White label drop shipping is a completely different ball game compared to dropshipping from Aliexpress. Not only is the setup more complicated but you will definitely have more risk.
The payoffs are huge though and many of the challenges you face with Dropshipping from China will be something of the past.
Dropshipping white label products can be anything but for the most part it is supplements. It is the type of product that lends itself perfectly to whitelabel dropshipping.
If you are ready to step up your dropshipping game then whitelabel products is the natural; progression. It allows you to build a proper brand that has your branding on the products – without you having to risk creating the products.
Private Label vs White Label
These 2 terms are often confused. Private label vs white label are completely different. Private label products are products that are manufactured under a label that will be sold by a specific retailer.
Often times these products are commissioned by the retailer who does not have manufacturing capabilities.
An example of this will be Target’s brand called Market Pantry. The sell several private label brands that they have the exclusive rights to. They can alter these products and brands any way they want as they have the exclusive rights to it.
Private label brands does not have to be exclusive either. Some manufacturers do not have distribution or retail chains and they only manufacture products. They will then allow certain retailers to sell this private label brand.
The profit margins on private label products tend to be quite high because the retailers buy in bulk straight from the manufacturer.
Selling private label products can be a challenge as there is usually a volume limit which makes it very uncompetitive as a dropshipper.Also, getting a manufacturer to dropship private label products is a challenge – but it is not impossible.
White label products – as the name implies, are products that are complete but only requires a label. These are products where you can sell exactly the same product as a thousand other dropshippers BUT you get to brand it with your own image and your own labels.
We all know that the actual products accounts for very little when it comes to the success of a product. Its all about branding and marketing. This is why whitelabel dropshipping is so lucrative.
You can cater a product to virtually any niche market by simply changing the label and the marketing around it.
A “good” example of this is what Panadol did with their painkillers. They started creating multiple “products” that cater to different types of pain.
It turns out that all they did was to change the packaging and the marketing. The actual product was exactly the same. It boosted sales by a staggering 20% – until the FTC caught on to it and went after them.
While this is a bit of a grey area, there are some products where you have to tread carefully but for the most part there are no real issues with doing this.
The Simplest Way To Whitelabel Products
One little trick that very few dropshippers even know of is to whitelabel with Print on Demand. You can use your favourite print on demand platform like Printful. They allow you to print on to blank products – which essentially are “white label”.
Whenever you create a design, always include your logo on the design. I’ve been doing it for some time now and it truly is the easiest way to create a whitelabel product.
It adds value. Instead of just a funny saying on a T-shirt, it now has a brand. The perceived value is higher and most of all you make it your own. It can deter copycats and even help protect you against takedown notices.
There is a huge selection of Print on Demand products that you can use to your advantage. Shoes, blankets, Jewellery, canvases ec.
The downside is that the profit margins are low. Adding your brand to it certainly can help you command a higher price to help combat the low margins. The upside is that there is virtually no risk.
As I already mentioned, health and diet supplements lends itself perfectly to whitelabel dropshipping. Why? Because it is easy to repurpose the generic products to cater to different niche markets.
Protein powder for female bodybuilders and protein powder for high school wrestlers can be the exact same product. It is how you package it, market it and sell it that makes the real difference.
Does it work the same? Yes, it certainly does as there are very subtle differences in these types of products.
The caveat is that you should never lie about the actual content of your products. Be upfront and honest. You have a legal obligation to do so.
The fact remains that people do not buy supplements. They buy what these supplements will give them – or even more so what they BELIEVE these supplements will give them.
This is where marketing comes in.
Supplements dropshipping does have a lot of nuances that you won’t find with other products. Although there are exceptions, with most supplement you will have a tough time advertising in mainstream traffic sources.
You will also likely have to use a different payment processor as the mainstream ones like Stripe and Paypal do not accept the sale of supplements.
You will also have to be very careful with your disclaimers and legal requirements when you do whitelabel dropshipping with supplements.
More Ideas for White Label Drop Shipping
Whitelabel drop shipping does not have to be supplements. Coffee and tea are two other popular products to whitelabel but it is quite saturated already – unless you can come up with a great angle that has been untouched.
There are a few easy “cheats” to whitelabel products that are not really whitelabel products. Many Chinese agents and agencies like CJ Dropshipping allows you to use your own packaging.
It comes at a cost, but they can print a box for you with your logo on it. They will then take the Chinese product out of the original (cheap and crappy) box and place it in your branded box before they ship it.
There are some requirements as to labels and serial numbers and barcodes but it certainly is possible and a cheap way to turn a crappy looking Chinese products into a great looking product.
The real difference again comes in with customer perception. Most dropshipping products are met with a “meh” when the customer receives it. If you can change that to an “ooohh” then you will win – even if the product itself is not that great.
Another thing that most dropshippers do not know about is that you can get your logo printed on to the product itself.
Yes, a real product with YOUR branding on it.
Most Chinese products are blank products. If you order through Alibaba then many suppliers will print your logo on when you order a certain volume (usually it is quite high – like 1000 orders).
Again, my goto CJ Dropshipping comes to the rescue. They can make stickers with your logo and stick it on the product for you before they ship it out.
They can now also laser engrave products for you. This can be great for the right product and can really set you apart from everybody else.
Advantages and Disadvantages of White Label Drop Shipping
Making and selling your own supplements is a daunting task. In fact, manufacturing anything comes with a huge financial risk and something that you should not even attempt unless you have some cash to back you up.
With most products, the process of manufacturing is riddled with unknow costs. Then there is also the processes of certifications ec. That can take both time and money.
When it comes to supplements this can be a nightmare. Because it is a product that can affect someone’s health there are a lot of hoops to jump through.
That is why supplements are so popular for hitelabeling since you do not have to deal with any of this.
The flipside is that even with whitelabeling your profit margins are much lower. Getting your own logo and branding to products cost money and will eat into your profit – especially in the beginning when your brand is still unknown.
There is also the additional costs of designing the branding, labels and logo’s – costs that can quickly add up.
With limited whitelabeling products available (especially in the supplements space) the competition is quite fierce.
Dropified ‘Black’ has a great whitelabel option if you want to get into whitelabeling for cheap. They also offer a lot of support and training to help ease you through all the setup headaches.
White Label Drop Shipping – The Future of Dropshipping
I have no doubt that branding your own products and doing some sort of whitelabeling with your dropshipping is the way to go. With so many dropshippers sel;ling the same stuff from Aliexpress you need to find a way to stand out.
Creating a brand as opposed to just reselling Chinese stuff on your Shopify store is the way to build a long term business.
People are catching on to dropshippers. Everybody now knows about Aliexpress. Unless you have some way of creating perceived value to your products you don’t have a business. You can be copied overnight – and undercut!
By all means you should start testing products on the cheap without spending too much time or money. When you do find some traction tough, dig in. Start building a brand. Use whitelabeling to take your dropshipping brand to the next level.