Dropshipping Branded Products 101

Dimitar Alimaskoski

The human race is currently living in a fast-paced world that is literally flooded with all sorts of brand marketing. In fact, more and more businesses are constantly trying to steal a piece of the marketplace using marketing as a way of competing with other participants. Dropshipping businesses are also starting to take over a big part of the market. According to Grand View Research, the dropshipping market is set to reach a value of $557.9 billion before 2025, with a CAGR of 28.8%. Due to the fact that dropshipping is a quite specific eCommerce model that provides a safe entry on the market, dropshippers should carefully choose their niche. Despite the niche, another important component of providing a wholesome service is branding. Dropshipping branded items can definitely help in the market differentiation and provide a solid ground for future profits.

Nowadays, branding has become the ultimate weapon in the eternal battle for market penetration. It is well known that brands are an important asset to a successful business venture. Furthermore, there are many stories from the past decades that confirm the power a certain brand can have.

Going backward, the word branding comes from the ancient Norse word ‘brandr’ which translates to ‘to burn’ and was first known to describe a wooden piece that is burning, which basically depicted a torch. Back then, people began marking their cattle in order to show their ownership. Each of those marks contained a character that was specific for the owner and differed from the rest of the cattle owners.

Fast forward to today, brands are an important and well-established piece of the marketing and promotion puzzle. Furthermore, dropshipping products from renowned brands can definitely change the mind of the consumers and make them more prone to making a purchase. Having this in mind, let’s see some of the reasons why you should definitely choose to dropship branded items.

9 reasons to dropship branded products

Confidence in quality

Consumers would probably make the first purchase of a product if they believe that it will provide an overall quality experience. For example, if someone purchases a computer it expects that the machine will help them perform their mundane tasks efficiently. When people are buying clothing they will expect to get the main features of clothing such as protection, comfort, style, and quality materials. Consequently, well-renowned brands provide just that. In fact, the consistency in their product offer and features led to these brands’ development in the first place. In the end, consumers will always rely on past experiences or use word-of-mouth when deciding to purchase an item.

In other words, choosing to dropship items by distinguished brands can help you easily reach a wider audience and build long-term relationships based on confidence with your customers.

Time-saving decisions

Often, consumers find themselves in front of a very tough decision due to the number of products offered in online stores. The important thing here is to grasp the logic behind the number of choices consumers need to have in order to purchase a product. In fact, if you provide your potential customers with products from unknown brand names they will tend to fall in a constant loop of thinking about which product they should choose, making thorough comparisons between them. The result of this behavior leads to a much longer decision-making process.

However, if your product portfolio includes products from brands that your potential customer is familiar with, this will significantly decrease the time spent on deciding about the product purchase. As an example, if you are managing an online clothing boutique, you will have a bigger chance to sell items from brands such as Dolce & Gabbana, or Just Cavalli, than items that are from brands unknown to the public.

Acceptance and fitting in

People are social creatures and they want to belong to certain groups of society. Whether it is at work, school, gym, or a social gathering, people want to be accepted in today’s world. Therefore, a very common occurring is that people will buy products to show that they are part of a certain social or another kind of group. This is especially true in the fashion world, where people seldom pick the brands they wear to promote a style that is perceived as fashionable, high-class, or that represents a particular subculture.

Loyalty

In time, consumers who repeatedly purchased a particular branded product get used to it and consider it a safe choice for their future purchases. These purchases might even include a broader set of products from the same brand which shows the consumer’s loyalty. In essence, consumers form an emotional bond with a certain brand and they are prone to even overpay to get the product. So, including a branded product portfolio into your dropshipping store might lead to increased consumer loyalty and future growth in orders, that ultimately will generate more profits.

Happy customers are loyal customers

Personal identity

It is very well known that companies display their identity through their branding. Similarly, some people build their own identity through the products they purchase and use. By buying these products they support their constructed image whether on a personal or professional level. For example, people buying branded clothing want to add value to their style and be perceived as high-class or distinctively sophisticated individuals.

Safety

One thing that consumers always will most certainly avoid is risky purchases. People want to invest their money in something that will give them a sense of security. Especially when it comes to online shopping and the increased number of online scams, buyers are extremely careful when choosing stores to buy from. So, the majority of consumers will ultimately avoid buying from stores that offer cheap products with suspicious quality and will always look for brands they already trust to spend their money on.

Value

The image a certain brand has created on the market is very important in the process of market promotion. In fact, it adds value to the products, making them more desirable for the consumers, who are even willing to pay higher prices and make premium purchases just to lay their hands on the branded item.

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Definition

After establishing a relationship with the consumer the brand is highly defined in the eyes of that consumer. This means that the features specific for the product make the item the first and obvious choice over the similar, but more generic products.

Sharing stories

People love to talk and they love to share every kind of experience with close friends or acquaintances. Thus, it is very likely that a positive experience with a brand they are loyal to is going to be a topic of conversation with other potential consumers. This way people create a brand appreciation community and stronger connections.

Pros of dropshipping branded products

Dropshipping branded products has many advantages and can secure you numerous benefits that will skyrocket your sales and boost your traffic. The most important ones to remember are:

Customer loyalty

The greatest benefit you can get from dropshipping branded products is to secure a constant base of loyal consumers that will always come back for the products you offer. As we mentioned before in the section in which explained why dropshipping branded products is better, the loyalty that people build towards a particular brand can be easily used and transformed into loyalty towards your dropshipping company that will provide the exact same products.

Brand awareness

According to Marketing91, it is a common thing for the target market and a certain audience to be aware of the attributes of a brand. In general, marketing and promotional campaigns are used to raise awareness about a particular brand. However, with dropshipping branded products the work in this section will not be an additional cost due to the already established market position. Therefore, customers will already be aware of the brands you have to offer and will search your store with the intention of buying a product.

High-end tags

With the intent to buy a high-end branded product, comes the desire to own that deluxe price tag that comes along with it. Usually, people are ready to give their money without a thorough examination, if the product is from an established brand. In short, if you carefully select the contents of your dropshipping store and the niche you would operate within, you will also see the benefit from high-end prices which will cover a higher profit margin.

Hight-end items tags give a sense of confidence

Little to no returns

Returns and return policies are always hard to manage as there are many tiny details that might make or break a certain deal. But with branded products, people will always know what to expect from a certain product thus making the probability of return very low.

How to start dropshipping branded products?

Choose a business name

The very first thing you need to do is to come up with the name of your store. This is a very important step both from a technical and symbolic point of view. After all, you must choose a name in the trading world in order to register your company in the legal system.

Determining business structure

A rather technical aspect, choosing the business model is crucial for your company in order to have a certain legal structure. With that said, inform yourself about possible ways of registering depending on where your company is going to be based.

Business licenses

Another thing that is determined by the location and the niche of your future venture is the scope of licenses you need to get in order to freely operate in the market. Obtaining business permits or licenses is a process that involves government authorities on a local or state level. Once you are all set with the legal matters concerning your shop now let’s head to the next part.

Choose your niche

In essence, a niche is a very important differentiator that specifies your store and makes it stand out from the competition. The first thing that pops in mind when you think of branded products would probably be the fashion and apparel segment, and you are not wrong to think of it.

According to Statista, the revenue in the fashion segment is set to reach US$878,334m in 2021 and the annual growth rate is projected to be 7.31% which will result in a projected market volume that amounts to US$1,164,693m by 2025. These numbers might give you the right idea of what you strive towards when selecting the niche for your store. Ultimately, bear in mind, that offering different types of products might overwhelm the potential buyers and result in reduced sales and lower profits. Additionally, it’s crucial to dive into which dropshipping niches are better to be avoided so that you don’t experience set back in your sales or failure.

Find the right dropshipping supplier

Having a stable and well-equipped supplier is very important if you want to be at the top of your selected niche. However, you should be very careful to choose a dropshipping supplier that will definitely have all the right features that will create your perfect branded store. If you want a luxurious experience in the clothing segment you should check BrandsGateway.

The company is the largest B2B dropshipping supplier for luxury clothing that incorporates more than 120 premium brands that will catch the attention of every fashionista out there. You can get access to over 15,000 high-end luxury items for both women and men. As a matter of fact, every product comes with an authenticity assurance of 100% which will surely bring you peace of mind. In addition, they offer a pretty reliable experience in assembling your shop with the support of their in-house plugin for  Shopify, WooCommerce, or Shift4Shop, which comes along with user-friendly features. The discounted prices can be very beneficial for your venture, and bring you a very high margin that might amount to 250% for every order.

What type of branded products should you dropship?

As we mentioned before in this blog, branded products from the apparel segment are in high demand, and the projections made about the revenue are quite promising. So, here we will focus on the apparel section in order to give you a wider perspective.

Clothing

The clothing section is the most widespread theme of dropshipping stores that tend to additionally differentiate their offer of items. Assembling a branded clothing web store will surely cover a large piece of the market as the apparel segment is the largest segment in the fashion category. According to Statista the revenue piece that belongs to this segment is set to reach US$584,123m in 2021. Another great thing about dropshipping clothing is that you are faced with a pretty diverse market that includes clothing for women and men, suited for different occasions. Now, add here the branding moment, the discounted prices from the dropshipping supplier and the eager consumers and you get a pretty lucrative scenario ready to be executed.

Handbags

If you want to go extra in narrowing down the consumer list for a more unique and one-of-a-kind business experience, you might want to think of specializing in the sale of branded handbags. Or if you want to add an additional product and make your offer look diversified, you can also add handbags as the inventory item. Regardless of how you choose to approach this issue, a sure thing is that handbags will always be a required product in every web store. Handbags are fairly convenient items that come in all shapes and sizes and are perfect for everyday activities. It doesn’t matter if it is worn at the beach, or at a business meeting, a handbag will always keep the essentials close to the person holding it.

Watches

The constant demand for premium watches worldwide is one of the main factors why watches are still seeing growth in terms of market revenue. According to a Technavio report, the watch market is projected to grow by $8.31 billion with an annual growth that amounts to 2%. Therefore, dropshipping branded watches can make your store an attractive venture for timepiece aficionados who will gladly spend their money in order to obtain a styled watch. Additionally, this niche also includes many accessories such as different types of straps, smartwatches, sports watches, etc.

Dropshipping branded watches

Sunglasses

The human eyes are one of the most important parts of the human body as they provide us with sight. Protecting them from the dangerous ultraviolet light is an essential part of the care. Of course, the most widely known protection is wearing sunglasses. Sunglasses have been a significant accessory for many decades and despite their first use to protect the eyes, they have become a symbol of style. In terms of dropshipping, they are an incredibly lucrative item. According to Statista, the revenue in this segment is set to reach US$20,173m in 2021. Additionally, the sunglasses market worldwide projections by 2024 amount to USD 38.84 billion at a CAGR rate of 5.5%, according to Reportlinker. With all this said, sunglasses as a niche will always boost your shop sales and accumulate profits.

In conclusion

The essence of building a business aimed at dropshipping branded products lies in the well-balanced decision-making process that will cover every aspect of this path. Whether you are seeking to find a more secure product range to satisfy the distinctive needs of your customers, or you are explicitly devoted to attracting a select group of people, branded products are always the right choice for building a store from scratch. Branded items will always sell better than the rest due to the fact that they will always incite a sense of safety in people. Therefore, this safety people feel about particular products will certainly persuade them to spend less time on making a decision for buying an item, and more time on actually buying it. Ultimately, the branded range of products would not only give you bolstered sales and increased profits but will boost your satisfaction rates and give your web store a higher market rating.

About the Author


Dimitar Alimaskoski
Content writer and music fanatic. Always using song lyrics as inspiration for my words.

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