Some websites provides white labels to successful brands to enable them concentrate on services

The name comes from the image of a white label made on the package wherein the marketer can put its trade dress. The history of white label can be traced back to the era of vinyl records. At that time, DJs used to detach label from a trendy record so that the name of the track developer didnt get divulge to their rivals. In this way, they would create white label record.

In general, white label production is for generic electronics manufactured at a large scale, such as television sets and DVD players. A number of companies keep a sub-brand for their products and these brands are particularly used by them. For example, you can sell a DVD player model-A from brand-A, which is also sold as model-B by brand-B.

White-labels are used by some websites to facilitate a successful brand for offering its services without investing in the development of infrastructure and technology. For instance Amazon.co.uk has been running the website of Waterstone’s until recently. Similarly, LoveFilm runs the DVD Rental services of Tesco. Most of the store brand or private brand products in supermarkets are provided by companies which sell to more than one supermarket, bringing change in labels only. Besides, there are some manufacturers who develop generic brand labels of low cost bearing merely the products name (Cola).

Sometimes, smaller banks pass on their credit-card operations to the bigger banks. The bigger bank charges fee from the smaller one to issue and process the credit cards as white label cards. This enables the smaller banks to run their own branded credit cards without investing in the infrastructure that would otherwise lead to high operating cost.