Ecommerce Encyclopedia

‟Ecommerce is a powerful means to connect the unconnected to global trade” - Arancha Gonzalez

How does white label dropshipping work?

1. How does white label dropshipping work?

White label dropshipping is a business agreement involving the manufacturer and the dropshipper. The manufacturer merchandise their white label products on online marketplaces and dropshipper looking for products to white label will reach out to the manufacturer to make a deal. The products in this period are yet to be packaged or labeled. After a contract is created, the items will be customized according to the dropshipper’s brand and delivered to the buyers.

2. What are the products you can white label?

Always choose white label products that are already sought-after. These can be all kinds of products, from fashion items to medicines and furniture. Selling these products are proven to be extremely lucrative as they have become common during daily lives of consumers.

3. What are the pros and cons of white labeling products?

Before deciding on white labeling products, it is vital to take into account the benefits as well as the downsides of this method. By doing so, you will be aware of what is coming and prepare yourself for future challenges.

Pros

  • Having a quality manufacturer making white label products for you can help improve the image of your business since they are advertised as your own brand.  
  • Without doing heavy labor, you can still sell your items at a good price and make a profit.
  • If things go awry, it’s the manufacturer who takes the responsibilities and fixes the problems encountered with white label products.

Cons

  • Even though the manufacturer will rebrand the items based on your request, the design pool is strictly limited to what they can settle for you.
  • You can only go for what the supplier already offers instead of creating something unique.
  • The same products will also be marketed by other dropshippers, making the industry more competitive, leading to less chance of success.