The steps to dropship branded products are:
- Identify your dropshipping niche.
- Identify branded products with demand.
- Verify product authenticity and legalities.
- Find branded dropshipping product suppliers.
- Negotiate with dropship manufacturing suppliers.
- Choose a dropshipping platform.
- Set up your dropshipping store.
- Create your dropshipping store logo.
- Create detailed product listings.
- Price your products competitively.
Other steps to dropship branded products include developing a marketing strategy, implementing an efficient order processing system, providing quality customer service and brand experiences, and regularly updating your inventory and offerings. You also need to analyze your store performance and adopt new strategies to increase sales.
Dropshipping branded products is profitable because people prefer buying brand-name products they know and trust. According to the Harvard Business Review, 80% of consumers say that trust is a deciding factor in their buying decisions. Dropshippers like Samir Mithwani from Miami, Florida claim to have made $1 million in sales within 30 days using branded dropshipping. He notes the importance of of selecting products that not only have a "wow" factor but also solve a direct problem.
However, beginners in this industry can find it difficult to establish a good reputation and online presence. Plus, branded dropshipping costs more to start because you need to follow set guidelines and minimum advertised price (MAP) policies. Making money depends on good marketing, setting the right prices, and the effectiveness of your product’s brand recognition.
Difaino Harting
@difaino
This is what most successful entrepreneurs
won’t show you:
One of my students is killing it with his
branded dropshipping store.
Consistently banging out +$10k days.
It looks all glamorous and stuff but in reality there’s
still lots of work to do.
He’s struggling a lot with consistency.
One day it’s 30% margins, the other day it’s 15% margins.
This is not what the internet will show you. It takes
a lot of brainwork and energy to solve issues like these.
4:45 PM · Apr 10, 2024
Ecommerce coach Difaino Harting from Dubai, UAE shares that one of his students is earning $10K per day by dropshipping branded products. The problem is that his profit margins constantly fluctuate because of inconsistent efforts. He notes that it takes significant work to run this kind of business model despite its promise of high returns.
Dropshipping branded products involves selling items from established brands at a profit. You operate as a retailer who transfers customer orders and shipment details to either the manufacturer, another retailer, or a wholesaler, who ships the products directly to the customer. You don’t keep inventory or manage orders yourself. This differs from white-label dropshipping, where you sell a generic product that you rebranded yourself.
This article covers the 16 steps of how to dropship branded products. It explains how much you can earn through this business model and if branded dropshipping is worth it. At the end of the article, I introduce a more profitable business model than dropshipping branded products.
How To Dropship Branded Products? (16 Ultimate Steps To Kickstart Your Profitability in 2024)
1. Identify Your Dropshipping Niche.
Identifying your dropshipping niche lays the foundation for your business, targeting a specific customer base and guiding your product choices, marketing efforts, and overall branding. This targeted approach helps establish a strong market presence, especially in a competitive online landscape. A niche that aligns with your interests and market trends can increase engagement and customer loyalty.
Lucrative niches include:
2. Identify Branded Products With Demand.
Identifying branded products with demand ensures that your inventory aligns with what customers are looking for. This requires understanding market trends and customer preferences within your niche. You also need to set brand selection criteria like adaptability and overall product quality. Tools like Google Trends and SEMrush help gain insights into popular products and consumer behavior. Doing market research can affect your business’s profitability. According to Hanover Research, companies that do market research frequently have a 76% increase in revenue over the past year.
High-demand branded products include:
3. Verify Product Authenticity and Legalities.
Verifying the authenticity and legalities of products ensures you are selling genuine items and complying with legal standards. This maintains your business's credibility and avoids legal complications. Selling counterfeit or unauthorized products can lead to legal issues and damage your reputation. According to Michigan State University, approximately 70% of consumers experienced purchasing counterfeit products online at least once in the past year.
When verifying the authenticity and legality of branded products for dropshipping, consider these:
4. Find Branded Dropshipping Product Suppliers.
Finding branded dropshipping product suppliers helps you provide quality products and make sure that they’re delivered on time and adhere to authenticity standards. Keep in mind that poor supplier choices can lead to inventory issues, quality concerns, and legal complications. According to AppScenic, if your suppliers deliver low-quality products, are inconsistent, and have extended shipping durations, you won’t succeed in e-commerce.
When finding suppliers for your branded products in dropshipping, consider these:
5. Negotiate With Dropship Manufacturing Suppliers.
Negotiating with your dropshipping suppliers is not just about securing the best prices but also about establishing terms that benefit your business model. Effective negotiation can lead to reduced costs, better shipping terms, and more favorable return policies. According to LinkedIn, organizations that are good in negotiation can save an average of 15% savings in their procurement costs.
When negotiating with your dropship suppliers, consider these:
6. Choose a Dropshipping Platform.
Choosing the right dropshipping platform directly influences the ease of managing your online store, integration with suppliers, scalability of your business, and the overall customer experience. A good dropshipping platform should offer robust support and scalability to grow with your business. This choice determines how effectively you can manage your inventory, process orders, and engage with customers. Look for platforms that offer a balance of functionality, flexibility, and cost-effectiveness to align with your specific business needs.
Here are some popular dropshipping platforms:
7. Set Up Your Dropshipping Store.
Setting up your online store on the selected platform involves customizing your store to appeal to your target market, including choosing a suitable theme, setting up product categories, and designing an intuitive user interface. A well-set-up store can significantly influence customer buying decisions. Tailoring your store's design to your niche and ensuring a seamless user experience are critical for attracting and retaining customers. Remember, the easier it is for customers to navigate and purchase products, the more likely they are to return.
8. Create Your Dropshipping Store Logo.
Designing a logo representing your store and brand helps establish your dropshipping business’s identity. A logo is often the first thing customers associate with your brand, so it’s important to get it right. In fact, 75% of people recognize a brand by its logo, according to Zippia. Tools like Canva, Adobe Spark, or LogoMakr can be helpful for creating professional-looking logos without needing advanced design skills.
When creating your logo, keep these in mind:
9. Create Detailed Product Listings.
Creating detailed product listings can directly influence a customer's purchasing decision by providing clear, comprehensive information and visuals of the product. Each listing should include high-quality images and thorough descriptions. High-resolution images give customers a clear view of what they are purchasing, and detailed descriptions help make informed decisions.
In creating these listings, focus on:
10. Price Your Products Competitively.
Pricing your products competitively is essential in dropshipping because it attracts customers by offering value while ensuring you maintain a healthy profit margin. You can conduct market research to understand the pricing strategies of competitors and price your products effectively.
In pricing your products, consider these factors:
11. Develop a Marketing Strategy for Your Dropshipping Store.
Developing a marketing strategy is fundamental for promoting your dropshipping store and products. Utilizing a mix of digital marketing channels such as social media, email marketing, content marketing, and SEO is crucial. According to HubSpot, companies that prioritize marketing efforts are 13 times more likely to see positive ROI.
When developing your strategy, consider:
12. Implement an Efficient Product Order Processing System.
Implementing an efficient system for handling orders is essential in dropshipping to ensure customer satisfaction and streamline your operations. An effective order processing system can significantly reduce errors and speed up delivery times.
To achieve this:
13. Provide Quality Customer Service and Brand Experiences.
Focusing on quality customer service is essential in dropshipping, as it significantly enhances the shopping experience and helps in building your brand reputation. Excellent customer service leads to higher customer satisfaction and loyalty. According to Zendesk, 75% of customers are inclined to spend more with companies that offer a positive customer experience.
To achieve this:
14. Regularly Update Your Inventory and Offerings.
Keeping your product listings current and frequently introducing new items is key to maintaining customer interest and staying competitive in dropshipping. Regular updates not only reflect market trends but also cater to evolving customer needs.
To effectively update your inventory:
15. Analyze Store Performance and Adapt New Strategies.
Analyzing store performance and adapting new strategies helps you understand what's working and what isn't, allowing for timely improvements and innovations in your business approach. This involves regularly reviewing sales data, customer feedback, and market trends.
To effectively monitor and adapt:
16. Start Dropshipping Your Branded Products.
Now that you have laid the groundwork, begin the actual process of selling and dropshipping your branded products. This step involves executing the plans and strategies you've developed. It's important to monitor this phase closely, as real-world applications can provide valuable insights for further refinement.
Start by:
Can You Dropship Branded Products?
Yes, you can dropship branded products because brands often partner with other retailers to distribute their products. You can also opt for a private label dropshipping model if you want exclusive distribution rights for a particular product.
Dropshipper Austin Rabin from Phoenix, Arizona shares that branded dropshipping demands more time, effort, and financial investment compared to traditional dropshipping methods. It requires a unique brand identity, reliable supplier relationships, and marketing and customer service efforts. These challenges make it a more complex and resource-intensive business model.
How Much Can You Make With Dropshipping Branded Products?
You can make $500 to $10,000 monthly by dropshipping branded products. How much you earn can change depending on your products, how strong your brand is, and how good you are at selling and managing your business. The average income for dropshippers ranges from $1000 to $3000 monthly in their first year. Dropshipping branded products can be profitable, especially if you already have a substantial audience and implement effective marketing strategies.
Margarita Schneider from Tampa, Florida shares that she made $8.5 million in 3 months through branded dropshipping. They earned $30,000 in daily sales within a week. However, they faced a significant decline in sales due to deteriorating quality of content and video edits. They also suffered from multiple advertisement rejections and had periods with no ads running.
Elliott Prendy also earned substantial profits from dropshipping branded products on his Shopify store. He made $5,000 in just 20 days. He did this by featuring a single product, a wrinkle removing device for $120. The high markup and branded presentation aimed to attract customers looking for quality over cheap alternatives.
Is There A More Profitable Business Model Than Branded Dropshipping?
Building your digital assets through local lead generation is a more profitable business model than branded dropshipping because it sidesteps the legal complexities, intense competition, and dependency issues involved in selling branded products. With local lead generation, you're not confined by trademark laws, copyright restrictions, or the reputation and policies of external brands. Instead, you leverage high-income skills like SEO and content marketing to rank websites in Google to generate free traffic and leads for local businesses. This skill set provides a barrier to entry against the saturation seen in lower-skill industries and ensures a more stable and future-proof income.
Local lead generation offers unlimited scalability without the hefty initial investments required in traditional business models like real estate or brick-and-mortar stores. With just a few hundred dollars, you can start building digital assets that have the potential to yield returns comparable to those from significant real estate investments, but with much higher profit margins. Unlike dropshipping where profit margins can be painfully thin (around 10%-20%), local lead generation boasts margins of up to 95% since you're dealing with information-based products and services, not physical goods. This substantial return on investment means not only higher earnings for your time but also less risk of burnout.
Local lead generation surpasses branded dropshipping by offering a business model that avoids legal entanglements, cuts through the competition, and minimizes dependency on external factors like suppliers. This works by creating and ranking websites that target specific local services. These sites act as a bridge between customers looking for a solution and local businesses that provide them. Once these websites gain visibility in search engine results, they attract organic traffic from potential customers. You can then monetize this traffic by selling the leads to local businesses who are eager for new customers.
The local lead gen biz model helps you build your digital assets, harnesses high-income skills for significant barriers to entry, and allows for exponential scalability with high returns on investment. If you're looking for a path to financial freedom that gives you control over your success and the potential for substantial growth, local lead generation is the obvious choice.
