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Is it better to use dropshipping or private labeling?

Asked 2 years ago

I recently opened my first Shopify store and am slowly learning about all things dropshipping. I'm slightly confused about the different ways to do dropshipping. I understand that dropshipping depends on the supplier to get my customer what they order. However, private labeling allows me to be the only one selling that product. Here is my question: Is it better to use dropshipping or private labeling for my Shopify store?

Frank Quinn

Monday, May 30, 2022

It can be quite confusing for new entrepreneurs on Shopify, which one to go for, dropshipping or private labeling. Dropshipping refers to selling other sellers' products on your platform. In dropshipping, a potential buyer places an order with you being a seller; you then buy the product from the original seller. The original seller delivers it directly to the buyer. In dropshipping, you are not physically holding any goods with you. In contrast, private labeling refers to selling products under your own brand/company's name.

I'd suggest you go for the private label business model. It is a much better option as you have various products to sell under your name, and you can build your brand name. The profit margin is also higher; the only condition is that you pick the right product.

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