Updated: 2023-07-10 13:52:00
The competition in the dropshipping industry has been increasingly fierce as consumers are looking for cheaper alternatives on popular e-commerce platforms such as Shein, Temu, and Shopee. As a result, building a brand has become more important than ever for dropshipping businesses to stand out from the competition. Also, if you are an experienced dropshipper, branded dropshipping is one of the awesome ways to expand and optimize stores in the long run.
In this article, we have some tips and strategies for you to build a brand and SourcinBox provides private-label service to help you sell customized products with your brand. Let’s get started
Branded dropshipping refers to selling products under your own brand through your online dropshipping store. It usually focuses on only one niche market to achieve better brand effects. Dropshipping means you don’t have to touch the products, so you’ll need dropshipping suppliers to help you produce products with your brand label and deliver them directly to your customers. And your customers will not see any information about the supplier. It helps build customers' trust in your store.
People usually prefer to buy products from stores they are impressed with or familiar with. A dropshipping product without any brand info can be easily forgotten. Instead, a branded product with a brand name or logo on it is easier to impress people. At the same time, the product quality and after-sales service are usually not bad in order to maintain the good reputation of a branded store. When customers feel a connection to your brand, they are more likely to return to your store for future purchases and recommend your store to others.
A recognizable and trusted brand can help you stand out from the competition and attract more customers to your store. Since branded stores are more professional, mature, and trustworthy, once people have identified your brand, they will only buy products of this brand from your store.
Building a brand can improve the perceived value of your products. A strong brand can make your products seem more valuable and desirable, which can lead to higher prices and increased profitability.
For dropshipping, the sales price is usually three times the cost of the product. If you add additional shipping charges, the profit margin is already very impressive. However, if you put brand elements on dropshipping products, your profit margins can be even higher. The following is a case of different stores that sell stainless steel straws.
We all know that stainless steel straws are low-cost and eco-friendly products suitable for dropshipping. The product price of a set of straws on SourcinBox is only $0.95. And the straw packaging is customizable.
Normally, when selling this dropshipping product, the price will be set at three times the cost, which is about $3, and the shipping fee will be charged separately, depending on the shipping method and destination.
For example, the following store is a store without a specific brand. It sells this kind of straw for CAD$3.75, which is around $3. And the shipping fee is charged separately.
So if you purchase this product from SourcinBox and sell it in your dropshipping store at this price, your margin of one set of straw is over $2 based on your shipping fee.
However, when adding a specific brand to stainless steel straws, a miracle happened. Look at the following popular store called the mermaid. All products in this store have brand logos on them as well as the packaging. The price of a set of straw costs $16 with a discount. And the shipping fee is also charged separately.
If you customize this product under your brand from SourcinBox and sell it in your dropshipping store at this price, your margin of one set of straw can be over $15, which is much more than the profit margin without branding.
At the same time, the reputation and sales of this mermaid store are much larger than its competitors’ stores. Obviously, people have higher perception and loyalty to such a fantastic brand.
Building a brand for an online store is essential to stand out in a crowded market and attract loyal customers. Here are five main steps to build a brand for your dropshipping business:
Defining brand values is an important step in building a strong and successful brand for dropshipping businesses that may struggle to create connections with customers. Your brand values are the core principles and beliefs that guide your business and influence the way you interact with your customers and the wider community.
It is essential to make your brand values actionable, which means your decisions and actions should align with your brand values. Additionally, your visual image, brand tone, and other information should be consistent and easy to identify. This also means that each of your posts, photos, and advertisements must reflect your brand value and the information should be delivered with your unique brand image.
The visual part of your brand identity mainly determines the customer's first impression of your brand. The key elements of your visual brand identity includes brand logo, colors, typography, graphic style, brand guidelines, etc. Your brand visual designs should be consistent with your brand values and the niche and products you choose. Also, considering your audience's interests, values, and preferences can help you design elements that appeal to them and create a strong connection with your brand.
Developing a strong social media presence can be an excellent way to build your brand awareness, connect with your customers, and drive traffic to your website. This means you will carry out your marketing campaigns on social media to expand your brand influence. Social media is a great tool for you to study customer preferences. Understanding when and why your target audience makes purchasing decisions is essential for you to build marketing strategies. And try to attract them with specificity, your customers will feel that you really understand them. It takes time to build a following and engagement on social media, So, be patient, be consistent, and be authentic!
Offering great customer service is essential for any business that wants to build a loyal customer base and succeed in the long term. First of all, it is recommended to reduce product quality problems and shipping issues by working with reliable suppliers and automating your order fulfillment. So that you will have more time and energy to focus on better customer service. To have a better customer service, it is important to listen to your cuastomers and respond promptly to both positive and negative feedback.
Customizing products and packaging is an effective way to differentiate your brand from competitors and create a unique and memorable customer experience. Since you cannot directly control the product production, packaging, and shipping in the dropshipping model, finding a reliable supplier matters.SourcinBox is a dropshipping agent that offers customization options for your brand.
SourcinBox’s private label service is to support some of our customers who are doing branded dropshipping. We can do customized labels, packaging, thank you card, stickers, inserts, etc.
1. Tell us your needs.
First, you need to let us know the product (send product links or pictures to us) to be branded and how you'd like to do the branding, like packaging, inserts, a sticker or label on the product/ packaging, print on the product/ packaging, etc.
Then send us your brand logo as an AI or PSD document. And let us know the size and what materials you want to use to make inserts/ cards/ sticker/ label/ packaging etc.
2. We source and quote for you.
We'll check with manufacturers to find out the price, MOQ, lead time, sample images, etc.
3. You place orders on our app.
After you confirm the product, price, and MOQ, you can place orders on our app.
4. We process your orders.
Once you have placed your orders, we will forward them to the corresponding manufacturer, and the processing time varies according to order volume and the manufacturer.
5. We ship out your products.
As soon as the customization is completed, we will check the quality and ship out the products within 1-2 days.
6. We handle after-sales issues.
If there is any delivery failure or product failure caused by us, please tell us within 7 days, and we will reship or refund as per your request.
The MOQ of private label products is usually very high. For example, the MOQ of customized packaging boxes is usually around 1000. Before you customize products or packaging, please contact your customer manager for more details.
We will charge you a small amount of extra private label service fee for additional production and labor costs incurred during the customization process. It’s not expensive but you have to be aware of it to measure the profit margin of your products for private labeling.
Besides, if you do not have a large number of stable orders, we don’t recommend you customize your own branded products, so as to avoid the loss caused by inventory accumulation.
Branded dropshipping is not easier than ordinary dropshipping. But building a brand can make your product more easily trusted by the audience and stand out from the market. And a good brand marketing strategy allows you to better build your brand and expand brand awareness. Developing and building a brand allows you to reap higher brand premiums and longer-lasting brand returns.
Contact us to find out if the product you sell can be customized with your brand and get a quote for free!