You must have been reading a lot about what is dropshipping and how it is changing the entire face of the e-commerce business. But you must have not known much about private label drop shipping in China.
If you are interested in knowing about what is private label drop shipping and how it has been enabling e-commerce business owners to make millions then this blog is a must-read for you.
Private label dropshipping is a modified form of the dropshipping business model. Private label dropshipping lets business owners purchase products from suppliers and then sell them to their customers under their brand name.
In e-commerce, marketplace products get sold based on their perceived value. A brand name increases the perceived value of the products. With increased perceived value, more customers tend to buy the product and hence it increases the revenues generated by the business,
For private label drop shipping as a business owner you need:
1. An authentic brand name
2. A logo for your business
3. Branded packaging of the products
4. Branded invoices of the products to share with your customers
There is a very important difference between dropshipping and private label dropshipping. In dropshipping when a business receives an order of a particular product, it forwards it to the supplier and the supplier takes control of the fulfillment process. Whereas in private label drop shipping, the business owner has to order the product in bulk for manufacturing. Before placing the order the business owner has to show proof to the private label drop shipping supplier that the product has demand and has potential customers in the market.
Data analysis has shown that 19.4 percent of the e-commerce business market share was occupied by private-label brands in the USA in the year 2020. Also, the sales of private label products in the US were documented to be 158.8 billion US dollars.
The first and the most important step in the process of private label dropshipping is selecting the niche and the product to sell.
Experts have two pieces of advice in this aspect. The first is to invest in a niche that you find interesting and that drives your passion and motivation towards it. In this way, you will never lose interest in your business and you will invest all your energy and effort in it.
The second is to analyze the trends in the market and choose a product that is unique and in demand. In this way, you will have definite sales while filling the market demand gap. This process requires extensive research and expertise. If you are a beginner then it is better to invest in a product that is trending and is in demand.
It is really hard to find a private label dropshipping supplier. What makes a private label drop shipping supplier different from the particular dropshipping supplier is that it sells your product under your brand name with custom packaging.
A private label drop shipping supplier acts as an agent in the whole supply chain process. From product development to shipping it takes full responsibility for the private label drop shipping fulfillment process.
This step involves first all selection of an appropriate channel for the marketing of your product. There are plenty of sales channels to choose from such as Wix, Shopify, eBay, etc. Once you have chosen your sales to channel them you need to customize your store with your product and under your brand identity.
The second step is to identify your target audience and then market your products through various marketing strategies such as Facebook, Instagram, Google Ads, and Youtube marketing.
Quick delivery is a big catch in the E-commerce business world. You can always win your customers through quick and timely deliveries and also lose your customers with late and delayed orders. You should always select a company that provides a variety of delivery channels and quick delivery times.
Having a backup plan is always safe to keep running your business smoothly. Before starting your business you should always have someone to guide you or someone who has ample experience in this field.
Being able to bounce back when something is not working saves from setbacks. Try to remain in contact with more than one supplier and rely on more than one shipping company because unexpected events can happen anytime.
If you want to create your brand with a private label drop shipping strategy then you need to hire a private label dropshipping agent. A private label dropshipping agent such as Tesen provides you with private label drop shipping fulfillment services.
ü It helps in product development by connecting to suppliers who manufacture products under brand labels and creating product mock-ups.
ü Performs product confirmation by business owners by sharing product videos, pictures, or physical samples.
ü Conducts regular product inspections to make sure that product quality is consistent with the requirements of the customers' business owners and expectations of the customers.
ü Make sure that private label products are all stocked up in the warehouse.
ü Delivers the products across the world using shipping services that are quick and reliable.
Private label dropshipping is giving a new direction and meaning to the traditional model of dropshipping business. When paired with a branded store the private label dropshipping model becomes very powerful and persuasive.
After reading this blog you have received ample valuable information about private label dropshipping. Also, the difference between dropshipping and private label dropshipping has been made clear. Now what is left for you is to take action and execute this business model.
Once you have found the right product to market, you have created a branded store, and developed a customer base, your popularity and brand identity will increase over time among your customers. This will help you increase your revenue stream.
So what are you waiting for start your private label dropshipping business from today!
Source Your Products and Start Dropshipping
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