Wondering how white label dropshipping works?
White label dropshipping is one way of dropshipping that does not expose from where you are sourcing your dropshipping products. If the fear of putting off potential customers that have a bad impression on Chinese products holds you back from dropshipping then, this is the solution for you.
What is white label dropshipping?
White label dropshipping is the act of selling originally unbranded products that have been rebranded for another company without the latter holding the inventory. It is done under a contract between the manufacturer/supplier and the reseller who wants to sell the products under his brand to make it appear that he created them.
Unlike the traditional way of white labeling, the reseller does not store the inventory in white label dropshipping, the manufacturer/supplier does. The arrangement includes the attachment of your branding to the generic items, storing, picking and packing ordered items, and shipping to your customers.
How to do white label dropshipping?
There are important things to know when white label dropshipping. Read this article to learn what they are before you start this type of dropshipping. Once you’re done reading, you can proceed to white label dropshipping by following these steps.
#1 Choose the type of white label dropshipping you want
Decide whether to do blind dropshipping or rebrand dropshipping products under your brand. While blind dropshipping is the easier of the two, it will not help promote your brand. The supplier will just exclude the invoice and marketing materials and ship the items in plain, white packaging. This way, the customer will not know the manufacturer’s name and won’t be able to inquire directly about pricing. You can request the supplier to blind drop ship your orders during AliExpress check out without signing a contract or agreement with them.
Rebranding products, on the other hand, require that you seek the permission of the manufacturer/supplier to avoid issues later on. You might be required to sign a contract or agreement with them to make white label dropshipping legal and official. They might set a MOQ and require upfront payment for the products. However, since the deal is white label dropshipping, they will not send products in bulk to your home. Instead, they will take care of the storage and fulfillment.
#2 Pick the dropshipping niche to white label.
Before selecting products to white label, you need to choose the niche that you want your business to focus on. You have to be mindful of the niche selection because you are building a brand here. Your efforts will be for naught if you pick the wrong niche or sell random products. You can find a list of the most promising niches this 2020 on this article.
#3 Select the best product idea to white label.
Once you have decided on a dropshipping niche, the next step is to choose product ideas. The ideal products for white labels are those that are already being used by people. You didn’t have to test them anymore because the market is already established. Subscribing to Product Mafia makes it easier to find products with winning potential but you can still manually search for them if you like. It might take more time and work but, they’re possible. Check out this article to know what products you can confidently white label for your dropshipping store.
#4 Vet your white label dropshipping suppliers.
Make sure that you carefully choose your dropshipping suppliers. Not all of them will offer white label dropshipping thus you have to research to find them. Fake suppliers are everywhere so I suggest that you know the red flags to look to avoid falling victim to their schemes. To look for white label dropshipping suppliers, a list of resources is available on this post.
#5 Choose the method of selling white label products.
If you’re not aware yet, there are three ways you can sell white label products.
- Buy white label products in bulk to sell on your website.
- Get them on wholesale prices from the manufacturer and have them shipped to an FBA warehouse to sell on Amazon.
- White label dropship from the supplier of the products.
Decide which direction to take so you can plan out your marketing strategy as well. Check out this post to get more info.
#6 Approach potential white label dropshipping suppliers.
You have to seek a manufacturer or supplier’s approval before you can put your brand label to their generic products. This is a legal way of white labeling products. As the manufacturer/supplier offers this service in their business, some other resellers or companies might sell similar products. The only difference would be in the branding. To avoid legal problems in the future, ensure that you are protected with a contract signed between you and the product manufacturer/supplier.
To know how to approach white label dropshipping suppliers the right way, follow the tips on this post.
White label dropshipping offers advantages that would help in growing your business. With white labeling, you can protect your business from complaints and disputes from customers if they found out where you’re dropshipping products from. You can set the price that you want by selling your branded products, allowing you to enjoy higher margins on them. And last but not the least, you can build your reputation as a brand that sells high-quality products without designing your products and paying for production. Make use of this guide for white label dropshipping so you’ll know how to approach it the right way and reduce the risks along the way.