Are you ready to transition from dropshipping products to white labeling or private labeling?
White labeling or private labeling is a common way of scaling an eCommerce business from a dropshipping model. Many online business owners use this strategy to improve their product delivery and increase their profits. They usually explore this option after identifying their best-selling dropshipping products and gaining the financial means to buy items in bulk. Rarely does a newbie in eCommerce and marketing do this because the risks will be too high for them than dropshipping.
If you’re an eCommerce beginner with a small amount of money to invest, I recommend that you start with a dropshipping business first, not a white label or private label store. Here’s a step-by-step guide for dropshipping to learn about this industry.
Going back to white labeling or private labeling of products, these terms are often used interchangeably in business. Although both give you control over the shipping of products, they differ in some aspects.
White labeling products means adding your branding to a generic product that a manufacturer mass-produced to make it appear that you made them yourself before selling them. The manufacturer can sell the generic products to as many retailers as they want and let them resell the items under their branding. The products are already made using the manufacturer’s design and specifications and the only changes you can do are in the branding, packaging, and marketing of them.
If you already have an established brand, selling white label products is very advantageous for you. You can just add your labels on the products and your popularity will do the marketing for you. You’ll also enjoy a higher profit margin with white label products because there will be less spending on product development and you can start selling quickly.
Unlike in white labeling where the products are already made for selling, with private labeling, you contract a manufacturer to create a product based on your specifications. Meaning, they’ll produce a specific item exclusively for you. They will not be able to sell copies of the product on other retailers because they are bound by the contract they have with you. You will solely own the product and sell it under your brand.
This might be a costly venture for you but, the potential for huge profit is high because the product is unique to your brand. You also don’t have to worry about competing with other online businesses in selling the same item.
How do you sell private label or white label products?
There are three methods that you can sell private label or white label products.
Method #1: Private Label or White Label Dropshipping
When opting for a dropshipping setup, look for a dropshipping supplier who can manufacture, pack, and ship your products to your customers. If you’re private label dropshipping, you can control the specifications, packaging, and so on but, they will stock the inventory in their warehouse and deal with the shipping. This might cost you more but the products will be sent out with your branding and company name.
With white label dropshipping, as you will not be touching the products before they are shipped to customers, you will not be able to add branding to them. The dropshipping supplier will fulfill the order and place a generic packing slip without their name or logo in the package. The customer will receive the package without knowing the name of the sender but with instructions for returns. Blind shipping is the other term for white label dropshipping and you will be anonymous in this arrangement. Any feedback and issues about the product, however, will go back to you as the seller of the products.
Method #2: Sell via FBA
FBA or Fulfillment by Amazon is a service in which you send your private label or white label products to Amazon fulfillment centers for storing. The company will handle the picking, packing, shipping, and providing customer service for your products. It also works like dropshipping but its Amazon, not the suppliers that handle the fulfillment of orders and customer service.
Method #3: Sell Directly on Your Website
In this method, you buy the products in bulk from the wholesaler and have them shipped to your home. When a customer orders from you, you take care of the fulfillment, shipping, and customer service. You can add your brand label, pack products using your customized packaging, insert your promotional materials, and ship the package to customers using your preferred shipping service.
Regardless you sell white label or private label products on your website, with this method you can ensure that the customers will receive the products thinking you have made them. You’ll be able to do quality control as you’re handling the fulfillment yourself and can ensure quick delivery using the shipping options you offer on your website.
Now that you know the different ways you can sell white label or private label products, let’s move on to choosing the items.
What are the best product ideas to white label or private label this 2020?
The best product ideas for white labeling or private labeling are those that already have a demand. They have a high potential for success because they are no longer new and people are consuming them already. These products are available in different designs, models, or make and can stay in demand for the years to come. All you have to do is look for the winning product based on these ideas and a Product Mafia subscription will help you find it quickly.
#1 – Essential Oils
The demand for them, especially in the United States, continues to grow as they are useful in the cosmetics, beverage, food, health, and wellness industries.
#2 – Water Bottles
More and more people are moving towards eco-friendly products like reusable water bottles to reduce the use of plastics.
#3 – Phone Accessories
From car mounts to self-charging phone cases, new phone accessories keep on emerging in the market promising convenience to phone users.
#4 – Smart Backpacks
Backpacks are widely used by students, office workers, travel enthusiasts, and anyone who preferred this bag type to carry their things. With technology backpacks, people can easily charge devices while traveling.
#5 Reusable Bags
To have a positive impact on the environment, people are embracing a ‘green’ lifestyle through re-using and recycling things including bags.
#6 Yoga Accessories
The interest in yoga as a form of exercise keeps on increasing. Yoga accessories are easy to produce, pack, and ship making them ideal for white labeling or product labeling.
#7 Detox Products
The detox market is anticipated to reach $69.85 Billion by 2025. Need I say more?
#8 Vegan Products
From bamboo beddings, leggings, and toothbrushes to skincare products using plant-based ingredients, vegan products are huge right now in support of sustainable living.
Whether you choose to do private labeling or white labeling dropshipping or buy products in bulk to sell on your website under your brand, make sure that you choose your products carefully. Using the above product ideas, start looking for a reliable supplier or manufacturer to white label or private label items for you already.