3 Steps To Start Your Private Label Brand — Ep. 396

Matthew Scott transformed a simple dropshipping business into a multi-million dollar empire by taking one calculated step most dropshippers never attempt: creating his own brand. Now with products in major retailers like Bunnings (Australia's Home Depot), over half his revenue comes from private label products with significantly better margins.You can find Matthew here - https://www.matthewrscott.com/In this episode, Matthew reveals the exact 3-step blueprint he used to transition from dropshipping to private labeling without risking everything:Step 1: Gather Intel (Months 1-12)Let your dropshipping business tell you what products to createListen to what customers wish existed but can't findTrack your best sellers and identify market gapsStep 2: Start Holding Stock (The Soft Entry)Begin with your proven best-sellers from existing suppliersLearn logistics with minimal risk using products you know sellUse 3PLs (third-party logistics) to avoid warehouse overheadStart with as little as 5-10 units for better marginsStep 3: Launch Your BrandFind existing products on Alibaba that fill your market gapsSkip expensive R&D - modify what already existsStart with 5 SKUs across one container to spread riskUse dropshipping profits to fund inventory (no investors needed)Matthew's key insight: "Dropshipping is the perfect soft entry into e-commerce, just like holding stock is the soft entry into private labeling. You're learning with training wheels on."The results speak for themselves: Matthew went from construction worker to running a 16-person team with an operator managing day-to-day operations, all funded by reinvesting higher profit margins from his own products.Whether you're making your first dropshipping sale or doing millions in revenue, this episode shows why private labeling isn't the massive scary leap everyone thinks it is - it's just the logical next step when done right.Note: This is part one of a two-part series. Part two will cover the tactical details of finding manufacturers, importing from China, and scaling operations.Timestamps:05:44 - Why His First Store Failed (And Why That Was a Good Thing)09:47 - Dropshipping as the Low-Risk Gateway to Business13:30 - What Private Labeling Actually Means17:37 - How to Know You're Ready for Private Labeling23:38 - Case Study: Building the Heave Brand (Now in Bunnings)25:46 - Is Private Labeling High-Ticket Products Expensive?29:25 - Step 1: Start Holding Stock of Your Best Sellers34:21 - Finding and Working with 3PLs (Third Party Logistics)42:28 - Unlocking Premium Suppliers Who Don't Dropship46:57 - Building a Moat: Buying Out Your Supplier's Stock49:08 - How to Find Your First Private Label Product59:51 - How Private Labeling Changed Everything ($30M Revenue)Linkshttps://dropshipbreakthru.com/passion - Grab our Passion to Profit Blueprint for just $27 and discover a passion to build a high ticket dropshipping business around.https://dropshipbreakthru.com/checklist⁠⁠ - Grab our Ultimate High-Ticket Dropshipping Checklist Bundle for just $9⁠⁠⁠⁠⁠⁠⁠⁠https://dropshipbreakthru.com/go⁠⁠⁠⁠⁠⁠⁠⁠ - Learn how high ticket dropshipping works and how you can get started in this free training.⁠❗ Connect with us on social media:➡️ Follow us on Instagram: https://www.instagram.com/dropshipbreakthru/➡️ Follow us on Facebook: https://www.facebook.com/dropshipbreakthru/➡️ Join our FREE Facebook group: https://www.facebook.com/groups/dropshiptribe/➡️Follow us on TikTok: https://www.tiktok.com/@dropshipbreakthruThe Dropship Podcast is brought to you by Jon Warren and Ben Knegendorf. Join us every week to learn everything you need to know to master the art of high-ticket dropshipping.