Top 10 Benefits of Dropshipping Hair Extensions

Start Your Hair Business With Dropshipping

Dropshipping hair extensions is a technique of business where the product is shipped to the consumer directly from a wholesale warehouse, thus eliminating the need for a company to hold a large amount of stock.

Orders are placed with the retailer, who then, in turn, sends the customer's shipping information to the wholesaler for shipment.

From here the wholesaler ships the item to the customer, often using custom hair extension packaging, such as return labels and packing slips with the retailer's logo. The process helps to cut out the middleman while saving space for the retailer.

There are several benefits to dropshipping hair and it is certainly a great way for an emerging business to get their start.

It gives business owners the ability to start a company with very little initial investment or space needed.

Dropshipping allows them to explore products. It also allows them to offer a wider variety of products because they don’t need to keep them in stock. The amount they will save in costs is very beneficial.

Companies will have the ability to start and run a business from anywhere. Companies can even run from remote locations. All of this and more is possible for an online retailer that utilizes drop shipping.

Think about this... Who is going to pack and ship your orders when you are out of town? If you have grown big enough you might have a shipping team but otherwise it might have to be a friend or family member.

Are you sure that's a good idea?

Read on to discover the benefits of dropshipping in detail.

 

Eliminates Need for Storefront

One popular reason retailers choose dropshipping is that it has the capability to entirely eliminate the costs of a storefront.

E-commerce is considered to be the future of retail for many industries because of it's benefits. Dropshipping is a huge contributor to the success of many online retailers. Because the retailer doesn't hold any product in stock, they, therefore, don't need the space to store the product.

A hair store has expenses that adds up quick. Think about the cost of the lease, utilities, staffing, insurance, and a whole lot more.

Without needing to maintain a storefront, they are able to dedicate more time to selling the product and promoting their hair extension website or business.

A digital storefront allows you to start a business whether or not you have a physical location.

Dropshipping helps to accommodate those who don't have much space or who want to run a business from home. It also means the retailer is able to move the business without disrupting their service to customers.

They are able to travel or move to a new location while maintaining their business.

Only Requires Small Space

For those businesses who prefer to also have a physical store, they can do it in a much smaller space.

Many of our Dropship Beauty clients run their business from a laptop or cell phone!

They are able to offer a wide variety of items without needing the warehouse or storage space. For those with a storefront, you can display the product you sell to show consumers what they are purchasing. Afterward, you can ship the product directly to the consumer after they purchase it via dropshipping.

Having a small space means they can have multiple storefronts if they choose. Businesses won't need to put all of their funding into a large storage place. It also opens up options as to the location they are able to offer their services. This is an exceptionally good way to sell large products that require delivery.

Regardless of whether these products are held in stock or at a wholesale warehouse, this will work. It also means for those doing E-commerce, that they'll only need a space to run their website and take customer calls.

Cost Saving

Having a small storefront or no storefront at all results in huge savings for the retailer.

For online retailers, no physical storefront means they don't have to rent or purchase a store, plus all the maintenance related fees, insurance, electricity, water, and other utilities.

This is an incredible amount of money savings. With these savings, they are able to hold a hire profit for what they do sell utilizing dropshipping, and potentially pass these savings on to the consumer.

For retailers who do maintain a storefront in addition to their online presence, much less space is required because they don't need room for the product.

This also eliminates the payroll needs of employees to unpack, stock and in some cases, repack and ship the product.

Additionally, because the product comes directly from the warehouse, the profit margin is the amount they choose to charge for the item over wholesale costs, with a shipping fee taken out.

Easy to Start a New Business

A huge benefit of dropshipping, as a result of the cost savings and need for little space, is the ease of business entry.

The initial investment is reduced greatly by utilizing dropshipping when starting a new company.

Those who are just starting out need very little startup funds because they don’t need the upfront costs of stocking products before they can be purchased, or for renting a large space in which the business can be run.

These upfront savings allow for a business to get a better foundation in place as they start their company.

Our sister brand, Dropship Beauty, has affordable dropship hair websites that can get your business up and running in a snap!

There is also the added benefit of having the money in hand as soon as an order goes through, covering the cost of buying it from the wholesaler with the profit on top. There is no need to pay for the product in advance because it is paid as the demand is met. This ensures the retailer never has overstock or has to carry products from the previous season.

It also means they can sample the products to sell without committing to always having them in stock.

Time Saving

Particularly for retailers with a small staff, the time-saving benefits of dropshipping are a game-changer.

Because there is no need to run a huge store, and stock, pack, and ship products, there is much less of a time commitment or need for employees.

With time benefits, the retailer can then work on ensuring their company thrives rather than making sure the shelves are properly stocked.

An additional benefit of saving time is that the retailer is able to improve the customer experience.

They are able to dedicate their time to providing excellent customer service. The retailer can also better understand the products they are selling so they can provide informed advice to their consumers. They can also focus on marketing their business because they are able to save on upfront costs.

They can invest in marketing to ensure the success of their endeavor.

New Products Faster

When a new hair extension product is available through a wholesaler, there can often be a several-week-long delay before retailers receive the product.

This is because the retailer has to dedicate time to packaging and shipping it to retailers. A benefit of dropshipping is that as soon as it becomes available in the wholesaler’s inventory, the retailer is able to immediately market and sell the product.

For instance, this year we are adding a collection of Glueless Wigs, 2x6 Closures, Seamless Clip-ins, and much more to our dropship hair offerings. Not having to keep up with all the new products is a huge bonus!

With such a fast introduction of new products to the market, those retailers who utilize drop shipping are a step ahead of other companies. Their reputation will benefit from the fast turnaround of receiving new products.

It also means consumers may browse the website more often in search of new products which can lead to increased business from impulse buys.

Higher web traffic is beneficial to a new company.

Company Can Grow

There are no constraints on how large an E-commerce company can grow when it relies on dropshipping for order fulfillment.

As the business grows, the workload doesn’t increase. There is no additional need for hiring more workers to package and ship the product because this portion of the process is handled by the wholesaler.

There also is little need for a larger space if the company increases its product volume because the product is not on site.

As the demand increases, there may be the need for additional customer service, but this ensures the company maintains the level of quality that it grew its business on.

It's important you are working with a reputable dropship hair company. Many clients work with the Private Label team because we have been in business since 2014 and have thousands of dropship clients.

Time can be spent training new employees on their customer service skills rather than training them on packing and shipping.

Dropshipping allows for all the employees for the retailer being well versed and trained in the hair extension industry.

No Shipping Experience Necessary

When a business utilizes dropshipping, it can leave packing to the professionals.

It isn’t necessary to stock shipping supplies, pay for shipping or even have any experience in packing and shipping. The shipping and handling are left to the wholesalers. The wholesalers have all the necessary knowledge and supplies to ship the product.

This ensures the product arrives at the customer in the same condition in which it left the warehouse.

It can also help the product arrive to the customer faster when there is a dedicated team of packers at the warehouse.

Dropshipping is especially beneficial for companies selling high-value products such as raw hair bundles. It isn’t necessary to invest in security systems and private storage that are made to secure expensive inventory as this responsibility is left to the wholesaler.

This is hugely beneficial to retailers as they can specialize in marketing the product, without having to worry about the stress of shipping and inventory.

Offer a Diverse Stock

As a result of not needing storage space, online retailers who dropship, are able to offer a wider variety of lengths and styles.

Carrying a diverse stock of hair extensions will help to attract a larger audience of customers. When a retailer has to provide storage for the multiple variations of each item, they may have to narrow their stock down to two or three different versions.

If they utilize the dropshipping, they are able to sell many different items and many different models or versions of said item without having to maintain a storage facility or warehouse.

The same can be said in a storefront, they can display more options without having to stock them all.

Popular Dropship Hair Products

There are many popular options when setting up shop to dropship hair.

Some of the most popular products include:

• Virgin Hair Bundles
• Lace Front Wigs
• Closure Wigs
• Hair Bundle Deals
• Human Hair Closures
• Lace Frontals

The possibilities are endless!

This gives companies that operate using the dropship method of order fulfillment a benefit over competitors. When a company offers a wide selection, they are likely to offer consumers the exact product they want.

In doing so, they are able to provide a better level of satisfaction to their customers.

Larger Audience of Consumers

When a retailer offers a wide variety of stock, they are able to attract a wider demographic of consumers.

For retailers who offer a very specific item, dropshipping allows you to ship the item anywhere. This helps specialized businesses to thrive when they may not otherwise due to a lack of customers.

Companies who don’t have a specialized stock can reach a wider network of consumers because they can dropship anywhere. This is beneficial to both the consumer and the retailer, as they can get consumers outside of their typical area. Engaging in E-commerce is great for getting a large customer base. E-commerce gives people who may not have known about the company access to it through the internet.

Dropshipping extensions offers those in the hair industry opportunities they may not have been able to attain through regular shipping. It opens doors for niche market companies. Dropshipping also allows retailers to offer a wide array of products without the need to house them all. It also offers them flexibility in the location to run the business.

It can move as needed and as the market changes. Companies just getting their start are able to save money and focus on their marketing. They are able to gain a large customer base while maintaining a limited inventory and low investment.

Companies just starting out, or those looking to reduce inventory while maintaining their business can benefit from utilizing drop shipping.

Launch Your Hair Extension Business!

Private Label launched it's sister company Dropship Bundles in 2016 to help supply those looking to start their hair extension business with the dropshipping method.

It could also be a great backup for online orders if you are out of stock.

There is no easier or cost-effective way to start your hair extension business.

Frequently Asked Hair Dropshipping Questions & Answers

What makes hair extensions a good product for dropshipping?

Hair extensions are a great product for dropshipping because they are lightweight, easy to ship, and have a high demand across various demographics.

Sometimes clients say they want to offer products like Shampoo and Conditioner. The issue with these products is that it often costs more to ship them than the cost of the actual product.

Additionally, the variety in types, colors, and lengths means that you can cater to a wide range of customer preferences, increasing the potential for sales.

Since they're not immediately perishable or fragile, they also reduce the risks associated with shipping.

How do I find reliable suppliers for hair extensions?

Finding a reliable supplier will help set you up for success when dropshipping hair extensions.

Since you are already here, please consider the two options Private Label has to offer when it comes to dropshipping. 

1. Dropship Beauty App - For Shopify users.
2. Dropship Bundles - For all other website platforms.

Full transparency, you can also look for Chinese suppliers on platforms like AliExpress, Alibaba, or through specialized hair extension supplier directories.

Consider ordering samples to assess quality firsthand, and evaluate their customer service, shipping times, and return policies to ensure they align with your business standards and customer expectations.

One of the benefits of working with us is we ship orders from Atlanta, have Atlanta based customer support, and Atlanta based returns! Y

You will quickly find out the benefits of this!

What are the challenges of dropshipping hair extensions, and how can I overcome them?

Some challenges include maintaining product quality, managing customer expectations, and handling long shipping times.

Overcome these by choosing reputable suppliers and maintaining clear communication with your customers regarding shipping times and policies. Offer detailed product descriptions and images to accurately represent the products.

Consider offering a satisfaction guarantee or easy returns to build trust and loyalty among your customers.

How can I differentiate my dropshipping store from competitors?

To stand out, offer exceptional customer service, create a user-friendly website, and provide valuable content like hair care tips, tutorials, and style inspiration.

For example, we offer Dropshipping and start hair extension businesses for clients. To help set them in the right direction we have an entire website on how to sell hair extensions called The Hair Business Blueprint.

You for sure want to check out the Hair Business Planner!

You might also specialize in a niche within the hair extension market, such as extensions for thinning hair, unique color options, or high-end human hair extensions.

Building a strong brand identity and engaging with your audience through social media can also help differentiate your store. Consistency is going to be the key to your success! 

What marketing strategies are effective for promoting hair extensions in a dropshipping model?

Effective marketing strategies include leveraging social media platforms, especially visual ones like Instagram, Tiktok, Youtube and Facebook, to showcase the quality of your hair extensions.

Influencer partnerships can be particularly powerful in this industry, as potential customers often trust personal recommendations. Working with influencers is also a great way to get user generated content for your website.

Additionally, search engine optimization (SEO) for your website can help attract organic traffic, while email marketing can keep your current customers engaged and informed about new products and promotions.

Have any questions about Dropshipping Hair Extensions? Leave them in the comments below!