A Complete Guide on White Label Solutions

a-complete-guide-on-white-label-solutions

What are White Label Solutions?

White labeling is becoming more prevalent. This is because the tech world is changing quicker than it did 10 to 15 years ago. The white label refers to a good or service that is completely endorsed by one organization but will be sold by another organization. Here we are discussing  the Types and benefits of white label solutions and how does it work.

White label solutions perform well on anything from flights to food items. Grocery retailers are offering various brands of cereal and other items of their own brand name at a discount. Likewise, ticket resellers can more effectively handle their ticket inventory with a White Label solution.

Benefits of White Label Solutions

In this section we will discuss the reasons that explain why white labeling can be very useful:

#1.  Boosts the visibility of your brand:

 If the business you run allows you to offer several third-party suppliers or goods, paying extra for white labeling on all the items you offer is a perfect way to proliferate your brand identity without being irritating, creating awareness about your brand in the consumer.

#2. Strengthens the loyalty of clients:

 Obviously the third-party goods you labeling white and add to your bid are safe and acceptable (at least they will be better!). Whenever a customer uses your white labeling product and sees your name added, they can equate it with simplicity and consistency, and increase their loyalty to your company.

#3. Allows you to take advantage of expert work:

If the attention and skill of third-party developers are on making a product better than you can, just pay them for the luxury of white labeling and enjoy putting your brand name over their production work.

#4. Scale Your Revenue:

Maximizing revenues is very simple with white-labeled services; it is your ability to charge as much as you like when reselling the vendor’s deals under your name, and therefore making the most of them.

#5. Saves time and money:

 White labeling involves a limited expenditure in time and money, as opposed to having to do it alone. It would be more cost-effective to invest in a successful project than to recruit a large team of developers. It will save months of production time that can help improve your market, or you can use it on more critical activities.

#6. It keeps your customers happier:

 Your consumers have an end target, and having a product with a white label will give them a straight forward and easy way to achieve it. The extra months (or even years) it takes to create your own solution will cause consumers to come up with ideas elsewhere. This can be done with a prepackaged approach that quickly serves their desires.

#7. No need to create something new:

 For years you don’t have to break your head because software developers have done it in spite of you. By subscribing to the white label domain function, you can buy all potential service upgrades and new versions of the software by default. White label can be turned off at any point.

Types of White Label Solutions

Here is a list of different forms and associated terms:

1.     White-label

Products or services offered by a white label company that offers its goods or services to a re-seller reselling them to the end-consumer, another customer.

2.     B2C white-label

Products or services, which a business resells and sells to the end customer, who is a client or an individual.

3.     White-label SaaS

Also known as software as a service.  Rebrandable software that is subscription-based licensed and hosted on the Internet (no downloads required). Re-sellers brand the product as their own and sell it to buyers of the reseller. Disrupted the traditional software delivery method, in which consumers will have to pay a package annually. Offers monthly, more uniformly spread returns = more cash flow.

How does White Label Solutions work?

White labeling is somewhat similar to drop shipping, in that the product’s manufacturer you are selling sells it to you at a cheaper price than you’re selling it for. You purchase the goods from a seller and sell it as your own, at whatever price you want.  However, the goods are sold under the branding of the company-not under the manufacturer’s brand name. You sell the goods solely as yourself.

For example

Dreamsoft4u is a telemedicine service providers company in India.

  • Dreamsoft4u is a telemedicine app development company in India that sells their telemedicine software to another company, an agency, to re-sell.
  • Then another company (Y) rebrands the telemedicine software with its own logo and sells it to some other company (Z) for use.

Difference between White-label, Private Label, and Co-branding

Providers of white label software solutions sell one package of equipment to several businesses without modification.

At first sight, private labeling is similar to white labeling but the distinction is there. In contrast, private labeling concerns individual brands, with variations expressly applied to one’s brand.

Co-branding occurs as two brands cooperate together to produce a unique product. The company’s names and logos remain as they are, and are available to the public. The jointly produced product would get a new name.

Private label VS White label

  • Private labels offer individually personalized items. For a given retailer, manufacturers may create a single edition. This helps retailers to become patrons of particular products. Manufacturers offer the same product to those for white label products. Retailers don’t have the customization option. That also means they have no hidden charges for labeling.
  • Private labels are used mostly for physical items while white labels are used for applications. So if you’re working with the software, you’re playing more with white labels.
  • One of the key distinctions between private label and white label brands is that private label brands are made specifically for sale by a single vendor and that the vendor can change or modify a product in whatever manner he wishes.

White label VS Co-branding label

The distinction between white labeling and co-branding is that co-branding means that all brands are making it into the final product.

The smaller you are, the more likely your co-branding would be to help create your own brand, because you are partnering with a well-known brand that is also a strong match with the message from your company.

The bigger you’re, the more co-branding, if you’re not careful, will confuse your message.

Generally speaking, it’s hard to co-brand with another company whose name has a far larger scope than your own, because it’s a natural match because there’s no risk you’ll become rivals.

Limitations of White Labeling

  • The sale of products belonging to an external organization may reduce control over its manufacturing.
  • Changes in the product range could be slower as the manufacturer and distributor have to agree.
  • Usually requiring more resources to be in charge of end-customer support.
  • The gross margin on white label products may be smaller (than the goods produced by the seller himself) because of the fees charged to the maker. Fees include permission to sell marked, patented, and copyrighted products, i.e. intellectual property rights.
  • Start-ups / smaller companies can be daunting. As a smaller / new company, presenting yourself as the seller can be a little more difficult.
  • Choosing another service, you’ll know little about their growth and improvements. If you try to add any additional functionality to current software or files, you’re not going to be able to do so because they are not your own software. And the provider is only willing to make those improvements.

So not only does your organization benefit from choosing a white label solution, but it’s also an important feature when you want to do things like convincing users to adapt your training program.

Last words…

Dreamsoft4u Pvt. Ltd. offers best Telemedicine Software Development Services in India especially in USA and South Africa. As we have more than 15 years of experience in the field, we are ready to join you as a Telemedicine Partner to assist you various kinds of Healthcare IT solutions such as:

  • HIPAA Compliance Telemedicine Software
  • HL7 Solutions
  • Telemedicine App Development
  • Telemedicine/Telehealth Integration
  • EMR/EHR System Implementation
  • Remote Health Monitoring System etc.

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