Just like the product sourcing process, identifying a product sourcing agent requires similar levels of research! Key things to look for include:. All genuine sourcing agents should be licensed, which means they have legal jurisdiction to carry out their work. It goes without saying that your agent should have proven levels of expertise, but specialisation in your chosen niche is just as important. Your agent should be available at all times to answer queries and should keep you well informed of every stage of their work.
If a good relationship can be developed with a reputable wholesaler, there is a world of opportunity waiting in the form of being able to sell unlimited, unique products without the cost of needing to manufacture them yourself. Additionally, many wholesalers will only produce products they know are guaranteed to sell well because of the huge quantities they make at any one time - so you already know there is an established need or market for your product. However, due to the nature of wholesalers, products will need to be bought in bulk which means bigger initial costs upfront, as well as inviting potential undercutting competition from other sellers procuring products from the same wholesaler.
Establishing direct working relationships with manufacturers cuts out any potential middlemen as you are shipping the product to yourself with no additional incurring fees. Whilst you will be able to attain products at lower prices than working with wholesalers, you will still need to buy in bulk because of the minimum order quantities manufacturers work to which could prove too expensive for a starter business with a smaller budget.
A recurring trend, the appetite for artisan, handmade products is growing year on year as buyers aim for originality and uniqueness in their products or furnishings. A majority of the time, most sellers will be small independent businesses, so there is no need to pay bulk fees and the margin for competition is lower as the products sourced are likely to be completely unique. However, inventory could become a problem if the demand outsurges the rate the seller can produce, or if the seller is unable to continue manufacturing the products.
Trade shows, exhibitions, and conferences can not only be great places to conduct market research, but also identify and establish relationships with manufacturers, wholesalers and other independent retailers often selling unique products that are not yet common market knowledge. You will be able to inspect the product up close and gain a deeper understanding of the seller or supplier which enables you to better navigate any potential issues like supply and demand.
However, depending on your niche and location, these trade shows may not appear regularly enough. The more you undertake product sourcing, the more refined you can make your process. The art of product sourcing is that it rewards patience, research and curiosity so try not to let it overwhelm you and instead enjoy experimenting with different methods and strategies.
Analyzing the demand for your product and then analyzing it again is the key to differentiating a good product from a great one. Research your product on one channel, and then research it on another one comparing audiences, expenses, and lifestyles.
If it is an already existing product, check reviews on all the major supplier sites, and find tools to analyze sales data. Is the graph going up, or starting to plateau? Was it a brand or have they bundled from an unknown wholesaler?
Is it handcrafted, or have they simply white-labeled their products? Try not to get tunnel vision for just one product. If that product ends up outstripping supply and demand, or its demand suddenly plateaus overnight, your store risks falling into disrepair straight away. When sourcing your initial product, try to identify another, potentially unique product you could sell alongside, or instead of, the original.
Is there something similar? If the products are similar in nature, this could open up great cross-selling opportunities too. Part of being an e-commerce store owner is trying to stay ahead of the trend, and sell new, or trending products before the competition gets to them first. Knowing how to identify and monitor trending products is, however, a skill in itself. When the product is so new, there is often not enough data to accurately assess its longevity or if it's worthwhile.
Luckily, major retailer websites can often give good indicators as to how well something is selling or will sell. For example, many major clothing websites include an option to shop by trend, offering an opportunity to watch how well new seasonal products are being received by consumers. Away from large sites, tools such as Google Trends offer Featured Insight tabs and opportunities to filter by product, location, and age and supply their data in an easy to plot graph, making rising or falling opportunities easy to identify and validate.
If you want to potentially find these trending products quicker however, there are some valuable resources you can use. Ultimately when selecting a product to take to market you only need to answer two fundamental questions:. If you have done your market research correctly you may already have a feeling of yes or no to both of those questions.
There is however a lot more to consider before reaching your final answer. Do you know the potential market size or demand? If your market is too small, or too niche this will limit how much you can scale. Standard market research should help you understand this, but it will also be worth checking search volumes to see online demand. Is the product a trend, fad,is it in a flat or growing market? Another angle on DIY? Consider selling DIY kits and supplies to others.
Flea markets, craft stores, estate sales, established retail businesses or even friends and family could provide you with raw materials for reworking. Materials and labor will present the bulk of your costs. But there are some operational costs too such as product handling, packaging, shipping, marketing, etc.
Mind the manufacturing time frame. Or else you risk having unbalanced stock. In addition, you need to decide if you will make items on order or keep stock on hand.
Will you be running to the post office yourself or hire a shipping service? Where do you plan to ship and how much should you charge? Write down the answers. Give thought to packaging, since it will have downstream effects on total costs and could create shipping challenges later on. Look into companies like Noissue , which make it possible for your packages to reflect your brand feel. You ought to set expectations about the turnaround times for products and orders.
Add quick notes in your product description. Plus, in your shipping and returns policy. Then, reiterate it in your transactional emails. Many online brands today choose to go the direct-to-commerce DTC route. They commission goods directly from a vetted manufacturer and have them ship the products straight to the customer without any intermediaries.
But there are many more small and mid-market companies, pursuing the DTC route. Burrow is one innovative example. The modular furniture retailer managed to reduce their product manufacturing prices by a sizable notch by working as a manufacturer. Image Source. Sourcing products from a wholesaler or distributor has its perks too.
As you can immediately access a wide selection of inventory, compare prices and negotiate bulk purchase discounts. Reach out to others who have used the manufacturer or wholesaler.
Maybe do a little digging at the Better Business Bureau. Be prepared to provide necessary licenses or tax information. Before you sign on with anyone, make sure their products meet your expectations. While some manufacturers will charge a fee to send you a sample, you can often negotiate a deal to only pay for it if you keep it.
Worst case, you pivot and go another direction. Dropshipping is a method of product sourcing where another vendor fully fulfills a customer order. Essentially, you only list their inventory on your ecommerce website , while the dropshipping partner handles everything that happens after the sale — packaging, shipping, etc. Dropshipping is a great option for starting a new online store.
But it also works for expanding the product catalog of an existing store. Here are the steps to find a dropshipping supplier for your store:. Finally, pick one partner and get going! Read more about starting a dropshipping business. Today, you have a double advantage when it comes to dabbing into marketplaces.
You can browse locally in-person or source globally online. All-purpose online platforms such as eBay, Aliexpress, Etsy, are great ways to discover more goods for sale. In particular, if you plan to sell:. Or pretty much any other type of trending item, local consumers are dire to get!
If you are looking for quality products in a specific vertical, you should also head to niche online marketplaces. For example:.
When it comes to using marketplaces for product sourcing, you need to remember several things:. Similar to wholesaler search, read reviews and evaluate different stock ordering options. Remember, many sellers on online marketplaces are no pros and may have limited access to products. If some products are sold out, but you already have a customer waitlist, this can be problematic.
On the other hand, online and physical marketplaces are a good way to discover small manufacturers, budding entrepreneurs and emerging brands to partner with. These can turn into long-lasting allies for your brand and help you scale into multi-brand operations!
Trade shows were effectively designed to connect suppliers and distributors with prospective brand owners. But the industry is gradually bouncing back. Some of the confirmed product trade shows for include:.
Trade shows can be overwhelming. So get there with a clear agenda in mind. Specifically decide:. When approaching sellers, prepare a quick elevator pitch for introducing your business and your needs:. This easy conversation opener can help you make a bunch of valuable connections in no time!
Finding a product to sell online no longer requires dodging robbers and escaping pirates. But to get the best goods for trade, you still need to venture into the new territories, online or in-person. Product sourcing strategies are aplenty.
Also, profit margins are relatively low as you have to pay your dropshipping supplier to produce, store, and ship products to your customers. But you can get around this issue by selling print-on-demand products — a type of dropshipping where your supplier adds your designs to products before shipping them to customers.
Want to start your own Print On Demand business? Sign up for a free trial of Shopify and build your dream store. This next way to source products kicks things up a notch.
With this method, you would purchase products in bulk from a wholesaler. Now, if you're just starting out, it's possible to have the goods shipped to your home.
You could then store them in a spare room or in your garage and ship orders to customers yourself. However, as your business grows, you'll have to set up a warehouse and onboard a fulfillment team or hire a third-party fulfillment service to manage these tasks for you such as Shopify's Fulfillment Network.
The key advantage to purchasing products wholesale is that you'll get a low cost per unit — and the more units you buy, the cheaper the unit will be. Consequently, the more money you invest upfront, the larger your profit margins will be — this is referred to as 'economy of scale. Sourcing products in this way is also a relatively straightforward process. Some wholesale suppliers also provide private label services — this is when you would purchase products in bulk and have the supplier add your branding to them.
However, just like with dropshipping, it can be challenging to differentiate products from competitors if you don't opt for private labeling. And investing in inventory upfront brings financial risk as no product is guaranteed to sell. Although, you can reduce risk by selling pre-validated products from established brands. Also, as your business grows, you'll likely need to source products from many suppliers, which can create management challenges.
Manufacturing is, without a doubt, the most challenging way to source products for your business. Typically, you'll start with product designs and prototyping. Then, once you have a finished design, you'll evaluate manufacturers and order test batches before you select a supplier. That said, it's nearly impossible to retain exclusive rights to the product you create if you do this.
And so, the manufacturer is likely to sell the improved product to your direct competitors. Still, if you have an original product idea and want to create something unique to set yourself apart from competitors, this is the only way to go.
Unsurprisingly, this product sourcing method is the most expensive and time-consuming approach. Manufacturers typically require high minimum order quantities to start production, and lead times can take months. Plus, sourcing products in this way comes with all the same drawbacks that you'd encounter when purchasing goods wholesale, such as the need for an upfront investment, storage space, and fulfillment infrastructure.
To make things even more complicated, it can also be challenging to find a trustworthy and cost-effective supplier — especially if you're sourcing products from abroad. Now that you understand the 3 main ways to source products, which strategy is right for your business?
Here's what to do:. Once you've chosen a way to source products, what's next? Now it's time to check out some sourcing websites and apps to find products for your business. Here are 10 product sourcing websites and apps to consider:. Oberlo is Shopify's official dropshipping app that provides a way to start selling products online in less than an hour!
Simply sign up for Shopify , add the Oberlo app, browse products, and add them to your store. There are millions of products available in virtually every niche imaginable. However, it's smart to create a branded store with a selection of complementary products in a particular vertical. Printify is one of the best product sourcing apps for print-on-demand items. It connects you to a host of print-on-demand suppliers all over the world, so you can choose a supplier that's geographically close to your customers for faster shipping.
There are also more than products to choose from. This product sourcing app also provides a super simple mockup generator to help you customize products with your designs. Like Oberlo, Printify also has a free plan that you can use to get started. Printful is another popular print-on-demand product sourcing app with more than products that you can dropship.
It offers a range of printing and customization options, such as direct-to-garment, cut-and-sew, and embroidery. This product sourcing company also enables you to customize product tags and include branded inserts in the product packaging.
Dripshipper offers print-on-demand artisan coffee — so if you're passionate about coffee, this is the dropshipping source for you! The service ships whole beans the same day they're roasted and ships ground coffee the day after it's roasted. The service is based in the US but will dropship coffee worldwide. Creative Hub is a print-on-demand company for art.
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