Lots of Shopify sellers prefer to brand the store with custom label packaging as well as stickers, thank you card, letters, coupon card, gifts for better user experience and distinguish the products with its potential competitors, however, not all of them build their brand sucessfully in the end, each year ShipAnt warehouse throw away hundreds of thousands label packagings cards which the sellers failed on their dropshipping business. If the custom label packaging being applied well with dropshipping business it could actually helps the store brand marketing, else it consumes lots of cash flow of the shopify store. How to custom label packaging for Shopify stores effectively? We will discuss the topics to help you better understanding when it is the right way and timing for Shopify store branding.
What’s the difference between white label dropshipping vs private label dropshipping?
White label refers to a company that buys a product from another company and re-brands it to sell. The company that ultimately sells the product to consumers is usually not involved in the manufacturing process. White label products are common in the electronics, cosmetics and fashion clothing industry, but they also apply to other industries. For example, as a shopify seller you can buy some clothings from 1688 factories and ask them to brand and packaging with your store name and logos and dropshipping worldwide countries.
As a Shopify seller that chooses white label products, there are several reasons why this may be the best solution for you:
– Cost-effectiveness: One of the great things about white label products is that they have lower startup costs. When you white label a product, you don’t have to worry about the upfront costs of developing, producing, and marketing the product, which is especially beneficial for small businesses.
– Faster time to market: Using white label products allows you to get your product to market faster because you don’t have to start from scratch. The production process is already in place and you just need to rebrand an existing product.
– Lower risk: While there are always risks in starting a business, with white label products you can mitigate some of that risk because you don’t have to invest as much money in new product development. If the product fails in the market, you will also have less to lose.
– Greater flexibility: White label products offer more flexibility than developing a product yourself. Even if you white label a product, you can still choose the packaging, branding, and marketing, which allows you to customize the product to your target market and create a unique product for your brand.
– Lower minimum order quantities: White label products typically have lower minimum order quantities than if you were to produce it yourself because white label manufacturers already have existing production lines and don’t need to set up additional production lines for small batches.
– Better quality control: White label manufacturers will usually have better quality control processes and a professional team to ensure the product meets your standards, as they may provide white label services to multiple companies.
Private label dropshipping are products that are customized according to the seller’s needs, such as product specifications, parameters and styles, and sold with a private label trademark after the seller signs a contract with the manufacturer.
For example, well-known products like Adidas are private label products. Therefore, private label products are goods delivered to you directly from the manufacturer. These products are sold under private labels and must be sold as exclusive goods.
There are many types of private label products and they are sold all over the world. For example, well-known brands like Nike only have reliable partners to deliver their goods. Nike will label the brand, conduct quality control, and then trade. Many different clothing, cosmetics and food companies operate in a similar way.
In fact, private label products are mainly physical goods, including cosmetics, clothing, household goods, etc., which have their own labels and most people don’t even know the actual source of the product. Lots of well known brand on Amazon are private label products.
In this private label model, the seller has relatively exclusive and special products, and the seller is responsible for R&D, branding, and sales. This makes the brand more complete and easier to differentiate from competitors and sell at a high price.
Disadvantages:
(1) Whether it is R&D from start to finish or just making small improvements, it is difficult for sellers with average product iteration capabilities to have this kind of product iteration capabilities.
(2) Even if independent design is no problem, finding a suitable supplier to ensure quality and quantity is also a big problem.
(3) The investment is relatively large. After all, independent R&D, plus product production and packaging, is not a small investment.
For mostly startup shopify sellers, white label mode is easier to start at lower invest, thus white label dropshipping is very popular these days. There is a term called DTC (Direct-to-Consumer), which actually means skipping the middle link and selling the products produced directly to consumers. I personally think that the most important indicator of a brand is repurchase. The higher the repurchase rate, the lower the cost of obtaining traffic at the front end. If one day you stop advertising and users continue to come back to place orders, then this is equivalent to your accumulated brand value.
After know the advantages and disadvantages of white label dropshipping and private label dropshipping, you can estimate the cost to custom label packaging for your shopify store.
Top5 most popular ways to branding Shopify store
Custom label sticker
The label sticker are usually cheap enough in fabric, paper, plastic material for different products like fashion clothing, electronics, tools etc. The moq is usually 500 to 1000 pcs based on different suppliers, it is cost effective and affordable based on the color, size and material.
Custom packaging
The packaging can be customized in different size, shape and material based on the products, for ecommerce, the custom packaging usually are plastic bags, foam bags, carton box, plastic box, steel box etc. Thus the price varies based on the printing color, size, material with 500 to 1000 pcs moq.
Custom coupon card thank you card
The thank you card and coupon card, flyer customization are very common in ecommerce dropshipping as it is cost effective and better for higher 2nd purchase rates. They are usually customized by different kind of paper materials based on its thickness, size and color printing.
Via the label sticker packaging card customization, the shopify store can be easily branded for marketing. However, custom label packaging doesnt suitable for all startups, especially you have multiple skus with different size products, it is not only consuming the cash flaw but also spent you extra time at the beginning. Based on our experience in the past 7 years, lots of startups failed to running successful shopify dropshipping business on custom label packaging, hundreds of dollars being wasted.
How to custom label packaging and when it is the best time to customize label packaging for shopify store?
If you only have 1 product or less than 5 products in your store, you can customize label packaging from the factory with small moq, for example 50 to 100 pcs which it is okay for marketing and advertisement. For Shopify startups, the most important thing is to make sales instead of custom label packaging, when you have stable orders, for example, 300 to 500 orders per month, it is good timing to custom label packaging, and the cost is relatively lower, it is also better for marketing on the social networks.
ShipAnt custom label packaging service
ShipAnt offers comprehensive white label dropshipping service help you custom every kind of label packaging sticker card, all you need to do is to design the label packaging card sticker and let us know the mateiral, size and other requirements, we can help you prototype and print them to insert into the packages ship to end users. However, if you do not have stable sales we only suggest you started with label sticker and coupon card as it is relatively cost effective, if you need to custom label packaging we will need at least 300 to 500 orders per month to start.
You are welcome to inquire ShipAnt label packaging sticker card flyer customization service for your shopify store dropshipping.
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