
Written by: Richard Fong
Published on September 1, 2021
Published on September 1, 2021
As forecasts predict an increase in eCommerce revenue in the years to come, having your own online store requires pursuing a competitive business model for your future success. One strategy is white label eCommerce, which involves two companies that partner together to sell a product.
While the manufacturer is in charge of creating the product, the seller is the one who is responsible for branding, marketing, repackaging, as well. This makes white labeling a good idea for companies that already have a stronger brand reputation who want to sell the product at a higher price point.
While white-label eCommerce may not be the best for new companies that lack an established customer base or a strong identity, it provides many benefits for established brands that are looking to expand even further.
For instance, it enables companies to enter new markets more easily without having to shoulder extensive manufacturing costs. Partnering with a company that already produces the item can increase sales and reduce costs, and increasing value through branding.
In addition, white labeling can also speed up the process of product development and innovation, since you’ll be able to market them much faster compared to your competitors. Branding and packaging are the main aspects to focus on, enabling your business to pivot and meet ever-changing customer needs.
However, there are a few things to be aware of when using white labeling. If you partner with the wrong manufacturer and sell faulty products, you may harm rather than boost your brand’s reputation. Supply issues can also harm your business, so it’s important to choose the right partner.
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