Private Label Dropshipping: All You Need To Know

December 10, 2020 eCommerce TipsEntrepreneurs

Dropshipping may be one of the best business models out there, but you need to know and do the right things in order to succeed. With competitions getting tougher in different niches, dropshippers need to be bold and creative. One of the strategies many successful dropshippers are adopting is private label dropshipping.

Dropshipping has changed a lot over the years. Sticking to the old methods doesn’t work for anyone again. If you are interested in creating a dropshipping business that can stand the test of time, private label dropshipping is the way to go.

What Is Private Label Dropshipping?

In real sense, private labeling is when a manufacturer creates a product exclusively for a retailer. This means the retailer will sell the product under its own brand. It has been a common practice between big manufacturing firms and big international distributors and retail outlets.

In dropshipping, white labeling is when a product is packaged for a specific brand. In this case, the manufacturer doesn’t have to make the products exclusively for the dropshipper but will package them exclusively for the dropshipping brand. It can also be referred to as branding.

In private label dropshipping, products your customers will buy from your online store will be branded as yours. You don’t have to handle the inventory to achieve this. It works just like regular dropshipping, only that you may have to pay a little more for branding, depending on your supplier.

What Are The Advantages Of Private Labeling?

Firstly, it is important that we state here that many successful dropshippers are using private labeling as a strategy to grow their brand and conquer their respective niches and markets. Clearly, the strategy has many advantages. Here, we will concentrate on the most significant advantages:

Increased Margin

Private label products command higher prices in dropshipping. When your products are of the right quality and properly branded, you can price more competitively and enjoy an increased profit margin. Many retailers reportedly earn as much as 25 – 30% higher gross margins on private labels compared to manufacturer’s brands.

Customer Loyalty

With white labeling dropshipping, it is easier to build customer loyalty. People love to buy from brands they can identify with, and once you are able to make them love your brand, your private label products will sell better.

Lower Marketing Costs

It may appear like private label dropshipping attracts more costs, but the fact is that it actually reduces operating costs in the long run. After a while, your private label products will begin to sell themselves. This means you will spend less on advertising campaigns.

Greater Market Stability

When you are able to get your customers to love your private label products, you can be sure of improved market stability. Many consumers choose products because of quality, consistency, and affordability. Once your products meet their needs, they will likely continue to buy even during economic downturns.

What Are Possible Disadvantages Of Private Label Dropshipping?

While there are several positive things about Private label dropshipping, there are possible downsides you need to be aware of. Here are the most notorious ones:

Minimum Orders

Some manufacturers insist that dropshippers place a minimum order that may be beyond their reach when they want private label products. This can force some to order more than necessary.

Dead Inventory

This is a problem that is mostly experienced by new entrants. The retailer may order a line of private label products that customers do not like, and clearing the inventor will become a big problem.

How to Dropship Private Label

Private label dropshipping is not hard to start and run. Here are the critical steps you need to take if this is the part you want to go:

Find a Dropshipping Supplier

This is the most important aspect of the journey. You need to find a supplier or dropshipping platform that will agree to source and handle private labeling for you. Fulfillman is one of the best platforms for this.

Define Your Brand Identity

This is a critical step that can determine your success or otherwise. Branding is very important, and you need to define your brand identity carefully. It will determine how your audience will perceive you and how well your products will sell.

Improve Your Brand Awareness

This is the final foundation stage of private label dropshipping. Here, you find the best way to boost brand awareness and become a darling to your customers. Among other things, make sure you include SEO, social media, and quality content in your strategy.

Using Fulfillman for Private Label Dropshipping

As hinted earlier, Fulfillman is one of the best platforms you can use for private label dropshipping. The company offers the best branding services in the industry. When you choose Fulfillman, they will deliver the ultimate private label dropshipping experience through:

  • Branding flyers that can help boost your sales
  • Custom branding packages that will give your stock the ultimate look of a real brand
  • Logo stickers that can unify your brand and give it a professional look
  • Gift cards for your customers to boost loyalty
  • And many more.

Working with Fulfillman will give you an edge over others who are also involved in private label dropshipping, but using other suppliers.

Final Words

Dropshipping is changing at an unprecedented pace. Online store owners who can’t adapt to the changing climate will be pushed out. It is important that you stay ahead of trends and use the best strategies to build your business. Private label dropshipping is the real deal now, and choosing Fulfillman as your supplier will give you an edge over your competition.

Contact us today at Fulfillman to know more about our services. We specialize in providing excellent Drop Shipping services, Warehouse fulfillment, China sourcing, Third Party Logistics, and so forth. Our dedicated experts will be available to speak with you and discuss the options available to you. We guarantee you get quality and excellent services that gives 100% client satisfaction.