You can only go so far with a general store if you’ve done any dropshipping before.
While this approach may bring in a profit each month, it is not a viable long-term strategy.
That’s why, if you want to take your dropshipping business to the next level, you need to prioritize creating unique packaging for your products.
The creation of a unique brand identity begins with distinctive packaging. A higher initial outlay is possible, but the potential for increased returns makes this an option worth exploring.
Now, you may be wondering why custom packaging is such a great way to expand your dropshipping business.
What is Custom Packaging for Dropshipping?
Differentiating your dropshipping business from the competition is as simple as adding your company’s name and logo to the packaging of the goods you ship out.
In comparison to the many other dropshippers offering the same products, your store will have more credibility if you do this.
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:
1. Brands Product as Your Own
There are currently millions of online retailers serving customers. With so much rivalry, it’s crucial for dropshippers to stand out in some way.
If you’re going to spend time and money promoting other companies’ products, you might as well make some money off of the same product by selling it under your own name.
That’s exactly what benefits from custom packaging. The ability to establish one’s brand gives a business an advantage over its generic rivals.
2. Improves Your Credibility
Many people still have doubts about making purchases on the internet because of the prevalence of scams. That’s why people typically prefer to buy recognizable brands.
Generic stores often don’t care about their customers, close abruptly without a trace, or aren’t open very often. The reputation of most brands can be damaged by even one negative review, so this is a rare occurrence.
This is why it is recommended that online merchants start a brand. As a result, they gain more trust, which in turn brings in more business.
3. Higher Profit Margins
Dropshipping is a distribution model in which orders are fulfilled directly by a manufacturer or wholesaler, who in turn receives a cut of the proceeds.
Traditional dropshipping won’t yield high profits unless you’re selling expensive items.
Custom packaging, on the other hand, helps you appear more established as a brand and gives you more control over your wares.
You’ll be able to drop-ship with more confidence and a larger profit margin if you establish your credibility first.
4. Builds Customer Loyalty
To succeed, a company must focus first and foremost on fostering customer loyalty.
But you’re passing up a golden opportunity if you don’t invest in custom packaging. In this case, the company whose name and logo appear on the boxes benefits from your hard work.
For this reason, if you already have a lot of experience with standard dropshipping, you should shift your attention to creating a brand.
5. Long-Term Sustainability
In the first year of business, only 10% of dropshipping stores make it. As a result, many are under the impression that dropshipping as a practice is on the decline or is no longer a “effective” business strategy.
But that is wildly inaccurate. Drop shipping, like any other industry, necessitates creative solutions. You’ll eventually run out of luck if you don’t learn to change with the times and find your niche market.
Custom packaging and brand promotion are, therefore, essential to ensuring a company’s long-term viability. You’d stand out from the crowd of cookie-cutter retail outlets if you did this.
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:
1. Easier to Market
If you’re considering dropshipping, consider the marketing possibilities that come into play when you add in personalized packaging.
If you’re starting a one-product store, having a domain name gives you a leg up on the competition by giving your business a name that nobody else has.
Furthermore, it creates an opportunity for influencer marketing.
2. 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 name on your packaging would be a tall order to say the least.
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.
3. Helps You Build an Asset
One can build wealth by generating a steady stream of income, but that’s not the same as earning a monthly check. To achieve the latter, you must work on developing your personal brand.
If your brand is doing well, you could get offers worth millions of dollars.
If not, you can always sell it for 20 to 30 times your monthly profit at a later date.
How to Start Dropshipping with Custom Packaging?
It can be difficult at first to find suppliers that offer custom packaging. That’s because there’s a greater potential for disaster if anything goes wrong.
In dropshipping, you don’t keep any stock on hand and your orders are fulfilled by your wholesaler. If you want custom 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.
Because of this, many manufacturers are hesitant to provide custom packaging services, especially to inexperienced dropshippers.
However, don’t fret; it can still be done in a number of different ways. Here are three guidelines to keep in mind as you shop for custom packaging on AliExpress or any other online marketplace:
1. Target the Exact Keyword
Locating a personalized package page while shopping on a marketplace like AliExpress can be a daunting task.
Custom-packaged goods are not typically sold directly by manufacturers. And if by some miracle you do, what are the chances that it will be precisely the same product that you intend to introduce?
But you can try your luck by searching for “custom packaging” in the search bar.
There’s a chance you could find a couple of vendors, but they’d require a large purchase from you (MOQ). In that case, it’s not a bad deal if you’re willing to buy in bulk.
2. Directly Message the Supplier
Although not all of them explicitly state it on their site, many vendors are willing to work with customers who require special packaging.
You must, however, earn their trust. You’ll need to demonstrate your business’s profit-making potential to secure funding for your endeavor.
There are now two possible strategies for this situation. The first is the possibility of developing a trustworthy business partnership with a supplier through routine drop shipping.
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.
The second strategy involves developing a thorough business strategy. Come up with a market strategy for promoting the product and designing engaging visuals by brain storming and generating ideas.
Make the provider an offer they can’t refuse after that.
3 Factors to Consider Before Starting Custom Package Dropshipping
Despite the fact that drop shipping with branded packaging appears to be a lucrative option, we advise against diving in head first. There are three things you should remember:
1. Level of Experience
Dropshipping with a private label or custom packaging differs from the standard dropshipping business model. As a result, it is more difficult to accomplish and entails more danger.
A few bad reviews can ruin your months of hard work if you aren’t careful.
Reopening under a different name is also not a good option because of the marketing costs involved.
This is why most newcomers to drop shipping begin with a generic online store.
2. Budget Flexibility
Those with limited financial resources may not be able to launch a brand. A high minimum order quantity is typical of suppliers who offer custom packaging, as we discussed earlier.
On top of that, you’d need to allocate funds for things like developing a website and brand identity, advertising, product testing, and more.
In spite of this, you should proceed with caution because of the high probability of failure.
3. Marketing Approach
If you take the wrong marketing approach, it could spell disaster for your company.
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.
Moreover, there is the option of using social media to spread your message, which necessitates a certain degree of copywriting and creative thinking on your part.
First, you need to determine which marketing approach is the best fit for your company’s objectives and resources.
