White Label vs Private Label: The Big Debate
ActiveWin Media always aims to stay right at the very front of the media landscape, and that means sharing and caring digital marketing know-how with other industry experts.
Recently, our Media Director Bernadette Kelly put proof in that pudding by contributing to a debate on ‘White Label vs Private Label Products: What’s the Difference’ over at Small Business Trends.
It’s a topic that always brings out plenty of discussion points, so we thought that we’d share a few of what the experts had to say, starting with Bernie.
As always, feel free to share your ideas with us through our social media channels where you will find us @ActiveWinLtd on both Twitter and Facebook.
Bernadette Kelly, Media Director at ActiveWin Media
“The massive advantage is the white label provider typically has secured regulatory licenses or legal requirements to operate an e-commerce site.
“Unfortunately, many start-ups fail to consider the legal hoops they have to jump through to sell online.
“White label sites rest on very solid foundations. That means they rarely crash and can be found by search engines.
“The trade-off is functionality, but that is a small price for someone just starting. Often, the CMS for a white label site is non-existent, making SEO optimization difficult.”
Derek Du Chesne, Chief Growth Office at EcoGen Laboratories
“White-label uses our stock formulas and stock packaging to have it readily accessible. It’s a turnkey quick-start solution for brands that need products ASAP. “
“White-label products have a good history in their respective market and low minimums with short lead times. Private label products, on the other hand, allow for more flexibility.
“With the private-label program, it allows for us to collaborate with the brands more in-depth with custom ingredients, formulations, packaging, and SKU’s.”
Brain Cairns, CEO at ProStrategix Consulting
“The distinction between white label and private label are subtle. That’s why these terms are so easily confused.
“Private label is a brand sold exclusively in one retailer, for example, Equate (WalMart). White label is a generic product, which is sold to multiple retailers like generic ibuprofen (Advil).
“The scope of your target market is important. Deciding on whether you want to sell in one place or several matters.
“It doesn’t matter whether you’re selling online or not. Amazon has many private label items and a process to sell there. You can also work with resellers from your website or physical store.
“The key advantage of white label products is economies of scale. In other words, you’re free to sell your goods and services to a wider market of your choosing.
“You can often charge a higher price for private label products. One of the other upsides is stability as there’s usually a long-term contract or relationship with a large retailer.”
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