Create Your Own Brand Throught Private Label Dropshipping 2021

Why create your own brand? And how is it important?

A brand serves to represent one’s business and sends a message to the public and other brands. Brands represent the values and identity with which their consumers and other retailers recognize them. Since a brand generally captures the essence and aim of a business, they directly relate to a business’s reputation and what they are known for.

It is imperative to create a unique and captivating logo design and brand name since profound brand distinction will make it easier for consumers to identify a business and catch the attention of new and potential customers. A brand reflects the quality and services of a company and can be a great way to establish a connection and grow a relationship with customers and other businesses.

What is a Private Label Product?

Products with a private label brand are created by a third-party manufacturer or through a contract and then sold under a reseller’s private brand name and logo. Private label brands take unbranded products and put their personal brand on them to sell as their own line of private label products.

Retailers with private brand products have the freedom to discuss with their manufacturers any extra and supplementary details and features they desire for the product. A private brand label with a unique logo and design is what distinguishes their products from comparable retailers.

Private label branding was initially centered on providing consumers with the option of purchasing inexpensive products. Originally, products under a private brand were generally classified as generic products and the same products but with different branding according to their private label brands.

In today’s market, private label branding has developed over the years and now includes more exclusive and distinguishing products due to the increasingly competitive market industry. Instead of only offering inexpensive products, private label brands are progressively aiming to improve their brand reputation and identity.

Private Label products vs. White Label products

Although private labeling and white labeling are significantly similar in dropshipping, the main difference between both is the distinction of the product they sell. Products under a private label can be customized in terms of product style, features, packaging, and any additional specifications in product creation. The manufacturers can modify private label products based on what the retailer requests.

The retailer or dropshipper can give definite details to the manufacturer regarding and any other additional product features in the production and packaging process.

The manufacturers will comply with the precise details and readily assemble a respective manufacturing line for exclusively producing the product with detailed information.

Nonetheless, white-label products differ from private label products in how they are “fixed” and cannot be customized in any way. The products are all-inclusive and are the same products produced by manufacturers for countless other similar merchants.

White labeling, like private labeling, allows the retailer to add their brand name and logo onto the product as some distinction from other competitors. The added brand is the only differentiating detail producers will ever include on white label products.

In general, private label products are customizable. They can be modified and produced by manufacturers according to detail. In contrast, white label products are “fixed,” and manufacturers only produce the standard product with the included brand name and logo without any additional specifications from the retailer.

Private Label Dropshipping vs. Regular Dropshipping

The key distinction between regular dropshipping and private label dropshipping lies in the kind of products sold along with the means of procuring. The customizable products under private label dropship business model can be shipped directly to the customers through the aid of a dropshipping agent under a fulfillment hub. Additionally, private label dropshippers can create a brand that sells private label products and establish a relationship with consumers to improve consumers’ devotion and faith towards the brand. Having a means of developing customer allegiance through private branded products can significantly distinguish a product from similar competitors’ products.

Nonetheless, regular dropshipping only markets numerous products without adding any features of specifications. When a customer comes along to make a purchase with any of the displayed products from standard dropshipping, the retailer immediately contacts a dropshipping agent or the private label dropshipping supplier. Manufacturers then pay them for the product to be processed and exported. Standard dropshipping does not require the dropshipper to store in the inventory, pack, or export the product. The primary duty of a dropshipper is to direct and administer the order to reach its distributors, who will then ship the item to the customer. Regular dropshippers generally do not need to have any physical products within their possession since they essentially play the role of the “middleman” in transactions between the producers and the customers.

Advantages of Creating Private Label Products

1. Private label products are customizable and can be unique. The option to customize and adjust the product features can significantly increase the chances of the product being more noticeable and alluring to consumers, especially if the niche of private label products consists of similarly designed generic goods. Differentiating from competitors allows for an upper hand in the market industry so that exclusive items can improve perceived brand value and enable the product to be more difficult to replicate due to its eccentric and notable features. Due to how modern society tends to gravitate towards brand names and logos, most consumers are more likely to purchase branded products than non-branded ones.
2. Control over brand growth and development. Another advantage of private label products is the control dropshippers have in building and evolving their brands. Putting a personal brand name and logo on a product makes it easier to develop a brand surrounding the product since it is distinct and varies compared to the goods of similar competitor merchants. Private label brands allow for authority over the development of a brand and its reputation from its products which possess infinite potential of customizing and adding in-depth specifications.
3. Increased item price through advancement in product worth. Higher recognized product value due to a unique brand name and logo is a beneficial advantage because it enables the retailer to increase product prices in accordance with the added features and upgraded modifications.

• Greater profit gains and price margins from increased item price. The increased charges for item price from additional product upgrades and specifications result in overall better profit gains. Private label products tend to bring in more considerable financial gains in profit since the product value goes up and the items are more original.
• Improved influencer attraction on the market industry. Since people tend to gravitate more towards private label products than non-branded goods, it becomes apparent that branded products under a private label also tend to attract more influencers since they possess a sense of reliability and esteem from their followers or audience. Due to influencer reputation, influencers are more suitable with promoting branded products that can further their influence and less likely to encourage non-branded goods that can do more harm than good to their image and identity.

Disadvantages of Creating Private Label Products

1. Higher risk that involves a “minimum order quantity” or MOQ. Manufacturers will generally require retailers to purchase their private label products in bulk and comply with Minimum Order Quantity (MOQ) regulation. This essentially means that private label products must be bought in accordance with the MOQ for the retailers to have their brand and logo registered onto their products.
2. Manage and keep track of stock numbers. After obtaining the private label products in bulk and stored in inventory, retailers must manage and keep track of the amount of the stocks as customers start to make orders. It is imperative to note when stocks start to get low since retailers should allow for adequate time to prepare and order a new set of bulk shipments from the manufacturers, especially since shipping can take weeks or even months to arrive.
3. Larger initial investment. Private label products are required to be purchased in bulk, which means that upfront and initial investments tend to be more costly. The larger initial investment further increases risk since retailers are not only purchasing the products in large quantities, they are also paying the manufacturers to include their private label brand onto the products during the production process.

What Costs come with Private Labeling?

• Manufacturing– The retailer will be responsible for any expenses that include production cost, labor, manufacturing, and exporting. The retailer also pays the customization process of adding additional product details and specifications since most manufacturing facilities will ask for a fee to modify and customize an item with the specifications, brand logo, and packing.
• Brand– Designing a brand will need to be shouldered by the dropshipper. Additionally, the retailer will most probably want to pay a graphic designer to create the logo and its packing design.
• Marketing– Private labeling revolves around marketing and is essential to achieving a successful private label brand. Marketing allows for the brand to gain exposure and reach its target audience. A cost-effective way of marketing a brand is through a niche website and having to pay a web developer to build the website. Marketing through sponsored posts is also an option but one that can be quite expensive.

Private Label Brand Examples

Considering there is an amazing amount of options available in private label brands, the following are examples of a handful of the commercial and most widely popular private label brands:

• Cosmetics
• Clothing
• Accessories
• Shoes
• Bags
• Jewelry
• Mobile Phone Accessories
• Vehicle and motorbikes accessories
• Yoga Accessories

Shopify vs. Amazon FBA – Where Should You Sell Private Label Products?

The majority of people will look at the two big ecommerce selling platforms, Shopify and Amazon, when deciding on a platform to sell private label products and items. Retailers would weigh the pros and cons of these two well-known online marketplaces to determine which would be most useful to them. So, what distinguishes these two e-commerce behemoths?

• Shopify– Shopify is an online market platform for e-commerce that provides entrepreneurs with the basics of launching their online businesses regardless of any previous technical background and experience. The e-commerce platform is relatively user-friendly due to its simple and convenient use in growing an online business. Shopify is an ideal platform for beginners since it includes a number of features and designs that will make it easy to sell private label products and other goods at such a premium experience. Shopify allows the retailers with much control over their respective online stores at an affordable price that initially includes a 90-day free trial. Although the retailers will be recognized as the owners of their stores, they will still need to attract customers by promoting and driving traffic to their business.

• Amazon – Amazon is another major e-commerce market platform that is also very uncomplicated and easy to use since they offer a readily-prepared e-commerce market. Like Shopify, the platform is well-suited for beginners looking to start an e-commerce business and sell private label products. Using Amazon does not require any technical background and experience since it offers Fulfillment by Amazon (FBA) to store their private label products and goods in fulfillment centers under Amazon. FBA also handles the product selecting, packaging, exporting, and providing customer service regarding the products. The FBA program allows retailers to access more consumers to expand your business further.

Conventionally, you will need to decide between Shopify and Amazon FBA if you want options that both offer a solid and reliable business experience, especially if you are new to the online market.

Go for Shopify if you desire complete control and the most flexibility in starting and designing your private label products and goods.

Amazon FBA is the way to go if you favor a pre-made business platform with a more user-friendly and convenient experience but less flexibility and control.

Transforming a Shopify Dropshipping Store into a Private Label Brand

• Using a Dropshipping Agent– This method requires the aid of a dropshipping agent, who are essentially the people who play the role of the “middleman” or negotiator between retailers and manufacturers. The retailer will specify to the dropshipping agent any details and specifications regarding the product manufacturing. These details usually consist of an enumeration of descriptions like the brand name, logo design, format, color layout, product features, and any stated instructions that concern the production, packing, and shipping of the product. The dropshipping agent will then forward the product information to several different manufacturers and negotiate with them to obtain the best possible option for the retailer. After deciding on the optimal manufacturers who have agreed to comply with creating the desired product, the dropshipping agent will then purchase the product in bulk and even store the goods in their warehouse or storage facility. Dropshipping agents will be the ones to ship and export the products to the customers as they buy them.

• Using a Third-party Fulfilment Center– This dropshipping method makes use of a fulfillment center or otherwise known as a 3PL company. A 3PL is essentially a third-party logistics company that will operate the logistics side of the business’s stock chain through services like transportation, warehousing, packing, and order processing. Since fulfillment centers can generally purchase products from a supplier or manufacturer, it is vital to note that these two product sources are not the same. Manufacturers are the original producers and are responsible for creating the product and any additional details and specifications based on the retailer’s request. On the other hand, suppliers are the ones purchasing the product in bulk for their original price and sell the products on retail with a slight increase in price for some profit. It is generally best to decide on purchasing from manufacturers directly since the original product price tends to be lower when compared to prices offered by private label dropshipping suppliers.

How to Start Your Own Private Label Brand

STEP1: Select a Niche Market to Sell Private Label Products

The first step in starting a private label brand is deciding on the niche or specific range of products you want to sell within that niche and its market category. Specializing in a particular niche will allow you to more quickly and efficiently grow your brand so that it aims to cater to your target audience. The niche is what consumers will recognize your brand by since they will relate the specific range of products to your brand name and even helps them distinguish your brand from other retailers.

Google AdWords– A great way of finding your niche is by researching popular products through the use of Google AdWords. Google AdWords allows you to search the most searched keywords related to purchasing products. You can look up the most popularly searched niches and their descriptions to give you an idea of what your niche should be. You can go more in-depth and narrow down from the top results into a more specific range of products to give you more definite options.

• Build your product audience first– Deciding on a niche is essentially picking what audience you want to sell to. You can develop your product audience by making your product stand out from your competitors.
• Test before you invest– Especially when you are new and just starting, it is best to first run some numbers with very little or no money at all going into the idea. Start with a few test runs of a product on the market and see whether progress is made and determine if there is enough potential for you to expand on and further develop the private label brand.
• Dig deeper into your niche– You can elaborate on your niche by looking into what you can improve on or gain insight from your competitors to have an idea of what you can offer more of or do better on.
• Research consumer trends in your market– Look into any popular consumer trends in your market so that you can expand on them as they come and go.

The following are some of the most popular private label products:

• Body products
• Hair products
• Baby products
• Pet products
• Beard grooming products
• Health products

STEP2: Develop your Private Label Niche Website

Design a logo for your niche store– Given how brand logos catch customer attention, it is crucial to design a captivating logo that will make a profound first impression. You can decide on creating a logo yourself, or you can work with others and have it designed on freelancing sites like Fiverr, Freelancer, or Upwork.

Develop and design a niche website– Online presence through a niche website will enable you to develop further and market your niche since most people tend to gravitate to the internet and online community when searching for products. Creating niche websites can lead to exponential growth since websites allow you to reach and grow your target audience easily. You can invest the time into building your niche website or have someone build it for you through freelancing platforms like the ones previously mentioned above.

STEP3: Design the Packaging of Private Label Products

With your niche and product in mind, gather the details needed to create the private label packaging by enumerating the specifications and any additional features and instructions you would want the product to include in its creation and packaging process. You should know exactly what you want since you will forward these details to a third-party manufacturer who will comply with these requirements and even prepare an exclusive line of production to create your desired product.

STEP4: Market your Private Label Products Website

Your niche website will need to be optimized and marketed to catch consumers’ attention and drive customer traffic to your private label brand and products. The following are a few ways you can go about marketing your website:

• Search engine optimization (SEO) – SEO is essential in optimizing your website to make it appear more visible and relevant to searches through keywords. SEO can generate traffic towards your website and allows for more potential customers. You can invest the time into learning SEO and applying it yourself since it is not very difficult, or you can get a professional to do it for you.
• Social and display ads– ads are practical and important to marketing your private label products and brand. Social and display ads advertise your brand on social media platforms which is significantly effective due to how we live in a heavily social media-oriented world. Ads such as these allow you to access consumers on a large scale.

• Key opinion leaders (KOL) marketing– KOL marketing enables you to gain further access to your target audience within your niche market. Key opinion leaders tend to have much respect, and their followers are easily influenced by what they have to say. Gaining the support of KOL marketing is highly beneficial in spreading exposure to your brand since you immediately obtain access to a large audience through the respected leaders’ support.
• Search Engine Marketing– utilizes a number of techniques to generate increased site visitors and traffic to a website through ‘search engine results pages or (SERPS). SEM operates alongside SEO and shares the same goal of promoting website visibility through the use of paid searches, organic search rankings, and contextual advertisements.

STEP5: Finding a Reliable Wholesale Supplier

It is essential that you first understand the difference between wholesale and retail since they can differ in price despite the product being the same. Wholesale means obtaining products from a primary distributor then selling them to a third-party line of trade while retail also means acquiring products from a primary distributor but selling them directly to the customers.

Finding a solid wholesale supplier is crucial to the success of your private labeling and brand since they will be the ones manufacturing your products according to detail. You should look into a handful of wholesale suppliers and compare and contrast them to determine which will be most beneficial to you. The ideal wholesale supplier must have previous experience with manufacturing private label products and private labeling in general. The following are a set of points you should consider before partnering with a wholesale supplier:

• Exceptional customer service
• Manufacturing expertise in custom products
• Great quality product
• Best price and deals
• Delivery time
• Look at manufacturing feedback and reviews

STEP6: Fulfill your Order With a Dropshipping Agent

Decide on a well-grounded and dependable dropshipping agent to partner with in forwarding and  processing your private label product with the private label dropshipping suppliers. The dropshipping agent will take care of things like product storing, stock managing, and exporting. You will have to discuss with your dropshipping agent the details and specifications you would want the manufacturers to receive. The details must include the in-depth features and instructions to be followed by the private label dropshipping suppliers

STEP7: Expanding your Private Label Brand Revenue

After having built a strong foundation for your brand through your private label products, you can further grow your brand by going more in-depth into the details of each aspect of your business. The following is a list of elements within your private label brand that you can elevate to greater levels and boost brand revenue:

• Grow your social and business network– develop a strong but professional relationship with the individuals and companies you collaborate with and look to expand your network of business with organizations that you wish to partner with to become exposed to more resources and grow at an exponential rate.
• Brainstorm new and more innovative product ideas– in a private label brand, and business in general, you should always be looking for ways to improve your product to make it more unique or even create new products that can potentially increase your private label brand revenue.
• Packaging features– further customize and adjust the details of your packaging with the most optimal colors, imagery, and compositions for added appeal.
• Logo style and design– you can decide whether you need to make a few changes to your logo to make it more captivating, unique, or so that it offers more clarity in the message it aims to portray.

List of Private Label Suppliers for Creating your Brand

• SupplyMeDirect– SupplyMeDirect is a dropshipping company that provides access to professional and direct supply, automatic processing of orders, private labeling, and stock sourcing.
• AOP+ Print on Demand– AOP is a company and platform that allows users to create unique print-on-demand designs and aids in building an online store.
• Apliiq– Apliiq is a print-on-demand company that offers services in designing and producing clothing.
• Bestfulfill– Bestfulfill is an exceptional dropshipping agency that provides the best dropshipping agents capable of aiding retailers to find decent private label dropshipping suppliers from China that can fulfill orders internationally.
• Modalyst– Modalyst is a dropshipping company that offers services that directly connects retailers to environment-friendly suppliers, private label manufacturers, and designer brands.
• Alibaba– Alibaba is widely regarded as one of the largest online companies based in China that specializes in e-commerce, technology, internet, and retail.
• Dripshipper– Dripshipper is a US dropshipping company that offers services related to e-commerce and starting private label dropshipping businesses.

Is there a minimum order quantity (MOQ) for dropshipping under a private label?

Yes, manufacturers require products under a private label brand to be purchased in bulk since they allow these special products to be customized and modified with additional details and specifications. Factories set a minimum order quantity (MOQ) to make the most of the separate production line that they assembled exclusively to create the special product. Dropshipping agents are able to confirm with the retailer of the MOQ within a manufacturing facility.

What is the role of dropshipping agents in private label dropshipping?

Dropshipping agents are generally really beneficial in the process of private label dropshipping especially if the agent is a one-stop dropshipping agent that is entirely devoted to providing comprehensive dropshipping services. Dependable agents can provide private label dropshipping services which makes them responsible for procuring the product, finding and selecting manufacturers to create it, negotiating costs, storing and taking inventory of the bulk purchase in their storage facility, and then exporting it to the customer. You can find a great dropshipping agent through a dropshipping company like Bestfulfill.

How to market and promote private label dropshipping products?

A greatly beneficial advantage of a private label dropship is the great potential for the number of marketing options available to grow and develop a private label brand. The following are a number of ways to promote and advance your private labeling and branded product effectively.

• Influencer Marketing– Influencers have a large audience of followers. If you collaborate with them to promote your brand, you immediately gain access to their followers, exposing your brand to more consumers. It is important to note that the influencers with which you decide to collaborate must relate to your brand.
• Social Media– Promoting your brand through social media like Instagram, Facebook, Twitter, and other similar platforms allows you to not only promote and grow your brand, it also enables you to communicate with your audience and establish a connection with your followers that can eventually become loyal customers that support your brand. You can promote your brand on social media by creating a dedicated page for your brand and posting videos or photos of your branded product.You can post questions for feedback or create polls for ideas with which your audience can offer their suggestions and generally anything that will keep them engaged and invested in your products and brand.

• Content Marketing- Brand description and content offers readers the details of what you are representing and aiming to achieve through your products and brand. The content allows readers to understand the reputation you are building with your products without promoting anything and enabling them to develop a sense of reliability to your brand. In writing the content for your private label brand, try to aim for content that can be informative and benefit the readers like detailed reviews or tips related to your brand and products.
• Email Marketing- Marketing through emails is free as long as you have an email that makes it fairly convenient and can be further expanded upon by using subscription boxes and other email marketing tactics. In writing emails, aim to convey messages in a personalized tone that can catch the interest of your audience and stand out from those spam emails with automated tones.
• Giveaways and promotions- To keep further keep your customers interested in your private label brand, you can do giveaways and shower them with promotions every now and then. These events allow your audience and potential customers to be absorbed into your products and brand and make them remember to check on you when there are any upcoming events.

Summary

The potential for private label dropshipping can easily be maximized if you know the details and how to execute the proper steps.

Private label dropshipping requires precise planning and much-needed brainstorming to ensure the creation of a solid and unique private label product. Although the product is a major aspect of the online business, the brand elements are vital to success since they serve as the identity and essence of the online store. The branding should be well invested in further developing and growing its reputation through effective marketing strategies.

Partnering with a reliable and well-grounded dropshipping agent like the ones from Bestfulfill, comes with numerous advantages since they can aid retailers with finding the best wholesale private label dropshipping suppliers to ensure that the desired product is manufactured according to detail. In the situation that you are a beginner and are yet to begin following through with these steps.

It’s a good idea to initially start with regular dropshipping then move into private label dropship model once you have established a foundation for the fundamentals.