How to Find Unique and Marketable Stock for Your Online Store: A Guide to Product Sourcing


 

What is Product Sourcing?

It’s a process of how a business attains stock to sell known as product sourcing. if you have an online store you have to explore manufacturers, wholesalers, artisans, and other types of productions and businesses that create merch for sale.

Typically, the product sourcing process includes:

  1. Product Research & ideas
  2. Vendor analysis
  3. Price comparison
  4. Supply deals negotiation

By reading this post you’ll know where to find product suppliers, what to consider during negotiations and how to stock inventory your customer will love.

Types of Product Sourcing

You can easily get confused s=during researching if you don't follow any vector.

You can prioritize the following five sourcing vectors to make your research more productive.

  1. DIY products or services
  2. Manufacturer or Wholesalers
  3. Dropshipping
  4. Marketplaces
  5. Trade shows

Every option is inherently better than each of them, But there are a variety of factors to take up when determining which works best for your business and for you.

1. DIY Products or services

The global handicrafts market stood at a value of USD 647.57 billion in 2020. The handicrafts market is projected to witness a CAGR of 10.9% over the forecast period of 2022-2027. It is expected to reach USD 1,204.7 billion by 2026.

From solo artisans producing exquisite handmade jewelry to acre-wide ateliers weaving heritage Persian rugs, there are many curious options you can explore.

Or, You May be eager to join the maker's economy a movement of people who produce their own products for sale.

Another perspective on DIY thinks about selling people DIY kits and materials. Companies like Artbeads sell their consumers the delight of creating their own jewelry in this way.

Benefits of selling DIY goods

  1. Unique items that are impossible for rivals to replicate
  2. Complete control over product quality
  3. The capacity to quickly adapt to new ideas
  4. Direct inventory control
  5. Increasing consumer interest

Selling DIY goods has the following drawbacks:

  1. A possible increase in the cost of items sold (COGS)
  2. The ongoing need to find raw materials
  3. Additional production space is needed
  4. Limits the capacity for company scaling

Checklist to Get You Started.

Source materials

You could find the raw materials for your reworking at flea markets, craft shops, estate sales, well-established retail businesses, or even from friends and relatives. Decide what you'll need, where to buy it, and how much it will cost.

Choose your price point

The majority of your expenses will be made up of labor and materials. Operational expenses include those for handling products, packaging, shipping, marketing, etc. To have a strong Return on Sale, be sure to include all of these in the pricing (ROS).

Determine how long it takes to produce your products

Keep in mind the production schedule. Otherwise, you run the danger of having unbalanced stock. You also need to select if you will produce things on demand or retain stock on hand.

Choose your shipping strategy

Will you be using a shipping service or running to the post office yourself? What should you charge and where are you planning to ship? Take notes on the responses.

Learn the requirements for shipping

Consider the packaging you use because it will affect overall expenses in the long run and could make shipment more difficult. Look into businesses that allow you to customize your packages to fit your brand, such as No issue. After all, the popularity of the "unboxing experience" may have a long-term impact on how you treat your customers.

Think about where you'll keep your stock

Even if your company is small enough to operate lawfully from home, it probably won't grow with it. A 3PL, renting a facility, or building a retail location for BOPIS are all potential choices to consider.

Make a strategy for communicating deadlines

Expectations should be made regarding the processing periods for orders and items. Your product description should include brief notes. Additionally, in your return and delivery policy. Reiterate it again in your transactional emails after that. For your clients to feel comfortable making purchases from you, it is best, to be honest, and upfront.

2. Manufacturers or wholesalers

When you work with a manufacturer or distributor, a third party is being hired to supply the product for you:

  1. Manufacturers can sell their ordinary stock or create unique products to your specifications (with customizations)
  2. Wholesalers merely deliver to you the stock they have acquired elsewhere.

If you can't make the goods yourself or when you're ready to scale up your DIY manufacturing, either is a fantastic alternative. Additionally, it's a terrific way to expand your brand selection and carry additional, well-known names among your target markets.

Today, a lot of internet businesses opt to use direct-to-commerce (DTC) strategies. They order things directly from a screened manufacturer, who then ships them without any middlemen to the buyer.

Ecommerce direct-to-consumer sales in the US are anticipated to reach $21.15 billion by the end of 2021. You've definitely heard of DTC firms like Away, Casper, and Warby Parker, among others, which are currently valued at billions of dollars.

However, a large number of small and mid-market businesses are taking the DTC path. Burrow is one creative illustration. The merchant of modular furniture was able to significantly lower the cost of producing its products by acting as a manufacturer.

Additionally advantageous is purchasing goods from a distributor or wholesaler. You may quickly explore a variety of merchandise, evaluate prices, and bargain for savings on larger purchases. Additionally, since you would only be working with one company rather than several people at once, you could maintain better control over supplies.

Benefits of working with manufacturers and wholesalers:

  1. Ability to increase product catalog and carry additional brands
  2. A lot of help with production and supply
  3. Obtaining new specialty items and made-to-order commodities
  4. Diversification and reduction of risks

drawbacks of working with manufacturers and wholesalers:

  1. Higher initial expenses because you have to pay for the products before you sell them.
  2. Inventory risks to be taken into account
  3. More paperwork and contract negotiations
  4. Most require that you achieve a minimum order quantity (MOQ).

Checklist to Get You Started.

Find a supplier

You have a few choices if you're looking to purchase a product in large quantities:

  1. Collaborate with nearby companies or craftspeople. or directly contact a different company with an offer.
  2. Browse online marketplaces like Alibaba or eBay for overseas small business suppliers.
  3. Form a partnership with an established business to move their B2B or B2C operations online.
  4. Creating connections with creators on Instagram or in online groups.
  5. Look through regional or global wholesale directories like Closeout Central, Wholesale Central, or Etsy Wholesale.
  6. You may quickly use web research to find manufacturers who will make your products. Don't lose hope; keep in mind that it may take some time to locate the proper spouse.

Vet the prospective business partner

After that, you should contact the manufacturer or wholesaler's references. Verify that the person you are doing business with is reliable before proceeding.

Speak with others who have purchased from the wholesaler or manufacturer. Investigate a little at the Better Business Bureau, perhaps. If the company you're considering requests documentation demonstrating that you run a genuine business as well, it's a good indicator. Be ready to present any required licenses or tax documentation.

Make a supplier evaluation.

Make sure to query every business you're thinking about using the following inquiries:

  1. How much will shipping and production costs total? Exist any potentially unstated costs?
  2. How long will it take them to produce, complete, and send the item?
  3. What does the management of inventory and shipment look like? Will you have to ship and store anything, or is that something they'll take care of for you? What are the deadlines and requirements? Do you have any say in how products are branded?
  4. How do the agreements and terms appear? Is there any flexibility for requirements your company or customers may have? Exist any conditions for termination or an evaluation period?
  5. What do communication and support look like? How often will you receive information about stock levels, product modifications, or even discounts? The minimum order quantities (MOQs) are
  6. Will there be a minimum purchase requirement or a required quantity of units?

Order samples.

Order a number of samples of the products you intend to market once you've chosen one or two contenders. Check to see if a company's products live up to your standards before you sign a contract. You may have to pay a fee if a manufacturer sends you a sample, but you can frequently work out a contract where you only have to pay if you keep the item.

Evaluate your alternatives.

Don't make a decision in a hurry. Make sure your decision is the best one possible in terms of cost, value, and market demand. However, that doesn't imply that you should stay in research mode always. At worst, you change course and head in a different direction.

3. Dropshipping

Dropshipping is a form of product sourcing in which a different vendor completes an order for a consumer. In essence, you simply advertise their inventory on your e-commerce website, and your dropshipping partner takes care of all the post-sale tasks including packaging and shipping. You can avoid dealing with the inventory in this way.

A fantastic choice for launching a new online store is dropshipping. However, it also works for enhancing an existing store's product line.

You might be shocked to learn that dropshipping is used by 12% of Amazon FBA stores with annual revenues of over $1 million.

Benefits of dropshipping

  1. A variety of fresh things to choose from
  2. A quick and inexpensive option to launch a new online venture
  3. There are no inventory hazards or additional inventory management costs. Drawbacks to dropshipping

Drawbacks to dropshipping

  1. A lower profit margin means that you must sell more products to turn a profit.
  2. Brand competition and similar product sourcing
  3. Limited ability to influence product quality
  4. Customers' return processes are more difficult

A Checklist to Get You Started

Here are the steps to find a dropshipping supplier for your store:

  1. Look for some dropshipping businesses
  2. Examine their testimonials and references.
  3. Consider the price, MOQ, and sizing grid of several product possibilities.
  4. Inquire about alternatives for personalization and branding.
  5. Choose a workable delivery schedule and returns procedure. Request samples
  6. Choose a partner and start working right away! Find out more about launching a dropshipping company.

4. Marketplaces

When it comes to entering markets now, you have two advantages. Local in-person browsing is an option, as well as online global sourcing.

All-purpose internet marketplaces like eBay, AliExpress, and Etsy are excellent resources for finding more products for sale. especially if you intend to sell:

  1. Used and vintage products
  2. Decorative items
  3. Handcrafted goods
  4. Art and décor
  5. Items manufactured by hand

Local consumers are desperate to obtain these items, as well as just much of every other form of trend! You should also visit specialty internet markets if you're looking for high-quality products in a certain industry. For instance:

  1. Houzz — home items and decor
  2. GAME — toys, collectibles, computer games, and hardware
  3. AbeBooks — new and second-hand books
  4. G2A — games and electronics
  5. StockX — mainly clothes, electronics, and collectibles
  6. Reverb — music instruments
  7. Taobao — China’s peer-to-peer marketplace, selling clothes primarily
  8. Discogs — vinyl records, CDs/DVDs.

Last but not least, keep in mind the nearby markets you may reach. There are various venues to build contacts with possible suppliers in order to find the best-selling products, including garage sales, private estate sales, farmer's markets, and annual fairs.

Benefits of using marketplaces:

  1. There is no minimum order quality
  2. Quick method for locating tiny but varied stock
  3. Simple ordering procedure with no paperwork
  4. The capacity to find unusual stuff

Drawbacks to using marketplaces:

  1. Retail costs are higher than wholesale costs for you.
  2. Strict stock restrictions
  3. Unpredictable delivery schedules
  4. Demands consistent commitment to stock replenishment

A Starting Point Checklist

You must keep in mind a few things when using marketplaces for product sourcing:

  1. Know exactly what you're looking for

  2. Ask about current stock levels and possible replacement options. Strive to establish long-term source connections while negotiating reductions.

  3. Analyze various stock ordering alternatives and read reviews, similar as when searching for wholesalers.

Keep in mind that many online marketplace sellers lack experience and may only have restricted access to inventory. It can be a problem if you have a client backlog but some of your products are sold out.

On the other hand, finding tiny manufacturers, nascent businesspeople, and up-and-coming companies to collaborate with can be done through online and offline markets. These could develop into dependable partners for your brand and support your growth into multi-brand operations!

Trade Shows or Business expos.

Trade exhibitions were cleverly created to link distributors and suppliers with potential brand owners.

Consequently, it's always a pleasant place to mix and match in search of new private label goods, producers without an online presence, or product concepts that are fresh to your target market.

There were no trade shows in 2021. However, the industry is slowly recovering. The following verified product trade exhibitions are scheduled for 2022:

  • Ohio State Fair 2022
  • The Ultimate Women’s Show (multiple locations)
  • Los Angeles Christmas Cash & Carry Christmas Gift Show
  • Big Boys Toys 2022 – The Innovation & Luxury Lifestyle Exhibition
  • COUTURE Las Vegas 2022
  • Las Vegas Antique Jewelry & Watch Show 2022

So mark your calendar and consider attending!

Trade show advantages:

  1. The ability to view and touch the goods in person
  2. Access to a variety of suppliers at once
  3. Novel and inventive items
  4. Quicker supply agreement negotiations

Drawbacks of trade shows

  1. Added expenses for attendance and travel
  2. Difficult for newcomers to navigate
  3. Many suppliers like doing business with larger brands.

A Starting Point Checklist

Expos may be very overpowering. So arrive with a predetermined plan of action. Choose specifically:

  1. What goods are you looking to purchase?
  2. How much is your per-item budget?
  3. What total amount of inventory are you looking for?
  4. Which MOQ is acceptable to you?
  5. Based on the price, can you demand a reasonable profit margin?
  6. Is the item distinctive?
  7. Is shipping simple?
  8. Can you upsell it or add a bundle with the current inventory?
  9. Is there a high enough demand? Is it too cutthroat?

Prepare a succinct elevator presentation to introduce your company and your needs when approaching sellers:

  1. Describe your background, the size of your company, your target market, and any prior experience you have with product sourcing.
  2. Describe your current line of products and any upcoming additions.
  3. Specify your purchasing power by stating how much inventory you intend to purchase.
  4. Next, pass the ball to the wholesaler and ask them to discuss their line of products and business.

You can quickly establish a ton of worthwhile relationships with the aid of this simple conversation starter!

A Conclusion

It's no longer necessary to avoid pirates and robbers while looking for a product to sell online.

But whether it's online or in person, you still need to explore new areas to find the best things for trade.

There are numerous methods for sourcing products. To avoid feeling overwhelmed, all you need to do is select the best strategy (or try out a few!) and maintain your research activities well-structured.

FAQs of Ecommerce Sourcing Products

What goods will be popular in 2022?

The interest of consumers in eco-friendly products (across categories), vintage and used goods, plants, and gardening equipment, among other things, are some trends that have lasted a long time. As many people continue to work on side projects they started during the pandemic, demand for hobby-related and DIY materials has increased as well.

Can I dropship from the United States?

Yes, any US-based e-commerce company with a valid registration can deal with a dropshipping supplier or serve as a dropshipper for another company. Just make sure your company is properly registered and that you have completed all tax obligations. Additionally, you have a ton of plugins and tools at your disposal to manage dropshipping operations with ease.

Where do you find products to sell online?

You typically have three primary choices. Make the thing yourself first before hiring a conventional or on-demand manufacturer. Find a provider, such as a dropshipper, distributor, or wholesaler, to supply you with goods. Finally, you can combine any of the aforementioned strategies as well as work with nearby companies who still operate offline but have not yet gone online.

Where can I locate suppliers for e-commerce?

The best place to start your search for ecommerce providers is online. Check internet marketplaces, look through wholesale directories, and speak with independent small company owners and artists. Directly approach the brand you want to carry to discuss a direct wholesale agreement.

Where can I locate the top suppliers?

The best business partners can be found through a well-organized supplier research procedure. Decide how much inventory you want to buy, at what price per item, and what minimum order quantity you can afford before you start your search. Utilize a request for proposal (RFP) document to interview various vendors and collect their feedback. Examine the comments, read the reviews, and then order samples for a hands-on examination.

Where can I locate dropship suppliers?

Instead of going to well-known dropshipping websites like Aliexpress and Alibaba, start by looking for regional manufacturers. Find a tiny business that manufactures top-notch goods but doesn't engage in online business-to-business trading. Then, while they handle the supply and transportation, you can contribute by serving as their online storefront.

Where do you get the materials for your products?

If you intend to manufacture your own goods for sale, check for local raw material sources (to reduce shipping delays). Search internet directories to find nearby partners, then get in touch with them. Online markets can also be sufficient for some sorts of resources, making it easier to buy product materials in quantity.

What product is simple to produce?

The easiest items to make yourself are those that are simple, need little raw material, and are produced on a small scale. These include things like candles, soaps, jewelry, accessories, tiny leather products, home décor accents, certain kinds of clothing, candies, confectionery, and other meals.

Where do you find clothing for an online retailer?

Your store's concept will determine your sourcing method. For instance, as the owner of a multi-brand business, you can select clothing from regional designers or place bulk orders with foreign wholesalers. To create private label clothing, you can also collaborate with a little clothing atelier. Estate sales, garage sales, and online marketplaces are your best chance for finding clothing for sale if you intend to operate a vintage store.

Where can I discover American vendors?

Start a search for local producers online. Search supplier or manufacturer directories online. Current directories of US wholesalers and manufacturers can be found, among others, on Thomasnet, Clever Wholesale, and SaleHoo. Additionally, respect local makers as individuals.

Need Ecommerce website? You can Order Here - https://www.fiverr.com/share/V0opld

Visit My Website - https://enamulani.com/

See More Works in Behance https://www.behance.net/enamulani

.........

Comments

Post a Comment