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.
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 create
- Listen to what customers wish existed but can't find
- Track your best sellers and identify market gaps
Step 2: Start Holding Stock (The Soft Entry)
- Begin with your proven best-sellers from existing suppliers
- Learn logistics with minimal risk using products you know sell
- Use 3PLs (third-party logistics) to avoid warehouse overhead
- Start with as little as 5-10 units for better margins
Step 3: Launch Your Brand
- Find existing products on Alibaba that fill your market gaps
- Skip expensive R&D - modify what already exists
- Start with 5 SKUs across one container to spread risk
- Use 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 Business
13:30 - What Private Labeling Actually Means
17:37 - How to Know You're Ready for Private Labeling
23:38 - 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 Sellers
34:21 - Finding and Working with 3PLs (Third Party Logistics)
42:28 - Unlocking Premium Suppliers Who Don't Dropship
46:57 - Building a Moat: Buying Out Your Supplier's Stock
49:08 - How to Find Your First Private Label Product
59:51 - How Private Labeling Changed Everything ($30M Revenue)
Links
- https://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 $9
- https://dropshipbreakthru.com/go - Learn how high ticket dropshipping works and how you can get started in this free training.
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The 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.