White Label vs Private Label: Pros, Cons & Examples

The Million-Dollar Label Question

You’re ready to launch your next big thing. The vision is there. The branding? Sharp. The only thing missing? A product.

Here’s the good news: you don’t need a factory, a chemistry degree, or months of R&D. Thanks to white label and private label models, you can start selling faster than you can say “add to cart.” But which path actually works for you and why does it matter?

In this guide, we break down the difference between white label and private label (yes, with examples), spotlight the wet wipes market, and help you decide where your e-commerce hustle fits best.

What’s a White Label Product?

Think of white label as the off-the-rack option. A manufacturer creates a generic product, and dozens, if not hundreds of retailers slap their branding on it and call it theirs. No shade, just business.

According to HubSpot, white labeling is the process of purchasing a ready-made product and applying your branding. It’s fast, cheap, and great for testing a category without betting the house. You don’t touch the formulation. Don’t fiddle with the specs either. You just plug it into your store.

But here’s the catch: you’re not the only one. That same product, with only slight packaging changes, could be sold by five other sellers on Amazon at a lower price. So while you save on time and cost, you pay with less control and more competition.

What’s a Private Label Product?

Private label is the custom-tailored suit to white label’s fast fashion. Here, you work with a manufacturer to develop a product that’s exclusive to your brand from ingredients and textures to color schemes and scent profiles.

As Investopedia puts it, private label products are made by one company for sale under another company’s brand, but they’re exclusive to that brand. You get more say in the process and you own the product story.

Sure, it takes longer. And yes, the upfront costs are higher. But the rewards? Higher profit margins, brand loyalty, and a product no one else can copy without starting from scratch.

Think of it this way: white label helps you enter a market, but private label helps you own it.

Head-to-Head: Private Label vs White Label

In plain terms: white label is quantity, private label is quality. If you’re just dipping your toes in, white label gets you going quickly. But if you’re building a brand that needs to stand out, private label is where the power lies.

According to the Private Label Manufacturers Association (PLMA), private label sales in the U.S. reached $271 billion in 2023, with store brands capturing nearly 1 in 4 dollars spent in retail. That’s not small business it’s smart business.

Real-World Example: Wet Wipes

Now let’s get our hands dirty clean, actually with an example everyone’s touched: wet wipes.

White Label Wet Wipes

In this case, you’re sourcing a ready-made wipe, let’s say a fragrance-free baby wipe from a manufacturer. You slap your logo on it, order a few thousand units, and go live. Boom. You’re in business.

Simple? Yes. Scalable? Yes. But identical to the five other brands using the same supplier? Also yes.

If you’re launching on platforms like Amazon or Walmart Marketplace, white labeling lets you test demand fast. But standing out takes sharp branding and a tight marketing game.

Private Label Wet Wipes

Here’s where it gets juicy. You decide your private label wet wipes should be plant-based, lavender-scented, and pH balanced with custom biodegradable wrappers. Collaborate with a U.S.-based manufacturer. Approve the formula. Design the packaging. The result? Something no one else sells.

Sure, you’ll need to meet minimum order quantities and run quality checks. But now, your product has a story, a differentiator, and a customer base willing to pay more for what only you offer.

And the best part? Private label wet wipes often command better margins because of that exclusivity.

Don’t Forget Regulatory Stuff (Yes, It Matters)

In the U.S., how your wipes are classified determines how they’re regulated. For private label or white label sellers alike, this is non-negotiable.

• Personal care wipes (like baby wipes or makeup wipes) are considered cosmetics by the FDA. That means you’re responsible for safe formulation and accurate ingredient labeling but no pre-approval is needed.
  
• Antibacterial or disinfecting wipes are regulated by the EPA. If your product claims to kill germs, you’ll need proper EPA registration and scientific validation to back it up.
  
• Medical-use wipes (like those treating diaper rash or acne) fall under the drug category, which means FDA approval is required before hitting the market.
  

Bottom line: Know the rules. Don’t assume your supplier is handling it. Even if you’re white labeling, your name is on the packaging.

So… Which One Should You Choose?

Let’s break it down:

• Choose white label if…
  
  • You’re launching fast.
    
  • You’re testing product-market fit.
    
  • You want to expand your catalog quickly and affordably.
    
• Choose private label if…
  
  • You want brand exclusivity.
    
  • You’re ready to invest in custom formulas or designs.
    
  • You want to build long-term equity in your product line.
    

Still unsure? Start white. Go private when you’ve found traction.

Disclaimer:
This blog post is intended for informational purposes only and does not constitute legal, regulatory, or business advice. Readers should consult appropriate professionals and review applicable laws, including FDA and EPA regulations, before selling white label or private label products. All examples are for illustrative purposes only.