The difference between white label products and private label products might seem miniscule. So miniscule, in fact, that these terms can often get confused for one another. However, it is important to understand white label vs. private label goods. CBD manufacturers sell both, sometimes without you even knowing about it.
But first, what do “white label” and “private label” actually mean?
What is White Labeling?
White label products are typically generic products sold to various distributors. For example, let’s pretend that you’ve created brandless, nameless CBD oil tinctures. You can sell those tinctures in bulk to 10 or more different CBD brands. Those brands would then add their own unique marketing, logos, and packaging to your tincture. This is white labeling: you’ve created the product, but those 10 other brands are responsible for adding labels and selling your product as their own.
In the end, there is one product (your CBD tincture) sold as 10 different products (marketed individually by those 10 brands). And because those brands often rely on various white label products, they would enter a long-term contract with a manufacturer. This ensures that their customers continue receiving the same quality of CBD oil that they’ve come to expect from that particular brand.
Oftentimes, consumers are unaware that a product is white labeled.
But Why Would You White Label Your Product?
White label manufacturing is best for companies who don’t wish to handle branding, marketing, or customer relations. Even if you’ve created the perfect product, you might not know how to navigate the market or how to sell that product effectively.
As a white label manufacturer, you must also be capable of filling bulk orders to multiple different brands. As such, white label manufacturing is perfect for companies that can create high volumes of products and sell them quickly.
This is why the majority of white label goods are generic products: generics are generally necessities which sell quickly. There’s nothing savvy or sexy about white labeling, but if your sole focus is high volume sales, it might be right for your business.
What is Private Labeling?
Private label products are brandless, nameless products (just like white label) but are sold exclusively to one retailer. This retailer often enters a contract with a manufacturer to sell their product.
For example, let’s pretend you’ve manufactured the strongest CBD gummies known to man, but you know absolutely nothing about branding or selling products in the CBD industry. You could private label your gummies to a national brand like, say, CBDfx.
Under contract with a manufacturer (you), CBDfx can sell your gummies as their own. They would add the CBDfx logo and packaging to your gummies. Because both parties consented to private labeling and you both signed a contract, private label products are completely legal.
But Why Would You Private Label Your Product?
As we mentioned above, private label products are generally created by specialists with little to no marketing experience. You might possess the ability to create high-quality CBD gummies, but you want a national brand to sell your gummies for you.
White Label vs. Private Label: Which is Better?
While these terms might seem similar, there are some key differences between the two. For starters, white labeled goods are generally higher volume. White label products are generic products for a reason: they’re simple and they sell fast. In addition, it’s not difficult for other companies to add their own branding.
Private label products, on the other hand, focus more on quality than quantity. Because private label goods are sold exclusively to one brand, they tend to be of a higher quality. In addition, there has to be more marketing opportunities. In our earlier example of CBD gummies being sold to CBDfx, this scenario would only be possible if you created a CBD-infused gummy that CBDfx actually believed in and wanted to market at the national brand level.
What White Label vs. Private Label Means for You
Business antics aside, what does all of this have to do with you, a CBD consumer? How do white label and private label practices affect the CBD industry?
There is nothing inherently “bad” about either white label or private label products—no matter the source of our products, CBD Choice vets each and every brand and manufacturer individually. In addition, whether a brand uses private label or white label goods should not affect product quality: high-quality manufacturers (the type found at CBD Choice) utilize high-quality private label and white label goods, where applicable. And while many CBD brands use these products, many others manufacture their own goods in-house.
Regardless of in-house manufacturing, private labeling, or white labeling, all good CBD products are third-party lab tested, free from adulterants and fillers, and come with a customer satisfaction guarantee.