Dropshipping, like any other e-commerce business, should have its brand to be familiar to the customers. All dropshipping businesses receive profit from sales in online stores, so it is essential to create a trustable brand with a unique history to have many customers. The difficulty of brand building in dropshipping is connected to the nature of this business.
Dropshippers do not produce the products they present in the online store; they find suppliers who are willing to produce and deliver them for the agreed price. Dropshippers earn only the margin between the sales price and the supplier price. One supplier can work with different dropshippers at the same time, so it isn’t very easy to deliver branded goods. In this article, we will talk about building a brand in dropshipping, how to overcome the difficulties, and what the best strategies for success are.
What Is A Brand? And Why Is It Important In Dropshipping?
The global dropshipping market increases every year because of its easy scalability, low investments, and no storage or production facilities required, so you can quickly switch between product niches to find the most profitable. But not all dropshippers can afford to sell branded products and create a strong name. In case your supplier produces your branded products, it may cause some losses if they are not bought, and you can’t quickly change the product or the online store name. This happens because of the main essence of the branding.
Dropshipping branding is a process of creating a company identity that is recognizable to your customers. It includes the company logo, website design in company colors, mission, branded goods, branded packing, email address with brand name, and other elements that might be associated with your business.
The competition in dropshipping is very high, so it is essential to highlight your online store among other competitors. A strong brand is one of the solutions to be ahead and increase your revenue (up to 33%, according to some tests). Branded products increase customer rate, increase purchase frequencies, and be emotionally connected with your customers. Unfortunately, brand building takes additional time and investments, but in the end, you can cover all expenses by increasing product prices.
Strategies For Brand Building In Dropshipping
We propose several strategies for how to stand out in dropshipping. As dropshippers sometimes do not see their products, the branded process is more complicated than in other e-commerce businesses. The strategies depend on the cost of your products.
- Budget items. You need to investigate the market to create a portrait of your average customer. All branded products cost more because of additional expenses. If your product is from a budget niche, seasonal, and you are going to change the brand name frequently, the best strategy for you is to make only a branded website with the possibility to rename it by quickly using easy-editing website templates. It would help if you focused on company colors, visual elements, and some catching photos or videos that push customers to open your store. But you can’t expect significant revenge for the strong brand; the drivers of your business will be mainly customer reviews and lower prices than competitors.
- Middle-priced items. Customers purchasing such products are interested more in the quality of the products. They investigate online stores more precisely, so it is essential to differentiate your store and products. In the context of dropshipping, it isn’t easy, so most of the store has the same descriptions and photos. To receive additional value to your website, you have the following tools for differentiation: professional photos of sample products (you need to make an order), creating catching product names, unique product descriptions, and short videos, and connecting the products with your brand values. You can also agree with your suppliers to customize product packing or private labeling. You can pack some motivation cards, thank-you cards, or small items.
- High-priced items. Even though dropshippers focus mainly on products from categories one and two, it is also possible to do a stable business for more expensive items. Customers in this category want to build long-term relationships, so the brand name matters. You need to set the brand voice; you need to engage the customers and make brand promises. The marketing politics, services, product pages – everything should be properly branded. The company presentation should be connected to the products you sell, and all marketing materials and social channels should reflect your brand and its values. You should show that your products solve your customers’ problems.
As you see, the brand strategy should depend primarily on the product price. Another important aspect is the capabilities of your supplier to support customized packing and labeling. We recommend estimating the start of each branding activity from marketing research. You may use automated dropshipping tools for that, such as those mentioned on this site.
Brand Tips For Better Differentiation
In the end, we will share some tips that might help set up a strong dropshipping brand:
- Use your success story as a foundation for the brand.
- Find a memorable and relevant to the product niche of the brand name.
- Think about target auditory during brand creation.
- Estimate your returns and brand only necessary items and parts of your online store.
- Create an easily recognizable and unique logo matching the brand name.
- Use a readable font and agreeable color in the visual image of your brand (colorful labels are more expensive than monochromes).
If you haven’t got ideas, we suggest hiring a graphical design and marketing manager to create a packaged brand strategy.
Branded dropshipping is the next level of dropshipping business; we do not recommend that beginners spend significant time and investments in branding. After you gain some experience in order fulfillment and communication with customers and suppliers if you want to extend your business and increase your profit, branding is the perfect next step.
It is legal to brand the products you sell unless there are no copyrights on the used logo. Brand helps to obtain loyal customers who believe in the high quality of sold items, but your product price will be higher because of custom packing and labeling. No fixed profit increase is connected to brand recognition; you should research your market first. Branding takes time and resources, but sooner, you can make a profit.