Product Sourcing for Small Business
Overview: What is product sourcing?
Product sourcing is the process of obtaining products to sell. The products are often obtained from reliable retail suppliers and manufacturers at a reasonable price and usually in high quantities. Sourcing methods includes researching, calculating the product’s price and acquisition costs, vetting reputable suppliers, and negotiating to get the best deals.
Every business needs to identify and understand the different sourcing methods and be able to determine which methods work better for the particular business. Some of the methods may include:
- Do-it-yourself (DIY) or make your products
Selling handmade products has its advantages. First, you don’t need to rely on third-party providers to manufacture your products from the ground up. You only source the needed materials and then make the product in-house.
Second, you have more control over the production process. This allows you to scrutinize and optimize every step of the manufacturing operation. Third, it’s easier to regulate production. If needed, you can create just a handful of products. This isn’t always an option when working with manufacturers or other suppliers since they typically require a minimum number of orders.
The tricky bit when selling handmade products is scaling. If your sales suddenly skyrocket, your production needs to be able to keep up.
- Work with wholesalers
Develop good relationships with reliable wholesale distributors. Doing so opens untold opportunities for your business. You can negotiate better payment terms, get discounts, or perhaps obtain exclusivity on certain products they’re selling.
Work with individual makers or sellers or partner with existing companies with their own production line and those wanting to take their business online (among others).
- Hire manufacturers
Although sourcing products from manufacturers is often cheaper than from wholesale distributors, you still need to buy in bulk since most manufacturers have minimum order quantity requirements.
If you’re a startup, pay very close attention to your budget. In most cases, it makes more sense to choose other lower-cost product sourcing methods than to work with manufacturers.
- Drop shipping
The drop shipping model lets you list the products of suppliers on your online shop and start selling without keeping inventory or handling product fulfillment and packaging. The suppliers charge you for the products as you sell them, and they ship the orders directly to your customers on your behalf.
- Attend trade shows and open days
Conferences, exhibitions, and trade shows are some of the best places to do market research. Use such events to see products up close, learn more about the supplier or seller, and pick up industry trends. It’s an opportune time to network and build strategic relationships with wholesalers, manufacturers, and independent retailers selling products uncommon to the market. For instance WINGI schedules their community open day on February 9th, 2022. This allows potential clients to interact with WINGI team and ask any questions for clarification, additionally, to see samples of products offered for sale.
- Go on sourcing marketplaces
Product sourcing marketplaces give you access to a broad spectrum of suppliers and various products, complete with specifications and other crucial details.
For instance, B2B tech enabled platform WINGI presents thousands of products from verified manufacturers. It has features that let you search with ease, allowing you to better manage your inventory. They offer support throughout the process by communicating directly with manufacturers, helping with quality control, and checking on the production process and doing the actual shipping and custom clearance for you. This, in turn, allows you to focus on your front-end business processes. Visit the website: www.wingi.global to find more product information. To search for locally available products simply search ‘Available Now ‘on the WINGI platform and get access to locally available products and start selling now!
Author: Yasser Salim