How to Start and Find Private Label Drop Ship Suppliers?
When you decide which type of e-commerce store to build, you usually look at the dropshipping and private label(private label drop ship). After all, every aspiring entrepreneur should consider the different pros and cons before taking a risk.
To give you a very simplified answer: if you are a complete novice, our suggestion is to try dropshipping first, and then private label (or private label drop ship)!
We recommend this because the dropshipping business allows you to find successful products with little upfront investment or expertise. Once you learn the ropes and know what works, you can smoothly enter the private label drop ship space.
But don’t just listen to us! In this article, we will flesh out the issue of dropshipping and private labels(private label drop ship) so that you can make your own decision.
Table of Contents
What is dropshipping?
Dropshipping is a business model where you never have to touch your products or buy inventory before you are ready to sell. You are actually selling the supplier’s products through stores, social media, or other sales channels.
When a customer buys a product from you, you purchase from the supplier and then let the supplier ship the product directly to your customer.
Pros and cons of dropshipping
Dropshipping provides entrepreneurs with the following benefits.
It is much cheaper to start a dropshipping business. Your initial investment will be very low since you don’t need to buy any inventory or create a product brand.
Wide variety of products
Direct selling allows you to choose from a variety of products sold online. You can freely check the inventory of multiple direct selling suppliers and choose the best-selling products you think.
As a shipper, you don’t need to book a vast product inventory. If some of your items are not sold, you can stop selling them without worrying about the remaining inventory. At the same time, you can freely purchase and release new products in the store.
However, dropshipping also has some disadvantages that need to be considered.
Disadvantages of dropshipping
Since dropshipping is easier to start, you want to find other entrepreneurs who use the same business model (or even sell the same products) as you. This may make it difficult for you to stand out.
No product brand
The real killer of dropshipping is unbranded items. Although the products you sell may carry the supplier’s brand, they lack your brand. Therefore, you cannot control their pricing or rely on them to increase your customer retention rate.
What is a private label?
As the name implies, the private label means that the products you sell have your own “private” brand.
This is different from dropshipping, in which the products you buy from your suppliers are produced precisely in their way, and you have little control over the final products your customers receive.
Pros and cons of private label
The private label brings many advantages, and it may be the perfect business model for some entrepreneurs.
Private label advantage
Private label allows you to create your own product brand. You ask the manufacturer to put your business name and logo on the product while applying any other brands (colors, fonts, etc.) and packaging guidelines you provide.
Because of your control over the product brand, you can determine the price of the product. In addition, you can eliminate the risk of competitors driving down your prices because they cannot sell your brand at a lower price than you.
With your own brand, you can establish your own exclusive identity to increase customer loyalty and recognition. For example, you can be the sole source of products and take steps to personalize the shopping experience, which can become a loyalty booster for your store. In other words, operating a private label business will have some good consequences.
Disadvantages of private label
If you are starting e-commerce, your investment budget may not match the capital requirements for starting a private label business. Only the setup cost is at least 1,000-1,500 US dollars. In contrast, dropshipping marketing has lower start-up costs and is easier to operate and manage.
As a private label merchant, you need to meet the manufacturer’s minimum order quantity (MOQ) requirements to purchase your products. This has its risks. For example, if your product brand fails to win customers, it will leave a large pile of dead (unsold) inventory.
Dropshipping and Private Label (or private label drop ship)
In short, dropshipping is when you sell another company’s branded products. Private label means you sell products under your own brand. In some cases, you can control the product development and manufacturing process. In other cases, you are selling pre-made products with your logo and brand.
The main difference between dropshipping and private label is that dropshipping does not require you to manage and ship your products, while private label does.
To increase another possibility, there is a private label drop ship. As you might guess, private label drop ship is a combination of the two(dropshipping and private label).
It enables you to use your brand without having to manage your own inventory.
Private Label Drop Ship vs. White Label Dropshipping
When you decide to ship under your own brand, your manufacturer may ask you to choose between “own brand” and “white label“. These options allow you to place the company brand on the product, but there are differences between the two labels.
As a private label shipper, you have the exclusive right to sell goods purchased from the manufacturer. This exclusivity allows you to change the design, color, parts, or dimensions of the product.
When drop-ship white label products, you buy generic drugs from the manufacturer, rename them, and sell them as your own brand. It is cheaper than purchasing private label products, but you don’t have much say in how they are made. The only things you can define are packaging, labels, and branding.
Therefore, private label drop ship can give you more control over your products. Moreover, the cost of purchasing private-label products is higher, but if they are marketed properly, they may bring huge profits.
Clear? Good. Now let us enter the exciting part: how to sell private label drop ship products.
How to Start Private Label drop Ship
1. Brainstorm and put forward product ideas
The first step in private label drop ship is to come up with a product idea. This is where your creativity and market research skills come into play. Think about the trendy, updated things you have recently encountered online or in retail stores.
For example, I was browsing my Facebook feed and saw an ad featuring bicycle saddles. As a bicycle enthusiast, I clicked and found that the online store running the ad only deals with “comfortable bicycle saddles.”
Knowing that a saddle can be the difference between a pleasant journey or a miserable journey, I found this product to be excellent. In addition, with the withdrawal of vehicle inventory in 2021, the demand for bicycles has soared, which is a trend.
Of course, you can verify the product at any time to make sure it sells well. Keyword research can help you determine how many people are looking for products online. It’s also a good idea to analyze searches for specific parts of a product, as they can also help you open up a niche for your private label business.
Where else can you find product ideas? Quite a few places:
• Amazon bestseller list
• AliExpress hot product list
• Shut up and take my money (Reddit group)
• Wish and fancy
2. Find a supplier that offers private laebl dropshipping service
If you are interested in a private brand dropshipping, you can cooperate with professional companies. These private label drop shipping suppliers purchase products for you and help them get a cohesive brand feel through customized brand packages. These packages can include products such as logo stickers, flyers, and gift cards.
In addition, you can use a Dropshipping product sourcing agent to help you develop a private label and then help you fulfill the orders. Since most dropshipping agents carry various commodities, this strategy can help you quickly select commodities for your target niche.
The Best General Private Label Drop Ship Supplier
In the next, we have compiled a list of the best general drop shipping for you. Remember, we have also compiled a list of private label niche dropshipping suppliers, so please keep reading if you are interested in these suppliers!
Please note that operating a private label drop ship business is not beginner-friendly compared to an ordinary drop ship business.
Let’s start with a supplier you may already be familiar with;
AliExpress is one of the most mature e-commerce markets globally and a place where many dropshipping suppliers provide their products.
On AliExpress, you will be able to find various dropshipping suppliers. From Chinese suppliers to suppliers with warehouses in the United States, they are all there.
Moreover, some AliExpress dropshipping suppliers even provide private label services!
• Inexpensive products. Products on AliExpress are usually relatively cheap. This is caused by the high level of competition on the platform, forcing sellers to lower prices and remain competitive.
• A wide variety of products. You will be able to find almost any direct selling product on AliExpress.
• Cashback opportunities. If you don’t know yet, you can get 4.3%-5.9% cashback on all AliExpress orders, which is helpful for your product pricing strategy.
• Delivery time may be very long. Packages from AliExpress usually take quite a long time to be delivered.
• Dishonest suppliers. AliExpress suppliers are known for not always telling the truth.
How to connect AliExpress to your store?
AliExpress can connect to your store using apps like Oberlo or one of its awesome alternatives. Pricing – AliExpress can be used for free!
Let us continue with Alibaba, one of the largest e-commerce companies in the world. I heard you thinking: “I thought Alibaba’s suppliers were wholesale suppliers? Well, it’s true, most of them are, but there is a way to use Alibaba to run its own brand dropshipping business.
The problem is that Alibaba is an excellent place to buy private label products in bulk at preferential prices:
By combining the advantages of Alibaba with the advantages of dropshipping agents, you should be able to send this inventory to the dropshipping agent’s warehouse.
Once you receive the order in the online store, you can ask your drop shipping fulfillment agent to ship the packages to your customers one by one.
• Inexpensive products. The products on Alibaba are one of the cheapest products you can buy anywhere. You buy the product directly from the source by buying on Alibaba, which means the lowest product price.
• Flexible suppliers. If you see on Alibaba that the minimum order quantity required by the supplier is too high for you, please don’t be afraid to ask for a lower amount! Alibaba’s suppliers are very flexible, and I hope you will buy from them again in the future.
• Long transportation time. Similar to AliExpress, products on Alibaba may take a considerable amount of time to be delivered.
• Language and cultural barriers. Due to language and cultural barriers, talking to suppliers on Alibaba can be exhausting. In some cases, it may take a while to reach an agreement.
• Many MOQs. Few suppliers on Alibaba sell their products one by one.
How do you connect Alibaba to your store?
You can use apps like Syncee to connect Alibaba to your store. Pricing: Alibaba is free to use. Similarly, you only need to pay for the product and shipping costs.
supplyia is an all-in-one China dropshipping platform that conducts business in a slightly different way. They offer an extensive product catalog, but what is unique is that they provide you with a service where they will source(ODM/OEM, private label, white label), buy, and stock products for you. More importantly, supplyia provides a 100% product inspection before they ship out.
In short, supplyia’s services are the services of dropshipping agents are very similar! they will:
•Help you develop products confidentially
• Purchasing the required products from the factory
• Perform quality control
• Customize your package
• Store your products in its fulfillment warehouse
• Automatically synchronize your order fulfillment
• Use a relatively fast shipping method to ship your order
• Integrated services. Compared with drop shipping service providers, supplyia can provide you with more services. You can even let supplyia create custom product photos for you!
•More fast shipping solutions. supplyia will work hard to find the best transportation route to each country/region to ensure that your customers receive the package as soon as possible.
SupplyMeDirect is an e-commerce market that looks similar to AliExpress at first glance. However, it is also a private label drop ship of beauty and fabric products, as you can see on their website.
• Easily connect to Shopify stores. As I mentioned, SupplyMeDirect offers a Shopify app that makes connecting suppliers to your store a breeze!
• Access to warehouses in the U.S., U.K., and Europe. Approximately 60% of SupplyMeDirect’s inventory is stored in warehouses in the U.S., U.K., or Europe. In other words, the transportation time will be relatively fast.
• Lack of social recognition. Although they are all five stars, SupplyMeDirect’s Shopify app currently has only four reviews.
How do you connect SupplyMeDirect to your store?
You can use their Shopify app to connect your Shopify store to SupplyMeDirect. Pricing: You can use SupplyMeDirect services for free!
The following supplier BigBuy is a European dropshipping and wholesale supplier. BigBuy tries to differentiate itself from other suppliers by providing additional services. For example, it can provide customers with packages containing your company name and logo.
• Attractive product pricing. BigBuy’s dropshipping service allows you to get wholesale prices without the need for a minimum order amount, which is essential for drop shipping and is very suitable for your dropshipping pricing strategy.
• Product catalog in 24 European languages. BigBuy provides a product catalog translated into 24 European languages to make business easier for shippers and has 100% local translation.
• Monthly fee. To use BigBuy, you must afford their monthly fee, which is relatively expensive.
• Not focusing on private label or dropshipping. A large part of BigBuy’s business is its wholesale department.
How do you connect BigBuy to your store?
Using BigBuy’s dropshipping service, you can connect BigBuy to shops on platforms such as Shopify, Prestashop, eBay, and Amazon.
Pricing -To work directly with BigBuy, you will need a monthly “e-commerce package” of 69 Euros and a registration fee of 90 Euros.
For more advanced functions and integration with the market, BigBuy’s “Market Package” will charge you 99 Euros a month and a one-time registration fee of 90 Euros.
Looking for a U.S. supplier that provides high-quality products? Then I recommend taking a look at DropCommerce.
This is a catalog of more than 300 suppliers, all of which are North American suppliers!
More importantly, DropCommerce allows you to partially self-brand your business by providing branded invoices:
• Only for North American dropshipping suppliers. Most of the other platforms on this list are made up of Chinese suppliers, but on DropCommerce, you can only find suppliers located in the U.S. or Canada.
• Fast delivery. Since all products will be shipped from the U.S. or Canada, the shipping time for DropCommerce is only 3-5 days!
• Not a complete private label solution. Unfortunately, DropCommerce only provides branded invoicing functions.
How do you connect DropCommerce to your store?
If you are using DropCommerce’s Pro plan, you will be able to benefit from automated fulfillment. If not, you will have to process your order through the DropCommerce dashboard.
Pricing – You will be able to see DropCommerce’s pricing plans below. To use branded invoices, you must pay for DropCommerce’s growth plan.
The Best Niche Private Label Dropshipping Suppliers
Now let’s continue to work with private label drop ship suppliers who specialize in specific niche markets!
These suppliers are usually able to provide you with local products. In addition, because they specialize in a specific niche, they are likely to be able to answer all the questions you may have.
This is the name of the first niche private label supplier!
As you might have guessed, Printful operates in an on-demand printing niche market. This private label supplier has warehouses around the world:
In addition to printing products on demand, Printful can also add your brand labels to products. In addition, they provide customized packing lists to make the product entirely yours:
If brand identity design is not your most vital skill, Printful can also help you. Last but not least, you will be able to use Printful’s services without having to pay a monthly membership fee!
How do you connect Printful to your store?
You can connect Printful to many e-commerce platforms. For more information, check out Printful’s integration page.
Well, you have already read it. Do you want to start a coffee business within one day? In this case, please check the drip consignor!
This supplier focuses on developing their brand dropshipping business in the coffee niche market.
Drip Boat will provide you with your own branded coffee products containing your brand name and logo. In addition, coffee products are roasted in the United States and shipped within three days.
In addition, Dripshipper also provides a 14-day money-back guarantee and can help you with sales and marketing training. Finally, Dripshipper has a simple pricing plan that allows you to spend $30 per month:
Sounds great, right?
How do you connect drip shippers to your store?
You can connect Dripshipper to the Shopify store using their app.
Let’s move on to the next private label US dropshipper, Dropified.
With Dropified, you will get private label products such as supplements, CBD, skincare products, coffee, etc.
All consumables you find on Dropified are made in the United States. This means they will contain the highest quality ingredients, and you can also benefit from fast shipping time!
The disadvantage of Dropified is that it is relatively expensive.
How to connect Dropified to your store? Dropified provides integration with e-commerce platforms Shopify, WooCommerce, etc. You can find more information on Dropified’s website.
If coffee is not your dish, then you might be interested in selling tea?
In this case, please check the following tea private label dropshipping suppliers,TeaSwan.
Headquartered in India, TeaSwan is one of the fastest-growing B2B tea brands. It provides a tea dropshipping and private label program for online store owners, enabling them to package tea products under private label from anywhere in the world.
TeaSwan cannot directly connect to the e-commerce store. All orders you receive must be emailed to TeaSwan in a specific format.
Art of Where (Print on demand)
Art of Where is a Canadian on-demand printing private label supplier with a very fancy website. As a Canadian supplier, all orders are printed, cut, sewn, and packaged by Art of Where studio in Montreal, Canada.
With “Art Land,” you will be able to drop ship your own created products using custom labels and packaging without having to pay any monthly fees.
How do you connect “art of where” to your store?
You can connect Art of Where to popular e-commerce platforms such as Shopify and WooCommerce.
Power Body (Fitness nutrition)
Let’s take a look at another potentially profitable niche market for private label drop shippers, fitness nutrition.
If you want to start your fitness nutrition brand, you must check out Power Body. Power Body is a retailer and wholesaler from the U.K., but they also have a drop shipping sales plan:
As you can see, they provide branded invoices, packaging, and labels!
How to connect Power Body to your store?
Power Body uses API integration to connect to your store.
AOP+ (Print on demand)
AOP+ is an on-demand printing private label supplier. You can start using this supplier for free, which will allow you to access fulfillment warehouses in Europe, the United Kingdom, and the United States.
How to connect AOP+ to your store?
You can install the vendor’s free Shopify app or Etsy app to connect AOP+ to your store. For additional branding and tagging features, and some other benefits, you can become a super member for $11.99 per month or a hero member for $19.99 per month.
Let’s end this list with a private label drop ship provider in the beauty niche. BTS Wholesaler focuses on selling to customers in the United States and Europe. They have a dropshipping plan that allows you to resell their products for free.
By doing this, you can get benefits such as product catalogs in five languages, and most importantly, brand packaging!
How do you connect a BTS wholesaler to your store?
When using a BTS wholesaler for drop shipping, you must manually process your order on their website.
How Do I Find More Private Label Drop Ship Suppliers?
If these two private label drop ship suppliers list is not enough for you, please remember that you can find more suppliers yourself!
A good strategy for finding private label dropshipping suppliers is to use Google. Try typing the following in the search bar:
Private label + product keywords + no minimum requirements + country/region
How to Approach Private Label Drop Ship Suppliers in Your Country
Although it is super simple to buy products wholesale, asking the supplier to do private label drop shipping for you is another matter.
This is because when you buy wholesale, the transaction is simple. You pay the seller, and the seller will send the goods to you.
But when it comes to drop shipping, you are essentially seeking partners, not buying products in bulk. Your supplier will fulfill each of your orders.
In addition, you must work closely with them to ensure that the packaging and inserts show your brand and not theirs.
In short, the commitment that a dropship supplier must make is far greater than a simple wholesale arrangement.
Private Label Dropshipping suppliers requirements
Therefore, before contacting the dropship supplier, you must be fully prepared because you must make people feel that you are a legitimate business owner.
Not only you have to have your seller’s license, but you also need to prepare a professional website in advance.
And many more? How can I build a website before I have nothing to sell?
Just because you have a website does not mean it has to accept transactions. Just because you have a website does not mean it needs to be fully functional.
If I look for a dropship supplier, I will use Shopify or Open Cart to build a fast and simple website, using stock product images to make it look like a real store.
Remember: You are asking your dropship supplier to become a partner. Unless you can prove that you have a plan to promote sales, they will not be willing to work with you.
Is a professional website necessary now?
But having a good-looking website can convince suppliers that you are worth their time. The choice is yours.
Evaluate Your Private Label Dropshipper Suppliers
You also need to conduct your own due diligence once you show your dropship supplier that you are a serious buyer.
Here are some questions to ask the dropshipping suppliers:
Do you have to pay a delivery fee?-Usually, the dropship supplier will charge a fee for each order to be completed.
Once an order is placed, how long does it take to ship the product?-Customer service is the main focus of dropshipping
How to place an order? (phone, fax, email, promotional video)
Do you support EDI? EDI is a way to get real-time inventory data from your suppliers to don’t sell out-of-stock items.
How to track orders? -Will they send shipping and tracking information to customers?
Can you write my company name and logo on the packaging?-It is important to apply your brand name to the package.
Note: If you are looking for a good place to find dropship suppliers, worldwide brands can save you time by classifying and categorizing suppliers in a large database for you.
Conclusion for the Private Label Drop Ship
When the power of dropshipping and private label products needs to be combined, great things happen. Thanks to e-commerce software and continuous market innovation, you can create a thriving business in the office or bedroom.
Here are the best practices to adopt when using the magic of the 21st-century private label drop ship:
• Design your digital catalog as early as possible. One advantage of not spending time on product development is that you have more time to do other tasks. However, this does not mean that your marketing should be affected. Ensure that your customers can quickly and easily find the products you sell from day one.
• Ensure that your supplier is reliable. As a company that does not produce its products, the last thing you want to see is your supply chain is exhausted or delivery time is extended. This can result in a low fill rate, which means you cannot complete all customer orders at any given time. Before you agree to work with a partner, please research your partner, especially for exclusive agreements.
• Develop a strong e-commerce marketing strategy. Because dropshipping is so feasible, thousands of people are using it to make money. You need to have a strong brand image on one of the best dropshipping sites to stand out. Highlighting the most powerful product features through high-quality visual effects and excellent copywriting is the key to customer retention.
• Consider different e-commerce shipping companies. Many dropshipping services work with shipping services, but it doesn’t hurt to do thorough research on your own. After working with a particular company for a long time, you may prefer them. Delivering products on time is a key part of the way dropshipping works. Make sure you don’t skimp on this.
• Develop a backup plan. If any aspect of your private label drop ship business fails, you need a way to rebound. Maybe you have a friend who sells similar products or knows how to print shipping labels at home. Every component of your business should be replaced on rare occasions because things did not go as expected.
At last, Whatever choice you make: dropshipping, private label or private label drop ship, just remember: funding success is all about learning and growing as you go.