Private label dropshipping is a smart way to start eCommerce, particularly dropshipping businesses. With this model, you can sell products under your own brand while suppliers manage production and delivery. It’s a low-cost, low-risk option for entrepreneurs who want to focus on building a memorable brand and creating customer loyalty.
Table of Contents
What is Private Label Dropshipping?
Private label dropshipping is a business model that combines the best of two worlds: dropshipping and private labeling. It allows entrepreneurs to sell products under their own brand without the hassle of managing inventory or shipping.
With private label dropshipping, you focus on marketing and building your brand, while your supplier handles production and logistics.
How does Private Label Dropship Work?
This approach makes it easy to create a professional, branded experience for your customers without the high upfront costs of traditional inventory-based businesses.
Here’s how it works:
- You partner with a supplier who produces and stores the products.
- The supplier customizes the products with your brand name, logo, and packaging.
- When a customer places an order on your online store, the supplier ships the product directly to them.
All in all, private label dropship is a flexible, low-risk way to start a business, perfect for those looking to build a unique brand and stand out in competitive markets.
Why Should You Choose Private Label Dropship?
Let’s look at what the actual market numbers tell us.
Data gathered by eMarketer revealed that 57% of U.S. consumers believe private label brands are a great value for the price. While 43% buy private label products to save money, another 29% feel they’re just as good as big-name brands.
This trend is growing. According to Bazaarvoice in January 2024, 44% of U.S. shoppers have switched to private labels for some of their everyday purchases. Additionally, 64% of US consumers have bought private label products.
How to Start Private Label Dropshipping?
Private label dropshipping is a great way to start an eCommerce business without needing a lot of upfront capital. To build a successful brand, you need to be strategic about your product choices, supplier relationships, and overall setup. Here’s a quick guide to help you get started:
Step 1: Build Your Brand Identity
The most successful dropshipping businesses focus on branding. Go beyond selling products—create an experience. Keep branding consistent across all channels: use custom packaging, consistent branding, and a unique value proposition to stand out.
Consider developing branding guidelines that include colors, fonts, imagery, and a logo. You can use any free online tool to design yourself, or hire a designer if needed. A strong brand identity helps your products stand out and creates consistency across your business.
Also, think beyond just creating nice-looking products—your items should reflect your brand’s mission, values, and style.
For example, if your niche is sustainable fashion, emphasize eco-friendly materials and ethical production practices in your marketing. Tell your brand story to connect with customers on an emotional level.
Pro Tip: Write unique product descriptions instead of copying your supplier’s content to incorporate your own highlights. Plus, invest in professional product photography and branding materials to give your store a polished, high-end feel. This builds trust and encourages repeat purchases.
Step 2: Choose the Right Products
Product research for dropshipping is a crucial step to find items that align with your brand.
Customizable items like t-shirts, water bottles, and home goods are safe bets because they’re always in demand.
If you want to stand out, focus on a specific niche that appeals to your audience. Niche products can make your brand memorable and allow for targeted marketing.
It can be easier to market products you genuinely love and understand. Your enthusiasm translates into authentic messaging and better customer engagement.
For instance, if you’re a pet lover, focus on pet accessories or high-quality pet foods. You’ll naturally understand your customers’ pain points and preferences, allowing you to craft persuasive marketing campaigns.
Pro Tip: Use your personal passion to create educational content, like blog posts, videos, or social media tutorials. This positions you as an authority in your niche and builds customer loyalty.
Step 3: Find and Evaluate Suppliers
Your supplier’s reliability is key to success. Take time to thoroughly assess potential suppliers by answering important questions:
- Do they specialize in the product category you intend to sell?
- What are the average processing and delivery times?
- What is the minimum order quantity required?
- How do they handle returns and refunds?
- Do they offer sample products?
- What are their pros and cons?
- What do previous buyers review about the supplier?
Online platforms work best for dropshipping as they connect you to reliable suppliers with transparent shipping and customization options. However, you can also reach out directly to manufacturers who offer private label programs.
Pro Tip: Avoid putting all your eggs in one basket. Shortlist at least 2–3 suppliers in case you need a backup. Diversifying your options ensures stability during high-demand periods or unexpected issues.
Step 4: Set Up Your Online Store
Once you’ve chosen your products and suppliers, it’s time to create your online store. Platforms like Shopify, Squarespace, WordPress, and Wix offer all the tools you need to design a professional, user-friendly store.
Pro Tip: Focus on creating an intuitive shopping experience by organizing your product pages, using clear calls-to-action, and optimizing for mobile users. Also, ensure your store is SEO-optimized. For example, SEO for Etsy helps your store rank higher in Etsy’s search results, driving organic traffic to your site.
Step 5: Test, Learn, and Improve
One of the biggest advantages of private label dropshipping is flexibility. You can test new products, designs, or messaging without big risks, then gather feedback from customers to see what works, then make improvements.
To grow your business, consider expanding to multiple sales channels like Amazon or eBay and using ads or email marketing to reach more people. Small tweaks in pricing, targeting, or product presentation can make a big difference in your results.
Pro Tip: Continuously test and optimize your marketing efforts. Run A/B tests on ad creatives, experiment with email campaigns, and stay updated on trends in your niche to stay ahead of competitors.
Plus, it is recommended to use agency ad accounts instead of regular accounts to ensure account strength and ad campaigns’ stability. Partnering with reputable agencies—such as Mega Digital—will help you get access to all the benefits of agency ad accounts.
Best Private Label Dropshipping Product Categories
According to data from Numerator, private label products are thriving in certain categories, making them perfect for dropshipping. These product groups are affordable, practical, and popular among households, offering a steady stream of sales.
If you’re looking for the best options, here are the top private label products categories to consider.
Office Supplies
Private label share of category: 37.8%
Estimated profit margins: 20%–40%
Office supplies are a top choice for private label dropshipping. Items like notebooks, pens, folders, and desk organizers are in steady demand from students, remote workers, and small businesses. These products are affordable, practical, and often need to be repurchased, making them perfect for a reliable dropshipping business.
Home & Garden Products
Private label share of category: 31.5%
Estimated profit margins: 25%–50%
Home and garden products are another great option. People always look for storage bins, home decor, cleaning tools, and gardening supplies. These items are useful year-round and can see a boost in sales during spring cleaning or gardening seasons. The variety of products in this category gives you plenty of opportunities to attract a wide range of customers.
Tools & Home Improvement
Private label share of category: 29.3%
Estimated profit margins: 20%–45%
The tools and home improvement category is also worth considering. DIY tools, hardware kits, and home repair products are frequently in demand. Homeowners and hobbyists are often looking for affordable tools to complete their projects, and private label options can fill that need.
Household Products
Private label share of category: 27.2%
Estimated Profit Margins: 15%–35%
Everyday items like cleaning supplies, paper towels, and storage containers are always in demand. These products often lead to repeat purchases, which is great for building loyal, returning customers. Offering them as part of a subscription can make dropshipping even more profitable.
Grocery Products
Private label share of category: 24.2%
Estimated profit margins: 10%–25%
Pantry items, snacks, and specialty foods are perfect for dropshipping because they’re always needed. Focusing on non-perishable foods, organic options, or international snacks can help you stand out and attract a niche audience.
Others
Other solid choices include baby products and health & beauty items, which hold 22.2% and 17.4% private label share of category, respectively. Baby essentials like diapers, wipes, and clothing see consistent demand.
Meanwhile, health and beauty products like skincare, haircare, and wellness items are growing in popularity. These categories do require more trust from customers, so it’s important to focus on quality and reliable branding.
On the other hand, electronics are not the best choice for private label dropshipping. With just 10.6% private label share of category, they are harder to sell. Electronics often come with higher costs, quality concerns, and strong competition, which makes them riskier to manage for dropshippers.
>>> Read more: Top 21+ Dropshipping Products with High-Profit Margin
Best Suppliers for Private Label Dropship
Choosing the right supplier is essential for running a successful private label dropshipping business. Let’s have a look at some of the best platforms offering private labeling options, their features, product range, and minimum order quantities (MOQ) to help you get started.
AliExpress
AliExpress stands out as a top choice for private label dropshipping due to its massive product selection across various niches like electronics, fashion, and home goods.
It supports global shipping to over 200 countries and offers flexible MOQs, making it ideal for beginners.
With competitive pricing, integrations with tools like Oberlo, and 24/7 support, AliExpress is a reliable and accessible option for scaling your private label business.
Wiio
Wiio simplifies private label dropshipping with its all-in-one solution for product sourcing, branding, warehousing, and fulfillment.
Businesses of all sizes can source customizable products on Wiio with low-to-moderate MOQs and efficient global shipping.
Wiio’s quality control, sample testing, and branding services make it an excellent choice for ensuring consistent product standards and streamlined operations.
Spocket
Spocket focuses on high-quality suppliers in the US and EU, making it ideal for sellers targeting premium markets with faster shipping times (2–7 days).
Small and mid-sized businesses will love Spocket’s low MOQs and customizable private label options.
Thanks to their transparent supplier information and sample ordering, you can rest assured about the superior product quality and reliability.
Printful
Printful excels in print-on-demand (POD) services, offering customizable products like apparel and home decor.
With no MOQs and global shipping from multiple fulfillment centers, Printful is ideal for businesses seeking flexibility.
Its seamless integration with major eCommerce platforms and robust branding options make it an excellent choice for selling branded merchandise.
SaleHoo
SaleHoo is a trusted directory of over 8,000 verified suppliers, offering private label products across categories like beauty, fashion, and electronics.
You will have access to market research tools to identify trends and profitable products, with MOQs typically low to moderate.
SaleHoo is a great option for businesses looking for reliable suppliers and direct communication with manufacturers for private labeling.
3 Best Practices for Dropshipping Private Label
If you’re looking to succeed in private label dropshipping, implementing these best practices can help you stand out, build trust with your customers, and grow your business effectively. Here’s how to do it right:
1. Request Detailed Product Information
Once you’ve identified potential suppliers, ask for detailed product information, including:
- Dimensions, materials, and available colors
- Branded packaging options, including logos and custom designs
- Certifications (e.g., FDA approval for food products or eco-friendly labels)
- Shipping timelines and return policies
This information helps you make informed decisions about product quality and ensures your offerings align with customer expectations.
Pro Tip: Don’t forget to take advantage of the advanced filters to choose suppliers who offer robust product guarantees and transparent policies. This minimizes risks and builds trust with your customers if anything goes wrong.
2. Test Products Before Selling
Don’t skip the crucial step of testing your private label products. Order samples to assess quality, consistency, and packaging. Put yourself in your customer’s shoes—would you be happy receiving this product?
Testing also gives you an opportunity to create authentic marketing content. Record unboxing videos or share testimonials from your own experience with the product. This builds credibility and helps customers visualize what they’re purchasing.
Pro Tip: Share your testing journey on social media platforms like TikTok or Instagram. Behind-the-scenes content boosts engagement and builds transparency with your audience.
3. Plan for Returns and Customer Support
Having a return policy in place is essential for earning trust. Customers expect hassle-free returns, even in dropshipping. Discuss with your supplier if they can handle returns directly or restock items for resale.
Clearly display your return policy on your website, and use tools like Shopify Inbox to manage customer inquiries efficiently. Respond promptly—aim for a first response within 24 hours.
Pro Tip: Use automated email workflows to handle common customer queries, like shipping updates or return instructions. This reduces manual work and improves customer satisfaction.
Final Thoughts
Private label dropshipping offers an exciting opportunity to build a brand with minimal risk and cost. By selecting the right niche, working with reliable suppliers, and focusing on branding, you can create a business that stands out in competitive markets.
Don’t forget to test your products, engage with your customers, and continually optimize your strategies to grow and thrive. With dedication and the right practices, private label dropshipping can help you turn your entrepreneurial dreams into a reality.
