Did you know that eCommerce and online shopping contributes a fraction of the entire world’s retail sales? After all, its projected contribution to the global retail industry by 2023 will be at 22%.
Take advantage of this growing market! Look at how drop shipping services continue to flourish, opening more opportunities for people who want to make it big from home.
The best way to take full advantage of drop shipping is to find the best products around. You also need to know how to market your brand as a reliable drop shipper. Doing this, you need to include private label products to increase your sales.
Not sure how? Read on if you want to know more about how white label drop shipping benefits you.
1. Higher Profit Margins
With the drop shipping industry becoming more competitive, you need to ensure that your business stays afloat.
The best way to do this is to become one of the private label drop shippers since it gives you a higher profit margin. The reason behind this is the fact that it helps you have a lower cost basis for your products, allowing you to gain more than the usual $12,000 monthly profit for starters.
Using private labels becomes more effective when you develop and market products of a higher quality. It allows you to have the capability to demand better prices in the market.
Most supermarkets turn to private labels on a regular basis since they often fetch stronger profit margins that balance out the smaller gains inherent to top industry brands with higher prices.
2. Exclusivity Promotion
If you want to separate yourself from your competitors, private label drop shipping is your best bet.
One of the best benefits you can gain from using it is the exclusive feel it gives off when you’re selling your products. Marketing the product and creating the right amount of demand for it will make you the only supplier of the product they like.
Having an exclusive feel is one of the main contributors towards charging more premium prices for your products. What this means is that you bring in more people willing to buy it among other clothing brands you sell at the same price range.
3. Brand Loyalty
When it comes to your dropship business’s long-term success, building a loyal customer base is one of the most important things you need to accomplish. Branding your products using private labels is the most effective means of building your customer’s loyalty. This happens as long as your core audience gets value from what they buy from you.
Having a private label makes your customers more likely to get attached to your brand. It helps evoke feelings that they’re one of the select people who own the item. It’s especially true if you want to sell high-end products in terms of quality.
4. Wholesale Income
If you want an alternate means of promoting exclusivity, you can operate as a wholesaler of your private label products. You can limit your access to other retailers, making them pay premium prices in order to carry your brand. It helps you generate more income while allowing your brand to gain more exposure as time goes by.
You can also think to create an Affiliate or Referral program, and gain in this way more sellers for your items. It is really easy to create a landing page for your affiliate and at the end of a month pay them for the conversions they generated.
How to Start Dropshipping Private Label Products?
If you haven’t tried using private labels in your dropship business yet, there are several ways for you to start off. It’s important to start things right to ensure that you effectively build your brand.
1. Research Products to Sell
There’s a wide variety of products available from suppliers of private labels. To name a few, these can include the following:
- Cosmetics and skin care
- Fashion accessories
There are more things out there, but the real challenge is to get a profitable item. You need to research on consumer demand as well as cost and potential competitors. They all play an important factor when it comes to having a profitable product using private labels.
A good strategy to increase your profit and limit your loss is to test the product first. This means that you will start selling some items without any brands and then you will private label only the best sellers.
In the meanwhile to build customer loyalty and brand your store, you can only use customized package or bags. In this way, you will only private label simple cheap bags and not the product itself, limiting your loss during the testing face of your products.
2. Use Google AdWords to Research Popular Products
If you’re not sure what products are more likely to sell, Google can help. Use the Keyword Finder Tool to see the number of people searching for specific terms on the internet. This can act as a gauge when determining the demand for the potential products you want to sell using private labels.
With the use of search terms, you get the capability to check how many people search for certain product types on a monthly basis. Make sure that the item you’re aiming to sell has a good amount of search traffic. Otherwise, it isn’t worth pursuing since it’s likely for you to have a difficult time selling it.
3. Partner with a Reliable Wholesale Supplier
While private label drop shipping offers you an expanded market, you still need to make a good partnership with a reputable wholesale supplier.
Neglecting to do this will make you struggle in terms of marketing your product because you can have any problem with the quality of your products and also with their packaging and shipping timing.
This allows you to focus your efforts on sale, promotion and on your profits.
Watch the video below
Dropship Private Label Products Today!
In today’s competitive market, you need to do everything in your power to stay relevant.
Creating your own brand will make customers trust you more, making them more likely to return from time to time. The market is in the process of constant changes that choosing products with standard quality becomes the most efficient means of delivering them in a timely manner.
If you want help drop shipping your private label products, try Yakkyofy.
Yakkyofy is the only web app for managing a dropshipping business that helps you to source and dropship Private Label Products.
With our software, you can easily choose a product and personalize it with your logo. You can also decide to personalize your product packages and to insert a customized coupon card in your bag. All this, with only a few clicks, on your laptop.