Private VS White labels: the 4 main differences

In this article
In this article

Do you want to start your own custom made product line but don’t want to invest money and time in having your own manufacturing resources and infrastructure? Then, private and white labels are the answer for you.

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What is a private label?

A private label corresponds to a manufacturer who creates customised products for third parties to sell under their brand. In other words, the manufacturer gives you the freedom to choose the formula, customisation or design of the product they manufacture for your brand. This personalised product will then be sold exclusively by this one retailer/re-seller who ordered the product. The latter will decide on the marketing and selling strategy. 

What is a white label?

White label, instead, is creating generic and standardised products that will be sold to multiple re-sellers or retailers. This generic product can be branded and sold according to your brand. However, the freedom in customisation is very limited and is a matter of slight changes such as logos, colours, packaging or marketing material. 

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Let’s recap the main differences: 

1. The level of customisation

If private labels allow a more extensive level of customisation, from the formula to the design or other unique features of the product, the freedom in white labels is more limited, concerning only small details such as the colour or the product’s logo.

2. Costs

Private labels treat each client’s request individually to create a personalised and unique product; therefore, they are generally more expensive than white labels. This argument brings us to the following.

3. Timing

By being individually made, the timing for private label manufacturing will be longer than white label manufacturing, which usually has a small inventory of the generic products to be more reactive to customers’ demand.

4. Who is re-selling

Private labels create a product for one retailer, which will have exclusive control over the product’s sale. White labels manufacture the same product, which many different retailers can sell.

Now, what would work best for you? 

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Now that you know the differences between the two. Let’s look at which one would correspond best to your brand or business.

Firstly, the choice of one or the other will obviously depend on your product. Are you creating a unique and innovative product or a basic but will a cool branding product? For the first one, you will need more support and advice on the product development and, therefore, would rather go for a private label.

How important and how visible do you want your branding message to be? With private labels, you can include your branding message from the prototyping stage, making it perfect for a unique and readily identifiable brand.

How fast do you want your orders to be? White labels are generally more flexible and easier to work under a short notice period by having a usually small inventory of generic products. 

How much do you want to spend? You have to consider that by being more standardised white label manufacturing is less expensive than private labels.

So in conclusion, make sure to ask yourself the right questions and then the choice between both should become easier.

Do you want to start your own product line?

Do you want to start your own product line? Whether you’re an aspiring startup entrepreneur with an innovative product idea or an existing retailer looking to amplify your audience with new marketing strategies, elevating your brand through Wonnda could be just the step you need to take your business to the next level. 

Aside from being able to launch your products through Wonnda, we will also put you in touch with the best manufacturers across Europe to make sure your brand only offers the best of the best! 

If you have any questions, send us an email, our team is there for you!

Create your next product line with Wonnda

Our platform lets you source, launch, and scale your product line with over 250 trusted European suppliers. So whether you’re looking to request products from our private label catalog of over 1,500 items or develop custom products from scratch, Wonnda has everything you need to get started. Best of all, it’s free to start today!

Set up your account in less than 3 minutes and begin your journey with Wonnda. Unlock endless possibilities for your business, bring new products to market and streamline your sourcing process from idea to launch on one single platform.

About the author
Alice Pegorin
Alice Pegorin is a talented writer and a world-citizen who was born and raised in Brazil. In 2019, she moved to Lisbon, Portugal to pursue a BSc in Marketing and Advertising at IADE-UE. Following her passion for business management, Alice moved to Berlin, Germany in 2022 for her Erasmus semester at UE-Germany, where she completed her studies. Alice is a curious and open-minded individual who adapts easily to any environment. She enjoys exploring new cultures and experiences, and is always eager to learn. Currently based in Berlin, Alice travels to Portugal from time to time to visit friends. Her passion for writing and business management makes her an invaluable member of our team at Wonnda, and we're thrilled to have her on board.
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