular in categories like:
- Skincare and beauty
- Supplements
- Coffee and food products
- Accessories and lifestyle items
White labeling helps stores appear more professional and unique, even when the core product is also sold by other brands.
White Label vs. Private Label
The two terms are similar, but there is a difference:
- White label: A generic product sold to multiple sellers who brand it as their own
- Private label: A product customized specifically for one brand, often with exclusive formulas, features, or packaging
In simple terms, white label is usually faster and easier to launch, while private label offers more exclusivity and customization.
Example
A supplier manufactures a standard vitamin supplement:
- Multiple online stores sell the same product
- Each store uses different branding, labels, and packaging
- Customers see it as a unique brand product
The product itself is shared, but the branding is different for each seller.
Key Takeaway
White labeling allows dropshipping businesses to create a branded storefront and customer experience without developing their own products from scratch.