White-Label Products: Definition, Benefits, Example

What Is a White Label Product?

By Jeremy Bowman – Updated Oct 19, 2025 at 9:42 PM

Key Points

White-label products are sold by retailers but made by third parties, allowing price undercutting.
Retailers branding white-label products themselves foster customer loyalty by exclusivity.
Private-label products are exclusive to one retailer, differing from more common white-label goods.

White-label products have become common in retail by giving retailers a way of selling products that offer similar quality to national brands but have lower prices. Also known as generic branding, this merchandising strategy has become popular with retailers like Costco (COST +1.22%) and Trader Joe's.

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Empty lotion and pill bottles — Image source: Getty Images.

What is a white-label product?

A white-label product refers to an item sold by retailers that is manufactured by a third party but branded by the retailer. The retailer may choose to brand it with the store's name or create an entirely new brand for the product line. White-label products get their name from the idea that they are sold with no labeling, leaving it up to the retailer to handle the marketing and branding components.

White-label products are typically sold next to brand-name products and can include basics like batteries, T-shirts, mugs, or tote bags.

What are the benefits of white-label products?

White labeling offers benefits to both the manufacturer and the retailer.

The manufacturer can benefit because it can sell the same product to multiple retailers without having to worry about branding or marketing, though it typically prints the packaging and logo according to the retailer's specifications.

Marketing

Marketing is a way for companies to reach out and speak directly to their current and future customers, including potential investors.

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About the Author

Jeremy Bowman has been a contributing Motley Fool stock market analyst, covering technology, consumer goods, and macroeconomic trends since 2011. Before The Motley Fool, Jeremy was a newspaper reporter, restaurant manager, and English teacher abroad. He holds a bachelor’s degree in English from Colorado College and a master’s degree in business administration from American University. One of his Motley Fool headlines was briefly featured on Late Night with Stephen Colbert.

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Jeremy Bowman has positions in Target. The Motley Fool has positions in and recommends Costco Wholesale and Target. The Motley Fool has a disclosure policy.