White-labeling is a fancy way of saying "reselling as your own product" because the term refers to buying a completed product that you apply your own label to in order to sell again as your own product or service under your own private label.
White-labeling is fairly common in industry, and it’s very common in software. From air conditioners to heavy equipment to digital marketing, white-label products are everywhere without the common consumer even knowing it.
Basically, there are two types that can be sold as a reseller: products or services:
In short: white-labeling is better for the seller. Distributorships allow the supplier to capture the brand value, and typically have price points that favour the supplier. Under white-labeling arrangements, you are managing the white-label marketing assets, and retain the brand value to your potential customers. So it's quite easy to get started.
However, white-label companies typically take a much more involved role in servicing customers with the product. There may also be other tail-end operations aspects involved on the seller’s end of the white label supply chain, such as literally stamping or applying a product label, packaging, and final shipment. Some suppliers take care of this for you and can drop-ship directly to your customer as well, but not all white-label suppliers do this.
Most business problems have some kind of white-label solution. You can diversify your product and service line with white-label solutions exponentially faster and cheaper than you can develop a market-competitive solution in-house.
This allows you to have a very wide net to cast so to speak when it comes to satisfying your customers’ needs.
By freeing yourself to focus on sales, and simplifying how you can make solutions for your customers, you shorten the time it takes for you to grow your revenue. You also eliminate the snags that you hit during development and production of new solutions – effectively, this allows you to capture much more opportunities in the market because it allows you to be more flexible with solving your customers’ problems.