Today, we have no shortage of opportunities to earn money online. One popular option for new online businesses is international dropshipping, wherein they team up with a trusted supplier who manufactures and then ships products directly to their customers.
With this approach, there’s no need to worry about inventory or warehousing, making it a convenient and efficient way to operate an online enterprise. Small wonder many e-commerce companies are partnering up with international dropshipping suppliers!
It’s important to know that dropshipping isn’t just advantageous for retailers. Wholesale suppliers can also capitalize on this trend by offering dropshipping services to their vendors or customers.
In this article, we’ll delve deeper into a special type of international dropshipping called white label dropshipping. This is an exciting retail fulfillment method that presents a unique opportunity for wholesale suppliers.
Are you eager to learn new ways to expand your reach and boost your revenue via white label dropshipping? Then keep reading!
What Is White Label Dropshipping?
When you offer white label dropshipping to wholesale vendors, you send the products straight to their customers’ doorsteps. The package will either sport a standard return address or feature the vendor’s very own brand logo and address (this latter practice is known as “Private Label Shipping”).
As a wholesale supplier, you get to remain incognito throughout the entire transaction. The vendors’ customers will have no clue that your business was behind the manufacture, supply, and shipment of the products. This anonymity lends a sense of discretion and exclusivity to the business transaction between the customer and the wholesale vendor.
Here is Hammer Global’s explanation of how white labeling works:
When an order has been placed, and the shipping method was selected, the wholesaler will fulfill the order and place a generic packing slip in the shipping box. A white label, with a generic return address that does not have a name or logo, will be included in the package. On the packing slip, there will be specific instructions for returns. This way, the customer receives the package, but does not know which wholesale supplier shipped it.
Dropship Businesses For Sale further clarifies the concept of white labeling:
Just like the drop shipping business model, white labeling is just a different type of online business model that can allow you to take someone else’s existing product or business solution, put your name/brand on it, and sell their services to your customers under your own existing brand.
Are you considering offering white label dropshipping to your wholesale vendors? Then you should know seven important things about this type of business arrangement.
7 Things You Need To Know About White Label Dropshipping
White label dropshipping is a type of international dropshipping method that can serve your business well. However, to ensure optimal benefits, you need to be well-versed in the factors that govern this unique business arrangement.
These factors are as follows:
1. You need to partner with a reliable wholesale vendor
White label dropshipping offers many benefits, including an expanded market and an increase in customers.
As a new online business owner, you may find it challenging to attract customers and promote your products. However, partnering with one or more dependable wholesale vendors will allow you to focus on manufacturing, supplying, and shipping your products while they take care of selling them to their customers. The result? A significant boost in sales!
With white label dropshipping, your main responsibilities include the production and delivery of your products to your vendor’s customers. Meanwhile, your vendor will be actively promoting, displaying, and selling your products, expanding your market reach and boosting your sales figures.
2. You remain anonymous in the business transaction
When you offer white label dropshipping, you ship your products directly to the customers who ordered them from your wholesale vendor.
As mentioned above, this type of international dropshipping keeps your involvement in the business arrangement a secret from consumers. In other words, you serve as the anonymous third party in the transaction between your wholesale vendor and their customers.
3. You have to carry the wholesale vendor’s brand in the product label or packaging design
White labeling is the process of selling products under the brand or label of your wholesale vendor.
As such, you’ll need to request your vendor’s brand design, which you’ll use for the design of the packaging and product. These elements must include the vendor’s details, like their company name and logo.
In addition, the packing slip should feature the vendor’s contact information, such as their address, phone number, and email. Lastly, the header should consist of their company name and logo.
As a wholesale supplier, you should work closely with your wholesale vendor to get the product labels and packaging design right.
4. You must maintain constant communication with the wholesale vendor
To ensure smooth operations and timely delivery, you must remain in constant communication with your wholesale vendor.
But what’s the benefit of establishing a dedicated line, email, or live chat with your vendor? Remember: your vendor should be able to give you a heads-up every time a customer places an order for your products. By maintaining effective communication channels with them, they can do just that.
This, in turn, means that you can immediately know whenever you need to ship your items, thus allowing you to avoid delays and other potential complications.
5. You should partner with an international shipping carrier
Are you considering partnering with multiple wholesale vendors? Then you should find one with a reliable shipping carrier that can deliver your products internationally.
Choose a shipping carrier that meets your specific requirements. In addition, opt for one with extensive coverage, speedy turnaround times, insurance, and advanced tracking tools.
Closely examine these carriers’ policies. This will let you determine which one has a proven track record of being prompt and reliable in addressing returns, shipping delays, cancellations, and exchanges. Furthermore, your chosen carrier should have a reputation for outstanding customer service. After all, a carrier that can’t offer swift and effective solutions to potential issues won’t do.
For more information on international dropshipping, check out our article, “10 Things About International Dropshipping You Need To Know.“
6. You must furnish a sales or contract agreement with your vendor
Make sure that you establish clear terms and policies before engaging in business with wholesale vendors. Moreover, you need to have several meetings with said vendors to ensure mutual understanding and agreement,
If you’re wondering what a sales and purchase contract looks like, you can find many samples online. However, keep in mind that these should only serve as a guide. To draft and polish a contract that’s tailored to your specific business needs, you should work with your lawyer, accountant, and business consultant.
Remember, a comprehensive and well-crafted contract can prevent misunderstandings and legal issues. For this reason, take your time when furnishing a contract or sales agreement with a vendor.
7. You should clarify your payment terms
When dealing with a wholesale vendor, it’s crucial to establish a clear understanding of payment terms for every order you receive. In other words, you should be on the same page where payment methods and timelines are concerned.
To ensure that both you and the merchant are on board, make sure to explicitly outline your expectations for payment in the terms and conditions. This will help you avoid any confusion or misunderstandings down the line.
By following these seven essential tips, you’ll gain valuable insights into the ins and outs of white label dropshipping. This will help you optimize the model for your online business so that you can take your sales to the next level.
If you’re a wholesale supplier that offers white label dropshipping, then you deliver products straight to your wholesale vendor’s customers. As a type of international dropshipping, it can expand your market reach and thus boost your revenue.
To recap, here are seven important things you should know about white label dropshipping:
- It requires a partnership with a reliable wholesale vendor
- It keeps your involvement in the business transaction a secret
- You have to carry the wholesale vendor’s brand
- Constant communication with the wholesale vendor is a must
- It’s ideal to partner with an international shipping carrier
- You must create a contract agreement with your vendor
- You should clarify your payment terms
Do you have questions about white label dropshipping or international dropshipping? How about Wholesale Suite – a set of WooCommerce plugins that can enhance your wholesale business’ performance? Let us know in the comments section below!