Custom vs. white-label delivery software: which should you choose for your business?

Do you want to add a delivery service to your business?

If so, you will need delivery software. But, this begs the question – should you go with custom or white-label delivery software? And how do you make the right choice for your business?

We’ve got you covered.

In this article, we’ll give you a detailed comparison between custom and white-label delivery software and when you should choose each, so you can make the right decision.

Let’s dive in!

Custom vs. white-label delivery software: the basics

When it comes to choosing delivery software, you have 2 choices – custom and white-label software.

So, what exactly is the difference between them?

Custom software is designed specifically for your business and every feature is tailored to your unique requirements and business needs.

White-label delivery software, on the other hand, is a pre-made software product built and maintained by a third-party provider you can rebrand and use as your own.

And depending on your chosen provider, It’s also often flexible enough that you can tweak it and add features to better meet your business needs.

Here’s an overview of their key differences:

Custom vs. white-label delivery software: overview

Choosing between custom and white-label delivery software boils down to the specific needs and scale of your business. 

Custom solutions offer control and flexibility but require significant investment. 

White-label platforms, on the other hand, are affordable, fast, and effective for companies that need to hit the ground running.

Next, we’ll compare them in more detail to help you make the right decision for your business.

Custom vs. white-label delivery software: key differences

Here, we’ll compare how custom and white-label delivery software stack up across key categories.

Cost

Cost is often the deciding factor when businesses choose between custom and white-label delivery software. 

Each option comes with its own financial implications, both upfront and long-term.

Custom software requires a significant upfront investment – here’s a ballpark estimate on how much custom software development costs, depending on complexity: 

Custom software development cost

Custom delivery software requires advanced or complex features, so it usually costs $100,000+ to build.

And it comes with other costs, too, like maintenance – typically, this comes out to 15% to 25% of your original development costs.

But, you fully own the software and you can easily adjust it to your specific needs and requirements.

White-label delivery software, by comparison, will cost you $30,000-$50,000 for a ready-made product you can deploy (almost) immediately – that’s 50%-70% cheaper!

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Also, your white-label provider will handle maintenance, updates, and support which drives costs down even further.

So, for small and medium-sized businesses, this is a lower-risk, lower-cost alternative that avoids the complexity and costs associated with custom software development.

Time

If you’re facing market pressures or tight deadlines, time is a crucial factor.

So, how do these two compare on that front?

Let’s start with custom software.

Building custom software takes considerable time since every feature is built from scratch to fit your specific needs.

This ensures precision but requires thorough planning and can easily take 6+ months, even over a year, depending on complexity.

And you need to dedicate enough time to every stage of the custom software development process, if you want to get it right.

source: Trustshoring 

White-label software, by contrast, is ready-made – the platform is pre-built and you only need to add your branding.

Implementation can take just a few days to a few weeks, depending on the level of customization you want.

If you need to launch your delivery service quickly, you can get it up and running within weeks with a white-label platform.

So, if you’re in a time crunch, white-label delivery software is your best bet.

Features

Features are a key differentiator between custom and white-label delivery software. 

When you choose custom delivery software, the feature set is entirely in your hands. 

You can design every aspect of the system to meet your unique requirements, no matter how complex they are. 

For example, you can add complex features like:

• Custom routing algorithms
• Predictive analytics tools
• Advanced custom integrations
• Advanced security protocols
• Custom workflows and task automation

And with custom software, you also have the flexibility to add new features any time you want as your business evolves.

White-label delivery software comes with a predefined set of features that are designed to cover a wide range of standard needs, from order management and GPS tracking to customer notifications. 

For many businesses, especially small to medium-sized operations, these features are more than enough to run an efficient delivery service.

However, the downside is that if you need specialized features, white-label software might not have the flexibility you need. 

Scalability

Scalability is a crucial factor for any growing business. 

Scalability is the ability of a system, software, or business to handle more users and data volumes without a drop in performance.

As your delivery volume increases, your software needs to be able to handle the additional load.

It should be able to scale both vertically and horizontally, like this:

source: Tutorial Dojo

So, how do custom and white-label delivery software stack up?

Custom software is usually designed with scalability in mind. Since it’s tailored specifically to your business, you can ensure that it grows alongside your needs.

Whether you’re expanding into new markets, increasing delivery volumes, or adding more complex functionalities, you can easily adapt it.

White-label solutions are built for immediate use, but they come with certain scalability limits.

Most white-label platforms are designed for small to medium-sized businesses with moderate delivery volumes, so if your business grows rapidly, white-label solutions might struggle to keep pace.

But, this primarily depends on the provider you choose and if their solution uses cloud services like:

• AWS
• Google Cloud
• IBM Cloud
• Microsoft Azure
• Oracle Cloud

If it does, it will be just as scalable as custom software – but this isn’t a guarantee.

When should you choose custom delivery software?

Custom delivery software isn’t the right fit for every business, but does offer some specific benefits.

Here’s when it’s the right choice:

• You have complex business needs – If you have highly specialized operations, custom software can meet your unique needs that off-the-shelf solutions can’t handle, e.g. advanced features like multi-country compliance. 
• You expect rapid growth – Custom software is ideal if you’re expecting a significant expansion, like aggressively entering a new market, since it can easily scale with your operations
• You want full control – Custom software offers you complete control and ensures the platform aligns perfectly with your business needs. Also, you get full ownership of your data. 
• You need deep integration with other systems – If you rely on multiple internal systems and need everything to work together smoothly, custom software is your best bet – it can easily integrate with systems like inventory management, CRMs, or ERPs.
• You want to innovate and differentiate yourself – With custom software, you can innovate and build features that set you apart from your competitors.

It’s a significant investment, but it pays off if you have complex delivery needs white-label software can’t handle.

Pros and cons of custom delivery software

When should you choose white-label delivery software?

White-label delivery software is a practical and cost-effective choice for many businesses. 

Here’s when it makes the most sense to choose white-label over custom solutions:

• You’re on a limited budget – If you’re on a tight budget and need to control costs, white-label software is significantly cheaper.
• You want to launch quickly – White-label platforms are ready-made, allowing you to launch your delivery solution quickly. This is key if you’re responding to urgent demand or seasonal peaks. You can start operating within days or weeks, not months.
• You need a simple delivery solution – If your delivery operations follow a standard model, e.g. simple order dispatching, basic tracking, and customer notifications, a white-label solution offers all the necessary features without the cost of custom development. 
• You have limited internal IT resources – White-label software providers handle all the technical aspects, from security updates to feature enhancements. This lets you focus on your core operations without worrying about the technical side.
• Short-term or pilot projects – White-label platforms are perfect for businesses testing delivery services or running short-term projects. White-label software lets you get started quickly and adjust as you gather data and feedback.

White-label delivery software is the best choice if delivery isn’t your main business and you don’t want to spend a fortune on development.

Pros and cons of white-label delivery software

Custom vs. white-label delivery software: FAQs

Need white-label delivery software?

Are you thinking about adding a delivery service to your business but don’t want to break the bank?

You’re in the right place.

We offer a white-label, fully extensible delivery solution you can customize to meet your specific needs, no matter your industry or company size.

And compared to building a custom platform from scratch, it can save you $100,000+ in costs.

If you want to learn more, reach out to us, and our team will give you a 30-minute demo to see if it’s the right fit for your needs.