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Offering your product as white label: Yeh or Neh?

by Dykwia
2 replies
We run a pretty succesful brand/product in our continent, today we got a reqeust to use our product as a white label / custom product.
Although this might sound interesting at first, i need a second opinion.

Offering means we will have to share Adwords auction placements and fight for the same client. This is a downside.
The upside is that if they are better at marketing, we will always have our share of their business. Another upside is that if they are serious, they might go with their own label anyway, be it from us or another supplier.

I guess it only pays off if they take out large quantities.

What is your take on this? Any pros or cons?

Thanks.
#label #neh #offering #product #white #yeh
  • Profile picture of the author OnlineStoreHelp
    Originally Posted by Dykwia View Post

    We run a pretty succesful brand/product in our continent, today we got a reqeust to use our product as a white label / custom product.
    Although this might sound interesting at first, i need a second opinion.

    Offering means we will have to share Adwords auction placements and fight for the same client. This is a downside.
    The upside is that if they are better at marketing, we will always have our share of their business. Another upside is that if they are serious, they might go with their own label anyway, be it from us or another supplier.

    I guess it only pays off if they take out large quantities.

    What is your take on this? Any pros or cons?

    Thanks.
    If you are concerned about, consider licensing it for a royalty instead of a one time fee, or, do what many white labelers do, allow them to white label it, but control the distribution so you can ensure quality and reporting of sales. I would also enforce Minimum Advertised Price as well...
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    • Profile picture of the author Dykwia
      Originally Posted by OnlineStoreHelp View Post

      If you are concerned about, consider licensing it for a royalty instead of a one time fee, or, do what many white labelers do, allow them to white label it, but control the distribution so you can ensure quality and reporting of sales. I would also enforce Minimum Advertised Price as well...
      Thanks. The MAP of course is going to be there, as well as MOQ.

      I do realize that if we stop delivering for whatever reason, the new venturist has no more product to sell.

      And by distribution, you mean actual shipping (dropshipping) to their clients?

      I could actually consider offering the latter (dropshipping).
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