It isn’t always easy to find the products you want to sell at prices that allow you to make a profit. Researching, finding the right suppliers, and maintaining a high level of product quality can prove to be challenging. While each ecommerce business model has its own demands, restrictions, and strengths, they all still draw from the same pool of product sourcing methods, more or less. The trick is knowing which ones are the best fit for your particular brand. To be successful, you need a good strategy for product sourcing.
What Exactly Is Product Sourcing?
To put it simply, product sourcing is the process of finding products to sell. It means finding reputable suppliers to buy quality products at a good price.
For a more in-depth look, product sourcing encompasses researching, price & cost calculations, and negotiating with suppliers, as well as the methods used for each. It goes without saying that the goal of product sourcing is to find the best goods for your store, at the lowest possible prices, with the largest justifiable markup.
That’s where the skill comes in. If you educate yourself on effective product sourcing strategies and improve your ability to procure products at satisfactory prices, it gives your store an edge. If you find the same, best-selling product as your competitor for a cheaper price, you can undercut their sales and still make a profit. If you find your own best-selling products for cheaper, you can keep your online price the same and maximize your profit per sale.
There are numerous methods you can use to source products. Most ecommerce retailers use a combination of the four most popular methods: working with a wholesaler, a manufacturer, creating handmade products, and partnering with a dropshipping provider.
At SourceX, we help you with the best sourcing strategies – avoid potential pitfalls with scammers, multiple middlemen fees, and go direct to reputable manufacturers and brands. We save you the time-consuming and painstaking effort in finding and communicating with the right supplier so that you can concentrate on what really matters to your business.
