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Brands vs. Retailers, eCommerce, and White Labeling

Updated: Aug 25, 2023




Today, we're talking modern import supply chains; e-commerce; and white labeling.


Most online nail wrap shops are retailers or re-sellers, in the sense that they purchase products from a manufacturer, then sell them to you at a profit. This is the same practice that has been employed by brick-and-mortar stores for many, many years.


Just think of Walmart: they didn't manufacture all the things in their store. Instead, they get them from brands and other companies, then sell them to you!


Sounds simple, right?


Well, in recent years, the idea of an online retailer has been conflated and confused with the fuzzy notion of an online brand. Especially when dealing with large marketplaces such as Amazon, Etsy, or even Facebook/Instagram shops, it can become tricky to determine if the seller has actually produced a product, or is merely re-selling someone else's production to you. Are you dealing with a brand, like Adidas, which is responsible for the research and design of its products; or are you dealing with a retailer, like Walmart, Target, or Macy's, which is responsible for curating a set of brand products and offering them to you for sale?


And just wait - it gets trickier.


Because modern manufacturing and importing supply chains have become much easier for the average individual to access and have allowed the practices of white labeling to flourish. "White labeling," also known as "private labeling," or "ODM" occurs when a manufacturer makes minor alterations to a product's labeling or packaging for a retailer, but has otherwise sold them a stock product.


Picture a simple white t-shirt. An "ODM" or "white label" manufacturer will sell the exact same t-shirt to a dozen businesses, and put their label on each one.


Same shirt. Different names on the label. That's it.


Let's be clear before we go further: this is a perfectly legitimate business practice, and the supply chain has been operating this way for a very long time!


Plus, whenever artistry becomes involved, ODM manufacturing offers templates for amazing creativity! The artwork on the front of the t-shirt; the adorable hand-painted images on the mug; and the gorgeous custom nail art designs can all be applied to an existing product and transform it into something unique and special.


The confusion can occur, however, when online shopping gives consumers the impression that different retailers are actually brands. No one is upset that Walmart and Target both carry Adidas shoes and clothes; but if we learned that Adidas and Nike are actually selling us the exact same shoes with different names on the label, well ... that starts to seem a bit sneaky.


And it doesn't help that some eCommerce sellers deliberately attempt to give the impression that they've painstakingly crafted every product in their shop, when - in fact - they've picked them out of a manufacturer's catalogue and paid to have their name applied.


Being a savvy consumer and understanding a bit more about modern eCommerce can help you use your best judgment when looking at online products. And the next time you see two products on Amazon that appear to be exactly the same except for the brand name printed on the side, you can smile to yourself because you're in on the secret: they are exactly the same except for the brand name printed on the side! So get yourself the best deal!

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