Private label vs. white label – the difference between the product types is confusing at first glance, but important for retailers and consumers.
White Label vs. Private Label: The difference simply explained
The distinction between white label and private label is particularly relevant in online retail, but also in traditional retail. Both terms are often used synonymously, but refer to different types of products.
- Both white label and private label products are products that are produced by a manufacturer and then sold under the name of a company, i.e. a different name.
- In both cases, you order a product from a manufacturer and then sell it under your company name. This saves you as a retailer the effort involved in product development and the manufacturing process.
- The Difference between white label and private label is how much the product is customized to your needs as a retailer. Simply put, with private label products you have more Customization options (“Customization”) than with white label products.
- At Private Label will be the Product manufactured according to your wishes and ideasi.e. made exclusively for you. In addition to the packaging, you also determine other aspects of the product. For food, this can be the composition; for clothing, the design or materials. The result is an exclusive product that stands out from the competition.
- At White Label On the other hand, the Customization options limitedDepending on the manufacturer, you can vary certain aspects of the product to a certain extent. However, what the product looks like, what goes into it and how it is packaged is basically determined by the manufacturer. The only thing that distinguishes your product from those of other companies is the label with your brand name.