E-commerce: How do I Source Products to Sell Online?

What Is Product Sourcing?

Product sourcing is the process of discovering, finding, and acquiring products for a company. It involves identifying what products to sell and how to source them. It also includes evaluating the quality of these products.

Product sourcing should be done with care because it affects your sales significantly. If you do not have an effective product sourcing process in place, you will end up with a poor product selection and poor quality products that may result in disappointing sales numbers.

There are two types of sourcing:

• Direct sourcing – finding products and manufacturers that you want to buy directly from the company.
• Indirect sourcing – finding third-party manufacturers who make the product you want, then finding a retailer that sells that same brand.

Pros and cons of direct source products

Pros 

• Lower overhead costs - You can save a lot of money if you sell directly from the manufacturers. You don't have to spend unnecessary money on either purchasing and maintaining an inventory or shipping and handling delivery packages.
• Ease of access - Direct sourcing allows you to reach customers in their own homes, rather than in a retail store or warehouse. This is especially beneficial if you sell high-ticket items or upscale products that don't fit well in stores and may not be easy to resell online.
• Easy setup process - Setting up your retail store can be expensive and time-consuming, but buying directly from manufacturers means you don't need a storefront or employees — all you need is an internet connection and a website!
• No middleman - You, the seller, are the primary source of all your product's materials. This means you can control how much money you make and how much time and energy you spend on your inventory.
• You can negotiate prices with suppliers - Often, you'll be able to negotiate lower prices by sourcing directly from factories rather than through distributors or wholesalers.
• You may be able to provide better warranties than other sellers do - Since you're dealing with the factory that makes the item, you have an extra incentive to ensure that it's made according to specifications and that it's ready for delivery when promised (or at least close enough for shipping).

Cons 

• The biggest drawback of direct-source products is that you have no idea how your product will be shipped or packaged. This can be problematic if you are selling an item such as a commercial printer, which requires special packaging. It is also possible that the product you get may come to you damaged, so you have to put it back in the box and send it back to the vendor. This can take time away from your sales days and could potentially cost more than what the item is worth.
• Another disadvantage is that it's more expensive than buying from an ecommerce provider.

5 ways you can source products to sell online

DIY Products

If you're looking to source products for your online store, it's a good idea to branch out into DIY products.

DIY products are becoming increasingly popular in the e-commerce world as more shoppers are looking for ways to save money and time b y creating their products. And with some simple eCommerce tools and a little know-how, anyone can begin making their merchandise.

DIY products are an excellent way to start your online business. The key to selling DIY products is to find the right niche and then build a website around it.

For example, if you have any experience in sewing, knitting, or making crafts, this is an excellent way to start your business. You can make clothes, jewelry, accessories, and more. You may also want to consider selling your craft supplies like paints or other materials needed for your craftwork.

It will give you an idea of what it takes to run a successful eCommerce business and how much time it takes to produce the goods that you sell online.

Direct Source Products from Manufacturers

Another way to source products for your ecommerce store is to find manufacturers that are willing to work with you. This means finding manufacturers who are willing to talk with you about your business and the products you plan on selling. They will want to know what product you plan on selling, how much inventory you need, and your budget.

This can be done through a combination of searching for them online or by calling the manufacturer directly. If you're lucky, you'll find that some companies will allow you to ship their products directly to your customers, which will save you time and money.

Once you have a list of manufacturers, it's time to figure out which ones are best for your business. These manufacturers must have experience making the type of product that you plan on selling because they will have more information about what works and what doesn't. When choosing a manufacturer, it's also important that they have a good reputation among other businesses in the same industry as them so that you can trust their workmanship and quality control processes.

Source Products From Wholesalers

If you don't have any products to sell, you can source directly from wholesalers. This is the most common way that most e-commerce sellers source their products for sale.

When you source products from wholesalers, it's important to do your research first to ensure the wholesaler is reputable and will meet your needs. If they don't meet all of your requirements, then you should consider sourcing from another wholesaler or even an online retailer in the same niche.

Here are some tips on how to find quality direct-source products:

1. Ask around - Make sure a few people you know who already sell direct source products know who they got their products from and if they would recommend them. If one person doesn't know someone who has used this supplier, there is probably no reason to use them either!
2. Check their website - Check their website for testimonials and reviews. You can also check other websites that have reviewed the company so that you can get a better idea of what kind of service they offer before purchasing anything from them.
3. Look at their inventory - Before placing an order with a supplier, make sure that they have enough inventory available for purchase! The last thing you need is a lot of demand but no supply to fulfill it.

Source Products with Dropshipping

Sourcing your products to sell online through Dropshipping is one of the latest ways. It has quickly gained popularity and is widely implemented as well.

Direct source products are those that are sold directly by the manufacturer, without a middleman. Dropshipping is a type of direct sourcing, which allows you to buy directly from the manufacturer and resell them on your website at a profit.

As with other products, you can buy whatever product you want in bulk and save a huge sum of money on them. However, dropshipping offers additional benefits over traditional sourcing methods:

Sourcing from multiple manufacturers means that you can get better pricing than if you sourced from just one manufacturer. This means that you won’t have to wait for the item to go on sale at the manufacturer’s website or order it from another retailer. You can also sell multiple items at once, which will give your store more exposure than it would if you only sold one item at a time.

Dropshipping allows you to choose from thousands of different products instead of just one or two options. Many merchants use drop shipping as an opportunity to build their portfolio so they can offer more variety in their merchandise offerings.

Source Products from Trade Shows

One way to source products for your ecommerce store is to directly get them from trade shows.

This can be particularly effective if you have a unique product that is not readily available in the marketplace and you are looking to get it in front of a lot of people.

You might like this article: How to find your reliable supplier for your business? [Fair Trade Guide]

For example, let’s say you want to sell a product that is only available through a trade show or conference. It might take months before you can find an opportunity to use this product and by then, you might be able to get some sales for it.

By attending the trade show, you can meet potential customers who could become your clients later on. You can then offer them special pricing for purchasing your new product when it becomes available after the conference ends.  Here are some tips on how to find the best trade show booths and source their products:

• Look for products that have already been developed by a company and then sold to consumers. These are often referred to as "white label" products, which means they have been customized for one company, but can be repurposed and sold to other companies or individuals.
• Look for products that are stacked up on tables or hanging from the ceiling at the show. You may be able to buy them from the exhibitors themselves, or you can ask if you can check out the booth without being charged any fees (and there will usually be some).
• Ask the exhibitor how many of these products they have in stock; sometimes it's better to buy 10 of something than 1 of something (as long as you don't overbuy).

Summary

Many options are available for you to source products for online business. It doesn't matter what your requirements are, you can always find your way around a really good source. All you gotta do is conduct extensive research, weigh your options, and then most importantly not be afraid to contact the suppliers via phone or email.

If you don't find it convenient then remember that these suppliers also want to extend their business and start new business relationships. You can also be creative in contacting your suppliers and presenting your requirements to them. See if you can trust them and then show them that they can trust you too. Now, this would be enough to get you started on your new business deals.

Now, which one of these methods do you find most compelling? Are you already using any of these methods? If you need experts to take care of your procurement needs and find you a reliable supplier for your e-commerce business, contact us or call us directly.