Whitelabeling

White-labeling is a business arrangement in which a product or service produced by one company is marketed and sold under another company's brand. The producer, or original equipment manufacturer (OEM), provides the item with generic branding, and the reseller applies its own branding, label, and packaging.

How it works: A manufacturer develops a product or service and licenses or sells it to a reseller who then brands it with their name and logo. The reseller may customize aspects such as packaging, features, or service terms. Agreements specify pricing, support, warranties, and geographic rights.

Applications: White-labeling spans physical goods like electronics, cosmetics, and food, as well as digital products and services such as software platforms, apps, streaming services, and financial tools. It is widely used in e-commerce, retail, and software marketplaces.

Benefits: Faster market entry, reduced development and manufacturing costs, scale efficiencies, and control over branding and customer relationships. It enables firms to offer broader catalogs without in-house production.

Risks and considerations: Dependency on supplier performance, quality control, and supply chain disruption. Potential IP and trust issues, limited customization beyond agreed terms, customer service alignment, and regulatory compliance. Clear SLAs, warranties, and exit terms are important.

Relationship to private label: White-labeling is closely related to private labeling; in some markets the terms are used interchangeably. Private label generally emphasizes retail branding by the reseller with less emphasis on feature customization.

Legal and regulatory: Agreements cover IP licenses, liability, warranties, data handling for software, and compliance with consumer protection laws; export controls and security standards may apply for software.