Private Label Dropshipping is an entirely advanced aspect of any Dropshipper who wants to take E-commerce to another level.
These days, it is now easy for any random person to start and scale a profitable online store without having any stock as inventory.
Dropshipping is a part of E-commerce that is as profitable as whatever I cannot overemphasize.
So, I don’t know if you are new to Dropshipping or you are already in the Dropshipping Business.
This guide is going to take you by hand on how you can start and scale a profitable private label Dropshipping business without leaving anything behind.
It is going to be a beginner guide for anyone thinking of doing a private label Dropshipping business.
You won’t need to buy any gurus’ course after you are done with studying and implementing the information in this guide.
Below Is What Will Be Discussed In This Content;
- What is Private Label Dropshipping?
- Benefits of Private Label Dropshipping for Your Brand.
- Steps In Launching Your Private Label Dropshipping Brand.
- How To Do Private Label Dropshipping.
So, first, let us look at what Private Label Dropshipping means and the benefits that you stand to enjoy from doing it.
What is Private Label Dropshipping?
Dropshipping is the act of promoting and selling other brands’ products majorly through an online store that belongs to you and clearing the products to your customers’ location.
In doing this, you are not the owner of the product – but you are only promoting it, and when an order comes from your store…
…you immediately contact the supplier and send it straight to the customer’s location.
Also, the brand name that will be on these products will be that of the producer or supplier.
The same is also applied to private label Dropshipping but the difference is that your brand name will be imprinted on these products.
This means, once an order arrives from your store and the customer pays.
You will immediately contact your supplier to send your branded label product to the customer.
Although this involves more extra steps than the normal Dropshipping it has its benefits.
Let us quickly look at the benefits of Private Label Dropshipping which you need to know.
Benefits of Private Label Dropshipping for Your Brand
Some benefits apply to Private Label Dropshipping and we will be talking about them in this guide.
- Improves Brand Awareness.
- Increases Profit Margins.
- Lower Operating Costs.
- Reduces Production Stress.
- Builds Brand Loyalty.
1. Improves Brand Awareness:
The ability to improve brand awareness is the advantage of doing private label Dropshipping.
When you start having a branded label for your Dropshipping products – then your awareness keeps improving.
Matter of fact, that is the Genesis of you growing a successful brand and even having a manufacturing company.
Because your brand name will now be known by many people who are already using your product.
Whenever the products are being used by your customers – people will always see your brand name on them.
Now, guess what – you shouldn’t just stay complacent with this – you should have a social media presence for this brand.
Because that is where your prospective customers are going to research to see more of your brand.
So, your awareness will keep growing and before you know it – you see yourself having a company owned by yourself.
Although this takes a lot of dedication and consistency and also delivery of quality products.
You cannot expect to have your brand label imprinted on crappy products and anticipate a fantastic turn-up.
No! People are not going to patronize you and this will hurt your young brand that is just developing.
So, the ability to get a lot of awareness when doing this – is the first benefit that will easily make your brand name or become a household name.
Some top brands do this type of business up till now – a company like Nike does this.
Not all shoes are produced by them, they also outsource some and imprint their brand name in form of Dropshipping.
So you are in the right business and should be happy to kickstart an awesome Private Label Dropshipping business.
2. Increases Profit Margins:
Now with Private Label Dropshipping, your profit margin will increase over time.
And the reason for this is because you can easily Increase the prices placed on these products since they are automatically yours.
Anything that has your brand name on it belongs to you – so, you don’t necessarily need to be scared.
But the amazing thing is that your profit margin will skyrocket which is a fantastic benefit.
Now, once people see more about your product on other people’s body parts.
They will go online to search for your brand and your website, right?
And since you are Dropshipping the best products and labeling them as yours – you will see a lot of requests.
Even some might not be close friends to your customers – but just with your label which they have seen.
They will get in touch with you and you start getting customers whom you are not spending a dime in the aspect of time or money to get.
You are easily getting these customers on a platter of gold and they will keep coming to your websites and platforms.
That’s why you see some successful marketers always surprise when they get a lot of orders.
They will be surprised because their adverts don’t convert that much and they haven’t experienced such turn-up.
It is the benefit of rendering the best service and also labeling their business which people already know about.
If you are to be doing a normal Dropshipping business – no customer will know that a product belongs to you.
Because it is the producer or supplier’s brand that will be written on the product.
So, you will need to keep finding more ways to get new customers for your manufacturing brand.
And these customers will keep contacting your manufacturers again and again.
But when the products are yours – you will be the one they will keep coming back to.
3. Lower Operating Costs:
Now, when it comes to producing a product all by yourself – you know the amount of operational cost that you will incur.
A lot of overhead expenses that you have to settle daily, weekly, monthly, and yearly is not an easy investment.
But when you are doing Private Label Dropshipping – you have eliminated all these expenses.
Because they have been produced for you and all that you need is just add your private label.
So, you don’t have to produce goods by yourself because you have already bypassed all that.
Your manufacturing company has incurred all that cost for you and you don’t have to employ workers.
All that you need to do is just work more on your marketing process and keep scaling at the top.
So, the only operational cost that you are incurring is the marketing cost of going customers every day and the cost of printing.
And is that even a cost? I doubt that! Your marketing budget is an investment that is always yielding out extra profit for you.
So, private label Dropshipping is a very profitable business for anyone trying to own their brand.
You are not incurring any cost that should have been needed to run a big company and produce those products.
And the thing about these labels is that some manufacturing companies can even help you imprint your brand label without you making use of any supplier or middle agent.
4. Reduces Production Stress:
The stress of producing products all by yourself is reduced either you are good at anything.
If you are very good at producing footwear for example just with local materials that are within your neighborhood.
You might not need to stress yourself much with producing your footwear because you already have products available on Dropshipping websites.
You can just easily send them what you need and chat with the manufacturers to send your customers the footwear.
Also, your brand name is imprinted on the footwear since you are doing Private Label Dropshipping.
This benefit alone is also a very important aspect because you don’t need to stress yourself with production.
Your focus should be majorly on the marketing aspect of promoting your Dropshipping store.
I have to be frank with you – the cost and expenses that manufacturers incur in the aspect of production are much.
That is why many marketers are happy that an opportunity like Dropshipping exists and the ability to even private label their brands.
So, this is a great opportunity for anyone who is thinking of owning their brand and becoming a top brand.
Because all the aspects of expenses are gone which you should have incurred.
What about creating relationships with workers during the production aspect of your goods?
These are some of the things that you have a bypass and it’s a great opportunity for every marketer out there.
The stress of producing goods is much and we thank Private Label Dropshipping for making things very easy for us.
5. Builds Brand Loyalty:
The moment you have a brand that is producing quality products – that is the moment you start having loyal fans.
Your social media followers will increase and if you are even going the extra mile to collect email subscribers – you will have a lot of quality subscribers.
The indulgence of anybody in Private Label Dropshipping is the beginning of building loyal fans.
Your brand will become top-notch and you will begin to compete among other brands.
All these are done without you having any idea of how the products are being produced and also without even having any inventory.
The products are kept at your suppliers warehouse and you don’t even have any idea of how the product looks.
Except if you just want to order a piece for yourself to check it out and see how it looks.
Now, this is something many of the brands out there that you see having thousands to millions of social media followers are doing.
They have no idea of how the production phase of the product goes and don’t even know the production costs.
All they do is involved in Private Label Dropshipping and they start building loyal fans online.
All they focus more is on the marketing aspect of their brand and that is why I am trying to repeat this for you to know.
So building a loyal brand is what you enjoy when doing Private Label Dropshipping.
Steps In Launching Your Private Label Drop shipping Brand
There are several steps involved in launching a profitable private label Dropshipping brand.
These steps are very important because it is what will determine your success in this line of business.
And we will go deep into discussing them in the next aspect of this guide. So, let us dive deeper.
- Brainstorm the Best Niche For Your Dropshipping. Business.
- Design a catchy eCommerce website.
- Upload your Dropshipping Products.
- Promote your Dropshipping brand.
1. Brainstorm the Best Niche For Your Dropshipping Business:
The first thing that you have to do as a Dropshipper is to brainstorm the most profitable niche for your brand.
You need to go with the niche that you have seen a lot of successful people or a few successful people in it.
Also, you should desist from niches that are saturated – although people do say that we have no competitors.
And that we are our greatest competitors but what you have to know is that there is a lot of goodies in the niches that are not saturated.
If for example, you are going into the fashion niche – you will automatically know that there are a lot of competitors in the fashion niche.
But you can always dig down in this fashion niche to look at some sub-niches that can help you scale-out
I hope you understand what we are implying here?
So, instead of just focusing fully on fashion generally and moving from one fashion product to another.
It is best to just channel your energy on a sub-niche in that fashion aspect.
If you are a mother who already has experience in babies – you can easily focus on the “Clothes for babies” niche.
Then people will already know that your brand is fully focused on anything babies wear.
This is the way to scale up and the reason for this is because you cannot continue to rely on paid adverts all the time.
You also have to use organic methods to get customers in any way possible and the only way organic can work for you is when you are fully focused on a niche.
When you are focused on a niche – you will be known for that aspect and your Private Label Dropshipping brand will quickly scale.
So, your priority should be on the best sub-niche that you should focus on and not just go into something generic.
2. Design a catchy eCommerce website:
Now, another important aspect that is the next step of your private label Dropshipping business is the website.
You have to design your website in an E-commerce way – that customers can easily read and buy.
Now, if I am to advise – I will prefer you design your Dropshipping website in a way that gives a full explanation of a product.
And not just design it like the normal Dropshipping or E-commerce website that we do see.
Since you are not involving in the shipping and clearing of the product by yourself.
Spend time to give the best effort to the marketing aspect of your business.
Because when you give a detailed explanation of your products and you have already included your brand label in the picture.
And also, you give it explanation just like the way Amazon gives enough explanation of their products.
You can easily go on Amazon.com to see how they list their products.
And when you click on each product – you will see enough detailed explanation given on each product.
These are the things that will convince someone to buy from your Dropshipping website.
So, don’t just upload images of a product and write a short caption and leave it hanging.
That is why I advise you to focus on sub-niches where you can write more words on and dominate.
Also, you can easily go on YouTube to watch Free tutorials on how to design an E-commerce store.
Or you can hire some website designers on Upwork to design a very catchy website for you.
3. Upload your Dropshipping Products:
Now that you have set up your Dropshipping website and it now looks ready for serious work.
The next aspect is to upload some products on your Dropshipping website and this is where your work starts.
Look, you cannot afford to keep outsourcing things – the only aspect I can advise you to outsource is the aspect of website creation.
But in the aspect of uploading products on your Dropshipping website and creating valuable content for it.
It is advisable that you are the one doing it all by yourself or you can hire someone that you will be paying little cash per month.
But when starting – make sure to be the one doing it yourself – so that life can be easy for you.
That is why your website must be a WordPress Dropshipping website that will be easy for you to access.
Always make sure that you tell the website developer to develop your Dropshipping website with WordPress.
Also, I made mention going to YouTube to watch Free tutorials on how you can design an E-commerce or Dropshipping website on YouTube.
There are a lot of free tutorials that you will always find on YouTube concerning the creation of e-commerce or Dropshipping websites.
Also, you can go there to look for tutorials on how to make use of WordPress to upload E-commerce products.
But always make sure that you write detailed guides on each product just like I implied earlier.
Don’t just upload products and expect miracles to happen.
Also, on your website – make sure that you are writing review guides – to rank on the search engine of Google.
Billions of people search for solutions and products every day on Google – so, make sure that you are writing articles that will rank on Google.
Review articles that talk about the difference between products A & B Is a nice article that will bring you money organically from the search engines on your website.
4. Promote your Dropshipping brand:
It’s time to promote your private Label Dropshipping website.
Just like I stated, you cannot fully rely on using paid adverts all the time to promote your website.
You have to make use of both paid and organic ways to promote your Private Label Dropshipping website.
Because this is the only way for you to easily attain success in your private label Dropshipping line.
So, you can always run paid adverts to your website and reach a lot of people within few days.
Now, let me quickly give you free knowledge which other gurus will charge you a high amount to teach.
the majority of the dropshipping gurus don’t even know about what I am about to share with you.
Now, if you want to run paid adverts – don’t just run paid adverts to your website homepage.
Or run an advert for a particular product on your website and expect sales to skyrocket and miracles to happen.
No! The best way for you to run paid adverts and get successful with it – is by running paid adverts to a review article.
Just like I stated earlier that you should be writing a review article on your Dropshipping website.
You are supposed to run paid adverts to a review article that talks about a topic and now give recommendations of different products they can buy on your website to solve that problem.
It’s just like when you go to consult a dentist for a tooth problem and the dentist educates you on what’s wrong and what you shouldn’t do.
And now gives you medicine as a solution to your problem which you have to buy at their pharmacy.
That is exactly what you are doing here… you will write a detailed guide on a problem around your niche.
Then, give them your products as a solution and recommendation to help make life easy for them.
This is the way to make every cent you invest in paid adverts work for you.
You can easily run Facebook, Google, Or YouTube Adverts for your Dropshipping store.
Depending on what type of product that you are selling and which platform your audience is always available on.
How To Do Private Label Dropshipping
The next aspect of this guide is how you can start doing Private Label Dropshipping.
How can start doing your private label Dropshipping after you’re done creating your website and promotion?
Although, you need to have all these ready before you should start promoting your Dropshipping store.
So, let us go deep into how you can do your Private Label Dropshipping successfully without any glitches.
- Create Your Business Plan.
- Research For The Best Product.
- Get A Very Good Dropshipping Supplier.
Get Your Quotation
- From Supplier.
- Store Your Goods At Their Warehouse.
Instruct The Suppliers On Any Order.
1. Create Your Business Plan:
The first thing that should be your priority is to create a business plan for your Private Label Dropshipping.
When you have a business plan in place – everything becomes easy for you.
Because any entrepreneur without a plan is very much likely to fail and even if your plan is not going as planned – your decision must remain intact.
So, you need to build a plan concerning how much you have at hand and how much you want to invest in printing your label and promotion.
Also, you need to have a niche in mind that will be successful and can be the profit you.
I already talked about selecting a niche in the other aspect of the guide – but you must select a profitable niche.
Also, when your niche is not too Saturated – you can easily start getting high conversion in SEO.
Your Dropshipping website can also have a blog area that will be ranking high on the search engine of Google.
So, having a business plan is important as that is what will help you attain early success in Private Label Dropshipping.
2. Research For The Best Product:
Just like I stated earlier in the benefit aspect of this guide, you are supposed to research for the best products.
Now, to do Dropshipping – websites like Alibaba.com, AliExpress.com, and 1688.com are the platforms where you can get cheap and quality products.
Now, many people do say Chinese products are crap and not good.
But that’s blasphemy because those lamenting that are also surfing these websites.
They go to these websites to buy products and resell in their country and keep saying others shouldn’t buy from Chinese manufacturers.
The majority of the products on Earth are made in China and even majority of the products on Amazon are china products.
So, these websites I just revealed here are Chinese websites where you can easily get your products at extremely cheaper rates.
Now, among the websites – the one where you can buy at the cheapest rate is 1688.com.
But it’s a Chinese website and you need to keep translating from Chinese to English before you can transact successfully.
The website is mainly for Chinese and not for foreigners – but Alibaba and AliExpress are for foreigners.
So, you can easily make use of AliExpress and Alibaba to do your research on the best products to buy.
They have quality products – you only need to look at the review of each product and see what people are saying.
Don’t go for products that don’t have good reviews – go for products that have like 5 Stars reviews.
That is the best way to get the best product on this website.
3. Get A Very Good Dropshipping Supplier:
Now, once you are doing your Dropshipping, it won’t be easy for you to do the clearing.
So, you need to have some suppliers that will help you in the aspect of sending your products to your customers.
The manufacturers don’t deal much with sending of products and it might even take months for the products to arrive.
You know, since you are fully focused on Private Label Dropshipping – you need to customize your products to your label.
And you have to keep sending each customized product to your customers who have ordered from your website.
So, you cannot rely fully on the manufacturers because they won’t have the time to keep doing all these.
They only deal in bulk ordering and not helping you do the distribution to final consumers.
So, you need a supplier that is a professional in this aspect which will help you to be doing all these.
Some suppliers are even good I’m doing the private labeling for you.
They will help you order and you will pay them for the private labeling or printing.
So, getting a supplier is important and the supplier that I will recommend in this guide are (Printful and Dripshipper).
You can click on the words and you will be redirected to their website. I am not an affiliate for them.
I only recommend them base on how good they are – so, you can check out their website and get in touch with them.
4. Get Your Quotation From Supplier:
Getting your quotation from your supplier is trying the next aspect because they will always send you your bills.
Like, when some printing has been done on your product or when some delivery wants to happen.
This is when you will get quotations from your suppliers – now, the goods would have been in their warehouse.
This means that you are not the one in the maintenance of it, you only rent a space in their warehouse.
They will be the ones doing the maintenance and supplying of the products to your customers.
They will also be the ones to chat with the manufacturer of your products and get them delivered to their warehouse.
All that you are doing is just to control how things work and the number of goods that will be ordered.
They are more like your top-notch errand boy that will keep doing all the stress you should have been involved in.
The work of your suppliers is much and so when they give you the bill – respect it…Although don’t fall victim.
Dig deep into doing your calculations and make sure that everything is going in the right order.
5. Store Your Goods At Their Warehouse:
I made mention of this earlier – it is necessary to know that your goods will be stored at their warehouse.
If you are doing Dropshipping – It means that the products are not even getting to your warehouse.
Everything is directly from the manufacturer to consumers – but just because it is private label.
You will be producing in a few quantities and you cannot store them in your manufacturer’s warehouse.
Except if you chat well with their representative to help with that.
Also, even if you chat well with a representative – it will take a little bit of time for them to deliver.
Chinese big E-commerce merchants have a lot of orders that they are handling daily.
And their delivery service is just not worth it sometimes – so, it is better to just produce in bulk and store at your supplier’s warehouse.
Also, always make sure that any supplier that you are using lives in your targeted country and can also supply International.
The reason why I stated the targeted country is because if you are living in India for example…
…and you want to be running paid adverts to US people or your organic content is driving traffic from majorly us citizens.
You have to make sure your supply is from the US – that way delivery can be very fast and smooth.
So, that is why you always have to save your products at the warehouse of your suppliers.
And make sure you know where your target audience is coming from before you select t a supplier.
Although, if your suppliers can deliver internationally within few days – it’s also cool.
6. Instruct The Suppliers On Any Order:
Once marketing is going smoothly and sales are coming steady – you will only have to keep instructing your suppliers to proceed with orders.
So, they will send your goods straight to your customers and you will get a confirmation of the delivered goods.
Just make sure that you put much pressure on your marketing so that the business can flow.
Your suppliers will do all the necessary work for you since they are more like delivery agents.
Also, what you have to know is that you have to put pressure on your agents and don’t stay relaxed.
Remember that you are not the only brand they are working for – as they have a lot of Dropshipper they are working for.
Some have more private labeled goods that are more than yours and they have been in the business for a while.
So, you have to always call them and ask for more updates from them – so that your goods can be delivered and your business can keep scaling up.
Private label Dropshipping is a nice business but you have to give it time for it to survive.
Forget all the shiny object syndrome and fake proofs that are flowing on the internet this day.
So, forget all the proofs that are real because those showing those proofs have been in the business for years.
So, if you know this is what you truly desire to do – to live a financially free life.
Then you have to devote your time and give it your best mindset.
Also, make sure that you are using both FREE & PAID methods of getting visitors to your website.
Don’t just rely on paid ads or rely only on organic ads. So, make the two work together and succeed.
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Hit the comment box below to discuss whatever you feel to pour out and I will be ready to reply.
Maverick Ope is the founder of www.digitalproductsmonk.com
Earning $30K monthly promoting affiliate products without start-up capital after learning from his mentor.
Digitalproductsmonk is for struggling newbies, Internet hustlers, and online business owners.
His #1 online business recommendation in 2023, is to build your own AFFILIATE MARKERING BUSINESS.