Private labeling and white labeling are among the emerging ecommerce strategies that brands are adapting in a big way to give a fillip to their marketing plans. These terms are often used interchangeably but most people do not know what these labels indicate. One such view being floated widely is that Private Label is related to products and White Label indicates services. Not true!
Let’s put an end to this confusion by spelling out the differences between white label and private label.
Before we proceed, it is important to know that these processes are based on an agreement between two parties:
- A retailer or reseller wanting to sell a product produced by a third-party
- A manufacturer, who offers to make a product for sale to the retailer
White labeling or white label manufacturing is a process in which a retailer or a reseller looking for quality products to resale, enters into an agreement/contract with a manufacturer. The white label supplement manufacturer allows the retailer to use the product for rebranding using their custom brand and packaging designs.
White Labeling manufacturing agreement:
- The manufacturer controls product’s key characteristics such as ingredients and manufacturing process.
- The retailer accepts the generic form of product
- The retailer applies its expertise in designing and branding the product
- The supplement manufacturing company can sell the same generic product to other retailers and allow them to create their unique brands applying their expertise.
- The manufacturer will not have any claims to the trademarks or retain any of their branding or identity associated with white label products created by the retailers from a generic form.
In private labeling or private label or private labeling manufacturing the approach is the same as the one to white label manufacturing. The main difference is that the product is provided exclusively by the private label supplements manufacturer to a single retailer. It cannot be sold to other retailers and thus maintains its exclusivity, said John O. from professional writing services and dissertation writing help.
Under the terms of the agreement between the retailers and private label manufacturers
- The retailer states the type of product they want and spells out the changes or variations they can make to the generic product acquired from the manufacturer
- The manufacturer works closely with the retailer to produce the product they want and the customizations they need in it in terms of composition, package quantity, etc.
- The retailer controls the branding of the product in terms of packaging and designing
- The manufacturer remains in charge of the production process for creating the private label
- As they cannot sell an identical product to other retailers, the private label process is unique and hence less competitive
The Emerald Corp is one of the top-rated private label manufacturers specializing in cannabinoid sciences. The company has a wide array of CBD-infused products which is their specialty. According to SuperiorPapers, the Emerald Corp is also in the business of helping new and upcoming brands. In their role as a successful White label supplement manufacturer, they help brands fine-tune their branding. They also offer their expertise and guidance in formula sourcing and brand development.