What is the Difference Between Branded Dropshipping and Dropshipping?

Introduction

Don't you have warehouses or sufficient money? Don't worry. You can still start a dropshipping business with a lower investment. 

But which dropshipping niche, type, and category should you choose? Would you go for the traditional or branded dropshipping? 

All such questions irritate the dropshippers. Do you want to know the ultimate differences between traditional and branded dropshipping? Today, we will discuss the differences between traditional and branded dropshipping and determine the most suitable choice for you.

What is Traditional Dropshipping?

Traditional dropshipping is a simple structure in which the seller acts as a middleman between the buyer and the supplier. Instead of managing inventory, the seller leaves all the inventory hassles on the suppliers and chooses to create stores and make sales.

Typical workflow

● The customer places an order on your online store.

● You forward the order to a supplier.

● The supplier fulfills the order.

Advantages 

● Low startup costs, as you don't have to invest a fortune in traditional dropshipping.

● You can easily set up your store and ship products from AliExpress or DSers on your Shopify store.

● No financial risks, as you can touch a wide variety of products without risking your money. 

Challenges

● Profit margins are often thin.

● The shipping is often slow, putting sellers on the verge of negative feedback.

What is Branded Dropshipping?

Branded dropshipping is almost the same as traditional, but differs in product branding and customized packaging. Instead of directly shipping to customers, the supplier adds the business logos to the products and ensures easy and branded fulfillment.

Typical workflow 

● The customer places an order on your online store.

● You forward the order to a supplier.

● Suppliers pick and pack the products based on your instructions.

● Then, the supplier fulfills the order.

Advantages

The pros include:

● Extended brand growth in the long run

● High customer loyalty and retention with positive experiences.

● Higher profit margins for the same products.

Challenges

Here are a few challenges.

● High upfront investments dishearten the sellers.

● Higher profits come with a higher risk if you don't maintain your brand reputation.

Key Differences: Branded vs. Traditional Dropshipping

Traditional and branded dropshipping are not the same. They share some ultimate differences and key features to know. We have listed the significant features that make them unique and make them the ultimate selection.

Product Ownership 

Who owns the products? In dropshipping, usually, there is no ownership; however, the category differs a lot.

For example, in traditional dropshipping on Shopify, you choose random products from different suppliers. There is no specific selection of the supplier or possible private-labeling.

On the other hand, branded dropshipping is different from this case. It deals more with the private-label products from a range of suppliers. There is no randomized selection system. Even the supplier or the dropshipper has already defined the niche of products to sell.

Branding

Branding involved a range of tasks. For example, you pick the products and package them with the brand logos. Often during production, the supplier helps rename the products and imprint the brand logo to make the products exclusive.

Let's see who the king of branding is.

Traditional dropshipping has nothing to do with branding. Products get shipped to the location without the name or logo of the store. However, the supplier can fasten its name or logo. 

Branded dropshipping follows all the steps of branding. Suppliers manufacture all the products with the dropshipper's brand logos. Even during the packaging, customized packaging that suits the dropshipping brand is offered.

Customer Loyalty

Customer loyalty means customer retention. If a customer purchases your products multiple times and gives a positive experience regarding your store, that consumer is treated as loyal.

Traditional dropshipping has good customer loyalty, but not always. It is because of randomized products without any ownership or branded experience.

In contrast, branded dropshipping is totally a brand like Chanel or Dior. Customers show off their luxury and remain addicted to the branded store. They always purchase the products and recommend others. Therefore, branded dropshipping has a higher customer loyalty and retention rate than traditional.

Pricing Power

Who has the full power to control the prices? What do you think in this case? As a dropshipper, you can usually set your prices. 

A traditional dropshipping business has less control over the prices. Here is why:

Resellers want to make profits and research only profitable products. If the prices of the products are higher than those of the competitors, the product is less likely to sell. So, the competition influences prices and causes the dropshippers to reduce prices even more than their competitors.

Branded dropshipping has little to no influence on the prices. The brand gives consumers a touch of luxury and an excellent unboxing experience. They try to snatch the products at the best possible price because they know the quality will be top-class. Therefore, branded dropshipping has more power and control over the product prices. 

Control over fulfillment 

Control over fulfillment means access to the packaging, inspection, and shipping. Usually, dropshipping doesn't have such facilities until you have exceptional control over your brand.

Traditional dropshipping doesn't offer any control. You can't repackage products until you request or pay extra money to the suppliers. Like the buyer, you must add the customer's address to get the product shipped.

Compared to it, branded dropshipping is all about control. You have partial control over the fulfillment. Suppliers customized the packaging for you. They can apply quality control, or you can hire an inspection team to check the product quality.

Which Model is Right for You?

Factors to consider

The selection of a single model depends on several factors. For example, how much of your budget do you have to spend? What is your perspective in the long run?

● Budget. If you are starting from zero, traditional dropshipping is the choice. You can also consider the branded dropshipping if you have a high budget.

● Experience. Newbies should always start with an easy and effective method. It should be risk-free.

● Long-term vision. What is your focus? If you focus on the long term, then choose the branded dropshipping. Otherwise, go for the traditional dropshipping.

When is traditional dropshipping suitable?

Traditional dropshipping is the ideal choice when:

● A beginner testing multiple product niches

● You want a fast, low-cost entry into eCommerce

● Comfortable with longer shipping times and generic products

When is branded dropshipping suitable?

Branded dropshipping is the number one choice in the following cases.

● Build a recognizable, long-term brand.

● Differentiate your products from those of other sellers.

● Targeting higher-end markets or looking for repeat customers

How BuckyDrop Supports Both Models 

Taobao dropshipping or AliExpress, Buckydrop is a one-stop solution for all your products. Buckydrop can also find the tried and true suppliers if you are shipping basic products.

Guess what? We support both of your dropshipping methods— traditional or branded dropshipping.

Here are our perks for the consumers or resellers trying to make some bucks!

For Traditional Dropshipping

Buckydrop offers flawless support with supplier filtration and quality results if you want a traditional dropshipping system. Here are a few benefits.

● Direct sourcing from 1688 and Taobao. We explore the top suppliers on such platforms and get you affordable prices. Even the prices are lower than those of AliExpress sellers.

● Simple Shopify integration. Connect your 1688 Dropshipping Shopify channels and do automated syncing. Automated order fulfillment saves time and money.

● Efficient logistics support. Ship products to foreign countries and regions. Grab a reliable cross-border shipping service with easy access.

For Branded Dropshipping

If you want to take your business to the heights, we also feature a range of services on our branded dropshipping platform.

● Private labeling services. Fetch the private-label dropshipping opportunity with branded products. We add your logo directly onto products and make them hotter for sales.

● Custom packaging. Let's disclose your branded packaging and thank-you cards.

● Product inspection. Before shipping, we check product quality and apply quality control. If the product qualifies, we will give a green signal and set your business on the right track.

● Dedicated account managers. Our experts help you with sourcing, branding, and logistics.

● Photography & video services. Make photos and videos from different angles. Make professional product listings without a single error.

Final Thoughts

If you are dropshipping on Shopify or Amazon, there is one thing to know.

Is it for long-term or short-term? Each type has a different significance. For example:

● Traditional dropshipping is ideal for smaller investments and short-term perspectives.

● Branded dropshipping focuses more on long-term growth and profits. You'll get an identity using this shipping method.

Do you want flawless dropshipping support?

Contact Buckydrop to get a range of dropshipping services. We help source products, find the right suppliers, and customize them to scale your business. 

Explore new dropshipping growth plans with our experts right away!