Private Label Dropshipping: Products and Tips for 2024 – Shopify

Looking for a low-maintenance online business idea? Private label dropshipping takes the pressure of product development off an entrepreneur’s hands. Simply choose an existing product, add your branding or designs, and have a dropshipping partner pick, pack, and ship the product to your customer.

A 2024 study from Bazaarvoice revealed that 64% of US consumers had purchased a private label product in the last six months, and 44% have permanently switched previous staple products to private label products.

In this article, learn how to capture that demand with your own private label dropshipping store.

What is private label dropshipping?

Private label dropshipping is when you sell third-party products that have your own branding and/or designs directly to customers. The primary benefits to private label dropshipping are that you can start an ecommerce business on a budget and you don’t have to store inventory. 

Unlike other private label businesses, dropshipping private label products doesn’t require you to invest large sums of money upfront. Startup costs like product development, warehousing, and order fulfillment are taken off your plate, since a third-party dropshipping supplier handles them for you.

Private label dropshipping products

Examples of private label products to dropship include: 

• Clothing (t-shirts, sweatshirts, socks)
• Beverages (tea, sparkling water, soda)
• Coffee
• Cosmetics (makeup, lotion, haircare) 
• Phone cases
• Supplements (vitamins, botanicals, antioxidants) 
• Electronics (headphones, speakers, chargers)
• Home Decor (pillows, throws, wall art) 
• Toys (baby toys, pet toys, children’s toys) 

Private label dropshipping best practices

• Read supplier reviews
• Ask for product details
• Sell what you love
• Test the product yourself
• Find your target market and niche

Read supplier reviews

Since your dropshipping supplier is responsible for producing, fulfilling, and shipping your private label products, it’s important that you choose a reputable partner. Start your search on platforms like:

Read reviews for each private label supplier on your shortlist. Other businesses using the supplier to private label their own products share information about what the company is like to work with, the quality of its products, and how responsive they are to customer support requests. These are critical pieces of insight.

Remember: customers who purchase private label products through your ecommerce website won’t know there’s a third-party dropshipping service involved. While some suppliers provide service guarantees, others might leave it up to you to fix any issues or mistakes. 

Ask for product details

Once you’ve found a potential supplier, ask them to share:

• Product specs, such as its weight, size, material, and color
• Branded packaging specs, such as materials and logo file formats 
• Shipping timescales—online shoppers expect free, fast shipping
• Product certifications, such as FDA-approved foods, cosmetics, and pet products

Choose the private label manufacturer that aligns with what you’re looking for. You should make sure that you’re happy with the quality of the products they offer and the amount of information they provide. 

Sell what you love

There’s a lot that goes into a customer’s purchasing decision, which is why it’s tough to sell products you know nothing about. So, look to the products you personally understand and love. 

If you’re a skin care fanatic, for example, you’ll know what a high-quality product looks like, the ingredients to look for when choosing your own private label skin care items, and the results you expect to see. 

Test the product yourself

Once you’ve chosen a supplier, order a sample—or batch, depending on their minimum order quantities—of the product you’ll be private labeling. Do items in the batch all look and work the same? Does the packaging and quality vary from product to product? Quality control needs to be consistent. 

Testing also gives you the opportunity to put yourself in a customer’s shoes, from unboxing the package to using the privately labeled product. This makes a great foundation for your marketing strategy. For example, record yourself using the product and post it on TikTok. Users love to see behind-the-scenes content from their favorite brands. 

Establish a process for handling returns and support

Then, you’ll need to determine how you’ll handle returns and customer support. Customers expect to have the option to return items, but it will become a challenge for you if you don’t have a warehouse and aren’t set up to resell products.

Ask the dropship supplier if they’ll accept and restock returns for resale. Once you’ve decided on a plan, create a return policy that you list clearly on your website. 

Tools like Shopify Inbox can help you manage any customer concerns or questions that come in – just make sure that you set clear expectations for how long it will take to get back to them. Try to aim for a first response time within 24 hours of their initial message, if possible.

Find your target market and niche

Avoid the temptation to sell a wide selection of products. The more specific your dropshipping store, the better.

Choose one product and hone in. Do research to uncover your target market and find a strong niche. Then, aim to understand how your ideal customers use the product, and what motivates them to make a purchase. Experiment with different marketing channels, such as SEO or email marketing, to engage them. 

Next, choose an ecommerce platform like Shopify, build your website, determine your profit margin, and decide on the best price for each product you sell. When you receive an order, send order information to your supplier and have them print, pack, and ship it to the customer. 

Remember: the best dropshipping companies build a brand around their private label products. 

Start your private label dropshipping business today

Private label dropshipping is an ecommerce business model that combines the best of private label selling and dropshipping. From clothing to phone cases, find a reliable supplier and get the product specs to sell the products you love.