Private Label Dropshipping: A Step-by-Step Guide in 2024

Dropshipping can be attractive for entrepreneurs looking for a business with low startup and overhead costs. Private label dropshipping can elevate your business into a unique brand in a heavily commoditized space. 

If you’re interested in the potential for private label dropshipping, we’re here to answer all your questions. Discover the pros and cons of dropshipping, how to start a private label dropshipping business, how to choose private label products, and the 11 best private label dropshipping suppliers in different niches.

Private label dropshipping

We’ll take you through the ins and outs of private label dropshipping so you can see if it’s right for you. 

What is private label dropshipping?

Private label dropshipping is the practice of applying your label to products others make and selling them as your own. Custom label dropshipping allows you to offer a wide range of unique products with little to no overhead. 

Benefits of private-label dropshipping

Private-label dropshipping has low overhead and startup costs, leading to higher margins. It allows entrepreneurs to offer unique products without paying for development and production costs. Private label dropshipping is a cost-effective way to create a distinct brand with offerings no one else has. Private label dropshipping can offer several benefits for online retailers. Here are a few of them: 

1. Control over branding: With private label dropshipping, you have the opportunity to create and control your own brand. You can design your products with your own logo, packaging, and messaging to differentiate yourself from other sellers.
2. Higher profit margins: Since you are sourcing products directly from the manufacturer, you can negotiate better pricing and have more control over the costs associated with your products. This can result in higher profit margins compared to selling someone else’s branded products.
3. Scalability: Private label dropshipping can be a scalable business model, allowing you to easily expand your product offerings and grow your business without having to manage inventory or deal with the manufacturing process.
4. Flexibility: With private label dropshipping, you have the flexibility to adjust your products and pricing based on market demand and your own business goals.
5. Customer loyalty: By building your own brand through private label dropshipping, you can create a loyal customer base that trusts your products and will be more likely to purchase from you again in the future.

Disadvantages of private label dropshipping

Unfortunately, there are some drawbacks to private label dropshipping. Launching a private-label costs more money than a white-label one. You’ll need to design your branding and labels, then produce them. You may also need to buy more products to cover the expenses of designing your brand. 

Dropshipping vs. Private label dropshipping

Dropshipping and private label approaches have strengths and weaknesses. One might be better suited to your needs. It’s worth comparing their key features side-by-side to give you an idea of which is right for you. 

The main features of dropshipping are the following:

• Low overhead costs
• Sales that ship instantly
• No need to keep inventory
• Outsourced shipping and warehousing logistics

Private-label dropshipping has the following characteristics:

• Selling items others produced under your brand with their permission.
• No research, development, or production costs
• Increased costs to create your brand and labeling

How to dropship private label products for small businesses

Want to start a private label dropshipping business? Working with small businesses can help you pick up unique products and secure exclusive relationships with producers. You could even get in on the ground floor of the next big thing—or at least a hit with your target market!

Some types of dropshipping, such as private label clothing dropshipping, are especially suited to a small business-based approach. These smaller producers create their designs but often have limited, if any, relationships with sellers. This allows you to contact them early and establish a favorable and potentially exclusive deal, to ship their goods.

Steps for dropshipping private label products to sell

Here’s how to start dropshipping private label products step by step:

• Identify a niche: Before you begin selling private label products, it’s important to identify a niche that you’re passionate about and that has a market demand.
• Find a supplier: Once you’ve identified your niche, you need to find a supplier that can provide you with high-quality products that can be rebranded as your own.
• Create your brand: Design a brand that reflects your values and appeals to your target market. Your brand should include a logo, product packaging, and a brand voice.
• Order samples: Before placing a large order, order samples of the products you plan to sell to ensure that they meet your quality standards.
• Place an order: After you’ve approved the samples, place an order with your supplier for the quantity of products you want to sell.
• Create a marketing plan: Develop marketing strategies and plans to promote your products. This can include social media, email marketing, paid advertising, and more.
• Launch your product: Launch your product and start selling. Be sure to track your sales and adjust your marketing strategy as needed.
• Monitor and adjust: Continuously monitor your sales and customer feedback to make improvements to your product and marketing strategy.

Remember, creating and selling private-label products takes time and effort. However, if done correctly, it can be a profitable and sustainable business model.

What are the best private-label products for dropshipping

Looking for the best private-label products to sell? Check out some of the most popular items and why they are good for the private label dropshipping business.

• Apparel and accessories: Consumers love seeking out limited-run apparent accessories to stand out. 
• Skincare and cosmetics: Beauty is a billion-dollar industry, and skincare and cosmetics can be sold at high margins to loyal customers.
• Toys and hobby products: Toys are a booming market for collectors and enthusiasts. Many toys and collectibles for hobbyists are small and can be sold for high prices. 
• Haircare products: Many people need regular haircare treatments to look their best and spend top dollar to find the highest-quality products.
• Soaps and shampoos: Specialty soaps and shampoos can attract a die-hard clientele that awaits your next offering. 
• Furniture and appliances: Big-ticket items like quality furniture can command high prices, especially if you sell items or appliances for unique uses like health and wellness.
• Beauty accessories: Unique, quality beauty accessories can be hard to find, and your specialty shop could blow up among influencers who swear by you.
• Food and supplements: Foodies are looking for exotic delights, supplements, and ingredients they can’t find anywhere else. Your store could be the next big culinary phenomenon!
• Specialty coffee, tea, and drink mixes: Consumers are looking for tea and drink mixes they can’t find anywhere else. Best of all, you can sell them at high margins with low shipping costs.

Private label and DTC brands

Direct-to-consumer (DTC) brands are an alternative to private-label brands. However, there are some major differences you’ll need to be aware of before you decide to dropship them, especially if you’re intent on building your brand. 

What is direct-to-customer (DTC)?

Direct-to-consumer (DTC or D2C) is an approach where manufacturers sell directly to customers. DTC cuts out the middleman and allows producers to sell their products at a lower cost while keeping more profits.

Private label VS. DTC brands: Similarities and Differences

Private label and DTC brands share many similarities, but some key differences exist. Knowing them can help you prepare for the market you intend to enter.

Private label and DTC brands both create unique brands and rely on building a solid reputation with their customers to do business. They may even be able to charge a premium over competitors depending on their product quality and reputation. Many of these types of companies sell exclusively online, reducing their overhead.

However, DTC businesses cut out the middleman that private labels still have to pay. This allows DTC businesses to charge less than they might if they had to sell retail. They may also refuse to allow third parties to sell their items, even for a share of royalties. Private label brands can buy directly from their manufacturers but must cover their costs in their prices.

Things you need to consider for private supplier dropshipping

There are several things that entrepreneurs need to consider before starting a private-label dropshipping business.

First, consider what types of products you intend to carry. If you’re crafting a brand, it helps to know what types of products you want to focus on and what you’ll be known for. You may decide to focus on a specific type or family of products. On the other hand, you might look for unifying qualities across your offerings if you don’t want to limit yourself to solely beauty products or rare electronics, for instance.

You’ll also want to determine what your brand will be and its qualities. Additionally, you’ll need to find out how to advertise it and pay for the extra expenses of producing materials for your brand. You’ll also want to find out what suppliers you’ll work with, how you’ll ship goods to customers, and potential contingencies if your suppliers and shippers have a problem.

Best private-label dropshipping suppliers

We’ve compiled a list of the best private-label dropshipping suppliers. We’ve got you covered if you’re looking for private supplier dropshipping companies to expand your offerings or build your first store.

HyperSKU

• Niche: Upscale to luxury clothing, fragrances, and cosmetics. 
• Key Service: Engaging visuals and a satisfying unboxing experience.
• Price: No upfront fees. You only pay for the item and shipping when you sell.
• Pros: They offer quality checks, factory comparisons,  aftersales-guaranteed and a range of product customization. Pick, pack & ship for you. They also offer extensive private-label dropshipping services. HyperSKU allows customers to choose from extensive product customization and branded packaging options, including thank-you letters, tags, bags, and more. They also reach out to factories to get customers the best deal and have transparent inventory tracking. 

• Cons: Might have MOQ for custom orders. ● Link: https://www.hypersku.com/ 

Alibaba

• Niche: Can satisfy virtually any need at scale.
• Key Service: Mass-produced goods for B2B businesses.
• Price: Among the lowest prices you will find.
• Pros: Your goods can be produced at volume to a high-quality standard for an affordable price.
• Cons: Goods have low margins, and you’ll be competing with major retailers.
• Link: https://www.alibaba.com/

AliExpress

• Niche: Consumer goods at the scale you need.
• Key Service: Mass-produced goods for B2C businesses.
• Price: Low prices that are hard to beat anywhere. 
• Pros: You can order unique items in large or small batches.
• Cons: It can be difficult to find unique goods.
• Link: https://best.aliexpress.com/

Wiio

• Niche: Small-scale dropshipping companies.
• Key Service: Low prices for high-quality products they get through supplier relationships. 
• Price: Some of the lowest prices on the market.
• Pros: No warehousing fees if your product sells fast. 
• Cons: They only have three warehouses, two in China and one in the United States.
• Link: https://www.wiio.io/en/

 Apliiq

• Niche: Upscale apparel dropshippers.
• Key Service: Custom-designed streetwear.
• Price: More expensive than other suppliers, but with discounts for larger orders.
• Pros: You can submit custom designs on high-quality fabrics.
• Cons: The price point may be outside the range of some clientele.
• Link: https://www.apliiq.com/

Printful

• Niche: Clothing and accessories.
• Key Service: On-demand printing for clothing and accessories.
• Price: Price scales with orders according to your need.
• Pros: You can print as many items as you need and avoid holding onto inventory that doesn’t sell. 
• Cons: Your ability to sell depends on if your printing partner is available.
• Link: ​https://www.printful.com/

 Dropifield

• Niche: Private-label dropshippers requiring volume.
• Key Service: Automated private label dropshipping for AliExpress and eBay.
• Price: $97 per month, $197 per month, or $397 per month, depending on your needs, with a $397 startup fee.
• Pros: No extra fees for freight or storage. 
• Cons: A monthly subscription fee might not fit your business needs.
• Link: https://www.dropified.com/

BigBuy

• Niche: B2B dropshippers looking for an all-in-one solution. 
• Key Service: All-in-one service for your dropshipping business.
• Price: Prices across their expansive catalog are competitive.
• Pros: They can help you run every aspect of your dropshipping business.
• Cons: BigBuy is based in the E.U.
• Link: https://www.bigbuy.eu/en/

BTS Wholesaler

• Niche: Wholesale perfumes and cosmetics
• Key Service: Delivers wholesale perfumes and cosmetics across the European Union.
• Price: Less than retail, as they can purchase straight from manufacturers.
• Pros: They carry over 600 brands and offer discounts on large orders.
• Cons: They only ship within the E.U.
• Link: https://www.btswholesaler.com/eu

TeaSwan

• Niche: Tea enthusiasts.
• Key Service: Gourmet teas sourced globally.
• Price: Less expensive than other loose-leaf and packaged tea suppliers but more expensive than typical commercial brands.
• Pros: They have a vast network of suppliers than can offer unique teas. 
• Cons: Limited packaging options for private-label sellers.
• Link: https://teaswan.com/

Dripshipper

• Niche: Coffee
• Key Service: Offering quality coffee wholesale and dropshipping
• Price: $30 per month for a starter program, $99 monthly for a professional program, and $197 for the Elite program.
• Pros: They have specialty-batch coffee offerings from top-producing regions like Colombia, Brazil, Costa Rica, Mexico, Ethiopia, and more.
• Cons: Your business model may not be compatible with Dripshipper’s monthly subscription fees.  
• Link: https://www.dripshipper.io/

FAQs for drop shipping private label products

● Is dropshipping private products profitable?

Dropshipping private products can be highly profitable, as you can offer products no one else carries. You’ll also build your brand with each shipment, allowing you to add an additional premium and increase your profit margins. 

● How much money does it cost to dropship private label products?

Dropshipping private-label products can be more expensive than white-label products. You’ll face added branding and marketing costs and may have to purchase more products to cover your expenses.

● Where to find a private-label dropshipping supplier?

You can find private label suppliers on websites dedicated to them, such as Apliq, NicheScraper, SupplyMeDirect, Dripshippers, and more. You can also visit trade shows to find independent producers and artisans who can work with you. Searching on Google, Etsy, Instagram, or Pinterest can also help you find suppliers.

● How do I price private-label products?

To price your private label products, determine your expenses to sell each item. Then add a profit margin that allows you to avoid selling at volume to make money. You’ll also want to survey competitors to align your prices with tiers.

Conclusion: Why choose private label dropshipping

Overall, a private label dropshipping business offers numerous benefits over a white label dropshipping business, despite the added costs. With a private label, you can establish an independent brand and distinguish your business from countless others. Over time, your brand can allow you to charge a premium over competitors if you commit to quality.

Are you looking for a reliable dropshipping supplier for your business? Contact HyperSKU today, and we can keep your business supplied with unique, quality products straight from the factory!

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