When you're looking for a new product to sell, it can be hard to decide whether white labeling or private labeling is the right option for your brand. While these two services are often spoken about interchangeably, the meaning of each is actually very different.
Both services have their benefits, but the choice ultimately depends on your business goals and needs. So, let’s dig in and explore the two concepts to help you decide which direction is right for you.
White Label vs. Private Label
In short, private label products are sold exclusively through one brand and have a specific formulation that cannot be found anywhere else. White labeled products on the other hand contain the same formulation as others on the market, but the main difference is the marketing, price, and label.
Here’s an example.
A white label manufacturer, like e2e, creates a lotion and sells the formulation to 8 different brands. Each of these brands is able to brand the lotion as their own, but they’re all essentially selling the same thing without any formulaic differences.
Private labeling on the other hand would mean a brand has the ability to adjust the formulation of this lotion to their liking - from its ingredients to the color - and market it as an exclusive product.
What are the Benefits of Private Labeling
Private labeling saves you the time, money, and effort of having to develop your own products from scratch, building a warehouse, and hiring the people to do the formulations. By going with industry experts like e2e Pharma, there is also less risk involved than in developing your own. e2e Pharma takes rigorous measures in testing and formulation, so you can focus on marketing and selling your products knowing that they are formulated and verified by experts.
By giving you back the time it would take to formulate and manufacture your own products, you can strengthen your marketing and sales strategies through A/B testing, figuring out what concepts work, and scaling your business efficiently. Additionally, because e2e produces products for multiple brands, an individual brand has the ability to leverage the overall volume by receiving a lower cost.
What are the Benefits of White Labeling
If you want to offer multiple products, white labeling is a great way to gain the public’s awareness of your brand quickly and at a more affordable cost. A reputable supplier, like e2e Pharma, is able to consistently produce high-quality products - and consistent quality means returning, loyal customers. By taking advantage of these expert services, you are building a strong and trustworthy brand and taking all the credit.
Taking the pressure off the complexities of formulation and testing, white labeling also allows brands to have the luxury of choice. It opens a world of options and opportunities for your business by reallocating the time and cost it would take to develop a single product into choosing and branding multiple products.
White labeling also allows you to stand on the shoulders of skilled developers, provide your customers with high-quality products, and maintain a high ROI, all under the name of your own brand.
At a Glance
Private Label
Products are manufactured exclusively for one brand
Have the ability to modify the formulation to develop a unique product
May take longer to create due to utilizing various supply chains
Price points are typically higher for the consumer
More affordable option for brands than creating their own lab and hiring a team of scientists
White Label
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