Updated: 2022-03-03 15:11:23
The inspiration for branding a dropshipping store often comes after a period of dropshipping, when someone has found the bestseller among a large number of tested products. One way to make the product impressive and unique to beat the competitors is building a branded dropshipping store that focuses on a single niche market.
If you are an experienced dropshipper, brand dropshipping is one of the awesome ways to expand and optimize stores in the long run.
As a dropshipping agent, SourcinBox also provides private-label service to help dropshipping stores achieve branding. Let’s learn more.
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 people remember your brand, they will unknowingly help your store build customer loyalty and reputation.
Branding allows you to stand out from competitors who sell the same product as you. 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.
The price of dropshipping products 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 private labels 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 our SourcinBox app 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 price, 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 pricing.
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 traffic 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.
The function of a brand marketing strategy is to help your brand grow by achieving specific goals and allowing your brand to establish a meaningful long-term relationship with your audience. To build a strong brand marketing strategy, you need to:
All your marketing efforts will be wasted if you target the wrong audience. So the first step in a marketing strategy is to correctly identify your audience.
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.
Brand consistency is essential to build trust and loyalty. Your interactions with customers must be consistent, which means that 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.
We already know the importance of emotions in purchasing decisions. Then you need to use the power of emotion to build a deeper relationship with your audience.
For example, when Apple releases a new iPhone, their customers will wait in line for a few days, because the iPhone is no longer just a regular smartphone, it provides more emotional value to the audience. Especially among young audiences, owning a new iPhone is like being a member of an exclusive club.
Psychologically speaking, people need to connect with others and desire to have a sense of belonging to the group. This is what Apple gives to the audience and delivers brand promises that make their lives easier, better, and more interesting.
The brand needs to be consistent and flexible to change and keep up with the latest trends. These changes do not require you to destroy your brand value or change the brand name, but to appropriately adjust the image and product appearance or packaging. And change advertising and marketing strategies, or your website, etc. Always being faithful to your brand value can both retain existing customers and attract new customers.
SourcinBox’s private label service is to support some of our customers who are doing branded dropshipping. We can do customized labels, packaging, thanks cards, 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.