A white label site is when a merchant makes a copy of their website available to be used by their affiliates. They typically have no branding from the original merchant so that you can add your own brand name to it, hence the name.
That way, if you signed up for a white label site and cakled it say, "Elaines dirty XXX book store" then that'd be who the customer percieved as the brand name. The site often states something like in "association with..." to keep the original merchant in the frame and add credibility to the store but not always.
It's useful because it allows a site to extend its brand awareness without actually creating anything, and white label sites usually carry more stock listings than an affiliate site will list, potentially increasing the chance of a purchase.
A popular white label scheme at the moment is mobile phone ringtones, logos and services but there are schemes for most things if you look hard enough.
Hope that helps,
Steve
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