Let’s start this blog post with a few statistics:
- 44% of online customers say packaging reinforces that the product is worth the cost.
- 50% say that they’re likely to buy from a business that has premium packaging
- 68% of customers believe that good packaging makes the brand “seem more upscale” (Source)
As a dropshipper, what do you think about these statistics?
If you’ve been in the dropshipping game for a while, you probably know that a general store would only take you so far. You might earn some monthly profit from it, but in the long run, you need to find a more sustainable strategy.
That’s where custom packaging for dropshipping comes into play!
So, what are the advantages of custom packaging for dropshipping? How can you apply this strategy effectively?
This guide will answer all these questions. Let’s explore!
What is custom packaging for dropshipping?
Custom packaging for dropshipping is the implementation of putting your brand name and logo on the product packaging.
By doing so, you’ll differentiate yourself from other competitors. This would also make your store look more authentic when compared to other dropshippers who are selling the same products.
Advantages of dropshipping with your own packaging
Although dropshipping with custom packaging requires much more investment than traditional dropshipping, the following benefits make it really worth it.
Brand products as your own
A huge number of dropshipping stores are operating worldwide. With so much competition, it’s become vital for dropshippers to have a unique selling point.
So, why not sell the same product under your own brand?
That's exactly what custom packaging brings to the table. It lets you build your brand, which in turn slashes the competition by making you outstanding among other generic stores.
Attract more customers
Have you ever experienced this situation?
You walk down the grocery aisle, trying to choose between some brands of the same item (say some cereals or a carton of milk). If you are trying a new brand, the very first thing you look at is the packaging.
So, you know how great custom packaging attracts customers’ attention. Needless to say, great packaging often signals that the product is of high quality.
Many consumers would be hesitant to try something new. An effective way to get their attention is through custom packaging.
Earn higher profit margins
The idea behind dropshipping is to directly fulfill orders through a supplier, while you keep a specific percentage of profit on each sale. So, if you are not selling high-ticket products, you won’t be making too much money because you cannot justify higher prices.
However, through custom packaging, you are presenting yourself as a unique brand and gaining more authority over products. This will give you a much more stable footing to work with, and you can keep higher profit margins while dropshipping.
Improve your credibility
Due to the increasing number of scams, many customers still feel skeptical about online shopping. That’s why they usually prefer buying from brands.
By launching your brand through custom packaging, you can improve your credibility, which as a result, attracts more customers.
Build customer loyalty
It’s essential to build customer loyalty, which should be every business owner's main goal.
Without custom packaging, you’re letting that opportunity slip away. By adding your brand name and logo to the packaging, you’ll enjoy the fruits of your labor. That’s why you should build a brand to retain your traffic.
Gain long-term sustainability
Do you know that only 10% of dropshippers survive in their first month of operations? This figure makes people think that dropshipping is dead or it isn’t as “effective” anymore.
But that cannot be further from the truth. Like other business models, dropshipping requires innovation. You need to adapt to the changing times and develop your unique selling point; otherwise, you are bound to run out of luck.
Therefore, the key to long-term sustainability is customizing your packaging and promoting yourself as a brand. That would give you an edge over the sea of general stores out there.
4 factors to consider before starting custom packaging
Custom packaging for dropshipping may be promising, but you shouldn’t jump headfirst into it. Before starting custom packaging, you should pay attention to these things.
Level of experience
Custom packaging or private label dropshipping is not the same as running a traditional dropshipping store. In fact, it requires a much higher degree of experience and carries a greater risk.
If you are not careful, only a few negative reviews could tarnish your months of hard-earned reputation. Given the money you would spend in raising brand awareness, simply re-opening the store with another name is not a viable option. That’s why most beginners start with general dropshipping stores.
Creating a brand may not be feasible for those who are on a tight budget. Most suppliers who offer custom packaging often require a high MOQ (Minimum Order Quantity).
On top of that, you’d have to spend additional money on building a brand identity, product testing, and much more. Even after all that, you need to carefully tread as there is a high risk of failure involved.
Quality of packaging materials
It’s vital to compare material options suggested by solution providers, as this heavily affects the quality of your final product packaging.
Actually, achieving a high-quality feel doesn’t always mean you have to choose the highest quality materials. Instead, packaging specialists should offer you guidance on material optimization. They’ll guide you through picking the right material for your packaging based on your branding, product specifications, and customer journey.
For instance, let’s say you want to communicate that your brand is sustainable. However, you don’t have the budget to opt for high-end eco-friendly packaging. In this case, you can choose Kraft paperboard, which is durable, cost-effective, and 100% eco-friendly, while providing high-quality printing and finishing capabilities.
Your marketing approach plays an integral role in deciding the future of your business.
There are a lot of ways to market your dropshipping brand. The most common methods include running ad campaigns, starting a blog, creating viral videos, and using influencer marketing.
So, you need to assess which strategy aligns best with your business budget and goals, and then work on it accordingly.
How to start dropshipping with custom packaging
So, is it easy to start dropshipping with custom packaging?
Well, not really!
Finding suppliers that offer custom packaging can be challenging at the beginning. Here are 3 tips to help you solve this problem.
1. Target the exact keyword
If you are dropshipping on marketplaces (e.g., AliExpress), it’s quite difficult to find a custom packaging page. Most suppliers don’t directly sell products with custom packaging.
But you can try your luck by typing “custom packaging” in the search bar. You might find a couple of suppliers but with a high MOQ. If you are willing to buy in bulk, then it is not a bad bargain.
2. Directly contact the supplier
Many suppliers actually are open to the idea of custom packaging, even if they do not write it on their page. Of course, you need to give them a reason to trust you, while showing them that you have the potential to bring in profit.
Consider working with a supplier as a regular dropshipper and build a good work relationship. Over a few weeks or months, if your dropshipping store is performing well, and you are placing frequent orders, you can pitch the idea of custom packaging.
If you do not want to go through the hassle of negotiations, and you’re really interested in dropshipping coffee, then Dripshipper is a great choice for you. Instead of spending hours searching for the right suppliers, you can put all your focus on launching your brand with the help of Dripshipper.
So, why should you choose Dripshipper for your custom packaging plan?
- You can instantly build your brand. The easiest way to build a coffee brand is to order private label coffee. All you need to do is upload your logo or label design, and Dripshipper will do the rest. When customers receive your coffee, they only see your brand name & logo right from the packaging. It looks like it came directly from you! Easy, huh?
- Your customers will receive the best-quality products. Dripshipper understands that poor product quality will destroy your brand. That’s why Dripshipper only uses the best & specialty grade coffee. All your orders will be shipped the same day they’re roasted.
- No MOQ is required. You just want to buy one bag of coffee? Go for it! You can order more for better pricing, but Dripshipper allows any quantity of coffee to be purchased.
Custom packaging should begin with a trustworthy, flexible, and cooperative supplier. With many positive reviews from other merchants, Dripshipper can help you effectively customize your packaging and create your brand. So why don’t you give it a nice try now?
3. Get the help of a dropshipping agent
A dropshipping agent, also known as sourcing agent dropshipping, is a middleman between you and manufacturers. This is an alternative to traditional dropshipping. If you’re still new to the business and have no network, a dropshipping agent can help you choose the right supplier or manufacturer.
Dropshipping agents often have an extensive network in the field, and they can locate the best manufacturers in a short time. They’ll work with these manufacturers to get the best deal, and even ship your products directly to customers.
With dropshipping agents, branding can become much easier. They can help you include your logo, promotional codes, thank-you letters, or your product’s manual.
However, before getting the help of a dropshipping agent, you should keep these things in mind:
- Most agents require you to have a minimum amount of orders each day
- They don’t offer fully automated order fulfillment, so you most likely have to send them a .csv file of your orders every day
- For dropshipping suppliers, you can easily find reviews of other dropshippers, but for agents, you can’t. So that’s why when it comes to working with a dropshipping agent, trustworthiness is more of an issue.
Custom packaging is considered one of the most effective ways to grow your dropshipping store. In the long run, it is much more sustainable, and it packs a higher profit potential.
But don’t forget that custom packaging requires a bit more investment than regular dropshipping stores. And even then, there is no 100% guarantee that you will succeed, especially if you do not plan ahead.
Thus, you can share the burden with Dripshipper and let us help you custom your packaging, while you can focus on developing your winning brand strategy.
Contact us now to learn more about how we can assist you!