The ultimate guide to private label dropshipping (2025)

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Private label dropshipping means partnering with suppliers to create and ship your own branded products — so you can charge premium prices.

Alibaba, Spocket, and AutoDS are good starting points for finding partners, or you could strike deals directly. Reselling options include ordering products in bulk and having these sent to your fulfillment center or routing each new order to your supplier for fulfillment.

Join us below to discover how private labeling works, find reliable suppliers, overcome common challenges, and build a sustainable branded business that stands out in competitive markets.

What is private label dropshipping?

Dropship products flood every marketplace, making your store invisible among thousands of identical listings selling the same mass-produced items.

Higher profit margins emerge from reduced competition since you offer exclusive products at higher prices. Customer loyalty also strengthens when shoppers can only find your branded items in your store, not everywhere else online.

What is a private label product?

A private label product is a custom item manufactured by one company but sold under another. For instance, you control the formula, packaging, and marketing for multivitamin tablets but outsource manufacturing to a factory.

In contrast, white label products are generic items you can rebrand. Examples include plain black sneakers and tote bags.

Private labeling offers lower startup costs than custom manufacturing, faster market entry, and complete control over your brand presentation and customer experience.

Private label vs. white label vs. standard dropshipping

At first glance, dropshipping is nothing more than selling someone else’s products, but private and white label models flip that script entirely. One lets you brand existing products, and the other gives you control over what gets manufactured.

What is white label dropshipping?

White label dropshipping sees you take an unbranded product and add your company’s packaging, slips, and labels. Multiple stores can sell identical core products with different brand names attached.

How does that differ from private label dropshipping? Private labels allow input into product specifications, materials, or even custom feature development. With white labels, the products are ready items waiting for your branding overlay.

Key differences between different dropshipping models

Key benefits of private label dropshipping in 2025

Private labeling builds sustainable ecommerce growth because you’re creating assets other businesses can’t easily copy or undercut. Your brand is the competitive advantage rather than your ability to find cheaper suppliers.

Here’s why you should consider private label dropshipping in 2025:

• Higher profit margins: You eliminate middleman markups by working directly with manufacturers. Control over pricing means you set rates based on value rather than racing to the bottom.
• Stronger brand identity: Your packaging, product design, and customer experience become touchpoints that build recognition. Customers start requesting items by name rather than viewing you as just another seller.
• Better customer retention: Exclusivity creates natural loyalty since customers must return to your store for repeat purchases. You avoid the chaos of dozens of stores selling identical items at slightly different prices.
• Market positioning: Let others fight price wars over mass-produced products while you offer something different. Products become the destination, not just a convenient alternative people stumble across.

How to start a private label dropshipping business

Follow these steps to start dropshipping private label products:

Market research and niche selection

You might have interests and expertise that will help you find categories where you can speak authentically to customers.

In any case, follow up with Google Trends to reveal search volume patterns, Amazon bestseller lists to see what people purchase, and TikTok hashtags to see what’s popular right now.

Look for gaps where existing products receive complaints in reviews, suggesting opportunities for improvement with customization.

Finding reliable suppliers

Search platforms like Alibaba for Chinese suppliers and Spocket for US and EU ones, then focus on thoroughly vetting potential partners. 

Request samples, verify business licenses, read reviews from other retailers, and test communication responsiveness. 

Establish clear agreements covering quality standards, delivery timelines, and return policies before committing to partnerships.

Product selection and customization

Choose products that allow meaningful modification beyond basic logo placement, such as packaging and inserts. Work directly with manufacturers to adjust materials, colors, features, or formulas that reflect your brand identity. 

Test multiple variations with small quantities first. Calculate profit margins carefully since customization increases costs but also enables premium pricing.

Branding and packaging design

Develop a consistent visual identity across all customer touchpoints, from your website to product unboxing experiences. Create packaging that protects products during shipping while telling your brand story. 

Consider sustainable materials and branded inserts that encourage social sharing. Remember that brand identity extends beyond visuals into customer service and overall experience quality.

Setting up an online store

Shopify and WooCommerce are the most popular platforms for private label dropshipping stores. Our WooCommerce vs. Shopify article covers everything, but to summarize, Shopify is an all-in-one platform, while WooCommerce is more flexible but requires technical knowledge.

Whichever platform you choose, the best themes prioritize mobile responsiveness over flashy design elements since most customers browse on phones. 

You’ll need to install dropshipping apps like Spocket or AutoDS to connect with suppliers and automate order routing. Another critical component is automating email and SMS messages, which you can do using Omnisend:

Marketing and customer acquisition strategies

Launch across multiple channels where your audience spends time (such as TikTok and Instagram). Install an email marketing tool on your website to grow your list and create email automations, SMS campaigns, and push notifications to target customers.

Test paid ads on Facebook, Google, and social platforms with small budgets to identify effective messaging. Influencer partnerships can also help spread the word and increase sales.

Choosing the right private label dropshipping suppliers

Your supplier determines whether customers receive quality products on time or complain about defects and delays. Most dropshipping suppliers only handle generic items, so finding partners who customize packaging and branding requires careful research.

Supplier verification and reviews

The most reliable private label dropshipping suppliers are verified by the platforms they use (such as Alibaba). It’s less risky to use a verified supplier because they undergo testing to ensure they have the infrastructure to provide a high-quality service.

Some platforms don’t have verification, and in this case, their reviews/ratings are the most important criteria — check out overall scores and their latest feedback if possible. Also, contact your shortlisted suppliers to gauge their responsiveness.

Private labeling capabilities

You’ll have an idea of what capabilities your suppliers need, such as labeling, inspection, and compliance with standards like ISO. You could ask the supplier to detail their capabilities, but their marketplace profiles can also provide the information.

For instance, Shenzhen Idea Light Limited, an Alibaba supplier, lists these capabilities:

At the very least, you need minor customization, finished product inspection, and labeling services to create private label products.

Shipping speed and location

Customers who place orders via your storefront have their orders automatically routed to your dropshipping suppliers. At this point, their shipping experience is out of your control, other than the post-purchase flows you create.

As a general rule, the faster the shipping, the better — three to four days is typical for large suppliers. Most products ship from China and India. Finding suppliers with warehouses in your market (e.g., the US) usually means faster shipping.

Suppliers who support fast shipping are worth finding, as you can offer it as an upsell at checkout and increase average order value.

Platform integration

Your chosen dropshipping suppliers need to integrate with your ecommerce platform (Shopify, WooCommerce, Wix, Etsy, etc.) for order routing.

The simplest way to achieve this is with platform apps that connect the two systems. For instance, Wix, Shopify, and Woocommerce have Printful apps for print-on-demand (POD), and there are similar examples for Alibaba and Amazon.

If you have a private supplier agreement without an app, you’ll need to handle order routing manually or set up custom integration solutions.

Manual order routing is possible in a few ways:

• Export orders from your ecommerce platform as CSV files, then send them to your supplier via email or their preferred method
• Forward individual order confirmations directly to your supplier as they come in
• Use your platform’s webhook notifications to email order details to your supplier automatically

Custom integration solutions include:

• Some suppliers accept orders through their online portals, where you can upload batch files or manually enter order information
• API access can create custom integrations between your store and supplier systems
• Third-party automation tools like Zapier can sometimes bridge the gap between your ecommerce platform and supplier systems

Customer service and responsiveness

Since your supplier makes and ships private label products for you, you handle the storefront and post-purchase customer experience. However, that doesn’t mean you won’t need to contact your supplier and resolve problems.

Ask your supplier about response times before agreeing to partnerships and verify which contact methods they support. There might be time discrepancies due to location, so a ticketing or email system is a good option alongside live chat.

Low minimum order quantities (MOQs)

Private label suppliers typically require minimum order quantities that can range from 50 units to several thousand pieces per design or product variation.

MOQs exist because customization requires setup costs — manufacturers need to configure equipment, prepare custom materials, or create tooling for your branded products.

Lower MOQs offer significant advantages when starting. You can test multiple product variations without a massive upfront investment, respond quickly to market feedback, or pivot if initial designs don’t resonate with customers.

Top private label dropshipping suppliers

Check out these private label dropshipping suppliers:

1. Alibaba

Best for: Private label dropshipping from China

Integrations: All major ecommerce platforms via apps

Alibaba is the largest source of Chinese private label dropshippers. It has a reputable verification system using third-party assessors, and all suppliers have profiles with reviews, service lists, and contact information.

It’s easy to find suppliers using Alibaba’s search features for supplier and product type, MOQ, country/region, verification, and paid samples. Most suppliers deal in large quantities, but in the case of private dropshipping, you can negotiate and create unique arrangements.

2. Innacos

Best for: Private label beauty products

Integrations: Ordering system, bulk quantities 

Innacos is a private label beauty product supplier that claims to have some of the best formulas in the world. It handles sampling, ordering, batching, testing, filling, and assembly and ships the products to you for fulfillment.

Your products can be ISO, cruelty-free, made in the US, Halal, and recyclable. An additional service offered is the Amazon Ready Package, which ensures the products you sell comply with Amazon’s requirements.

3. Printful

Best for: Print-on-demand (POD) and private label clothing

Integrations: eBay, Etsy, Amazon, and ecommerce platforms like Shopify and Wix

Printful is a POD supplier for clothing, accessories, and home and living products. It offers custom branding and packaging for you to sell products under your brand and handles all manufacturing and fulfillment steps.

Inside and outside labels, tear-away labels, and manufacturer’s tags are all customizable to make it appear as though the clothing is unique. A competitor worth checking out is Printify, which offers similar capabilities at different prices.

4. AutoDS

Best for: Product research

Integrations: Shopify, Woocommerce, Amazon, eBay, Wix, and other leading platforms

AutoDS is a dropshipping automation platform offering an AI-powered store builder that creates ready-to-sell Shopify stores, along with access to over 800 million products. You can compare 8m+ of these from global suppliers and add them to your store in one click.

It handles order processing, inventory monitoring, price optimization, and tracking updates. Plus, its sourcing team can locate products, stock them in warehouses at competitive prices, and ship directly to customers with custom packaging and branding.

5. Spocket

Best for: US and EU dropshipping

Integrations: Shopify, Woocommerce, Amazon, eBay, Wix, and other leading platforms

Spocket connects you with US and EU suppliers who ship products directly to your customers. It handles order processing, inventory management, and provides product samples for quality testing before listing items.

You can create private label products with custom branding and packaging. Add logos, create branded invoices, customize product variations like colors and sizes, and sell under your brand name without holding inventory.

Challenges in private label dropshipping and how to overcome them

Private label dropshipping offers a fantastic opportunity to build a branded product business without inventory. However, it isn’t without challenges — finding a supplier, maintaining quality, dealing with shipping times, and handling returns are but a few.

Here are the main challenges and how to overcome them:

Supplier inconsistency and quality issues

Product quality can fluctuate dramatically when scaling quickly or working with multiple suppliers who each interpret your specifications differently. One batch is perfect, while the next disappoints customers with poor materials or sloppy customization.

How to overcome it

Order samples from every supplier before listing products, then create a detailed rating spreadsheet tracking delivery times, defect rates, and communication responsiveness.

Establish written quality specifications with photos showing acceptable and unacceptable products. Only scale with partners who consistently meet your standards across multiple test orders and maintain backup suppliers for critical products.

Long shipping times and poor delivery experience

Private label customization often eliminates fast shipping options since suppliers need extra time for branding modifications. Many overseas manufacturers prioritize customization capabilities over shipping speed, leaving customers waiting weeks for orders.

How to overcome it

Partner with suppliers offering US or European warehouses via platforms like Spocket and Zendrop, even if per-unit costs increase. Set clear shipping expectations on product pages rather than hiding delivery times in checkout.

Offer expedited shipping options for customers willing to pay premium prices and consider hybrid models where you stock popular items domestically.

Lack of control over packaging and brand experience

Most suppliers limit branding to basic invoice customization or simple labels, falling short of premium unboxing experiences. Generic packaging undermines brand positioning and makes products feel cheap despite quality customization.

How to overcome it

Bring up branding options during initial supplier discussions rather than adding them later. For higher volumes, explore hybrid fulfillment, where you ship products to specialized centers handling custom boxes and inserts.

MOQ requirements and startup costs

Private label suppliers typically require 50–500+ piece minimums per design, creating significant upfront investment compared to zero-inventory dropshipping. Higher MOQs tie up capital in untested products and limit experimentation with variations.

How to overcome it

Source cheaper white label products first to test demand before committing to full private label MOQs. Reinvest profits from initial sales into larger customization orders once you’ve validated customer interest.

Focus on one hero product rather than launching entire lines — this will help you focus resources on perfecting single offerings before expanding.

Returns and customer service bottlenecks

Managing returns becomes complicated when you don’t control the fulfillment process. Suppliers may have different return policies from what you’ve promised customers, or they might refuse to accept certain returned products, leaving you responsible for refunds.

How to overcome it

Create return policies explaining processes and timelines that customers can expect. Use Omnisend’s automated flows to update customers throughout the return process from request to refund completion.

Negotiate return procedures with suppliers beforehand, including shipping cost responsibility and refund processing speeds, and maintain clear documentation of policies.

Grow your private label brand with Omnisend

Omnisend is an intuitive omnichannel marketing platform that lets you combine email, SMS, and push notifications into automated flows.

Why is this crucial to your private label brand? Because you must provide a customer experience that matches your product quality. Timely communications that are relevant and branded help grow sales and satisfaction.

Here’s why you should be using Omnisend to grow your brand:

Build your list

When people visit your Shopify store, you need to capture their email addresses for marketing purposes. Omnisend has pre-built forms and popup templates to capture that information and supports double opt-in to protect against spam bots, email scams, and fake subscribers.

Segment subscribers

Omnisend lets you categorize customers for targeting — segment by engagement, shopping behavior, anniversaries, orders, products, custom events, and more. Get a head start with pre-built segments and generate a custom segment with AI (beta).

Automate flows

Create email, SMS, and push notification flows that cover every stage of your customer journey, from initial signup with a welcome series to post-purchase and re-engagement. Add delays and triggers, and A/B test your flows within the builder.

Recover revenue

One of Omnisend’s best features is its abandoned cart flows that let you re-target shoppers who added items to their cart/checkout but left without buying. Add urgent messaging, discount codes, and product recommendations to encourage purchases.

Branded transactional messages

Build order, shipping, and delivery email confirmations that match your brand for a cohesive customer experience. Add SMS to your transactional flows to ensure your customers receive all critical information promptly.

Ecommerce integrations

Shopify, Shopify Plus, Woocommerce, BigCommerce, Wix, and other leading platforms have Omnisend apps for one-click integration. If your store platform doesn’t have an app, you can still integrate it via API (front or backend integration).

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