How to Make Money Selling White-Label Products Online

Updated on May 4, 2020
Rupert Malone profile image

Rupert is an experienced writer and internet marketer who has spent more than a decade living on the money he makes online.

What You Need to Know

There are lots of ways to make money online. Many would argue selling white-label products is one of the most profitable ones. It's certainly one of the simplest games to get into. In fact, it's amazing how many white-label products are sold on Amazon and eBay alone.

Of course, there are plenty of people making money by selling white-label products via their own websites as well. However, unless you have experience building websites and driving traffic to them going this route may not be the best option.

There is a good reason why Amazon and eBay are so popular with internet newbies who want to make money selling white-label products online. Selling via either one of these huge online marketplaces helps keep costs down.

According to Statista.com, eBay gets around 109 million visitors per month. That's an incredible amount of traffic, but eBay is strictly small-time when compared to Amazon. Collectively, the Amazon sites pull in well over 200 million visitors each month.

The thing to remember is, most of the people who visit the sites are already looking for products to buy. As with a normal store, there will be a few window shoppers as well, but when they see the right product at the right price those window shoppers may become buyers as well.

The Amazon and eBay websites are built to sell. It's their raison d'être and the success of these two internet giants shows they are extremely good at getting the job done.

When internet marketers choose to sell their white-label products via Amazon or eBay, it's a little like partnering with a business dragon. Not only do the marketers keep their costs down, but they also get to enjoy all the benefits of the company's well-oiled marketing machine.

What Are White-Label Products?

White-label products are a type of merchandise people and companies can sell under the brand name of their choice. In many cases, the same product may be being sold under dozens, if not hundreds of different brand names.

Many of the diet pills and other health and wellness supplements you see for sale on Amazon are actually white-label products. So let's use diet pills as an example.

The weight loss industry is worth $72 billion per year and, believe it or not, that's just in the USA. It's a big-money business and lots of people are keen to get a slice of the pie.

However, producing diet pills is a specialized field. The average person who wants to cash in on the market will not have the money, skill, or resources needed to develop products of this nature. The best way around the problem is to buy and sell white-label products.

Although product quality can vary from one manufacturer to the next, white-label diet pills are produced by specialist manufacturers. The same can be said for any white-label product.

White-labels products provide marketers their own branded product to sell online while also generating a good income for the real manufacturer. It may not be the manufacturer's name on the packaging, but they don't need to worry about a big marketing budget. All the marketing is handled by the brands they supply and some internet marketers selling white-label products are very successful indeed.

The bottom line is if the product is good and does what it's supposed to do, both the brand owners and the white-label manufacturing company will flourish.

White-Label Products Are All Around You

Although many people are making a killing selling white-label products online, not all white-label products are sold this way. You can find them in supermarkets, pharmacies, and many other establishments all over the world. Supermarket own-label products are a good example.

Many large supermarket chains have own-label, cookies, potato chips, and cereals. They also often have own-label canned goods and beers. It sometimes seems like the big supermarkets have an own-label version for nearly every product they sell.

Do you really think these retail giants own such a diverse range of factories and breweries? They don't. They just know how to play the white-label game and they play it very well. In fact, there's a good chance that many of the own label jello and other products you buy from one supermarket came off the same conveyor belt as the ones being sold by a competitor down the street.

Online or offline, the truth of the matter is there are a lot of people making money selling white-label products. Big companies are doing it and so are many one-man bands.

A Few Popular White-Label Product Categories

Once you start looking for good white-label products you will quickly find you are spoiled for choice. However, not all white-label items are good options for people who want to make money by selling their "own" products online.

White-label pizzas and bags of frozen food may be just the ticket for supermarket chains, but they are not the kind of thing you will want to brand and list on Amazon or eBay.

However, some good options include:

  • Cosmetics and beauty products

  • Vitamins and minerals

  • Weight management products

  • Sports supplements

  • Baby care products

  • Organic and eco-friendly cleaning product

What Are the Advantages of Selling White-Label Products Online?

One of the big advantages of selling white-label products online is it makes it possible for marketers to break into niches that would otherwise be unreachable.

Selling private label products online also offers marketers a lot of freedom. Apart from choosing their own branding, they also get to set their own prices.

In the early days, they can choose to keep their prices low to try and beat the competition. Then raise the prices if and when the brand takes off. Many people will pay more for a popular brand.

The other thing is, if a brand fails to take off or acquires a bad reputation, it's incredibly easy to rebrand and then start again. It's just as easy to call it a day. There is no staff to worry about or any reason for severance payments.

Other white-label advantages include:

  • Low start-up costs

  • Suitable for selling on Amazon, eBay, or via your website

  • Choice of white-label manufacturers to work with

  • No need to place large orders

  • Scalable business

  • Suitable for businesses of all sizes

The Bottom Line

Selling white-label products is not for everyone, but it's a quick and easy way for marketers to make money online with the minimum of resources. As with any business, success is not guaranteed, but this type of venture is as easy to wind down as it is to start.

Of course, in the early stages, it makes sense to do a little research and check if there is a good demand for the product or products you are hoping to sell. It's also a good idea to check the reputation of the white-label companies you are considering working with. As a marketer, it's your job to sell the products, but that's going to be difficult if the quality is poor or the products don't do what they're supposed to do. If you have doubts about one supplier, take no chances and move on to the next.

© 2019 Rupert Malone

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