Dropshipping private label is a term that you will probably hear if your eCommerce business involves dropshipping.
Dropshipping has been a hot topic lately, with many people saying that it is better than standard dropshipping.
Dropshipping private labels is for everyone. Are you more successful? Is it more profitable? If so, where do you start? To answer all your questions about private label dropshipping, we have created an Ultimate FAQ Guide.
Let’s get started!
What is Private Label Dropshipping?
Dropshipping private label products is when your product will be made specifically for you with your branding.
This branded dropshipping type is better suited for tested bestseller products.
This does not necessarily mean you will be the manufacturer of the product. You will usually have a contract with third-party factories that will produce the product according to your specifications. This includes quality, look and branding as well as packaging, sizing and materials.
What is the difference between private label dropshipping and white label dropshipping?
We often use the terms “private label” and “white label” as synonyms. This is not true.
White Label Dropshipping is similar to the previous product. You can ask the supplier to add branding to existing products they make for dropshippers.
You won’t however be able mix the production or select detailed product specifications.
Dropshipping is a different option. A factory will produce your product exactly as you specify. You’ll also have greater control over the production process.
Let’s take beard oil as an example.
Dropshipping private label allows you to find a company that makes beard oils and give them your recipe. Your branding will be added to the entire manufacturing line that is created by the factory.
Dropshipping white label is possible by finding a supplier or factory that makes the type of generic beard oil you want and asking them to add your logo.
White labeling allows them to produce the oil for you, but they won’t make it specifically for you. Dropshippers can buy the same oil but with different branding.
Private label dropshipping is selling a product that you have made from scratch. White-label dropshipping is where you use a generic product but add your branding or label.
What is the difference between private label dropshipping and standard dropshipping?
There are two main differences between generic and private label dropshipping: the products that you sell and how you source them.
Private label dropshipping, as the name implies, means that a whole line of products is made specifically for you. Dropshipping agents that have a fulfillment center can ship the order directly to your customers, instead of to you.
You can also build a brand using private label products. This will help you stand out from your competition.
Dropshipping generic products allows you to market multiple products and you can place orders to your supplier or agent. You then pay to have the product sourced and shipped.
Dropshipping private label products is usually limited to one product. However, you can dropship standard products with many niches until you find the perfect one.
Are you a beginner? Is it better to dropship using standard dropshipping or private label dropshipping?
Dropshipping is probably better if you are a beginner and have not yet found your best-selling product. It allows you to try different products without committing.
Private label products that are successful are often tested and proven bestsellers. This business model is better suited for those who know their product will be a success.
If you aren’t sure what product you want to sell, you can opt for Aliexpress dropshipping.
Dropshipping private labels is an option if you have already reached your target audience and found the best-selling product for you.
How to turn a dropshipping store into a private label dropshipping business?
Although it can be difficult to convert your online store from a generic store to a private-label store, there is a simple way.
Stage 1: Product Research
It’s better to open an online shop like Shopify and sell generic products first. This is your testing phase, when you will see which products are selling well.
Stage 2: Target Audience
You should now be able create a buyer persona for your ideal customer. To find the best target audience, test different ones. It is important to have a target audience in mind.
Stage 3: Finding a Bestseller
You should conduct product testing and audience testing to determine which product is the best-selling and the types of buyers you should target.
Stage 4: Finding a Supplier/Manufacturer
Once you have identified a target market and a bestseller, it is time to locate a reliable supplier.
Factory manufacturers will always offer you a better deal than private labeling with Alibaba. So, try to work directly with factories.
This might seem difficult, as most of the factories are located in China. But don’t worry! There are solutions.
Stage 5: Fulfillment Center/Dropshipping Agent
Dropshipping agents in China and fulfillment centers in China are two of the best ways to open an eCommerce store.
They can source products directly from factories, and they can also agree to private label services. They can also provide quality inspections and factory audits to make sure the product is exactly what you want.
Stage 6: Designing and branding
After you have chosen a trustworthy dropshipping agency, it’s time to start designing your logo, brand colors, and so on.
You can find someone to help you if you are unable to do it yourself at 99designs.com and Fiverr.
You can then ask your dropshipping agent for help in creating mockup samples.
After you have created your design, you need to know your brand identity. What is your voice? What are you willing to stand for?
Stage 7: Marketing Strategy
After you have resolved the technicalities above, you can begin to define your marketing strategy.
Do you plan to use social media? Paid ads Email marketing? Influencers?
Consider the emotion you want to instill with your clients. Which brand voice will you use and who are your target customers? Is your brand funny? Are you the funny guy?
Stage 8: Order Fulfillment & Shipping
You must fulfill orders promptly once you sell products through your eCommerce store.
A drop shipping agent with a fulfillment centre in China is a great help.
They can store your private label product in their warehouse and will take care of all the order fulfillment, including shipping.
What are the advantages of private label dropshipping?
Dropshipping private labels has many benefits:
- Building a brand
- Better for long-term success;
- Gaining customer loyalty;
- Get the edge over your competitors
- Establishing a network with affiliate sellers
- Higher profits and higher price margins
- Better for influencer marketing;
What are the disadvantages of private label dropshipping?
Private labelling your products has many benefits, but it also has its drawbacks.
- Bulk orders pose a greater risk
- Minimum order quantity (MOQ);
- Dropshipping agents/fulfillment centers are easier to use.
- How to manage stock levels
- Design, branding, bulk order design, all require a small upfront investment.
Alibaba allows private label dropshipping
Yes, you can. You can search for the product name and private label on the Alibaba website. It will return a lot of results.
You will need to manage the order fulfillment and shipping yourself if you order directly from an Alibaba supplier.
This can be tricky if your supplier is in China and you live in the USA.
The actual product prices are another reason this may not work out. A product sourcing agent from China can contact factories directly to offer better prices.
Alibaba suppliers can be factories but also wholesalers, which could make them more profitable.
Which is better for private label dropshipping: Aliexpress or Alibaba?
Private label products have a minimum order quantity (MOQ), which means that you will need to order bulk.
Aliexpress is a B2C (business-to-customer) website, which means the prices will be much higher since the website is not for bulk orders.
On the other hand, Alibaba is a B2B (business-to-business) website, meaning that you can order in bulk, and the suppliers are wholesalers or factories.
Alibaba is the best option for dropshipping private labels.
How do I find dropshipping suppliers for private labels?
You will need to find a way for you to ship and fulfill your orders. You will also need to conduct extensive research to ensure that you are able and reliable in choosing a supplier.
The second option is to source direct from Chinese factories with the assistance of a dropshipping agency. This will allow you to get the best price margin as you are sourcing directly from a manufacturer.
Dropshipping agents that have fulfillment centers can also take care of order processing, fulfillment, stocking and shipping your products to customers.
Which products are the best for private label dropshipping?
You must first determine the supply and demand for the product before you decide on a niche product.
Certain product niches have performed better as private labels:
- Shoes & bags
- Cosmetics (mostly organic, cruelty-free)
- Accessories for cars and motorcycles
- Accessories for your phone
- Yoga accessories
- Water bottles & blenders
- Healthy snacks
It’s a good idea to verify the types of products that your dropshipping agent sources if you have one.
Any product can be turned into a private label. You only need to consider the market demand, production costs, and time.
It is a good idea to always check Amazon, Aliexpress and Alibaba for the most popular items that have been sold in the past period. This will provide you with an indication of market demand so you can make informed decisions.
Is there a minimum order quantity (MOQ) for private label dropshipping?
Yes. A factory or supplier will have minimum orders because you can personalize private label products to meet your needs. This is because the entire manufacturing process has been set up for you.
You can see the MOQ of products you are sourcing through Alibaba private label suppliers.
Dropshipping agents can help you find out the MOQ of different factories if you use them.
How can dropshipping agents help you with private label dropshipping?
A dropshipping agent that offers full-service in China can be a huge help to you.
Private label services are offered by reliable agents. This involves sourcing the product and negotiating with the manufacturer to make it. They will also stock your bulk order in their warehouse and take care of shipping.
How can you follow up on the production of your private label dropshipping products?
This will not be possible if you are sourcing products from an Alibaba supplier in China and live in the US.
Dropshipping agents in China can visit factories to perform factory audits and quality inspections on all orders.
How do you conduct a factory audit of private label dropshipping manufacturers?
The type of product and the manufacturing process will determine whether or not you need a factory audit.
A factory audit may be required for more complex private label products, such as technology.
Private labeling products, such as clothing or cosmetics, can be done with a simple quality inspection.
Dropshipping agents can perform factory audits or quality inspections of products if needed.
Who is responsible for shipping in private label dropshipping?
You can source products through Alibaba and similar sites, but you need to verify if the supplier offers dropshipping or private labeling.
If they don’t, the order fulfillment process is over and you are responsible for shipping.
Dropshipping agents in China should offer private labeling.
How to market and promote private label dropshipping products?
One of the greatest advantages of private label brands are the marketing opportunities that it opens up.
You no longer have a generic store. Now you have a brand. These are some ways you can market your brand new product.
If you are looking to collaborate with influencers make sure their following matches your brand. This is vital.
An influencer in fashion, for example, would be a good fit for a brand-named clothing line.
But, if you sell geeky developers merchandise, it’s unlikely that the same influencer will be a good fit.
Facebook, Instagram, or similar networks, are still the best way to reach potential clients.
Start creating a page for your brand product. Make sure your colors and designs remain consistent throughout.
You can upload videos and photos of your product, quotes and polls, or any other information that will keep your community engaged.
Once your page is complete, you can begin to run paid ads to target the exact audience you want.
Without sounding too salesy, content provides value for readers. Instead of promoting yourself, you gain their trust.
Get out your pencils and get writing. Your content can include product reviews, comparisons and clothing tips, as well as recommendations.
Think about the ideal customer.
Subscription boxes and other lead generation strategies such as email marketing are important because of their importance!
This type of marketing is almost free once you have email addresses
One tip: Personalize your emails as much and as often as you can. No one wants to receive spam or generic emails in their inbox. Keep the human touch.
Giveaways and promotions
To keep your followers engaged, you can use various polls, games and giveaways. Keep in touch with potential clients and communicate regularly to build trust.
Even if they don’t purchase right now, they’ll come back to you in the future, even if they haven’t bought yet.
Private Label Dropshipping Suppliers USA
Modalyst main products focus is on designer brands, eco-friendly and high-quality private label manufacturers in the USA. Private label Dropshipping products include shoes, accessories and apparel in millions.
The platforms are strong in automation so you can process with ease. Regular inventory updates and product updates ensure that you are always aware of the latest private label products and those in low supply. It is not a good idea to sell products that are out of stock when customers place orders.
Modalyst comes with an app for Shopify, Wix and Bigcommerce. You can take advantage of the powerful features listed above if you are using one of these platforms.
To Sum Up
Private label dropshipping can be a very lucrative eCommerce business model if done correctly.
The most important thing about dropshipping branded products is to have your branding developed well and find the right dropshipping agency.
Dropshipping is a good option if you don’t know what to do. Once you are able to figure out how it works, you can start dropping shipping.
Need help with the transition from generic to dropshipping private label? We are available at all times. Register now for a free trial and let’s talk about how we can help you grow your online business.