Are you at the point where you want to take your dropshipping business to the next level, but you’re not sure how?
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So, what is Private Label Dropshipping?
Simply stated, you create a brand for a line of products that are currently being manufactured without a brand.
This brand can be your online store's name, but I don't recommend that.
A manufacturer makes numerous kinds of outdoor backpacks.
The manufacturer's company has a name, of course. But the products they create don't exist under a brand-name.
So what you are able to do, is create a brand and sell them under it.
So a rookie mistake would be to sign up with Private Label Dropshipping company.
It's easy to get started with these guys, but that's the problem.
Your products will be unremarkable. There will be plenty of alternative Private Label options.
The best way to do this is to approach your suppliers that you've already built relationships with.
Ask them about Private Labeling opportunities.
Ask them if they're currently manufacturing any unbranded items.
They might not be. If not, move on to the next one.
This is why it's so important to build strong relationships with your suppliers.
DON'T try to relabel their branded products.
There's no reason to. Just focus on selling their brands.
This way, if their products increase in popularity, you'll have a good history of selling them.
This seems like a good idea on the surface. But think about it for a second.
It can come across like a store-brand, which people tend to consider of lower value.
If you create a proprietary new brand name for a specific line of private-label products, you can market it as an exclusive, quality line.
You can nest these private label lines under your overarching brand.
So now you have your new Private Label Dropshipping brand. Hard part is over, right?
Whenever I've sold Private Label brands, I've had difficulty getting them to catch on.
After all, nobody has heard of them.
So what do you do?
Over time, if you do this effectively, you'll gain traction with your products.
So your private label brand is selling well.
In fact, they're selling so well that they actually have a decent monthly search volume on Google.
Here comes the really fun part.
You can create a new website just for your brand.
You can start selling your products on here now as well.
This step will cement your brand even more.
Now... You'll start getting people contacting you that want to sell your brand.
What do you do?
Give them your wholesale costs, MSRPs, MAP prices, etc. and tell them to have at it.
Your products will still be shipped by your original manufacturer, you'll just start collecting residual payments without any real effort.
You can even sell your brand for a nice chunk of cash one day if you don't want to deal with it anymore.
So, I hope that this has given you a solid understanding of what Private Label Dropshipping is and how it works.
Good luck with your Private Label endeavors!
Leave a Comment below!
What's up everybody. Anton Kraly here from ecommercelifestyle.com and welcome back to the podcast. So as you know, this podcast is designed to help you grow your revenue, increase your automations, and become number one in your niche. And today's episode should definitely help you do that. So we're going to be talking about a topic and really a word, a term that you don't hear come up all that often. But it's something that we've made a lot of money with and there's definitely a time and a place for it within a normal dropshipping business, it especially the type of dropshipping that I teach at my company dropshiplifestyle.com. So this is private label dropshipping. What does that mean? Well, it means you're still working on the dropship business model where you're accepting orders on your website. Your job is to basically be the retailer, but then another company, the manufacturer is shipping the products to your end customer. So again, nothing different there.
But what private label means is that when these products are being marketed on your site, they're not being marketed as the company's name that's actually manufacturing them and you're not actually shipping products with another company's brand name on them. Instead, you're basically creating your own brand. And this is a brand that lives separately from your e-commerce store. To give you an example, let's say I had an online store that sold hiking backpacks and I wanted to make my own brand of hiking backpacks. I wouldn't call that brand, whatever my store name is, I would make up another brand name, I would make up other product names, I would make up other skew numbers and that brand, my new e-commerce physical product brand would be one of the brands that I carry and that I sell for on my online store amongst all of the other brands that I dropship for.
So first of all, why would you do this? Does it make sense? And kind of when does it make sense? Because there are times and whether or not you want to get into this really depends on the products that you sell. Depends on how much time you want to put into your business. Because doing things like coming up with a brand and writing all these unique product descriptions and setting up the ads and managing it is something that does require a little bit different of a skillset than just being a "normal dropshipper" or online retailer. But again, there are huge benefits for anyone that wants to do it.
First, let me just explain I guess how I came across this and why I even ever started doing this. So this was way back in the day, maybe like, I don't even know, eight years ago on one of my e-commerce stores where I was dropshipping and I was selling for every different brand in my niche. This was a store that has since been sold, somebody else is now selling all these products, not me anymore, but I was selling for a big number of brands.
And then another brand reached out to me via email and they said, "Hey, we see you sell these products in this niche." I'm not going to say what the niche was, but they said, "Hey, we see you sell these products. We have some designs that would fit great on your store. We manufacture them all." I think the first one was in Brooklyn somewhere in New York. They sent me a bunch of really, really good photos of the products that they make, like super high quality. They sent me their price list and the products looked great. The prices looked amazing as far as wholesale costs, but they didn't have any brands. They made them, they were a manufacturer but it wasn't like, "Oh, we're supplier ABC. This is our bestseller products one, two, three." It was just like, "No, we make this stuff and here's the numbers we use for reference for each of the products." But they didn't have anything beyond that.
Now typically with the brands we work with, again, they have established brand names, they have their product names, they have their product features, they have their product descriptions. Everything is all ready set. This company didn't have any of that. They just had product images. They had a wholesale price list. So I said like, "Is there anything that we should list these as on our store?" Because again, what they had is like this is product one, two, three. This is product one, two, four. This is product one to five and nobody searching for that because it's not a product name, it's just their internal way that they referenced products. And they said, "No, we don't have that." I was like, "Okay, what should I do here? I like the prices, I like the products, but I need to name them." So what I basically did was do just that. I came up with like what I talked about earlier, I came up with a brand name. I actually came up with product names for the ones that they told me are their bestsellers and for the ones where my potential profits were the highest.
Now, this new brand name, these new product names, obviously nobody else was using because they were mine. I created them. And what I did is just upload them to my store as we would with anything else. I wrote the descriptions to be unique obviously, and to actually have them exist. And I based that off some of our other best descriptions. I obviously listed everything else, like the dimensions and the product specifications. And then I uploaded them to Google Ads with the rest of our products.
Now with our Google Ads, specifically Google Shopping, we weren't getting even impressions for these products because again, nobody was searching for them. So I thought, "Okay, I have these things on my site. No one's really buying them because nobody's searching for them. How can I actually build up this reputation or this recognition of these products and get people to choose them?" What I did was start sending emails to our email list saying, "Hey, we now carry for..." brand, the brand name I made up. "These are some of the best products. We're doing a sale, 10% off. Here's the links to buy them." What happened? People bought them. I basically sent them to the supplier. The supplier shipped them to the customer under my brand name. So private label dropshipping.
Again, I wasn't giving the supplier money in advance. I wasn't paying them to warehouse products. Still dropshipping 100%, just now under our brand name and our product names. So that email was a quick little boost, got in revenue, got in sales, got in big profits. Then I thought, "Okay, what else can I do? I want people to buy these things because my margins are higher than my normal margins, and also the competition is a lot less because if somebody tries to comparison shop, they're not going to find these products anywhere else." So what I started doing then is making more calls to action on the website going to this new brand. Some examples were in the sidebar of collection pages saying, "Check out this new brand. Again, save 10% on all orders. Here's the link."
Even in some products that we had a lot of traffic for, but that either didn't sell that well or where the margins weren't that great. On those product pages, I would say, "You should also consider product ABC from brand ABC." And then link to those. Other things we did on our homepages is show off those products from our new brand. Some other things were in different collections on our store, the top products that we showed off. So somebody clicks into whatever the niche is, the first products they would see are from that brand. So what that started to do is really just build this organic traffic and really through internal linking started to drive people to these product pages and started to drive sales to these products.
Now this was the beginning of it. This is when I realized this was an opportunity almost stumbled upon it without ever planning for it. But I realized very quickly that this is something I wanted to do more of. But I should also say I realized this couldn't be the full business because nobody would be searching for it. So my opinion, if you want to get into private label dropshipping, your best bet is still follow the system that I teach you at Drop Ship Lifestyle. By the way, you can go to dropshipwebinar.com to learn more about how we build these stores, but follow that system. And then when you want to get into private labeling, make that new brand or the new brands if you find different ways you want to break up these products you have access to and have them incorporated on to your store.
What you don't want to do is go to your existing companies that you sell for that all ready have the established brand names, that all ready have the established products and just say, "Hey, can you just make this my product name instead of yours." Because that's not going to benefit you. And again, people are all ready finding those products. You want to do it where the opportunity is, where the manufacturer does not have a brand name, just has products, just has great pricing and where you can control that market.
And just to build on this a little bit, this is kind of like the next level if you're maybe close to there or ever want to get there. But what we started doing and what you can do as well is as your new brand starts to take off, as you start to get more traction, you can actually build another website specific for that brand and that website will not be an e-commerce store. It won't be where somebody could buy from, but what it's going to do is talk about your brand a little bit. It's going to show off where to buy, which at first is going to be your store, but then you can also on your new brand website have a request information section or a become a dealer section. Where other e-commerce stores who are your competitor on your mini-commerce store actually start reaching out because they want to sell for that brand.
And just like any other supplier, you can create a price list where you give them their wholesale cost, their map costs, their MSRP, they can start selling these products and you're still going to be dropshipping them through this manufacturer you have a connection with. So this is something that has made us a lot of money, something that's definitely not necessary to do. But if you're all in on this, you're building a store, you're following my Drop Ship Lifestyle business model and you just want to take it to the next level, this is something I would recommend. And again, something that's served us very well over the years.
That's it, guys. If you got value from this episode, as always, I would really appreciate it if you can leave us a review on Apple Podcasts. I'll post the link in the description. And if you're watching the video version, please do give the video of like and leave a comment below, letting me know if you've learned anything from this and if you're going to apply it. So as always, thank you guys. Appreciate you. Stay healthy, stay safe. And I will talk to you in the next episode of the eCommerce Lifestyle Podcast. See you.
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