Branded Dropshipping 2022: All-in-one Guide For Beginners
Over the past decade, along with dropshipping across the globe, branded dropshipping has gained a great deal of momentum in the international arena.
It provides sellers with selling items with their logos or names on them and they almost never have to hold inventory for the products.
This article dives deep into the pros and cons of dropshipping branded products. It also gives insights into how to build a store and pinpoints the elements necessary to make it successful business entrepreneurship. You will also see frequently asked questions at the end of the article.
Table of contents for this article.
What is Branded Dropshipping?
When a brand is taken into consideration in terms of the design of a shop, high-quality images of a product, then it may most probably give your items and sales a shiny finish.
It is, in one of the most basic definitions, a clear sensation that an item or business evokes.
So, what is branded dropshipping? It all starts with dropshippers trying to sell items without brands that they bought without having to deal with any inventory issues. The critical part here is relabeling the products as theirs after having purchased them unbranded.
It is also known as private label dropshipping. It is all about scaling your brand or business to your desired level.
Why Does Branding Matter for Dropshipping?
Branding your item for dropshipping is definitely giving you the edge of achieving great success in the long run over your rivals in this highly competitive e-commerce arena. Plus, skyrocketing numbers of customers are ideal in both dropshipping and branded dropshipping meaning a lot to sellers.
Branding surely gives customers the chance to get the first impression of not only stores but items and services as well. High-quality branding generally includes the following factors:
- Forming a business name and logo
- Charming photos and videos of the items to be sold
- Appealing descriptions of the products
- Great customer service in times of problems
Branded Dropshipping vs Dropshipping
Let's try to differentiate the two to better understand the notions. When you do dropshipping, online stores go through a procedure in which they sell the items and suppliers store, do the packaging and finally deliver the products to customers.
So the logo and brand name will usually be the suppliers’.
When it comes to branded dropshipping, sellers purchase items without brands and sell them with their unique brands on without having any inventory.
Adding custom prints, relabelling them with your own logo name, and finally designing custom packaging are easy steps to follow in this type of dropshipping.
Pros and Cons of Branded Dropshipping
The pros definitely outweigh the cons. Of course, there will be risky parts to it, yet it is all about accepting the challenges and moving on with the benefits, learning lessons from the disadvantageous parts of it.
Branded dropshipping usually comes with the positive parts because the brand itself stands out from others. It is up to sellers from that point to turn it into a promising key player in the market.
It would be wise to remember that good branding results in lasting success for businesses in the long run. Here are 9 benefits of branded dropshipping:
- Bonding a Feeling of Trust: A well-known brand always appeals to customers more easily than others, creating a sense of trust so that customers will be more likely to choose the same brand for sure.
- Shopping without Stress: Potential customers are more loyal to brands with great recognition and user-friendly, accessible websites. It automatically winds up in less stressed shoppers for they know exactly what they are shopping for.
- Having a Boosted Value for Items: Needles to say, the stronger your market recognition, the more sales, and profits you will definitely have.
- Refund Rates Decreased: A dependable brand means decreasing the number of rates most of the time. Once shoppers have purchased an item in your store and it has proved to be trusted, they will most probably keep buying the same brand.
- Making Customers Feel Confident: It surely comes down to factors affecting customers wishing to buy a certain kind of item. If you make them comfortable with shopping the right thing with confidence, chances are you are not going to lose these customers.
- Making Bonds Stronger: Apart from having a perfect bond with branded dropshipping suppliers, an identity with a great market presence helps you develop perfect relationships with customers. It will definitely enable you to feel like a family with your existing and hopefully would-be customers:)
- Keeping Existing Customers Loyal to Your Brand: Please note that maintaining your present customers comfortable and happy is five times easier than attaining new loyal customers.
- Having More Control over Brands: Doing this unique business will give you the edge over other competitors, enabling you to control your brand and manage it more properly than you would think.
Being One of the Key Players: Branded dropshipping allows you to be an important competitor in the marketplace as long as you follow the fundamental guidelines carefully.
In addition to what it offers you as great benefits in the international arena, branded dropshipping yet has some minuses to deal with. Let's take a closer look at them. Here are 5 drawbacks to better understand them and tackle the issues as soon as possible.
- Lack of Control over Order Completion and Lead Times: The number one challenge with this type of business is having much less control over the completion of customers’ orders and lead times. Most of the time, it takes longer to ship your product to the customer’s address, making you fail in this order.
- Getting out of Stock: Another great issue here is being dependent on suppliers’ stock. As it is out of the control of sellers, they are never 100% sure about whether the ordered item is in stock or not, posing a great challenge with regards to getting some bad reviews on their high quality brands just because of an out of stock situation.
- Having a Bad Customer Service Experience: It all boils down to customers going through poor service. Whether they get a late delivery or a damaged product, sellers will take the blame in the end, resulting in negative comments for their shops.
- Low-Profit Margin at First: Getting started with fewer sales and less profit margins sometimes demotivate the new starters, which is perfectly normal. It should be handled with a comprehensive contingency plan and careful assessment on costs.
- Taking Longer Time to Build Brand Awareness: If you are starting from scratch, you do need a great deal of time to develop relationships in terms of raising awareness about your unique brand.
5 Steps to Build Your Branded Dropshipping Store
It is of utmost importance to potential sellers to be aware of the guidelines to pursue so as to be successful in this distinct business area. Then, let's have a closer look at them for the best results.
Step 1: Find a High-Profit Niche
It is not always a bed of roses or a pleasure cruise to find a profitable niche with low competition. Yet, #1 Niche Finder is here to help you with some amazing tools for e-commerce giants such as Shopify and AliExpress. You will also find out about what niche has been trending over the years for your starting point.
You can explore recommended niches by FindNiche experts and determine your products.
It is beyond doubt that you have to research for the best niche and do a market analysis for this specific item. That is exactly where the analysis tool for AliExpress, for instance, comes in.
💡Pro Tip: You can use Google Trends to find dropshipping niches.
It will absolutely give you the opportunities to develop awareness about your unique niche and get a broader perspective to dropship big brands as well.
Step 2: Name Your Store and Design a Captivating Logo
Creating a memorable name followed by a professional and easy-to-remember logo are the baby steps for establishing your branded dropshipping store.
In terms of naming a brand, the most significant part here is creating the name in a way potential customers can easily recognize it, and recommend it to other enthusiasts passionately.
The logo of the brand, on the other hand, should have really strong visual effect colors, thus specifying its key elements of it. It will also be useful to use graphics or text to show your potential users what the brand you are using is like.
Business owners oftentimes get professional support for creating a logo to suit their needs as well.
Step 3: Select a Reliable Supplier
Forming strong partnerships with dependable third-party suppliers is going to be your easiest guideline to go after when it comes to doing branded dropshipping. You can choose private label suppliers offering items with your logo on it.
It is quite challenging to find a reliable supplier. Because it requires a great deal of research, and analysis and you may have to go for a trial and error strategy to see how branded dropshipping examples are functioning with suppliers in a synchronized way.
However, FindNiche will also assist you with AliExpress Supplier Finder. Let’s say you are looking for a supplier from China. In addition, this supplier should have more than 100 products and 100 feedbacks in 1 month. Moreover, it should have more than 500 followers.
Is it a tough job to find a reliable supplier with these features? No! All you have to do is use FindNiche and filter results.
Step 4: Choose a Selling Channel
So far so good, huh? It is high time you chose your customizable e-commerce platforms. Since marketplaces are all about buying and selling items all the time, custom products for your branded dropshipping store are perfect in e-commerce platforms.
So, it is up to sellers to select which platform best fits their needs such as Etsy, Amazon, etc.
Step 5: Promote Your Products and Store
Promotion of the brand seems like a great idea when you want to reach out to new customers in this arena.
In order to be able to do that, depending on a budget, you can use Facebook and Instagram paid advertising to get your brand recognized by a greater range of shoppers.
If you are planning to drive organic traffic, you should build proper Search Engine Optimization (SEO) strategies.
Bear in mind that influencer marketing is also an amazing option for promotion since it enables you to reach thousands of followers at a time.
In a nutshell, branded dropshipping refers to a process in which sellers purchase items from third-party suppliers and put their own labels and logos on them. Undoubtedly, it comes with pluses and minuses to go through, which is perfectly fine at first.
It is vital for sellers in this business area to seize the opportunities by learning how to promote their store effectively.
There are, of course, excellent tips for them to grow their stores into great success by leaps and bounds. So, give these tips a try and see what is going to happen. It won’t hurt to try:)
Is it legal to dropship branded products?
It is perfectly fine to do branded dropshipping so long as you abide by the rules and regulations within your country and across the globe. There are basically two golden rules regarding this.
The first is applied to not violating copyright issues. In this regard, it will be super important to check out brands protected by copyright. This is the case with the e-commerce giants such as Etsy, Amazon, and eBay as well.
The second point to consider while doing branded dropshipping is definitely not to sell any products forbidden through Facebook, thus resulting in getting issued a warning or being banned from using accounts on the platform.
Is branded dropshipping profitable?
The answer to this question definitely seems yes depending upon how you make the most out of branding your online dropshipping shop. However, every entrepreneurial part of the business always comes with challenges.
On the one hand, it involves low risks urging entrepreneurs to do much more to boost the business. It also allows you to sell branded online products without having to pay tons of costs.
On the other hand, branding your business may mean marking up the prices on the products resulting in the fact that your branded dropshipping store is set to make more profits than expected.
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