In the world of custom manufacturing, it can be somewhat confusing for people to learn about what exactly white label products are. From private label to custom packaging to white label products, individuals and companies oftenfind it challenging to know the difference. While they do share some key characteristics, they still provide separate functions to the end consumer and business operator.

What is similar between white label and private label products?

While private label and white label sound incredibly similar, they do in fact offer slight differences to their end users. Let’s take a look at what’s so similar about the two services:

•    Both the products are manufactured by a third party using its own production equipment and machinery.
•    The control over the marketing strategies for both types of products rests in the hand of the company that sells the products.

What are the differences of white label and private label products?

The key differences between white label and private label is their end functionality. The term white label means that any company can put their tag on a blank white label of an already existing product. On the other hand, private label products can be customized to suit the buyer’s demands.

Here’s some more key differences between white label and private label:

Exclusivity

One of the most noticeable differences between private label companies and white label companies is their distribution management. When private labeling occurs, a seller can customize their product as they see fit with unique ingredients combined. On the other hand, white label products are primarily a pre-combined solution that sellers can choose to place under their own name. This means that the exact same white label products by different companies can essentially be sold under different brandings with different names.

Customization

In general, privately labelled products tend to be more customizable than white labelled products as they private labelling as a model allows the seller to send a specification of their liking to the manufacturer.

Cost

The costs associated with private labelling tend to be higher than white labelled products since there is more research involved for the product to be developed. Customizations and uniqueness are the main reasons for this extra cost. White label companies tend to save money in this department as they do not spend on the development process.

Reaching the Market

When it comes to entering the market, a white label product takes less time to do so as the products are already manufactured and ready to go. In the case of private labelling, a product needs to be designed and manufactured after the seller gives their nod.

Both private labelling and white labelling are effective methods of market penetration for small businesses. It all boils down to the requirement and interests of the seller.