If you have experience in dropshipping, then you probably know that a general store would only take you so far.
It might generate you some monthly profit, but in the long run, you need to find a more sustainable strategy.
This is why if you’re trying to take things to the next level then it’s time that you start focusing on custom packaging for dropshipping.
Custom packaging is the first step of building your brand. It might require a bit more investment, but the ROI it can potentially generate makes it an option worth considering.
So what are the benefits of custom packaging and why is it a great strategy to scale your dropshipping business?
Read on to find out!
What is Custom Packaging for Dropshipping?
Custom packaging for dropshipping is basically differentiating yourself from your competitors by putting your brand name and logo on the product packaging.
This would make your store look more authentic in comparison to the many other dropshippers who are selling the same products.
What are the Benefits of Dropshipping with Custom Packaging?
Dropshipping with custom packaging requires greater investment than traditional dropshipping, but the following benefits make it more than worth it:
1. Brands Product as Your Own
Millions of eCommerce stores are operating worldwide. With so much competition, it has become instrumental for dropshippers to have a unique selling point.
So rather than helping other businesses grow with your marketing efforts, why not sell the same product under your own brand?
That is exactly what custom packaging brings to the table. It allows you to build a brand which in turn, slashes the competition by making you stand out among other generic stores.
2. Improves Your Credibility
Due to the prevailing number of scams, many people still feel skeptical about online shopping. This is the reason customers usually prefer buying from brands.
Generic stores can close down within a day without leaving a trace, or simply pay no attention towards customer experience. However, that isn’t too common with brands as a single negative review can tarnish their reputation.
This is why launching a brand is usually recommended to eCommerce store owners. It improves their credibility which as a result, helps them attract more customers.
3. Higher Profit Margins
The general idea behind dropshipping is to fulfill orders directly through a supplier while keeping a certain percentage of profit on each sale.
So unless you’re selling high ticket products, you won’t be making too much money via traditional dropshipping since you can’t justify higher prices.
However, through custom packaging, you’re presenting yourself as a brand and gaining more authority over the product.
This credibility will provide you with a more stable footing to work with, and allow you to keep higher profit margins while dropshipping.
4. Builds Customer Loyalty
Building customer loyalty should be the primary goal of every business owner.
But without custom packaging, you are letting that opportunity slide. The company that has their logo and name printed on the packaging enjoys the fruits of your labor.
This is why if you’ve significant experience with regular dropshipping, then start focusing on building a brand to retain your traffic.
5. Long-Term Sustainability
Only 10% of dropshipping stores survive in their first year of operations. This makes people think that dropshipping is dying or the business model isn’t as “effective” anymore.
However, that cannot be further from the truth. Just like any other business, dropshipping requires innovation. You need to learn to adapt to the changing times and develop a USP, otherwise, you’re bound to run out of luck.
So the key to long-term sustainability is to custom package your products and promote yourself as a brand. This would give you an edge over the sea of copy-paste stores out there.
Why Should You Start Dropshipping With Your Own Packaging?
If you’re still on the fence about custom dropshipping packaging, then these reasons will help you make up your mind:
1. Easier to Market
Dropshipping with custom packaging opens a whole new world of marketing opportunities for you.
It gives you a unique brand identity and allows you to promote yourself as an authority, especially if you’re launching a one product store.
In addition, it also opens the possibility for influencer marketing.
2. Accelerates Your Growth
Effective marketing plays a key role in accelerating the growth of your business.
Imagine reaching out to an influencer and asking them for help to promote a store that doesn’t even have its brand name and logo printed on the product packaging.
If the money is good, they might agree, but you aren’t really benefiting from it.
On the other hand, if you’re opting for custom packaging, then every penny you spend on marketing contributes towards the growth of your store.
3. Helps You Build an Asset
There’s a difference between earning a monthly income and creating a wealth-building asset. The latter is only possible if you’re building yourself as a brand.
If your brand is performing well, then you may even receive offers to sell it for millions of dollars.
And if not, then you can always flip it in the future for 20-30 times the monthly profit you make.
How to Start Dropshipping with Custom Packaging?
Finding suppliers that offer custom packaging at the beginning can be a bit challenging. The reason for that is it carries more risk.
You don’t have an inventory in dropshipping and all your orders are directly fulfilled by your supplier. So if you’re opting for custom packaging, then they would have to prepare beforehand to keep them in stock.
Another option is to print it on the go whenever you place an order, but that wastes more of their time. And even after so much effort, the orders still aren’t guaranteed.
That’s why suppliers feel reluctant to offer custom packaging services, especially to inexperienced dropshippers.
But don’t worry, there are still multiple ways to achieve it. So whether you’re looking for custom packaging on AliExpress or any other platform, here are 3 tips you can follow:
1. Target the Exact Keyword
If you’re on a marketplace like AliExpress, then finding a custom package page is quite difficult.
Most suppliers do not directly sell products with custom packaging. And even if you’re lucky enough to find one, what are the odds that it would be the same product that you’re planning to launch?
But either way, you can try your luck by clicking the search bar and typing “custom packaging”.
You might at least find a couple of suppliers but with a high minimum order quantity (MOQ). So if you’re willing to buy in bulk, then it isn’t a bad bargain.
2. Directly Message the Supplier
Many suppliers are open to the idea of custom packaging, even if they don’t write it on their page.
But of course, you need to give them a reason to trust you. For that, you need to show them that you have the potential to bring in some profit.
Now, there are two ways to approach this. The first is that you could work with a supplier as a regular dropshipper and establish a good work relationship.
Over the weeks or months, if your store is performing well and you’re placing frequent orders, then you can pitch in the idea of custom packaging.
The second approach is to build a solid business plan. Brainstorm and come up with an efficient market strategy on how you would promote the product and create attractive visuals.
After that, make an offer that the supplier can’t refuse.
3. Get the Help of a Dropshipping Agent
If you don’t want to go through the hassle of negotiations, then another solid approach is to simply get the assistance of a dropshipping agent.
The job of a dropshipping agent is to source, store, pack and even ship your products directly to your customers. Basically, you’re hiring a middleman to help you automate your business.
If that sounds like something you’re interested in, then companies like NicheDropshipping can assign you a dedicated agent to shoulder your burden.
Rather than spending hours searching for the right suppliers, this option will also allow you to put all your focus towards launching your brand.
3 Factors to Consider Before Starting Custom Package Dropshipping
Dropshipping with custom packaging may look promising, but we still don’t recommend jumping headfirst into it. Here are 3 things that you should keep in mind:
1. Level of Experience
Custom package or private label dropshipping isn’t the same as running a traditional dropshipping store. It requires a higher degree of experience and carries a greater risk.
If you aren’t careful, then only a few negative reviews are enough to tarnish your months of hard-earned reputation.
Given the money you’d spend in spreading brand awareness, simply re-opening the store with another name isn’t a viable option either.
This is the reason most beginners start with general dropshipping stores.
2. Budget Flexibility
Launching a brand may not be feasible for those who are already on a tight budget. As we mentioned earlier, most suppliers who offer custom packaging usually have a high MOQ.
On top of that, you would have to spend additional money on creating a website, building a brand identity, marketing, product testing, and much more.
And even after all that, you need to tread carefully as there’s a high risk of failure involved.
3. Marketing Approach
Your marketing approach will play a detrimental role in deciding the future of your business.
There are a number of ways to market a dropshipping brand. Some of the most common include running ad campaigns, creating viral videos, starting a blog, and getting the help of influencers.
And then, of course, you also have social media where you can create engaging posts – which also requires a certain level of creativity and copywriting skills.
So you need to assess which marketing strategy aligns best with your business goals and budget and then work on it accordingly.
Custom packaging is one of the most effective ways to grow your dropshipping business.
It is more sustainable in the long run and packs a higher profit potential.
But let’s not forget that it requires a bigger investment than regular dropshipping stores.
And even then, there’s no 100% guarantee that you’ll succeed, especially if you don’t plan ahead.
So you can share the burden with NicheDropshipping and let us help you source and custom your products, while you can focus on developing a winning brand strategy.
Contact us today to learn more about how our services can assist you!