In business, often buying an “unbranded” product and customizing it for resale as if it were your company’s product is a common method. See below, what is a platform white label, what are its applications in different markets, the advantages and situations that require greater attention when opting for the modality.
Definindo white label
The term white label refers to goods or services that are produced by one company and then acquired by another company to rename and sell as their own. For example, most supermarket “branded” products are created by companies that produce items on a large scale and sell them to various grocery stores or small markets. the platform white label is that business model.
If we look at the content creation side, the ghostwriting is the creation of a white label product. The writer makes the article, book, etc. gives up the creative rights and sells them to a second company or person who will sign the work without being part of it.
In the technological fields, it is already present with “general solutions” of softwares made by a programmer or company and then sold — or leased — to another company to customize versions to your customer’s needs.
How does it work
The scenario is: a company interested in acquiring a solution through a platform white label to be a retailer and act in the environment online. What could be interesting to increase your sales? Points program, loyalty or cumulative discounts for referrals. How much does it take for the company itself to create these programs and make them active? The answer is a lot of time and money.
Companies that sell white label products to e-commerce focus on just that, already has the fully functional programs in place so the retail customer can buy, brand and launch them quickly, without most of the cost of research, creation or implementation.
Creating an employee training portal is also costly and time consuming. Some companies sell products white label for those cases. THE software focuses on employee training and allows companies to upload their own logo and customize the style to match their brand.
When employees do login in the training portal, the appearance reflects the rest of the company’s website. use a product white label from software of training reduces the risk of the contracting company.
It’s avoiding the risk of spending time and money to develop the platform only to have to go back and fix bugs. Instead, you buy a solution that’s already in operation and guarantee your employees a smooth and pleasant onboarding experience.
When to consider a white label solution
Some situational points bring the solutions white label as advantageous, fast and cheap. It is a good option when the company:
- You want to expand the services you provide to customers;
- Need to quickly create a digital identity and representation for newly created businesses;
- Attracting Larger Customers: Typically, the large players value solutions”one-stop” that can meet all the needs of the company in the same supplier, the white label allow expanding the range of services;
- Extend the evolution of internal processes by adding a digital solution.
- Time saving: create your own software or platform takes a lot of time and effort;
- Lower costs;
- Present yourself to the market by being more “robust”: some markets are extremely competitive and it is important to make a statement about your strength immediately;
- Quick returns: due to time savings, several stages are quickly passed, streamlining the “return on investment” phase;
- Freedom to work focused: without the need to worry about creating these solutions, the company is more relaxed pursuing its focal point;
- Increase the customer’s perception of value in relation to the company.
- Limit learning opportunities: buying the ready-made solution prevents the company from maturing in the process;
- Liability for any “defect”: in the products white label the apparent brand belongs to the purchaser, any problem will be the responsibility of the company that purchased the solution, tool, product;
- It can be an endless path: the customer is always right, but when more and more services are offered, there is a chance that they will never be satisfied and want more and more solutions;
- Support issues: the brand that is apparent is from the person who bought it, but the support is from the company that created the software, may be a dependency relationship;
- Quality-price ratio: time must be spent to make the best choice of solution white label. For points mentioned above, prioritize quality over price;
- Choose a good hidden supplier: there is no point in buying a solution and placing your brand if the “provider” is also widely recognized in the market for the same “tool”, it will become a competitor.
The applications exist in the most diverse markets. With this information about what a platform is white label we already have a foundation to better understand the business model concept.
With information: Technology advice, Amgrade.