How To Get Started With Branded Dropshipping (2024)

You have a clear idea for your dream store—everything from the visual aesthetics to your products. Your research is done, so you know who your customers would be and your value proposition establishes why they’d buy from you. Your marketing plan is in place so you can start to reach those customers.

But what you might not have is the initial budget to acquire, produce, or store the products you want to sell. You can still bring your vision to life, thanks to the branded dropshipping business model. Here’s what you need to know.

What is branded dropshipping?

Branded dropshipping involves customizing your dropshipped products with branded packaging, labels, and other collateral, like postcards or inserts. Unlike plain, unbranded shipments, this approach ensures your customers receive products with your store’s identity. Not all suppliers offer this option, so without it, products arrive in generic packaging that’s detached from your brand identity.

In general, dropshipping is a retail fulfillment method where you don’t keep the products you sell in stock. Instead, you partner with a supplier who manufactures or sources your products, stores your inventory until you make a sale, and then ships the products to your customers from its warehouse. This approach lets you start an online dropshipping business without the overhead costs of product development or inventory management, freeing you up to optimize your marketing and online store.

What is private label dropshipping?

Private label dropshipping is another term for branded dropshipping, or partnering with a supplier to create and develop branded products. Incorporating your own brand into your dropshipping business means you can develop a loyal customer base that’s interested in your curated selection, even if other dropshippers sell similar items. A cohesive online shopping experience and brand identity set you apart from the competition and may allow you to charge a premium for the same items. 

How to successfully start and run a branded dropshipping store

1. Identify a niche
2. Build your brand
3. Find a supplier
4. Choose products
5. Advertise your brand
6. Prioritize customer service
7. Refine with customer feedback

Experts forecast the dropshipping market to reach $372 billion by 2025. Here’s how to secure your piece of the dropshipping pie, from developing a unique brand presence to finding reliable suppliers:

1. Identify a niche 

The most effective way to launch a dropshipping business is to concentrate on a specific niche. Narrowing your focus—like specializing in skin care products instead of all beauty items—can make it easier to understand your target audience and position your brand as a go-to store in that category.

Choose a niche that resonates with you or addresses an underserved market. Common private-label product categories include home décor, clothing, novelty gifts, lifestyle products, and tech accessories. If you’re passionate about a particular area or see a gap in the market, invest time in market research to generate product ideas.

2. Build your brand

A cohesive brand presence is critical to a successful branded dropshipping business. Everything from your brand story and logo to the typography, brand voice, and visuals on your website help you stand out to potential customers and provide the foundation for a high-quality shopping experience.

Start by considering the products you want to sell or the overall shopping experience you want to create. Then, you should aim to:

• Establish your brand. Define your brand mission and values and develop a consistent brand voice and tone. Then, refine your brand identity—the visual aspects of your brand, like colors, fonts, and imagery. Use a website template with preset color schemes or customize your own.

• Create a store name and logo. Choose a memorable name for the store for your dropshipping business and create a logo. Design your own using tools like Canva or Photoshop, use a free logo maker, or hire a freelance designer for a custom look.

• Choose an ecommerce platform. Finally, set up your online store on an ecommerce platform like Shopify.

3. Find a supplier

Identify the best dropshipping suppliers for your niche by researching their specialties. For example, the coffee-focused supplier Dripshipper combines a roasting facility with a fulfillment center—a perfect fit if you’re looking to sell beans through your own branded dropshipping store.

Prioritize suppliers with expertise in custom branded packaging and mailers. Evaluate shipping timescales and minimum order quantities (MOQ). You can also read customer reviews on platforms like the supplier directory SaleHoo, the print-on-demand clothing supplier Apliiq, and Modalyst, which supplies products from big brands and indie merchants alike.

4. Choose products

Once you’ve settled on a dropshipping supplier, choose the products to market on your site and determine their branding using labels, custom packaging design, and tailored product descriptions.

Consider your brand’s long-term goals when choosing how many products to offer. Dropshipping fewer products may help you own a particular niche, but featuring just a few higher-end items may limit how often customers visit the store. On the other hand, too many products can confuse customers and dilute your brand identity.

Depending on what you offer, aim to start with between five and 20 products, highlighting a few at a time. This approach allows you to gauge what sells while giving customers room to browse. Then, adjust your inventory—or your storytelling approach—based on what shoppers are adding to their carts, and what they’re passing over.

5. Advertise your brand

Brand recognition starts with a strong identity, which helps customers connect with and remember your brand on a deeper level. Once core elements of your aesthetic are in place, stay consistent across your advertising efforts from paid social media ads to email marketing campaigns.

Reach your target audience through strategic partnerships with complementary brands that highlight the benefit of your offerings. A wellness brand, for example, might partner with a kid’s gear brand to target parents in need of a break. Press coverage in product-focused publications can also drive traffic to your site through positive reviews or feature articles. Even small design tweaks, like adding social share links to product pages, can encourage shoppers to spread the word.

6. Prioritize customer service

What makes branded dropshipping profitable is outsourcing inventory management, but this also means relinquishing control over the final stages of the customer experience—like product quality, packaging, and shipping. You rely on your supplier’s processes, so you need to have a plan in place in case something goes wrong.

You’d like to choose a reliable supplier with a strong track record, but the best way to offset the risk of error—in order details, packaging, or shipping delays—is to establish a seamless return policy and a customer service plan for damaged or unsatisfactory products. Be sure to ask your supplier about their procedures for handling mistakes or returns.

7. Refine with customer feedback

Loyal customers are the backbone of your dropshipping business, and one of the best ways to encourage brand loyalty is to engage new and existing customers in conversation.

If the store for your dropshipping business features a subscription model or gives customers frequent reasons to return, nurture that community with a customer loyalty or rewards program that issues discounts for repeat purchases or incentivizes referrals with points or merchandise. Customer loyalty programs also give you a direct line to your biggest supporters and provide the opportunity to get meaningful feedback on aspects of the shopping experience.

Asking for and implementing customer feedback is one way to encourage customer advocacy, an effective form of brand promotion in which satisfied customers feel motivated to recommend your brand to their peers. When customers feel heard and see that their input is taken seriously, they feel more invested in the brand’s success.