The Whole Package: What Is Private Label Packaging?

The recent e-commerce boom has a lot of people thinking about the best way to start a business. Some people choose to manufacture and sell their own goods, but there are plenty of others that prefer to let someone else handle the manufacturing side of things.

Have you heard of the term private label packaging? It’s one of the industry’s best-kept secrets.

Are you in the dark and wondering what is private label packaging? Don’t worry. By the time you finish reading this post, you’ll know what exactly it is and all of the benefits that come with it.

Private Label Packaging Defined

The vast majority of retailers, whether they sell their products in-store or online, get their products from certain suppliers. When you choose to go down the private label packaging route, you’re able to sell products with your own branding!

In simple terms, private label products are produced by a third party and are then sold under a different brand name. This gives the seller a lot of control over certain product specs and how its packaged.

Private Label vs. White Label

We’re sure that a lot of people reading the last section immediately thought of white label products when they heard of private label products. The two things might be closely related, but there is a key difference.

Private label brands are sold exclusively by one retailer. A great example of this is Walmart’s Great Value and Equate brand products since you won’t be able to find them anywhere else.

A white label is a generic product that you could buy anywhere. Anyone with the right tools could manufacture acetaminophen, but there’s only one company that can make brand name Tylenol.

The Two Main Benefits of Private Label Packaging and Products

You may wonder why some people choose to go with privatepackaging instead of other solutions. The truth is that there are two significant benefits that you can get when you go down the private label route.

1. Easily Expand Into Different Markets

There may be a lot of products you’re interested in selling, but you realize that you don’t have the money or capacity to devote to making something new. This is where having a reliable private label manufacturer can come in handy.

Instead of having to figure out how to expand into an entirely different product offering, you can have a manufacturer do it for you.

Is your product less popular than you had hoped? No problem! Stopping production won’t have to cost you a lot of time or money. This makes it easier for businesses to experiment with different products.

2. Sell High-Quality Products

The white-label market might be intriguing, but it’s also fairly new. The barrier for entry isn’t that high, and when almost anyone can make a white label product, you won’t know what you’re getting.

Private label packaging has been around for decades. Almost every major retailer you trust has a few private label products that they sell. Private label companies work with plenty of trusted brands, and they have experience creating quality products.

What Is Private Label Packaging: Your New Business Opportunity

Now that you know the answer to your question of what is private label packaging, you can start planning the next steps for your business.

Do you know where you’re going to get funding for your business? Are you concerned about hiring the right people to help make your business dreams a reality? Would you want to learn more about building a marketing plan?

We have tons of great business content on our site. Be sure to browse all of our content to find the answers you’re looking for!