What is white-label delivery?

When businesses pair their own online ordering experience with a white-label delivery solution, they can offer an end-to-end experience—from item selection to delivery—that feels more native to their brand, without incurring the costs that can come with hiring and managing their own delivery staff.

Is white-label delivery for you? We’re here to help you understand whether this solution is the best option to support you in meeting your goals. In this post, we’ll cover:

• What is white-label delivery?
• What’s the difference between a white-label delivery solution and a third-party delivery platform?
• How does white-label delivery work?
• Possible benefits of white-label delivery for businesses
• Common uses for white-label delivery solutions

White-label delivery is an option to offer delivery using a third party while hosting the ordering experience for customers on your own channels.

This process typically requires a third-party integration with a business's existing order management system. Through this integration, customers can place orders directly on a business's website or mobile app. The business can then review that order and request delivery fulfillment through a third party. As far as the customer is concerned, their entire experience will be associated with the business’s brand and platforms.

Today, there is no longer a one-size-fits-all solution to delivery. Many third-party delivery platforms are expanding the solutions they provide beyond their marketplaces to accommodate different business needs. If your business is interested in keeping your ordering experience native to your channels while expanding the delivery choices you offer your customers, white-label delivery solutions could be a good option to explore to align with these goals.

Interested in learning more about how white-label delivery solutions can affect your business? Here are some of the primary benefits you might be able to expect.

White-label delivery solutions allow you to power same-day delivery from your own channels, which can contribute to higher conversion rates and larger orders. Data published in 2020 by Shopify shows that online shoppers spend 23% more and have a 25% larger order when independent retailers offer local pickup and delivery.

Customers have more purchasing options than ever before at their fingertips, making it increasingly important for businesses to find ways to stand out. Using a white-label delivery solution, you have an opportunity to make a lasting impression at checkout. And 87% of consumers surveyed in a 2020 ShipStation report said that the shipping and delivery experience directly affects their decision to shop with a merchant again.

Your customers are the backbone of your business, and with a white-label delivery solution you can maintain control over their experience—from the type of communication they receive from you to the delivery fees they encounter during the purchasing process. And because customers are interacting with you on your own sales channels (versus a third party’s), you can see more granular data points and insights that can inform future email and re-marketing campaigns.

Many white-label delivery solutions are designed to plug in to and elevate your existing workflows. With a white-label API integration, you can manage delivery requests from an order management system that your team is already familiar with. And because the third-party delivery platform handles fulfillment, you can count on them to provide customer support if delivery issues arise, giving you more time to focus on the rest of your to-do list.

When you’re evaluating which white-label delivery solution to use, it’s important to consider their cost structure. For example, with white-label delivery through Uber Eats, you can expect to see tailored, commission-free rates based on distance, speed of delivery, and your market or region. This pricing structure means no deduction from the dollar you make on the orders you receive. You can also view estimated delivery times and quotes before you send a fulfillment request, giving you the final say over what you’re charged. All of this adds up to less guesswork and more predictable accounting for your business.

White-label delivery solutions can cater to businesses of varying sizes across industries, and the level of integration complexity can be scaled up or back depending on your technology infrastructure. Below, explore some of the common use cases for white-label delivery to see how it might serve your business.

Demand for delivery is continuing to grow, but how customers are choosing to interact with restaurants during this process is changing. For example, a Sense360 survey conducted in 2020 found that 63% of people prefer to order meal delivery directly from restaurants. White-label delivery solutions can help you meet this demand while catering to emerging ordering behaviors. And many white-label delivery solutions can operate directly from the existing POS systems or delivery aggregator apps that you use to manage incoming orders. This means that you can add a new capability without disrupting your existing front- and back-of-house processes.

According to a 2018 NPR/Marist poll, 44% of online shoppers say Amazon is the first place they go when buying a product online. White-label delivery solutions can help retailers of all sizes keep up with these larger organizations by offering same-day delivery options from their own channels, all while maintaining control over operational costs. Plus, many white-label delivery solutions can integrate with well-known e-commerce platforms, which means your business can offer a new benefit to customers from a channel where you’re already driving sales.

Over the past 2 years, delivery for anything from toiletries to pantry staples has become the new normal, and demand is only expected to rise. According to a survey conducted by McKinsey & Company in 2022, grocery executives expect e-commerce penetration to more than double for their company in the next 3 to 5 years. Using a white-label delivery solution, grocery and convenience stores of all sizes can compete in this space while keeping your own branding at the forefront.

A 2022 report from Future Market Insights predicts that the global prescription delivery services market will experience a compound annual growth rate of 17.8% from 2022 to 2030. This signals that more customers want care delivered to their doorstep, which is particularly critical in the case of injury or illness. And when it comes to prescriptions, customers may prefer to interact directly with pharmacies they know and trust. White-label delivery solutions can allow pharmacies to deepen relationships with your customers by powering same-day, local delivery directly from your website or app.

The delivery of flowers has been popular for decades, and it’s one product for which timing is of the essence, to preserve the product’s freshness. With white-label delivery solutions, florists can provide online customers with the option for same-day local delivery of their arrangement at checkout. Position your business as a thoughtful and efficient solution when the need for a last-minute gift or surprise arises.