Why Businesses Are Moving Towards White Label Solutions

Benefits of white Label Outsourcing

These apps are used by SaaS, e-commerce, and digital marketing agencies. Cost efficiency is a major benefit, with development costs typically reduced by up to 60% compared to in-house development.

Industry analysis suggests that with white labeling, businesses can reach the market roughly 50% faster than those developing proprietary solutions.

As a software development company, you may use white label APIs to add functionality. Let's say you're building a travel booking website. You want to add flight booking and hotel search features. Check out our guide on app development cost in 2025.

Option 1: Build everything yourself

1. Hire app developers

2. Partner with airlines

3. Manage pricing, data, and security

This takes months.

Option 2: Use white-label APIs

1. Use a white-label API from a company like Skyscanner

2. Their API gives you all the flight data

3. You show it on your site, with your branding

You can save a lot of time by not building what is already built, skipping R&D. E-commerce developers could deploy pre-designed storefronts under their brand, and marketing agencies may use white-label analytics tools. Though this is not a one-size-fits-all approach, these solutions provide a pragmatic option for businesses balancing growth goals with resource constraints.

How You Can Use White Label Software

Let's understand it with some popular white label examples that would help you understand how you can use them.

1. CRM platforms

For businesses with technical know-how, white-label CRM systems are a good mix between ready-made software and fully custom builds. You get to keep control over your brand and user experience without spending too much time. The major benefit is in shifting your engineering team's focus to more important tasks. They can work on complex development instead of building basic tools from scratch.

2. Project management tools

Agencies or consultancies often face pressure to deliver tailored workflows without compromising scalability. White-label project management tools allow you to embed standardized processes (e.g., Agile or Waterfall frameworks) into a branded interface. This approach standardizes efficiency while letting you layer on client-specific automations or reporting, a tactical way to maintain consistency across diverse projects without fragmenting your tech stack.

3. E-commerce platforms

Businesses looking to launch online stores can use white-label e-commerce platforms to create a branded storefront. A platform with pre-built features like product listings, payment systems, and inventory tools makes it easy to build a feature-rich e-commerce application. 

Examples of some popular white label services

Now, here is how you can use popular options to build specific features on the fly. This list is not exhaustive.

1. Skyscanner API [Flight search & booking]

Use their white-label travel API to let users search for flights and compare prices, all under your branding.

2. Stripe Connect [Payments]

You can offer payment processing (checkout, payouts, subscriptions) without revealing Stripe to your users—fully branded as your service.

3. Shopify Plus [E-commerce backend]

Some agencies use Shopify's white-label or headless backend to build storefronts while controlling the brand experience entirely.

4. Sendbird [Chat & messaging]

Want chat in your app like WhatsApp or Slack? Sendbird provides a white-label messaging API you can customize fully.

5. SendGrid [Email sending]

Power your email newsletters or automated notifications using SendGrid's API while presenting it as your own email service.

6. OpenAI API [AI writing tools]

Many writing apps use OpenAI (like me!) in the backend but offer branded tools like grammar correction, email writing, or blog generators.

7. Nordvpn white-Label [VPN Service]

Start your own VPN company using NordVPN's white-label infrastructure—the same secure backend and fully custom frontend.

These are some examples of services. If you are looking for software, you can connect with a custom software development company.

Top Reasons to Choose White-Label Solutions

White labelling is popular for three major reasons: it enables better resource allocation, accelerates and saves costs.

1. Better resource allocation

Sometimes, large organizations that appear to be flush with resources use "off-the-shelf" software to address different aspects of their operations. At first, this sounds strange. Why wouldn't they just build things themselves? Instead, they use it to allocate their resources strategically and thereby address and solve some of their core challenges. 

2. Navigating regulatory complexities

The regulated landscape is complex, as new rules and regulations seemingly appear every year, and keeping abreast of them is not easy. Building apps for highly regulated sectors like finance and healthcare requires so much effort and time, plus continuous upgradation. White-label services are built in accordance with regulations, becoming incredibly valuable for many businesses. 

3. Accelerated market entry

Even though a wealth of tech stacks are available today, many projects are still delayed due to increasing and changing user demands. White labeling speeds the development, enabling developers to launch products without delay. 

White-labelling Myth

Some may believe that using white-label software is sacrificing brand identity. But the truth is quite the opposite, especially considering the offerings today. Many of today's white-label platforms are developed with an emphasis on customization and offer a multitude of tools and options to allow companies to customize the look, feel, and functionality. Companies can develop services specific to their existing brand. 

Is White Label Development Cost-Efficient?

The cost is the most important factor, and white label development is one of the well-tested approaches that many use to reduce the cost of development. You can skip the team and infrastructure setup, resulting in significant cost savings. Moreover, you will not need to invest heavily upfront. Modification is a big plus with this move.  

Let's understand it with this scenario. I assume you plan to build software; you will have two popular options: custom or ready-made. 

If you go with the white-label scenario, you will need to find a white label development company to source the product. For customization, if you don't have the level of expertise, you can hire a designer to customize the layout and rebrand, which may cost around a few hundred dollars. 

Now, consider a different scenario - custom development. It requires a significant upfront investment to set up a team of experts and infrastructure. This approach is best in case you are building a custom, complex, enterprise-grade app. 

With the first approach, you can get your app developed for as little as the initial cost. 

One of the most compelling economic advantages of white labeling is the substantial reduction, or complete elimination, of costs associated with research and development. Custom software development is an expensive undertaking. It can range from $5000 to $50000 for concept and R&D. 

In addition, standard white-label products are well tested and refined, reducing the risks of failure that are normally associated with the introduction of brand-new, untested products. In addition to this, it also takes away the R&D investment, thus making more sense for startups and smaller companies with very limited money or resources.

Do you want to know how much it may cost to obtain a white label software? Check out this guide.

Challenges in White Label Development 

1. Limited customization

White-label solutions can box you into generic features. For example, a CRM might lack niche reporting that you may be looking for. Customization is very limited. You can make it more flexible by mixing pre-built tools with custom modules.

2. dependency on third-party providers

You will be relying on external vendors, which means you're exposed to their downtime, pricing, terms, or feature removals. You will not get the level of control with in-house products. Here's a tip: vet partners rigorously: check uptime history, reviews, experience, and expertise. You can refer to our guide "How to choose the right mobile app development company".

Conclusion

The move toward white-label solutions represents a major tactical shift and a new opportunity for companies that want to recognize efficiency while still being innovative. White label development companies can allow businesses to fast-track their market entry, save costs, and focus on their specific market strengths without sacrificing their brand or identity.

Individuals can build an app without getting into the technical nitty-gritty.

Whether it is using existing CRM platforms to consolidate and streamline a project or using a white-label e-commerce solution with the intention of scaling, these options can give companies the ability to meet evolving demands in a rapid manner while still complying with various regulatory requirements. If you have decided to go with White Label solution then read our blog on how to build a secure white label software.

While limitations such as customizations or vendor lock-in can be painful for organizations, hybrid models make all obstacles solvable or at least achievable.