There are many Amazon and Shopify sellers keen on private label their brands no matter they already made good sales or just start, the private label product has its advantages and disadvantages, when we planning to start private label dropshipping we should think about what kind of products are more suitable for private label and branding, how to build the private label brand step by step, how to meet the manufacturer moq for private label etc. ShipAnt also provide private label service to help small business dropship wholesale from China.
- Pros and cons of private label dropshipping wholesale
- What kind of products suitable for private label
- How to build private label brand
- ShipAnt private label service
Pros and cons of private label dropshipping
The advantages of private label dropshipping is obviously, it at least has the following advantages:
Control revenue growth. By creating a brand, Shopify sellers can increase product pricing, thereby increasing profit margins and accelerating business growth.
Control product categories. Shopify Sellers can launch any product they want to sell according to their own brand, but if you sell someone else branded products, you can’t guide them what products to sell.
Control brand value. Setting up your own brand is a way for Shopify sellers to build relationships with their customers. Selling someone else branded products does not belong to you.
Control brand sales. By setting up your own brand, you can control where your products are sold and let platforms remove other third-party sellers that sell your products.
User loyalty. Customer loyalty is a very important factor for retail companies. For customers, the same product is sold everywhere, but if it is a branded product, only the brand can sell it. When customers become loyal to the brand, it will increase the repeat purchase rate.
While the disadvantages of private label dropshipping are list as follow:
MOQ. When you talk to factory or supplier about the private label requirements, they usually have 200 to 300 pcs moq which occupy lots of cash flow.
Inventory risks. One of the biggest advantages of dropshipping business is no inventory, however, if you planning private label there has moq inventory, if you do not have stable sales there might have inventory risks.
Thus when you planning private label dropshipping you will need to consider its advantages and disadvantages as well as your dropshipping business stage. Do you have stable sales or cash flow? Have you made the private label marketing strategies? How to avoid the potential risks? How to select the best goods category for private label dropshipping?
What kind of products suitable for private label
It depends on your product sensitivity, creativity, and market research capabilities. In fact, anything can be sold as a private label. But if you study carefully, you will find that most of the most popular private label products appear in these market segments.
Fashion clothing & accessories
Clothing category is the most suitable field for private label. Consumers are keen to discover different products of different apparel brands to give them a sense of uniqueness. Just open a wardrobe, you can count hundreds of subdivision products of clothing and fashion, and even a full set of clothing designed specifically for outdoor play and seaside leisure.
Trending private label products:
Women’s Yoga Pants (63,000 Amazon searches per month)
Women’s hiking shoes (26,000 Amazon searches per month)
Tactical backpack (36,000 Amazon searches per month)
Maternity clothes (12,000 Amazon searches per month)
Women’s denim shorts (36,000 Amazon searches per month)
Raincoat (30,000 Amazon searches per month)
Cosmetics & skin care products
This category is a big industry. According to statistic data, the market size of the skin care industry will reach 180 billion U.S. dollars by 2020. Moreover, the profits of this industry are considerable, especially with consumers’ pursuit of health and pure natural products. This change is a very good time for private label sellers.
Cruelty-free makeup, cruelty-free makeup refers to cosmetics that are not tested on animals
Organic sunscreen (11,000 Amazon searches per month)
Natural deodorant (28,000 Amazon searches per month)
Charcoal toothpaste (35,000 Amazon searches per month)
Coffee scrub (5000 Amazon searches per month)
Tea tree oil (130,000 Amazon searches per month)
Anti-aging cream (11,000 Amazon searches per month)
Hair care products
Everyone has unique hair care needs, and this is a huge market with an unlimited customer base.
private label hair care products:
Hair growth shampoo (12,000 Amazon searches per month)
Beard care oil (61,000 Amazon searches per month)
Hair mask (26,000 Amazon searches per month)
Headband (21,000 Amazon searches per month)
Vitamins for hair growth (11,000 Amazon searches per month)
There are also many other niche products you can private label for dropshipping, for example, hot sale Youtube Tiktok influencer products. They should be light weight and small volume, in this case the shipping rates can be less. Select product is only the first step, more important job is how to build a private label brand.
How to build private label brand
Build a private label brand is very difficult and takes time, there are some thoughts and perceptions for you as a reference, brand building are classified into several steps of brand selection, brand positioning, brand vision/image, brand promotion, brand recognition, brand extension, brand management and brand value. We already talked about the trending products for private label, so we ignore the brand selection here.
Brand positioning. In the initial stage of brand building, more user research should be done to determine the price level of the product, clarify the consumer group of the product, collect user feedback, and reflect differentiation in the subtleties.
Brand vision/image. No matter the store or the product label and packaging design should be simple, intuitive and vivid, easily to recoginize and impressive.
Brand promotion. The purpose of promotion is for exposure and traffic. No matter SEO, SMS, EDM or SNS promotion, the final goal is to attract potential clients visit and order in your store.
Brand recognition. Brand recognition is built on the user experience, so doing brand recognition is actually doing user experience, and ultimately achieve the purpose of word-of-mouth spreading.
Brand extension. Amazon and Shopify sellers need to maintain a keen sense of the industry at all times, and when appropriate, consider expanding the industry field involved in the brand, extending and expanding the cultural connotation of the brand.
Brand management. It includes the management of sales price, distributors/agents, after-sales installation, service attitude, infringement maintenance, etc.
Brand value. The social contribution value of a brand. For example, when a company develops to a certain level, social welfare and other aspects can be considered.
ShipAnt private label service
Although private label brand has many advantages in the long term business running, it does difficult for startups without stable sales and funds. ShipAnt offers private label service help small business dropship wholesale from China at small MOQ at less cost. ShipAnt private label service included:
It is the cheapest private label service, all you need to do is to design a logo and send us the psd file with size of logo, usually 5cm*5cm or 8cm*8cm or 4cm*8cm size. The sticker cost can be lower as $0.02/pcs, moq 1000 pcs. ShipAnt warehouse will help you stick the logo on the packaging.
There are many sticker material available, the logo can also being sticked on the product, for example, when you dropship a small hand fan, we can help you customize a transparent logo sticker and stick logo on the handle of the fan.
Clothing label and tag
The clothing label and tag is much more time consuming as we will need to take off the supplier label carefully, then sew yours on the clothing collar, then hang on the tag and repack the clothing.
The clothing label and tag doesnt cost too much even starts with 1000 pcs moq, however, it takes time for the warehouse to take off the supplier label and sew yours, thus we usually charge 3 yuan/pcs service fee for clothing private label service.
In addition to label and sticker, the packaging can also being customized to pack the clothing, there are zipper plastic packaging, plastic bags, bubble bags and even carton boxes can be customized, the price is different based on packaging size and materials.
In addition to label, sticker and packaging, ShipAnt also help you customize coupon card, thank you card and letter to put inside the package shipping from China to assist your store marketing, you are welcome to inquire ShipAnt if you need to customize private label packaging to dropship wholesale from China.