What kind of products are the best for private label dropshipping on Shopify?

What kind of products are the best for private label dropshipping on Shopify?

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Private label is very hot between the Shopify sellers in 2019, we got many inquiries about how to private label products and dropshipping business, how to brand the packaging then ship from China to clients directly. Although private label and dropshipping are totally different mode, along with the crossborder eCommerce developed fastly, more and more Shopify seller starts to find the possibilities of private label dropshipping. Honestly, private label and brand packaging have lots benefits in the long term marketing operation on the Shopify store but they are doesnt suitable for all kinds of products dropshipping from China.

Advantages and disadvantages of private label dropshipping

As a Shopify seller we should know the pros and cons based on our own Shopify ecommerce business instead of follow other stores.

Pros of private label

The private labeled products usually have a higher profit margin than similar none brands products on Shopify stores;

Shopify sellers can control the pricing and inventories based on store sales;

Brands could bring free traffics in the long term running and better for store marketing;

Quality control and brand label packaging as well as short time delivery on Shopify provides better user experience;

Cons of private label

Designing your own logo and packaging can be difficult and expensive, if you do not have stable sales on Shopify store it can be risky;

Highly depended on manufacturers in terms of the quality as well as production, if they are located in different countries, it takes time and efforts;

It will take time to create the brand name and brand awareness on Shopify;

Compared to traditional dropshipping, the private label startups cost more on Shopify which will occupy the money and has potential stock risk;

From the pros and cons of private label eCommerce as a Shopify seller we should evaluate firstly is that my Shopify store is suitable for private label or not currently because you will need to consider fully risks when you private label the Shopify store products. Based on our opinion as an order fulfillment agent when you planning to private label products on Shopify your Shopify store should at least consider the following aspects.

Sales quantity. Before private labeling products your Shopify stores should have stable sales quantity each day or each month, it supports the profits for private label products and reduces the stock risks; If you are focus on the right product niche, the daily or monthly sale quantity do not have to be big, daily 10 to 20 orders or monthly 300 to 500 orders on the Shopify store would be a great foundation for you to private label products;

Average order value. When you planning to private label Shopify store products, you should check the average order value in the past, if the order value is less than $15 in the store then it is not suitable for private label as the private labels, thank you card, packaging cost extra money and they will reduce the profits, in another way the lower price products the more competitors which the clients are hardly to pay extra money while there are plenty products at lower price. Based on recently research, the average order value on Shopify store in the USA and EU countries are between 30 USD to 60 USD, products in this price range have enough profits deduct the private labels and packagings cost etc.

User experience. It is the most important factors when clients pay on your Shopify store. In addition to store design and other store factors, the product quality, delivery time, after sale policy, packaging design all affect the user experience for the private label products. Once you start to plan private label, the user experience on your store should be concerned firstly;

Store marketing. One of the most important role the private label made is to assist the store marketing to viral spread the brand Shopify store. If you do not have a complete store marketing strategy or plan and a marketing execution team then hurry into private label products will be not good enough for your currently Shopify business.

Of course there might be other factors you will also need to consider based on your real situation, after that it comes to the topics what kind of products are the best for private label dropshipping on Shopify.

Product category best for private label

If you are not sure if your products category suitable for private label or not, we suggest you came to the kickstart sites to take a look the products there you will have general ideas. The following are some product categories for private label for you as a reference.

Fashion apperal

The fashion clothing is the most popular product category for private label on Shopify, no matter men clothing, women clothing or children clothing.

Bags and backpack

Water bottles

Phone accessories

Yoga Accessories

Beauty products

Electronic products

for example, the juicer and blender, those small electronic products are good for private label. There are also many other eletronic products like blue tooth speaker, USB LED lights etc.

Children toys

Hats

No matter which kind of products you choose to private label on Shopify, they need to be light weight and the price should be arrange from $20 to $100. And there are many private label dropshipping suppliers on 1688 to serve cross border eCommerce business.

How to private label dropshipping on Shopify

Based on our experience it usually takes 5 steps to start private label dropshipping business on Shopify.

Register a brand domain

When you start Shopify business, an unique domain will make your business outstanding and easily have an impression for the first time visit.

Test products and marketing

As we said above you need to have stable sales on your store before private label the products, that’s less risky for mostly Shopify sellers. The 2nd step is to doing the product research and select product for testing with your marketing skills. Influencers, facebook & Instagram ads, no matter which you choose, you can fasterly test best seller products and get stable sales on daily and monthly basis.

Private label products

Once you have 2 to 3 best seller products in your Shopify store and the daily sales exceed 10 orders and monthly orders between 300 to 400, then you can think about private label.

You can talk to the supplier to negotiate MOQ for the best seller products on Shopify.

New private label marketing strategy

Before you plan the private label on Shopify store, you should start on its marketing stategy to max its functions. If you plan the strategy and execute it well, the private label products could bring you hundreds orders per day in the future, else it might cause lots of stock pressure.

Focus on product selection and marketing

As a Shopify seller we have very restricted time and resources operate the Shopify store, thus we need to focus on the product selection and store marketing to improve user experience and sales after we private label the store products. The order fulfillment jobs can be outsourced to order fulfillment companies like 86Deal in China as they can help you improve the order fulfillment efficiency while lower down the human resource cost.

86Deal private label dropshipping service

86Deal provides one step order fulfillment service for private label Shopify sellers, our service and order fulillment procedure listed below

You are welcome to inquiry 86Deal if you want to private label dropshipping from China 1688 via Shopify.

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