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What is the difference between white labeling and private labeling?

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Ying Aguayo YingYing Aguayo Ying asked 2 months ago
1 Answers
AvatarDani Avitz Staff answered 2 months ago
Private label products are made by a third-party manufacturer and sold under a retailer’s brand name (the private label). As the name implies, you put your own label on existing products that might have been modified or enhanced and sell them under your own brand. This way, you can set yourself apart from your competition by being the only seller of this specific product, which results in customers associating the product with your brand and leads to higher profits. This advantage comes with costly brand development, product modifications and expensive pay-per-click advertising campaigns. Also, not all products can be privately labeled so sellers need to know what to look for. White label products are also made by a third-party manufacturer and sold under a retailer’s brand name (the private label). The difference to a private label product is that the white label product is sold as made by the manufacturer, without any modifications or enhancements. The retailer thus only controls the brand image, not the product itself. The manufacturer might also sell this product to multiple retailers, so these are in direct competition with each other as the product is the same. The advantage of white labeling over private labeling is that there is not as much cost involved with less planning and production time. The only thing you need to develop as well is your brand image. But to get started with either white or private labeling, you first need to know which products are profitable to sell and have sufficient demand. Algopix helps with supplying this information quickly and accurately. Other key data points that can be easily researched include the recommended market price, a detailed expenses breakdown, a competition analysis and profit as well as sales estimations. And the best thing is that you receive this information for up to 16 marketplaces on Amazon, eBay and Walmart! Make better decisions about what to buy and where to sell with Algopix!

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