In line with reliable reports, private label consumption is constantly increasing. With a cognizable change in economic standards, many people seem to settle for private label items. You can rightly link this attitude with their high quality and low price. Outside America, there is a vast e-commerce market, particularly for private label products.
So, e-commerce tycoons have continued to invest so much in private label dropshipping. Curiously, existing side by side with private label dropshipping is white label dropshipping. Owing to the differences existing between both dropshipping models, most beginners seek to know if private label dropshipping is the way to go when starting. This is exactly what this article seeks to address summarily.
What Is Private Label Dropshipping?
Private label dropshipping talks about the dropshipping model where people dropship commodities that are under their brands as against the manufacturer's brand for resale. The products for sales carry the brands of the retailers and not that of the manufacturer. These products are the same with items that you can find under the traditional dropshipping model. They have to do with homes and gardens, pets, personal care, sports, wears, cosmetics, and so on.
Private Label Dropshipping: Pros and Cons
Importantly, you need to know that private labeling has certain advantages as well as disadvantages for a dropshipping store:
Pros:
1. Customer Loyalty
These days, buyers choose domestically manufactured items, and if they should like your private labeled items, they'll want more. By so doing, you'll be the sole source that can offer those items to them. In the retail domain, it is uneasy about getting such loyalty from people.
2. Increased Profit Margins
Retailers who use private labels can have competitive prices for their items. They can increase profit margins. Most retailers earn 25 – 30% greater gross margins on private labels when you compare them with manufactured brands.
Cons:
1. Dead Inventory
At some points, retailers choose products wrongly, when they order some sort of private label items. This has nothing to do with whether their customers love it or not. You can return branded items easily and can equally get reimbursements for your investment. However, this is not so for private-labeled items.
2. Capital-Intensive
You will have to pay for initial item runs, design, branding, shipping, marketing, and customer support. What about ordering for minimum orders? That also makes everyone who loves to dropship private label products need intensive capital. Often, manufacturers always require from dropshippers of private label products to make a definite minimum order. These minimum orders are often large such that you may not be able to afford to make them. The greater the units you buy upfront, the better the per-unit cost turns out to be.
3 Best Private Label Products to Dropship
1. Packaged Food
To find health-driven consumers readily available, you can find private label food brands. You can imagine gluten-free, organic, vegan, and non-GMO for high-quality private label products. Much more than healthy food, other items are also greatly popular with digital buyers. So, you'll always have a broad base of foods to dropship from if you choose to private label them. Some examples of private-label packaged food include:
Organic baby food
Gluten-free snacks
CBD gummies
Matcha green tea powder
Keto snacks
2. Hair Care
Most people have differing hair needs. It's a pretty huge market with a completely limitless customer cache. There are endless segments you can always find consistent customers from. Below are a few of some private label hair care products:
· Hair growth shampoo
· Beard oil
· Human Hair bundles
· Hair growth vitamins
· Hair growth shampoo
3. Supplements
To deal with all kinds of personal problems, people use supplements. And high-retail costs have made large sections of the market online. Dr. Axe is a suitable model of a site doing great with private label supplements. Below are some of the in-demand supplements as we speak:
· Vegan protein powder
· Testosterone booster for men
· Creatine
· Turmeric curcumin
· Detox tea
· Clothing and accessories
Buyers love finding out brands that can help them remain excellent. There are numerous closets for more than a hundred sets of apparel and clothing. Moreover, you'll find countless outfits selling accessories for workout and other associated activities. Manufacturers have these products for the private labeling of dropshippers:
· Yoga pants for women
· Rain ponchos
· Maternity dresses
· Tactical backpack
· Jean shorts for women
Private Label vs. White Label vs. Wholesale
You can choose either a private label or white label or wholesale dropshipping. It all depends on your business goals. Usually, white labels are less costly and can bring about large profit margins. What's more, they are cheaper and faster to produce compared to private label items. But as for private labeling, you become the only seller for that item.
If you want to stand out from your competitors, it is a great way. A good example of this situation is the Amazon private label dropshipping. You may also go for the wholesale model. Indeed, this is where we begin to discuss dropshipping vs. private label. E-commerce merchants often consider wholesale dropshipping as the normal stuff. It comes without making use of any white and private label items.
You do not need any company logo, names, the material on the product when shipping it to the final buyer. Rather, the return label will simply spell "warehouse." And this is where SaleYee, as a wholesale dropshipping supplier, helps dropshippers.
If you look forward to having this blind shipping technique for your brand, you can work with SaleYee.com. SaleYee is a wholesale dropshipping supplier carrying more than 30,000 products in various categories for any dropshipping beginner. You'll find nearly all niches in their space, which you can profitably dropship.
In addition to a wide selection of profitable products at great wholesale prices, SaleYee Dropshipping Platform also provides registered users with the free membership, big discounts, fast and free delivery from local US/UK warehouses, 24/7 customer service, and more.
Conclusion: Private Label Dropshipping Isn't a Good Choice for Beginners
Although private label products are always in good demand, it may, nevertheless, not be a good choice for beginners. The major reason behind this is that you'll need a huge capital to kickstart a private label dropshipping. All these requirements make dropshipping with the private label, not just the best for a beginner-dropshipper. 
