You will come across various jargon and terms when launching an online store. The dropship system is already known and well established. You also have the option of selling private label products. What are the advantages of dropshipping white private label products?
Understanding Private Label
Products with private label are manufactured exclusively for a specific retailer. There are manufacturers that make products for other companies. The manufacturers do not add their brand name to the products they make. It is the retailers that have their names on the products. You can get different types of products made and manufactured for this purpose. It is also referred as white label products even though some people in the industry differentiate between white label and private label products. Both are almost the same thing.
Dropshipping
This is now an established business model. In this process, a dropship merchant stocks products but does not sell directly to the retail customers. It is generally online sellers that order products from these merchants. These sellers gather sales leads using a variety of online marketing and promotional techniques. They have their websites where they sell products even though they do not have any of those products in their inventory. Once they have received the orders, they pass those orders to the dropship merchant who then sends the products to the recipients. It allows online sellers to avoid investments in inventory. They do not have to stock any product but can still sell a wide range of products across various categories.
Dropship or Private Label
There are several factors that affect which product sourcing model you choose for your e-commerce venture. Both have their advantages. Dropship allows you to eliminate the inventory cost completely. You do not have to stock any product. It means no investment money is needed to buy products. This sourcing model allows you to sell a wide range of products. You only spend money on building an e-commerce website and marketing and promoting your venture to get the sales leads. The private label product allows you to build your own brand. It offers long-term benefits but also requires a substantial investment in ordering and buying products from the manufacturers and assemblers.
The best option is to connect with dropshipping white private label product suppliers. They offer both options. You will get the benefits of dropshipping as well as white label products. It all depends on the types of products you want to sell, the amount of money you are ready to invest in your e-commerce venture, and how much effort you are ready to put in this business.