Is white-labeling for you?

We’re not shy about the fact that we’re fulfillment nerds. After all, we run an entire blog on the topic of ecommerce fulfillment and business tips. But we acknowledge that not everyone shares the same passion, and that’s totally okay. It can be intimidating to look at all the things you have to manage as an independent ecommerce merchant. What if you want to sell products without having to deal with all the nitty gritty? White-labeling might be for you. But what is white-labeling, and how does it impact your business? Read on for the definitions of a few important terms, a discussion on the pros and cons of white-labeling, and how to tell if it’s the right approach for you and your business.

What is B2C and B2B?

Respectively, this stands for Business-to-Consumer and Business-to-Business. Although some companies engage in both B2B and B2C meaning they have a split focus, most corporations  have a core client base, either that of other businesses or individual customers. When you’re just getting started in ecommerce B2B vs B2C operations can seem confusing and opaque. Which one do you choose? Do you really have to choose between them? Which is best in regards to your business?

To tell the truth, most ecommerce sellers, especially when first starting out, go the customer route. It’s easier to set up a storefront and market to individual consumers over social media than it is to pitch your products to other corporations who may have pre-existing contracts. That’s not to say it’s impossible to get a big contract with a corporation when you’re just starting out, of course. In fact, the fact many merchants choose to go the direct-to-consumer route means you may have success in regards to ironing out a niche. A good handle on fulfillment is necessary for any company, B2B or B2C meaning warehousing should be a top priority.

But really, what’s the difference?

B2B fulfillment occasionally means products are sent out to other warehouses or distribution centers rather than being delivered directly to the business itself. You may have to wait longer regarding decisions and purchases made under a B2B system as well, since all expenditures have to go through the company’s internal processing committee and occasionally a legal or contract team as well. The B2C pack, pick, and ship operation, on the other hand, moves about as quickly as any merchant might expect, as only the customer themselves decides when a purchase should be made. From the second the order is made to the second the package is delivered to the customer’s doorstep, there are few roadblocks or unexpected surprises that you’ll have to contend with. This is another reason why most merchants will choose to sell directly to the consumer rather than to other corporations.

What is white-labeling?

White-labeling is, by necessity, a B2B endeavor, which as stated above means you’ll be selling primarily to other businesses. When you sell a white-labeled product, you produce a high-quality piece of merchandise, but sell it completely unbranded. The bottle, canister, or box is plain and waiting for another business to purchase it and sell it to customers under their brand umbrella. This contrasts with the sell-direct model, in which you produce, package, label, and then sell the product directly to your customers. Although many sellers might bristle at the idea of letting another company take the credit for their hard work, white-labeling can actually be incredibly profitable.

Benefits of white-labeling

White-labeling lets you utilize your talents without being bogged down by the realities of running a business. If you’re an expert baker, or technician, or cosmetic scientist, you’re no doubt incredible at crafting a high-quality product. However, this doesn’t necessarily translate into being an immediate success at other parts of ecommerce selling. Even though we at P2Pseller honestly believe that anyone can successfully run an ecommerce business, that doesn’t mean you have to. If that’s not what you want, or if you’re not interested in marketing, analytics, and customer service, producing white-label products can allow you to focus full-time on the manufacturing process while still netting a tidy profit.

A middle path

Nervous about handling the fine and gritty parts of ecommerce selling, but still want to maintain control of your brand? 1P or 3P selling might be the best option for you. Both allow you to maintain brand-name recognition and sell through a large brand or marketplace. Let’s say you want to sell for Amazon or Walmart. You provide your already-labeled products, and they offer a certain customer base. The difference is as follows: under 1P selling, you essentially sell your products wholesale to the larger brand. In 3P selling, you sell through their marketplace, but generally have to handle your own fulfillment processes. This happy medium, so to speak, is becoming increasingly popular among merchants who don’t want to bother with doing everything themselves, but still want the option to build their own brand.

In conclusion

Whether you go for B2B vs B2C ecommerce warehousing is incredibly important to the efficiency of your operations. Most warehousing partners have the capability to accommodate both modes of operation as fundamentally fulfillment is the same. These fulfillment companies make sure you don’t have to spend valuable time picking and packing your own products from bins in your garage, which is a task which can quickly balloon to a size which takes up most of your waking day if you’re not careful. Once you grow large enough that doing your own fulfillment becomes cumbersome, it’s really best to seek out the assistance of a professional. Luckily, P2Pseller has your back. Register a free account with us today to browse our full catalog of transportation and warehousing partners without any commitment necessary on your part. We’re excited to have you on board to join the ecommerce revolution and take your company to the next level.