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White Labeling vs Branded Products?

by shah21
4 replies
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Hey guys,

I want to start selling on Amazon.

Is selling Branded Products bad? Is White Labeling the only way to go?

I actually have none to very little Capital to invest, if I read correctly (I hope) I can still start a Dropshipping store. But White-Labeling has extra costs?

Is there a way to be successful in my current position? which strategy (white labeling vs branded products) would be better for me? (for now?)

Thank you for reading my post
#branded #labeling #products #white
  • Profile picture of the author ZanyZebra
    Originally Posted by shah21 View Post

    Hey guys,

    I want to start selling on Amazon.

    Is selling Branded Products bad? Is White Labeling the only way to go?

    I actually have none to very little Capital to invest, if I read correctly (I hope) I can still start a Dropshipping store. But White-Labeling has extra costs?

    Is there a way to be successful in my current position? which strategy (white labeling vs branded products) would be better for me? (for now?)

    Thank you for reading my post
    Neither is bad.

    In general, one is more difficult than the other.

    Selling branded products means you may be competing against all the others who are selling the same branded product. This can lead to consumers doing price comparisons. This, in turn, often results in a price war. The problem with a price war is that you might win it!

    Price wars lead to eroded margins. Eroded margins mean much less profit (and the ability to restock and make a decent living).

    On the other hand white labelling means that, with some intelligent thought, positioning and strategising, you can be the only one selling your product. This results in a very different marketing approach to when selling branded products.

    Margins can be greater. Competition can be drastically reduced. Profits can be much improved.

    There's obviously much, much more to it than that and i'm only speaking in gross generalities here.

    Hope this helps your thinking.

    Good luck with your venture.
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    • Profile picture of the author shah21
      Originally Posted by ZanyZebra View Post

      Neither is bad.

      In general, one is more difficult than the other.

      Selling branded products means you can be competing against all the others who are selling the same branded product. This can lead to consumers doing price comparisons. This, in turn, often results in a price war. The problem with a price war is that you might win it!

      Price wars lead to eroded margins. Eroded margins mean much less profit (and the ability to restock and make a decent living).

      On the other hand white labelling means that, with some intelligent thought, positioning and strategising, you can be the only one selling your product. This results in a very different marketing approach to when selling branded products.

      Margins can be greater. Competition can be drastically reduced. Profits can be much improved.

      There's obviously much, much more to it than that and i'm only speaking in gross generalities here.

      Hope this helps your thinking.

      Good luck with your venture.
      Thank you very much !

      Another Question:
      Lets say I find a dropshipper who will "White-Label" my products. Do I have to pay for the "White Labeling" upfront? Do I have to pay extra fees? What does the cost-structure look like? (In an example?)

      Thank you
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