What Exactly is White Labeling?
“White label dropshipping” is when a dropship supplier applies their brand name and logo to the product packaging. The products are branded as the dropshipper/creators’ products, rather than the suppliers’ products.
Customers who receive the end product are unaware that there was a third party involved. Whatever products they receive are associated with the creator’s brand because of the packaging.
White Label vs. Private Label
While both label options allow you to sell products under your own custom brand, there are clear differences between the two.
White label is when the manufacturer distributes a generic product, such as a blank white T-shirt, to multiple retailers, without making any fundamental changes to the product. The only difference between one retailer’s product and another’s is their custom brand name alone.
Private label is when a manufacturer designs and distributes a product specifically for the retailer. For example, if two retailers are selling the same line of dresses from one manufacturer, but Retailer A’s dresses were modified to include pockets, then private labeling has taken place. The brand and the product features are different.
Building a Brand Through White Labeling
White labeling allows you to build a distinct brand for your dropshipping business from scratch. Even if you aren’t manufacturing, producing, and shipping products, packaging that reflects your brand provides brand consistency and recognition. This gives you an opportunity to boost visibility on the market, and allows your customers to have a custom experience with your brand.
It’s no surprise that packaging has a strong effect on customer buying decisions. Even something like adding your logo onto a shoe box can drastically change how customers or potential customers view your brand. According to a study on consumers and brand perception, 50% of consumers say they are more likely to recommend an online order that has branded packaging over orders that do not.
Scaling Your Dropshipping Business
If you’re looking to grow your dropshipping business (or any business!), you need to be able to expand your product line. Instead of spending valuable time trying to develop new products, you can offer your customers high quality products instantly by choosing a dropshipper that can reliably deliver branded products through custom white labeling. White labeling allows you to keep customers satisfied by meeting their needs immediately with a solution that doesn’t take up much valuable resources on your end. All you have to do is add your own branding to custom products, and voila, new offerings to help you expand your business!
What are you waiting for? If you aren’t already white labeling your products, you’re missing out on a lot of great opportunities to get your brand out to more customers. Investing in branding your products can result in positive brand perception, which can lead to a chain reaction of events – positive word of mouth, more customers, and more opportunities to scale your dropshipping business! Not sure how to get started? Kin Custom now offers an easy white labeling solution – all you have to do is login to the Creator Studio, upload your logo, and start creating custom merch with your own brand!