A brief but essential guide to private label dropshipping - Wepicker

I think you have already read many articles about the dropshipping process, how does it work, and to make money from it. In most cases, these articles tell you to search on a platform like Shopify and contact a supplier and try to drop ship products that maybe you already have problems with them. Have you ever thought about getting rid of these methods? Why should I try to sell the products which I have no control over their quality, and they are not suitable for my ideal online store?

The article which you already are reading will introduce you to a dropshipping method that is more customizable than any other version and make your storefront based on your style.

What is private label dropshipping?

By definition, private label drop shipping refers to products that will be manufactured specifically for you and with your branding. This definition does not mean that you will be the one manufacturing the product.

The correct explanation of “private label drop shipping” is to contact a manufacturer who can produce the product based on your expectation of quality, look, branding, packaging, and dimensions.

What is the difference between private label drop shipping and standard dropshipping?

The main difference between general dropshipping and private label dropshipping is the products you sell and the process of sourcing. As we mentioned above, the goal of private label dropshipping is to provide a product that is particularly suitable for your demands. If you are using a dropshipping agent with a fulfillment center, the order is not shipped to you but directly to your end customers.

Furthermore, as you sell particular goods in your online store, you will gain customer loyalty and stick out from your competitors.

Another critical difference is that you can choose a wide spectrum of products for your storefront with general dropshipping and make a significant and non-specific audience, respectively. On the other hand, you only have to manage a few products in your store to focus more on your business and customers.

Why should I try private label dropshipping?

According to Statista, the total retail sales in the US for private label products hit $5.47 trillion in 2019 and are projected to hit $5.94 trillion in 2024.

Furthermore, there are many advantages which you can benefit from them as you are doing private label drop shipping;

Number one: Control over the pricing

As the products are manufactured exclusively for you, you can run your pricing strategy with no problem, which helps with creating a healthy profit margin.

Number two: Control over the production

The products that you will sell are suitable for your demands, so you have the permission to order manufacturers to provide goods in terms of materials and ingredients, quality, and production rate based on your likes.

Number three: Control over marketing and branding

As we mentioned above, “you” choose how to promote and package private label products before making them available for sale.

Top private label products with massive profit

You should know that most famous brands are not just fooling around with conventional dropshipping; they are using private label products as the cornerstone of a brand marketing machine.

Here, we have listed top products ready for private labeling on famous online markets which you can choose for your business;

Number one: Cosmetics & Skin Care

As usual, many teenagers are trying to start a new decade of their life with a more beautiful face. You can see many customers comparing different cosmetic products from other brands on the internet, commenting about them, and writing reviews. Thus, you have the chance to start your business by focusing on this niche and making a considerable profit.

How many searches have been run on Amazon for each item?

  1. Tea tree oil (130K Searches Per Month)
  2. Charcoal toothpaste (35K Searches Per Month)
  3. Natural deodorant (28K Searches Per Month)
  4. Elf makeup, a cruelty-free makeup brand (25K Searches Per Month)
  5. Anti-aging face cream (11K Searches Per Month)
  6. Organic sunscreen (11K Searches Per Month)
  7. Coffee scrub (5K Searches Per Month)

Number two: Clothing

Again you can use classic categories to start your journey on private label dropshipping. Many people -especially young women- are trying to figure out new fashion clothes on the shopping mall or, as now is increasing, on online markets. You can target this audience and launch a new, chic storefront with stunning clothes.

How many searches have been run on Amazon for each item?

  1. Yoga pants for women (63K Searches Per Month)
  2. Tactical backpack (36K Searches Per Month)
  3. Jean shorts for women (36K Searches Per Month)
  4. Rain ponchos (30K Searches Per Month)
  5. Hiking boots women (26K Searches Per Month)
  6. Maternity dresses (12K Searches Per Month)

Number three: Hair Care

In the third position of our list, we have products which, unlike two previous ones, both young men and women are wondering about having at least one of them. Note that any person has different hair needs, so you have a massive market of goods and customers in this field, which can quickly rocket your business income.

How many searches have been run on Amazon for each item?

  1. Beard Oil (61K Searches Per Month)
  2. Hair mask (26K Searches Per Month)
  3. human hair bundles (21K Searches Per Month)
  4. Hair growth shampoo (12K Searches Per Month)
  5. Hair growth vitamins (11K Searches Per Month)

Number four: Packaged food

Cooking is considered by many people as one the most significant habits in the world. But many people don’t know how to cook correctly, and more people don’t have enough time for it. In this case, you can design a storefront as a fantastic snack seller with many foods and drinks brands.

How many searches have been run on Amazon for each item?

  1. keto snacks (89K Searches Per Month)
  2. CBD gummies (32K Searches Per Month)
  3. Matcha green tea powder (32K Searches Per Month)
  4. Gluten-free snacks (20K Searches Per Month)
  5. Organic baby food (9K Searches Per Month)

How can I convert my dropshipping store into a private label dropshipping business?

Now we have talked about the differences between two dropshipping methods and top items that you can use for your listings; it is time to change. Although it seems complicated, we have a simple process that can guide you to a private label drop shipping storefront.

Step one: Research for products

Before starting to create your business, you have to search for products that can be candidates for your online store. You can begin researching with an online shop such as Shopify with generic products to sell.

Step two: Choose your target audience

In the second step, you have to create the characteristics of an ideal customer for yourself. Test different target audiences to see what works best. Note that having a pre-set target audience is crucial.

Step three: Look for a supplier or manufacturer

In this step, we are going to choose our supplier for our newbie business. Note that you will be responsive to any kind of accident that could happen to their order from customers’ insight, not the supplier. So, make sure your chosen supplier is punctual and confident enough.

Manufacturers such as factories will always give you a better price than online markets. Thus, try to collaborate directly with factories.

On the other hand, you can start to cooperate with shipping agents as an all-in-one solution. Dropshipping agents and fulfillment centers are the easiest ways to create a private label eCommerce store. They can talk with factories directly and mentor your orders process precisely.

Step four: Start design and branding

Once you have found your supplier/manufacturer, you can put a step further and start designing your logo, pages, and themes. You can also ask your shipping agent to help you with creating mockup samples.

If you can’t design your wanted screens by yourself, there are many websites and freelancers on the internet that can advise you to do it better.

Step five: Draw your marketing strategy

Maybe this step is the most important one on our list. Here, you have to decide which tools you will use for business and your plan for the future. For example, Are you going to use social media? What is your goal for advertisement? Do you think email marketing is beneficial? What is going to be your brand voice and target audience?

Thinking about these questions will determine your incoming steps for your online store.

Step six: Order fulfillment and shipping

On the last level, you have to fulfill the order promptly. In this case, shipping agents who also have fulfillment centers could be a big help for you. If you start working with these shipping agents (especially the Chinese ones), you can stock your private label brand product in their warehouse and be assured they will keep your goods carefully.

Some examples of the best private label manufacturing services

As we move further, you may also need to hire a private label manufacturing service to customize your products based on your favorites. In the below list, we have collected some of the best services that can your choice for cooperating;

Number one: Apliiq

With this Los Angeles-based platform, you can order all of your print-on-demand products easily. Apliiq automates order processing and fulfillment, and it ships every order within a week. Apliiq specializes in trendy products like woven labels, pocket tees, and liner hoodies.

Number two: Alibaba

There is nothing to be said. Alibaba is one of the largest platforms which offers one of the most comprehensive directories, connecting suppliers with merchants everywhere. With Alibaba, you can purchase a large number of private label products directly from the manufacturer. This method lowers your inventory costs and boosts profits.

Number three: SupplyMeDirect

SupplyMeDirect is a supplier that ships from the US, EU, and China. You should know all the orders are in USD, and if you have a Shopify store, syncing it to this service’s app will help you save your energy and time.

Number four: AOP+

As the headquarters are in Europe and USA, AOP+ is for selling organic print-on-demand products and services. It executes all the printing itself, as opposed to using a third-party supplier, and it will even work with you to create your custom private-labeled products

Some tips for starting a new brand

  1. Setting good product price points can be challenging. Many variables can hurt profitability.
  2. Your supplier might not be up to the job. Quality control is significant. If you are not getting what you paid them for, you have got an expensive problem on your hands.
  3. improper packaging can harm the customer experience. Protection during shipping is just as important as branding.

Summary

Thank you for reading this article. As you can see, private label dropshipping is a very profitable eCommerce business model when done right. The critical thing about private label dropshipping is that developing your brand well and tracking the customers’ orders is crucial to success in this business. If you still aren’t sure that you can do it individually, you can try private label drop shipping with Alibaba or similar platforms.

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