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The internet has opened up a whole world of possibilities for budding entrepreneurs. One of the most popular options for people starting online businesses is selling white-label products.
A white-label product business involves sourcing products from a third party and then personalising or branding them for your customers. A classic example of a white-label product is a slogan T-shirt or printed mug. But those are just the first things that come to mind – there are virtually no limits when it comes to what you can white-label. If you’ve got a creative idea to brand your own product, then the chances are there’s a supplier you can work with to help you on your way.
There are so many benefits to selling white-label products– perhaps the biggest advantage is that you don’t have to manufacture the item yourself. You may choose to personalise it yourself by investing in printing equipment, but you don’t necessarily even have to because you could instead find a printing partner, meaning you don’t need to get involved in the manufacturing side and can focus on growing your new business.
White labeling is a great way to make a side income or even launch a whole business. While selling white-label products is pretty accessible, there are still plenty of considerations you will need to make to ensure your venture is as profitable as possible. Ecommerce is a very competitive space, and many online retailers have already cemented themselves as the leading name’s in certain white-labeled products, so you’ll need to do everything you can to stand out from the crowd.
In this guide, we’ll discuss setting up a business selling white-label products, including examples, marketing strategies, and accounting considerations for those setting up shop in the UK.
Fancy starting up a white-label product business?
Read through this guide to see the ins and outs of getting into the customised/personalised product sector. Remember that when you start ANY business, you need to track your earnings carefully to avoid falling afoul of HMRC. Use Crunch E-Commerce Accounting as your cost-efficient accountancy partner so you can stay on track from the very first product you sell.
Why choose white label products?
White-label products are designed to be personalised, so they’re ideal for people with creative flair that want to take a blank canvas and offer something unique.
The key benefits of selling white-label products include the following:
- Quick to market: If you work with an established white-label manufacturer, you can have your products ready to sell quickly; this means you’ll start making money to buy more stock very soon!
- Requires minimal investment: Many manufacturers have low minimum orders, so you don’t have to invest much money in your initial business setup.
- Save on energy and production costs: Since you won’t be manufacturing the products yourself, you don’t need to worry about the increasing energy costs.
- Wide range of products: There are so many different types of white-label products, even those beyond the obvious. More on this in the next section.
White labeling has its downsides too. Here are some pitfalls to consider before you make your first purchase:
- Product availability: With white labeling, you are beholden to supplier availability, so if you hype up a focused product line and your supplier lets you down, you could be in trouble. You can negate this by sourcing several similar suppliers and considering offering customers a more varied product range.
- Product quality: Since you only control the product branding and marketing, you need to monitor the quality of the white-label products you buy. Everything you sell reflects on your business, so while buying cheap can maximise profit margins, it may not be the best investment for your reputation long-term.
- Storage: Depending on your business's setup, you may need to store the products yourself. Typically, you will need to buy the products in bulk and organise the branding and storage in your warehouse, although some services, like RedBubble, will personalise and ship the products for you. If you want to personalise products in-house, you’ll also need space (and funds) to buy printing equipment.
- Initial investment: While the investment can be small, you still need money to make your first purchase. You will also need to invest in marketing, as this is key to getting your white-label products to fly off the shelves.
White Label vs. Private Label: What’s the difference?
If you’re looking up how to run a white-label product business, you might have encountered the concept of private labeling. Typically, with white-label products, you only have control over the label. The manufacturer can sell this product to any other supplier with different branding.
A private-label product is still manufactured by a third party, but you can control most elements of the production process, including the ingredients, shape, recipe, packaging, etc. Private-label products are typically more expensive and take longer to produce, but they can be unique to your brand.
If either type of labelling appeals to you, then keep reading. Rather than selling generic t-shirts and competing with some of the internet’s biggest brands, it’s best to explore more unusual products to find your niche.
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Setting up your white-level product business
Top white-label products to sell in 2024
Need some inspiration for your next business venture? Here are some of the most popular white-label products to get you started:
- Reusable water bottles, protein shakers, and coffee cups: Sustainability is high on consumers’ agendas these days, so many people are investing in drink receptacles they can use again and again. Water bottles are one of the most common white-label products, but you can also look into protein shakers and insulated cups for hot drinks.
- Fitness clothing and accessories: Protein shakers are the first step in the multimillion-pound health and wellbeing industry. This whole industry offers enormous potential for creative brands, from clothing to mats, weights, and resistance bands.
- Cosmetics and skincare products: When it comes to white-label products, skincare might not be the first that comes to mind, but it’s a hugely popular option. Not all cosmetics or skincare products are produced by the brands themselves, as many opt for white-labeling to ensure products are consistent and of high quality, then use creative marketing to reach the right audience.
- Mugs and other crockery: The UK is a nation of tea drinkers – and we’re increasingly fond of coffee, too. For those reasons alone, you can’t go wrong with mugs as a gift idea. We all have our own favourite ones, and you can produce your customer’s next top cuppa by investing in good quality products with unique designs.
- Tote bags: Another sustainable present idea is that tote bags are perfect for white-label businesses as they are cheap to make and have wide appeal. So, if you are a designer or illustrator, consider the white label to make some money from your work.
- Tea bags and coffee beans: Whatever side of the fence you find yourself on, one thing’s for sure: we all love a cuppa. Why not pair a branded mug or reusable coffee cup with your own brand of coffee beans or tea bags? There are plenty of suppliers offering this type of white-labeling, but you need to make sure you are aware of the provenance of the products you buy, especially if they are imported from developing countries.
- Phone accessories: We are never without our devices, and customising them is all part of the fun. So, phone, tablet, and laptop covers are a great option that requires minimal storage space and upfront investment and typically guarantees high-profit margins when marketed well.
- Apparel and fashion accessories: Watch TikTok, Instagram, and Pinterest for fashion trends, and consider hopping on them with your own ideas using white-labeling to produce the products. As with any product in this realm, consider how the original items are manufactured and be aware of sustainability and ethical production where possible.
- Pet accessories: The UK spends £8bn a year on our pets, so white-labeling can work well if you want a slice of that pie. Pet clothing and accessories like leads, harnesses, beds, blankets, etc., can all be personalised. Why not build a brand around a specific pet breed? Or for pet owners with shared needs, like elderly dogs. Remember, marketing is the secret to success when it comes to selling white-label products.
Emerging trends in white-label products
Still trying to decide which white-label products to turn into your next business venture? Get the juices flowing with these upcoming trends:
- Sustainability: While this isn’t a new trend, it’s certainly a growing one. Anything that promotes reusing products is bound to go down well with today’s audience; this includes drinks bottles, lunch boxes, tote bags, coffee cups, and more.
- Food storage and organisation: TikTok hosts a huge trend around unpacking and storing kitchen products. It sounds bizarre if you’ve not discovered it yet, but a quick search will yield thousands of results showing people filling their fridges and cupboards with products in a satisfying way. You can piggyback on this trend by offering storage solutions, like containers, bottles, and trays, all with your own print designs to tap into this growing market.
- Seasonal items: Depending on when you are reading this, there will be so many different ways you can take advantage of seasonal products. In the summer months, invest in beach towels, drink cups, fans, and sunhats. If it’s nearing winter, then get in the festive spirit and consider stockings, wrapping paper, cards, fairy lights and other Christmas favourites.
Finding reliable white-label suppliers
Regardless of what you sell, the quality of your products is critical to your success. So, when finding a white-label supplier, you need to consider more than just the price. Production method, materials, sustainability, and customer reviews should all be considerations for your business.
Popular white-label suppliers include:
- Wonnda: A software-first product sourcing tool that helps to pair brands with premium suppliers in their niche.
- Printify: If apparel is your thing, then Printify doesn’t just print it; it also stores and ships your products, making the process as streamlined as possible for brands.
- Alibaba: This dropshipping giant also provides personalisation options for branding, making it a great choice for white labeling.
- Aliexpress: Another global leader, Aliexpress sells a vast range of products covering many of the categories we listed earlier.
Before you choose a white-label supplier, you’ll need to research the company’s reputation. Going with the cheapest option may be tempting, but if you find the products are poor quality when they arrive, you may find it difficult to send them back, especially if they have come from abroad.
Be sure to speak to the company, where possible, and address your concerns before checking out. Even when you place your first order, make it a small one so you can be sure that what you’ve bought is right for your audience. If the products aren’t up to scratch, you can then switch suppliers without much heartbreak.
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How to market your white-label products effectively
Once you’ve found your supplier and are happy with the products, it’s time to start selling them. Marketing is critical to the success of your business, as many other retailers may be selling the same product with a different label. So, how can you ensure you succeed against your competition?
Build your brand around a customer need
Whether that’s sustainability or time-saving ideas, whatever you choose, make sure your products solve a problem for your customers. Even fun products like phones can be marketed as affordable gifts or fun additions to your wardrobe, so it pays to think about your offering in this way from the outset.
Don’t overcomplicate things
Decision paralysis is one of the biggest checkout blockers. In fact, one famous study called The Jam Experiment found that customers were ten times less likely to buy a jar of jam when a market stall presented 24 variants versus only six. So, while you don’t want to limit yourself to selling only one product, it’s important to find the balance and not overwhelm your audience with too much choice.
Make SEO a priority
SEO (Search Engine Optimisation) is the process of building a website that appears high on Google’s ranking for your search terms. Research shows that at least 43% of ecommerce traffic comes from organic search, so this is an area of marketing you cannot sleep on. There are third-party tools you can use to check your existing rankings, and identify keyword opportunities, or work with an SEO consultant to delve into the technical aspects of your site and ensure it’s performing as well as it possibly can be.
Don’t sleep on social media
Marketers will know that it’s been hard to keep up with the algorithm in recent years, with many brands struggling to gain traction on the big platforms without spending huge amounts of money on advertising. That being said, social media still offers significant potential for ecommerce brands, especially those selling white-label products.
TikTok, for example, is a hive for ecommerce activity, thanks to the platform’s built-in Shop, allowing creators to make commission based on sales of products they have promoted in their videos through affiliate links.
Try influencer marketing
As we mentioned in the last section, TikTok is big for influencer marketing, but it’s not the only place customers hang out. Instagram and YouTube are both still hugely popular for those looking for recommendations for their next buy. You can contact influencers yourself, or appoint a specialist agency to encourage creators to feature your products and recommend them to their audience.
Sell on online marketplaces
Even if you do choose to launch your own website, it’s worth looking into selling on online marketplaces like Amazon, Etsy and even eBay. The former even offers fulfillment and warehousing options, so you might want to consider this as an option to streamline the process.
Whichever platform you choose, you’ll need to take the time to master the algorithms, and make sure your products stand out from others on the market, especially as yours may be the exact same as others if you have chosen the white-label approach.
Learn more about marketing an ecommerce store in our dedicated guide to selling online products like a pro in 2024.
Finding success selling white-label products
Hopefully, you’re now full of ideas for launching your own ecommerce business selling white-label products. From sourcing products to branding and marketing, there are many factors to consider when it comes to white labeling, so it’s easy to forget about accounting.
Get off to the right start with Crunch
When you start a business, you need to keep track of your finances from day one so you can control your earnings and ensure you don’t lose sight of important tax requirements.
Rather than working with a physical accountant, you can enjoy the same flexibility and reliability that comes from being self-employed by choosing Crunch. Our accounting platform offers streamlined day-to-day accounting support and even allows you to contact our digital accountants with ease if you have any complex queries.
Choose Crunch Ecommerce Accounting to set yourself up for success. Take a demo today and see how it works.
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