Retail in the coffee business has changed dramatically since globalization and the advent of the Internet. Our interconnected world has grown to expect the best quality products, conveniently delivered to their doorstep, and they’re always on the lookout for that new hidden gem. Partnering with a private label coffee dropshipper, you can fill this need in a cost-effective, streamlined way, building a brand you can be proud of while selling top-quality products manufactured and shipped by a trusted partner.
What Is Private Label Dropshipping?
Private label dropshipping is a business model that separates the brand from the manufacturing and fulfillment process. The brand takes care of marketing, product customization ideas, brand development, and sales, while a separate company handles the manufacturing, packaging, quality control, inventory management, and order fulfillment. Coffee dropshipping with a private label manufacturer lets brands get the best of both worlds — they have the freedom to tailor their product to their vision while leaving the complicated logistics up to skilled, experienced suppliers.
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What Is Dropshipping?
A brand that sells its products via dropshipping cuts out the proverbial middleman from the retail business. Instead of buying products in bulk from a wholesaler and storing them somewhere, they can have the manufacturer ship products directly to the customer. The brand keeps track of who has ordered what and to whom it must be shipped, and the manufacturer makes it happen. Coffee dropshipping follows the same principles, only with delicious, caffeinated goodness.
What Is Private Label?
Private label is the difference between dropshipping a preexisting product and dropshipping customized products made exclusively for your brand to sell. The private label manufacturer works closely with the brand they supply and can even, in some cases, use the brand’s own coffee to create top-quality products. In the coffee business, this is called co-packaging or toll-roasting.
- Roast-to-Order: Coffee beans supplied by the private label manufacturer.
- Toll-Roasting: The best private label coffee manufacturers can take a brand’s green coffee beans, roast and package them however the client prefers, and ship orders off to their retail customers.
- Co-Packing: In this process, private label manufacturers take the brand’s already-roasted coffee beans and prepare them for customers in the same way.
Ideally, the private label coffee dropshipping supplier keeps a clear and steady line of communication open with the brand, learning their requirements, preferences, ideas, and expectations and putting them into practice. The better a brand-co-packager duo communicates, the more satisfied the brand — and the customer — will be once the coffee is brewed. If you plan to dropship coffee, private label is the smart way to go.
What Are the Benefits of Private Label Coffee Dropshipping?
If you choose to dropship private label coffee, your brand could enjoy some game-changing advantages, whether you’re looking for financial or operational perks. Here are just a few of the benefits of the business model:
- Startup is cost-effective. The supplier manufactures your products, saving you money on inventory space, manufacturing equipment, and warehousing.
- The business is scalable. You’re free of the constraints of traditional factory and inventory management, so you can more easily expand your product range, and reach a wider audience as you grow.
- Products are customizable. Good private label suppliers let you tailor your products to your target audience and preferences instead of picking from a generic product lineup.
- Your attention is on your brand. While your supplier handles manufacturing and shipping, you can pour your time, effort, and finances into building your brand and reaching new customers.
- Your location is flexible. Your product storage, management and shipping are done by another company, so you could manage your business on your laptop from anywhere in the world.
- The manufacturer is certified. Partnering with suppliers that have United States Department of Agriculture (USDA) Organic certification, Kosher certification, Fair Trade certification and Biodegradable Products Institute (BPI) certification gives your brand credibility and enhances your products’ appeal.
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What Should I Consider When Starting a Coffee Business?
Like every industry, coffee dropshipping offers opportunities to show innovation and resilience. Learning how to come out on top amidst potential challenges early on is important so you’re prepared and confident if hurdles arise. Here are some things to keep in mind as you begin your coffee business:
- You need a competitive edge. There are many players in the coffee market, so customers need a reason to pick your product over others, be it unique branding, excellent quality, or cost-effectiveness.
- Your supplier must be reliable and accountable. Picking an excellent private label supplier will ensure your quality control is done thoroughly and to the high standards you and your customers demand.
- Packaging is paramount. To preserve the freshness and presentation of your products, they must be packaged in a well-managed, accredited, and modern facility with specialized equipment.
- Products must be stored and shipped responsibly. Coffee is perishable, so screening your private label manufacturer for transparency on stroage and logistics practices is essential.
How Can I Dropship Private Label Coffee?
Learning how to dropship private label coffee is easy with the right guidance and a bit of curiosity. Here are five essential steps to kickstart your new coffee dropshipping business:
Do Some Market Research
Take some time to ponder your business goals and how you plan to achieve them. Decide on your target market, what they’d want to buy, and how to best connect with them. There are many ways to drink coffee, and there’s a perfect customer for each one. If you’re interested in selling cold brew pitcher packs, for example, you’d likely do well to focus on customers between the ages of 18 and 34 who show the most interest in cold brew coffee.
Find the Right Supplier
Coffee dropshipping suppliers vary in product quality, efficiency, cost-effectiveness, and customizability. Pick an accredited private label manufacturer with a state-of-the-art facility, flexible capabilities, fast turnaround times, and dedication to client services. This way, you’ll know you’re selling the highest quality products while having a streamlined dropshipping experience. Find a manufacturer that ensures a win for your brand and your customers.
Plan Your Products and Image
Decide which products you’re keen to sell, how your brand should appear to customers, and which values you want your products to uphold. For example, if you’re interested in selling pods for Nespresso or cups for Keurig to millennials and Gen Z customers, pick a supplier that offers recyclable or compostable coffee capsules. That way, your brand can sell great-tasing products that are also eco-friendly and sustainable.
Set Up Your Sales Platform
You’ll need an online marketplace to sell your products. There are e-commerce platforms like Shopify, WooCommerce, and Bigcommerce that offer streamlined online retail services, as well as website builders that facilitate dropshipping sales, like Wix and Square. Be sure to research each one in-depth to find out which platform and payment plan will best meet your needs. Your online marketplace will need to integrate with your supplier’s fulfillment technology, which most modern platforms can provide, including the ones listed above.
Market Your Brand and Products
Next, you need to make sure people know about your products — why they’re awesome, who is selling them, and where they can go to make a purchase. This is where digital marketing comes in. Create profiles representing your brand on several social media platforms like Instagram, Facebook, TikTok, YouTube, and Reddit. Then, you can create ads that promote your products, post interesting articles that link to your store, interact with your followers, and ultimately build your online presence.
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Joe’s Garage Coffee Can Help You Get Started
Joe’s Garage Coffee can provide everything you need to succeed in your coffee dropshipping business — from top-tier co-packing to unlimited customization. Our facilities are USDA Organic, Kosher, Fair Trade, and BPI certified, and we have an amazing team of experts ready to work with you to perfect your product ideas. Our private label coffee experts are waiting to hear from you and start you on your dropshipping journey.
