Private Label Dropshipping: A Beginner’s Guide

Are you on the hunt for an easy-to-manage online business idea? Well, let me introduce you to private label dropshipping! This sweet setup lets you skip the stressful product development stage and get straight to branding an existing product. Once that’s done, you can sit back and let a dropshipping partner handle the rest – picking, packing, and shipping your product straight to your customer’s doorstep.

Did you know that one in four shoppers actually bought private label brand products last year? And a whopping eight in 10 people are keen to do so in the future! So why not take advantage of this high demand and start your own private label dropshipping store? Let me show you how!

What is private label dropshipping?

Private label dropshipping is when you sell third-party products directly to customers, but with your own branding on those products. This means that you can create your own brand without the hefty upfront costs associated with traditional private label businesses.

With private label dropshipping, you don’t have to worry about storing inventory or fulfilling orders. Instead, a third-party dropshipping supplier takes care of those tasks for you. This allows you to focus on marketing and building your brand.

Another benefit of private label dropshipping is that you can test out different products without committing to large quantities upfront. This is especially helpful if you’re not sure which products will sell well.

Overall, private label dropshipping is a great option for anyone who wants to start an ecommerce business on a budget. It’s a low-risk way to build your own brand and sell products online without the stress and financial burden of traditional private label businesses.

Related:

• What Is Dropshipping and How Does It Work?
• What Is a Private Label? How Private Labeling Works

Dropshipping vs. Private Label

Deciding whether to use dropshipping or private labeling for your business can be challenging. Both approaches have their pros and cons, and it’s essential to understand which one would suit your needs better.

Dropshipping is a fulfillment method where a store doesn’t keep the products it sells in stock. Instead, the store buys the product from a third-party supplier and has it shipped directly to the customer when an order is placed. This means that the store owner does not have to worry about inventory management, storage, or shipping logistics.

On the other hand, private labeling involves selling products under your brand name, which are manufactured by another company. In simple terms, you’re putting your label on a product that has already been designed and produced by someone else. Private labeling allows you to sell unique products under your brand name without incurring the expenses of creating them.

When it comes to choosing between the two, your decision should be based on several factors such as your business goals, available funds, marketing strategies, and customer needs. It’s essential to weigh the advantages and disadvantages of both dropshipping and private labeling to determine what works best for your business.

For more information, check out my article “Dropshipping vs Private Labeling”. 

Examples of private label dropshipping products

If you’re looking for private label products to dropship, there are many options to choose from. Some of the best ones are generic products that you can add your own unique touch to. Here are a few examples:

• Clothing
• Beverages
• Coffee
• Soaps and skin care products
• Phone cases
• Supplements

If you’re interested in sourcing products in a growing niche, consider Nielsen’s recent report on the most popular items during the pandemic. Packaged atta, rice, and honey saw a significant increase in popularity, so you might want to explore these options.

Another great choice is print-on-demand products such as mugs and engraved jewelry. These items are always in demand and can be customized to your liking.

So, go ahead and start exploring your options for private label products to dropship. With a little creativity, you can make these products your own and build a successful business! For more information, check out our list of the best private label products. 

Best practices for dropshipping private label products

Are you eager to launch your own ecommerce store? Follow these simple steps to turn your private label dropshipping business into a successful venture.

Check the supplier’s reviews to ensure its reputation

If you’re planning to sell private label products on your ecommerce website, it’s important to find a reliable dropshipping supplier who can handle the production, fulfillment, and shipping of your goods. But with so many options out there, it can be hard to know where to start. Here are a few platforms to consider:

• Dripshippers
• AliExpress
• Alibaba
• Spocket

Once you’ve compiled a shortlist of potential suppliers, take the time to read reviews from other businesses who have used their private label services. These reviews can give you valuable insights into what it’s like to work with a particular supplier, the quality of their products, and how responsive they are to customer support requests.

Keep in mind that if you choose to work with a dropshipping supplier, any mistakes they make will ultimately be your responsibility to fix. So it’s crucial to do your research and choose a supplier you can trust to deliver high-quality products and reliable service.

Request product specs and branding info from the supplier

When searching for a private label supplier, it’s important to get all the necessary information upfront to ensure a smooth and successful partnership. Here are some things you should ask your potential supplier to share:

• Product specifications: This includes important details such as weight, size, material, and color.
• Branded packaging specs: Make sure to ask about the materials and logo file formats needed for your packaging design.
• Shipping timescales: Quick and free shipping is a must in today’s online shopping landscape, so don’t forget to clarify this with your supplier.
• Product certifications: For certain products like food, cosmetics, and pet products, it’s important to make sure they are FDA-approved or meet other relevant certifications.

Once you’ve found a supplier that meets most of these criteria, it’s time to send them your branding ideas. This can include your brand name, color scheme, and any other customizations you want for your packaging.

Remember, clear communication is key to building a successful private label partnership. So don’t hesitate to ask your supplier any questions or concerns you may have along the way.

Look at your personal interests

When it comes to choosing private label products to sell, it can be tough to know where to start. But don’t overlook the value of your own personal interests and passions.

For instance, if you’re a skincare enthusiast, you probably have a good idea of what makes a high-quality product. You know which ingredients to look for when selecting your own skincare items, and you have a good idea of the results you expect to see.

By leveraging your personal interests and expertise, you can make more informed decisions when it comes to selecting private label products to sell. This can help you to better understand your target audience and what they’re looking for in a product.

So, take some time to think about your own hobbies and interests, and consider how you can use this knowledge to your advantage when choosing private label products to sell. With a little bit of research and creativity, you can find products that resonate with your audience and help your business thrive.

Try the product yourself and see how it works

So, you’ve selected a supplier for your private labeled products. Congratulations! Now it’s time to test your products before launching them into the market.

To ensure quality control, order a sample or batch from your supplier. However, make sure to check their minimum order quantities before making a purchase decision. Once you receive the products, examine if they all look and function the same way. It’s crucial to have consistent quality control for your products.

Testing your products also gives you an opportunity to experience them from a customer’s perspective. Unbox the package and use the product yourself to understand the customer experience. This will give you a great foundation for your marketing strategy.

To take your marketing strategy to the next level, consider posting a video of yourself using the product on social media. Platforms like TikTok are great for behind-the-scenes content from brands. Posting a video on TikTok can help generate buzz around your product and attract potential customers.

Determine your ideal audience and discover your niche

When starting a dropshipping store, it’s easy to get caught up in the idea of selling a wide variety of products. However, this approach may not be the most effective way to build a successful business.

To stand out from the competition, it’s better to choose one product and focus on it. By doing so, you can discover your target market, understand how they use the product, and what motivates them to make a purchase.

Experiment with different marketing channels, such as SEO or email marketing, to engage with your ideal customers. It’s essential to choose an ecommerce platform, build your website, set your profit margin, and add your chosen product to your store at a markup.

When you receive an order, send the order information to your supplier and have them print, pack, and ship it to the customer. This process saves you from having to hold inventory, and your supplier takes care of the logistics.

Remember, successful dropshipping companies focus on building a brand around their private label products. To achieve this, become known for one thing aimed at a target market of one type of person. A strong niche reputation will make it easier to expand your business later down the line.

Final Words

So there you have it, folks – the lowdown on private label dropshipping! It’s the perfect fusion of private label selling and dropshipping, making it an awesome choice for anyone looking to break into the world of ecommerce. 

Whether you’re into fashion or tech gadgets, you can easily find a trustworthy supplier and get your hands on all the product specs you need to start selling the products you’re passionate about.

For more guidance, sign up for my online business coaching.  

Private Label Dropshipping FAQs

Why should I choose private label dropshipping over regular dropshipping?

Private label dropshipping allows you to sell branded products, which increases the perceived value of your product and builds brand awareness. This leads to higher return rates and sales compared to regular dropshipping.

How can I create a logo or label for my private label brand?

There are a few options for creating a logo or label for your private label brand. You can hire a Shopify Expert from the expert marketplace to design one for you, use Shopify’s logo-making tool called Hatchful, or design one yourself using a free tool like Canva.

Where can I find private label dropshipping suppliers?

Platforms like SupplyMeDirect, Dripshippers, and Apliiq are great places to start your search for private label suppliers. However, it’s important to vet potential suppliers by checking their shipping timescales, minimum order quantities, and customer reviews before making a final decision.

Is it difficult to get into the dropshipping business?

Setting up your store and finding a supplier is relatively easy, but finding your target audience, researching products, and maintaining a sustainable profit can be challenging. However, with patience, determination, and continuous efforts in marketing and improving your site, success is achievable.