You can only go so far with a general store if you’re dropshipping, as any veteran will tell you.
It could bring in a profit each month, but in the long run, you’ll need to find something more stable.
Thus, if you want to take things to the next level, you should start emphasizing custom packaging for dropshipping.
Creating distinctive packaging is the groundwork for a successful brand. It may require more money initially, but the return it offers makes it a viable choice.
You may be wondering, “Why is it a good idea to use custom packaging to expand my dropshipping business?”
Continue reading to find out!
What is Custom Packaging for Dropshipping?
Putting your brand’s name and logo on the packaging of the goods you drop-ship is a great way to set yourself apart from the competition.
In comparison to the numerous dropshippers offering the same products, this would lend credibility to your store’s offerings.
What are the Benefits of Dropshipping with Custom Packaging?
While there is a higher initial cost associated with dropshipping with custom packaging, the following advantages make it well worth it:
Brands Product as Your Own
There are currently millions of online retailers serving customers. Having a special selling proposition is crucial for dropshippers in today’s market.
So instead of putting your marketing efforts toward helping other companies expand, why not just start your own company and sell the same product?
The benefits of individualized packaging are exactly that. Having a recognizable brand makes you stand out from the crowd of generic retailers, cutting down on their sales and profits.
Improves Your Credibility
Many people are still wary of making purchases online because of the prevalence of scams. That’s why people generally prefer to shop at established brands.
When it comes to customer service, generic retailers often disappear overnight without a trace. However, that is unusual for brands because even one bad review can damage their standing in the market.
Because of this, starting a brand is a common piece of advice for those opening an online store. The increase in their customers is a direct result of their enhanced credibility.
Higher Profit Margins
Dropshipping is a business model where orders are fulfilled directly by a supplier and a portion of the profit is kept by the retailer.
You won’t make much money with conventional dropshipping unless you’re selling extremely expensive items.
To the contrary, by investing in specialized packaging, you can establish your company as a credible brand and increase your control over the merchandise.
In addition to giving you more leverage in negotiations, this credibility will also help you maintain larger profit margins when dropshipping.
Builds Customer Loyalty
Every company should make customer loyalty their top priority.
But you’ll miss out on a great marketing opportunity if you don’t invest in custom packaging. When you produce something with a company’s logo and name on the box, that business gets to reap the benefits.
This is why, if you already have a lot of experience with standard dropshipping, you should prioritize creating a brand to keep your customers coming back.
Long-Term Sustainability
During their first year in business, only 10% of dropshipping stores make it. Because of this, many are under the impression that dropshipping as a business model is on the decline.
But that is completely not the case. Drop shipping, like any other industry, necessitates fresh ideas to succeed. You’ll eventually run out of luck if you don’t figure out how to change with the times and find your niche market.
Thus, the secret to long-term success lies in specialized product packaging and aggressive brand promotion. Having this would set you apart from the countless imitation shops on the web.
Why Should You Start Dropshipping With Your Own Packaging?
These arguments should sway you in favor of custom dropshipping packaging if you’re on the fence about it:
Easier to Market
When you combine drop shipping with personalized packaging, you can take your advertising to new heights.
If you’re launching a single-product store, this helps you stand out from the competition and establishes you as an industry expert.
Furthermore, it creates an opportunity for influencer marketing.
Accelerates Your Growth
Your company’s growth can be boosted significantly by implementing a strategic marketing plan.
Trying to get an influencer to promote your store when you don’t even have your logo and brand name on the packaging is a tall order.
They might agree if the money is good, but you’re not getting anything out of it.
In contrast, if you go with custom packaging, every dollar you spend on advertising will help your business expand.
Helps You Build an Asset
Making ends meet on a monthly basis is not the same as accumulating wealth through the creation of an asset. Only through brand development can you achieve the latter.
Your company may be offered to you for sale for many millions of dollars if your brand is doing particularly well.
If that doesn’t work out, you can always sell it down the line for twenty to thirty times your monthly gain.
How to Start Dropshipping with Custom Packaging?
In the beginning, it may be difficult to find suppliers that offer custom packaging. The reason for that is the higher degree of danger involved.
In dropshipping, you do not keep any stock and your supplier fulfills all of your orders. If you want personalized packaging, the company will need to plan ahead to ensure they have enough on hand.
If you really want to waste their time, you can always just print it out every time you place an order. And despite all that work, we can’t promise that the orders will go through.
It’s because of this that many manufacturers are hesitant to provide dropshippers, especially those with little experience, with custom packaging options.
However, don’t fret; it can still be done in a number of different ways. Thus, here are three guidelines to follow whether you’re shopping for custom packaging on AliExpress or another site:
Target the Exact Keyword
When shopping on a marketplace such as AliExpress, it can be challenging to track down a personalized package detail page.
The vast majority of manufacturers do not offer direct sales of products with individualized packaging. And even if you do, what are the chances that it will be exactly what you want to sell when you release it?
But you can try your luck by typing “custom packaging” into the search bar.
You could locate a couple of vendors, but they would likely require a large minimum purchase from you (MOQ). Accordingly, it’s not a bad deal if you’re willing to buy in bulk.
Directly Message the Supplier
Even if it isn’t explicitly stated on their site, many vendors are willing to work with customers who want unique packaging.
However, it is your responsibility to earn their trust. To do so, you must first demonstrate your ability to generate a profit.
At this point, you can take one of two routes. The first is the possibility of developing a trustworthy business partnership with a supplier through regular dropshipping.
If your store is doing well and you are placing multiple orders per week or month, then you may want to suggest the option of custom packaging.
Another strategy is to create a thorough business plan. Think of ways to advertise the product that would be effective and come up with some eye-catching visuals.
Thereafter, you should make the provider an offer they can’t refuse.
Factors to Consider Before Starting Custom Package Dropshipping
Even though drop shipping with your own unique packaging may seem like a sure thing, we advise against diving in head first. Here are three things to remember:
Level of Experience
Dropshipping with a private label or custom packaging differs from the standard dropshipping business model. The stakes are higher, and so is the required level of expertise.
In the blink of an eye, a handful of unhappy customers can ruin your hard-earned reputation that you’ve nurtured for months.
It’s also not a good idea, given the cost of building a new brand identity, to simply reopen the store under a different name.
This is why most newcomers to drop shipping begin with a generic online store.
Budget Flexibility
Those with limited financial resources may not be able to launch a brand. The minimum order quantity (MOQ) required by most custom packaging suppliers is high.
Spending more on things like a website, brand identity, marketing, product testing, and so on is inevitable.
Even then, you need to proceed cautiously because of the high possibility of failure.
Marketing Approach
You can say goodbye to any hope of success in business thanks to the way you promote it.
Promoting a dropshipping company can be done in a variety of ways. Advertising campaigns, viral videos, blogs, and endorsements from influential people are just a few of the most popular methods.
Of course, there’s also social media, where you can make interesting posts, which, like traditional marketing, requires some imagination and skill with words.
As such, it is incumbent upon you to evaluate various advertising approaches to determine which one best fits your company’s objectives and financial constraints.
