 In today's video, we're going to be talking about white label versus private label dropshipping. What are they? What's the difference? Which one's better? And which one's more profitable? Now make sure you stick around all the way to the end of this video because some of the things that I want to talk about here could potentially help take your dropshipping business to the next level. So let's run that intro really quick and let's get to it. What's going on dropshippers? Maro here with AutoDS and if you like informative videos in the dropshipping business and staying up to date with everything dropshipping and the hottest and most trending products, make sure to hit that subscribe button as well as ring that little bell notification so you don't miss out on any future videos. Also if you want any more detailed information on anything that I'm going to talk about in this video, go ahead and check out the description down below. I'm going to have a link to the relevant article down there. All right. So first off, what exactly is private label dropshipping? Well, it's simple. Private label dropshipping pretty much just means that we have the ability to be able to sell customized products without ever having to hold any inventory. So we can pretty much go ahead and ask for any physical modifications. So if there's something that we don't like, maybe a color on there, we can go ahead and ask our supplier to change that. We also have the ability to request any extra features on the item itself. Another huge thing about this is the fact that you're able to start branding your own products. So you can have your brand name or your logo printed on the product itself or your packaging. Now having all of those handy features can come with a few differences to your traditional dropshipping. For one, some suppliers might ask you for upfront payment or they might even have a minimum order quantity that you need to fulfill before getting customized products. Now regardless of that, this is a great way to start branding your store and start gaining some brand recognition. Now next up we have white label dropshipping. What exactly is white label dropshipping? And that's pretty simple. It's pretty much just selling generic products. So unbranded products directly from the supplier. So pretty much anything that you're going to be purchasing from AliExpress, CJ dropshipping or any one of those suppliers and having it sent to your customer. That is white label dropshipping dropshipping products under a generic name or no brand name. Now this is the more traditional and widely known way of dropshipping. It's a lot easier for beginners to start this way because sometimes it requires less capital and it's a lot easier to just get started in it. It allows you to be able to test different products to see what works. And then if you start to notice that something's picking up and you really want to try to build a brand around a specific product, then you can start looking into private label dropshipping. Now that we know what private and white label dropshipping are, let's go ahead and talk a little bit about the pros and the cons of each starting with private label dropshipping. Let's go ahead and list out some of the pros. For one, we have low upfront costs. Since we are still dropshipping, ultimately we don't have to carry any inventory. Our suppliers are still going to be taking care of everything even if we are using private labeling services. Now, even if our supplier requires us to put a down payment or give some sort of upfront payment for private labeled products, ultimately it's still going to be a lot less than what you would pay if you order inventory and have to house it yourself and then eventually ship everything yourself. This is also a great way to start building your brand. Branding your products really helps you stand out above the competition. And with branded products, you even have the ability to charge a little bit more. So you can start coming in with some higher profits. Not only that, but when you sell products under a brand name or your own brand name, people typically feel a bit more comfortable actually making the purchase. And if the customer has a good experience with your brand or your products and you have quality products, then they're going to feel a lot more comfortable coming back to make a purchase once again or referring some friends to your store. Remember that social proof nowadays is pretty much everything. If somebody tags you on their Instagram or their TikToks showing off your products, then your brand and your products are going to have the potential to be shown to a way wider audience. And then when people start asking, what is that or where did you get it? The person that posted the video or the picture is going to start recommending your brand. Now, unfortunately, some suppliers are going to require a minimum order quantity. And with a minimum order quantity, you're most likely also going to have to pay for all of that upfront. Now, it's not going to be a huge cost. Ultimately, where you're going to end up paying for is just the cost of production. And there's a perfectly good reason for that. Think about it this way. You're going to end up printing maybe 100 products with your brand name on it. The supplier is not going to be able to sell that to anybody else except for your customers. So ultimately, if the product ends up not selling, they're going to be stuck with that inventory. Now, it's good to note that not every single supplier is going to require you to pay for the minimum order quantity upfront. Some of them might have a minimum order quantity and let you pay as you get your sales. If the items don't sell with an uncertain amount of time, then they might need you to pay for all of the inventory. And if you haven't been selling too many of that particular product, then you could come at a loss of profit. Now, if you decide to go the private labeling route and start offering branded products, then the one thing you want to make sure is that the product that you're going to label has a proven track record. Make sure it's something that has been selling and has been working for you. You don't want to do it on just random products because then you're going to run the risk of potentially having stale inventory. Now, if everything that I'm talking about sounds a bit daunting or it sounds like it's too complicated to get started with private labeling dropshipping, then don't forget just yet because I have the perfect solution for you. You really want to check this out. So to start, we're going to head on over to our platform over at AdlDS.com. Now, once we're in the AdlDS dashboard, all we have to do is click on over here to Marketplace. And then once we're in there, check out the suppliers. Click on supplier and then you're going to see AdlDS suppliers. Now this is where the cool part comes in. So if you start scrolling down, you're going to start seeing branding logo AdlDS supplier. So all of these products, you're able to brand with your brand name, with your brand colors, whatever you need. Now all of these suppliers are part of the AdlDS warehouse. And best of all, they support branding services. And best of all, getting set up with this couldn't be simpler. All you have to do is go on over and click on settings. And once you're in your settings, just go to store settings. Once you're in the store settings, you go ahead and select the store that you want to add the branding to and just upload your logo. And that's it. Once you have that set up and you start making sales, that's pretty much all you have to do. You don't have to do anything else. AdlDS will start doing everything for you from placing the order to fulfilling it and updating your customer with the tracking number. This has got to be the easiest way to start branding your dropshipping products. Now, what about white label dropshipping? How does it compare to starting your own brand with private labeling dropshipping? Is it a good idea to start selling generic products when you can easily just start your brand? Yeah, 100% it is a fantastic idea because it really gives you the opportunity to start testing different products before you have to commit to private labeling. On top of that, generally it's going to end up being cheaper to sell generic branded products or white label products. Since there is no customization that has to go behind it, there's also not going to be any minimum order quantity. The prices are going to be cheaper and shipping could potentially be a little bit quicker because they're already mass produced and ready to ship. You're also going to have a lot more suppliers to be able to choose from. Generally, there will be more suppliers selling generic or white label products than there are going to be offering private labeling services. Now, with this method, since the products are already mass produced, there's never going to be a minimum order quantity, at least with most suppliers. Depending on how you go about it, you could potentially also make a higher profit because you're never going to have to worry about minimum order quantities. You're never going to have to worry about having to pay your supplier for stock that didn't sell. If a product just isn't selling, if you notice that it's not even getting any traffic into your store, then it's easy to just replace a product. All you have to do is take the product down and add a new one. And all of these points are what make it perfect for beginners. It makes it super simple to start and to start dipping your toes in the water to see how you like it. Now, with such a low barrier to entry and being so easy to get started, there can come a lot of competition. But when it comes to competition, it's fairly easy to stand out. All you have to do is always remember to offer top quality products, best possible customer service and have a nice website or marketplace. It's super important to have an aesthetically pleasing website. When somebody goes into your website and lands on the homepage, if it's a mess, if it's disorganized, if the colors don't really look good, people aren't going to feel comfortable making a purchase. If you have a clean looking website, then people are going to feel a lot more comfortable making a purchase from that site. On top of that, you can always add customer testimonials to either the product pages or your homepage, as well as customer reviews. Also, when it comes to the products, try offering something unique, something that's a bit different or differs a little bit from everything that everyone else is selling. Now, when it comes to trending products and products that have been proven to sell and are currently trending, we offer tons of different resources to help you out. For one, you can check out our Sellies Now playlist here on our YouTube channel. There, we constantly upload new videos with the best products to sell or the best niches. On top of that, we always have monthly product videos to give you a heads up on what's going to be trending in the upcoming months. Tons of people find those product videos extremely helpful. Just check out some of these comments that they're leaving. Now, if you don't want to miss out on the best products to sell, then make sure to hit that subscribe button so you don't miss out on any future videos and stay up to date with the best products to sell. Now, aside from that, if you go on over to the platform over at OutOfTheS.com and click back to Marketplace, you're going to see another section that's called Winning Products. If you click on there, you're going to see tons of winning products that have been proven to sell in the past and are currently trending. All of these products are hot sellers. And if you decide to click into one, like let's say this rug, you get tons of information on the product itself that can also help you market it and sell it. So if we take a quick look at it, you're going to see the product itself. You're going to see the colors that it comes in. In this case, there's only one and the different sizes. So here you're always going to have the different variations that come with the product. And if you scroll down a little bit more, then you're going to see a lot more detail that can really help you start to move these products and bringing in some profits. So if we scroll back up, you can see that the item cost is about $7.89. Now, if you scroll down, you can see that it's currently being sold for about $35.98. That gives you a potential profit of $27. That's a pretty good profit. Now, if you scroll down a bit more, you're going to see an example, Facebook ad. This can help you structure your ad and even make it a little bit better. Now, taking a look over here, you're going to see a target audience. These are just suggestions and you can adjust these to whatever demographic you want to target. Now, scrolling down a little bit more, you're going to see the Adidas Insights. Here, you have a bunch of different information that Adidas gives you on the product itself. And if you click on this little link right here, this is a cool part, you can see a website that's actually currently selling this product. Now, if I look at this item and I think I like it, I want to add it to my store, all I have to do is click on import draft. Once I click import drafts, it's going to take it to my draft section so I can make any necessary adjustments to the title, the product variants, the description, or anything else. Once all of that is ready and I want this product to go live on my store, all I have to do is click on import and we're good to go. Now that we know the differences, the pros and the cons between private labeling and white labeling, let's answer the question, which one's better? Well, there's no straightforward answer to this. Honestly, it ultimately depends on you. It depends on what you're going for and what you have in mind for your business. Do you want to start a brand? If you're looking to start a brand and you're looking to get customized products, then definitely private label dropshipping. But if you're just starting out, if you don't really know how everything's going to work out, if you're still testing out products, then your best bet more than likely is going to end up being white label dropshipping, selling generic products. Now, if you've been dropshipping for a while and you've tested a few products and you have one that's really selling and bringing in some good money, then you can look into transitioning from white label dropshipping to private label dropshipping and brand that product as your own. Another important thing to keep in mind is how much money you have to start. Remember with private labeling dropshipping, there's a possibility that you're going to have a minimum order quantity or you're going to have to pay for certain items upfront. Whereas white label dropshipping, you don't have to worry about any of that. You're only going to be paying for products as the orders come in and you're placing your orders with your supplier. Huge thank you for watching. Once again, my name is Mario with AutoDS bringing you all of the latest news in the dropshipping world. Once again, make sure to hit that subscribe button, ring that little bell notification if you haven't already and I'll catch you all in the next video.