The Advantages of Private Labeling VS Dropshipping

Why It’s Time to Move on To Private Label Products

With anti-China sentiment on the rise across the world in light of their nefarious and hostile business practices, the dropshipping industry is expected to take a massive hit in the upcoming years. China’s policy of dumping low-quality goods at cut-throat prices in western markets has not gone down well with many governments, which are now taking serious action against such behavior.

With new tax hikes and duties being planned against products shipped from China, it won’t be long before dropshipping from China completely stops being financially viable. It’s too late to get into the dropshipping business now – by the time you set everything up, the industry will have evaporated completely.

The era of dropshipping is over. It’s now time to up the game.

 

What are Private Label Products?

Private label products refer to products that are manufactured by one company but marketed and sold by another. They are shipped directly from the manufacturers/producers to your warehouses, where you can assess their quality, perform necessary customizations, brand them with your packaging, and ship them directly to your customers. YOU own the brand here though, instead of being a mere intermediary.

You can reach out and interact with manufacturers directly, thus cutting out a bulk of the supply chain. In the past, the manufacturer would sell the products to the supplier, who would sell it to other suppliers, until it eventually found its way to you. But private label products allow you to cut out everybody else, thus helping you achieve greater profit margins than ever possible with dropshipping.

You no longer need to keep your customers waiting for their products either. Dropshipping typically involves waiting for inordinate amounts of time since your products need to be shipped from China. But with private label products, you can have them delivered to your customers in a matter of days. We live in a time where it’s all about getting your product into the hands of your customers as quickly as possible – private label products help you do that.

Dropshipping often meant that products seldom had a premium feel to them. Think about it – is a Chinese manufacturer really going to put an ounce of effort into how the products are packaged? You can recognize a dropshipping product right off the bat – they look common, lack any sense of aesthetics, and are covered with strange letters all around. Not a pretty sight, to say the least. Aspects like packaging are often ignored by dropshipping entrepreneurs, but we all know that it’s these little things that build and develop a brand in the long run. When you sell private label products, you can stamp and affix your own brand onto them, thus firmly cementing your brand identity.

That’s not to say owners are not making an income from drop shipping and there certainly are benefits to not having to not carrying stock but far many disadvantages. Not to mention your entire business would be selling products the same products as many others already and, any changes made by sellers will heavily affect your business i.e. discontinuation of a product or long delays in restocking, price increases, long shipping times and more. 

Private label products are allowing entrepreneurs all over the world to take complete control of their brands and products. This business model is cost-effective, reliable, promotes quality, and most importantly, allows you to get rid of the notorious ‘Made in China’ tag. If you’re a serious entrepreneur who is dreaming of owning multiple profit-churning businesses, make no mistake – private label products are the way to go!

Readystart has an exciting range of private label opportunities that allow you to create locally designed, printed and packaged products from the comfort of your own home. From making your own range of textiles, giftware, apparel to ornaments and home decor. You’ll be able to not only brand these products but wholesale them to other stores and even offer a dropship service.  

 

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