Looking for an inventive way to expand your manufacturing business? Consider generating additional revenue by offering wholesale white-label services to entrepreneurs. But what is white labeling, and how can your business get in on this particular sector of B2B sales? Learn all that and more in our guide to white label.
What Is White Labeling?
White labeling is when a company manufactures a generic product without branding or labeling to allow another business to use its own. Often, business owners will use white labeling if they want to either jump on a trending product or start a business without incurring large upfront manufacturing costs. Thus, if you have manufacturing capability, then you’re perfectly positioned to offer a white-label solution for entrepreneurs.
What Does White Label Mean In Business?
Having a white-labeling business means leveraging your manufacturing ability to help build another company’s products. White labeling is a great option to create an additional revenue stream because you can continue to create your own products, while also earning a profit using your existing manufacturing facilities to turn out products for others.
If you own a factory that has a large manufacturing capability, then there’s a greater possibility that you can scale up to a wholesale white-label service. By offering large order quantities and excellent customer service, you can earn a stable income by becoming another company’s go-to manufacturer.
Alibaba.com Tip: When providing a wholesale white labeling service, business owners often forget how important it is to provide timely and courteous customer service. Stand out from the rest by being easy to work with.
Difference between white label and private label
White label and private label are often used interchangeably, and both can be great options to add revenue to your business. However, there’s a major difference between the two. While white labeling involves manufacturing generic products non-exclusively for any amount of companies, private labeling refers to manufacturing a product exclusively for one company and its brand. Often, private labeling involves a specific formula or IP, which is why only one Without large amounts of capital, it can be difficult for companies to begin manufacturing products on their own. By enlisting a manufacturer that provides white labeling, companies can greatly reduce the upfront costs of starting their business and get to market quicker.
Additionally, in business, it’s wise to diversify the products and services you provide. As multiple events in recent years have shown, you never know when supply chains or the market will be disrupted. When you can generate income through a variety of avenues, you stand a greater chance of building economic stability for your business in the event that one revenue stream is unsettled. Instead of relying solely on the demand for your own branded products, providing white-label services means that even when your brand is not doing well, you have other sources of income that can sustain you in the meantime.
Alibaba.com Tip: Want to hear from an Alibaba.com USA seller who runs a successful white-label business? Check out Totally Products’ seller success story, and discover how Dan finds fulfillment in helping other entrepreneurs achieve their dreams.
Top 5 Opportunities For White-Label Products
Now that you understand the ins and outs of white labeling, here are some products that you could provide white-label solutions for that are popular among entrepreneurs. If you already manufacture a similar product, these are potential business opportunities for you!
1. Cosmetics
Beauty is one of the biggest categories on Alibaba.com. If you already have the capability to mass produce cosmetics using different formulas, then consider offering white labeling to entrepreneurs hoping to start their own cosmetics line. You’ve probably seen real-world examples of this already with the rise of beauty influencer-started cosmetics brands. In this case, these influencers will come up with the formulas they’d like to include, then approach a manufacturer, who will produce the cosmetics under the influencer’s brand.
2. Fitness clothing and accessories
Similar to cosmetics, fitness clothing and accessories are great products to get behind if you manufacture similar products. With countless fitness influencers and entrepreneurs in search of ways to get their own brand off the ground, you can support category this burgeoning by becoming their manufacturer of choice. Once you receive the designs they want to include in their line, you can earn a profit by putting their brand on the products you make.
3. Pet accessories
People are often willing to splurge on pampering their furry friends. Because of this, entrepreneurs may try to start their own line of accessories to capitalize on pet owners’ desire to enhance their pets’ lives with the latest trendy products. If you already manufacture similar products, you can continue to make your own, while also creating new product lines under another company’s brand.
4. Essential oils
With consumers paying more and more attention to self-care, essential oils are another great product to get into for white labelers. Business owners who want to create their own line of essential oils will often know the scents they would like to sell. If you have the capability to produce these formulas, then you can create a business by packaging these essential oils with another company’s brand.
5. Vitamins and supplements
If you are an FDA-certified vitamins and supplements manufacturer, you may want to branch out by helping business owners sell their own branded line. If the owner knows what vitamins and supplements they’d like to include, then you can manufacture vast quantities of the products and slap their brand on them.
Conclusion
Finding new ways to expand your business is vital to your company’s growth. White labeling could be a resourceful way for you to diversify your offerings if you have manufacturing capability. By helping other entrepreneurs get their businesses off the ground, you could find a new, meaningful way to conduct business.
Ready to launch your online B2B business? Check out Alibaba.com’s membership plans, and choose a plan that suits you and your business.
