Picture yourself at the heart of a bustling online business, selling products you love and seeing them snapped up by eager customers. Sound enticing? It can be your reality! To do this, you need to source products that are in demand and align with your passions.
This process, though exciting, can seem daunting. But fear not! In this article, we’ll uncover how to identify a product that aligns with both your passions and market demand, how to negotiate with top-notch suppliers, and even how to navigate the intricacies of international shipping.
Ready to turn your eCommerce dreams into a thriving business? Let’s dive in!
Determine a Profitable Product to Source and Sell Online
It’s important to find a product that people want and are willing to pay for when you aim to source products for your online business. Also, it should be based on something that you enjoy doing and that will give you an opportunity to make money.
If you have some hobby you’re interested in and keen on doing, it’s a great idea to start with products related to it – you know what it takes, what the best brands are, and what features to look for in a product. Plus, being passionate about what you offer is key to being successful in presenting it at its best to potential customers.
You can start with something simple like an eBook or a physical product that is easy to source.
Ask yourself the following questions:
- Who will buy my product? (For example, parents of young children or people who love music.)
- What are the needs of my potential customers? (Do they want something that’s easy to use or something that’s educational?)
- What would they like about my product? (Is it fun or useful? Does it come with some special perks?)
- How can I make this product better than others on the market? (By making it more eco-friendly or by adding personalization options.)
When choosing a product, make sure it has good margins so that you can make money after paying for your listing fees and shipping costs.
There are several ways of doing this:
- Look at products already being sold on Amazon and eBay, then see how much they cost to buy wholesale.
- Check out other sites like Alibaba and Aliexpress where people have already done all the work for you by listing their products online. You can also use these sites to find suppliers who can help you find a niche market that doesn’t have many sellers yet so there’s more room for competition.
- Shop around different retail stores such as Walmart and see what they’re selling at what prices.
Keep in mind that most items sold at retail stores have been marked up quite a bit because they have overhead costs associated with running their businesses. However, this can help you get an idea of what prices are reasonable for certain items.
Find Reputable Suppliers to Source Products
Now that you’ve done your research and have a good idea of what you want to sell, it’s time to source products from the perfect suppliers. If you’re not sure where to start, reach out to other sellers in your niche or industry. They may be able to point you toward reputable suppliers or even recommend specific companies.
If you’re still having trouble finding reputable suppliers, check out the platforms we’ve listed above. Once you’ve found a few potential options, here are some tips to consider:
- Check online reviews. Do a search for the supplier’s name and read what other people have said about them. If there are lots of negative reviews, listen to them – what’s the chance of so many people making up the same story?
- Ask around on forums and social media groups related to your niche. People who sell in the same space will know which suppliers are trustworthy.
- Look at the supplier’s website carefully before signing up with them. Check out their terms and conditions, shipping policies, payment options, etc., so that you know exactly what they offer before signing up with them (and so that there are no surprises later).
Set Up a Business Email to Communicate with Suppliers
You’ll need an email address that will help you get in touch with suppliers. Set up one that’s specifically intended for this purpose. This way, you’ll know that the inbox will get emails only from the suppliers you’ve contacted.
Contact Suppliers or Manufacturers to Source Products
Once you’ve found some potential suppliers, contact them directly to source products at the best price. Write them an email and provide information about your business and contact details, letting them know what kind of product you’re looking for.
You can talk about your goals and expectations and include links so they can see examples. The more information you give, the better they can understand what you need and how much you are willing to pay for it. This is an effective way of sourcing products, as it enables you to negotiate with suppliers directly.
Consider Product Customization to Stand Out
With so many products listed for sale, how do you stand out from other shops? There are many ways to customize your products and make them unique. Here are some ideas for how product customization can help you grow your eCommerce business:
- Inclusion: Include a variety of accessories with a product. For example, if you sell phone cases, include screen protectors and cleaning cloths with each case sold. This will increase sales volume while increasing average order value (AOV).
- Custom materials and finishes: For example, you can use wood instead of plastic for the handles of your kitchen utensils, or use leather instead of fabric for some bags or wallets.
Use your imagination and create/upgrade the best product on the market. By offering something unique, you’ll attract customers who want something different.
Negotiate Pricing and Quantities to Source Products Effectively
Be prepared to negotiate the price of the products that you want to buy. You might also be able to get free shipping or other perks by purchasing large volumes of products at once. Don’t just accept the first price you are given – it may be worth exploring a little bit more.
If these negotiations don’t work out for some reason and the supplier doesn’t offer terms that are good enough for your business, walk away – there are plenty more manufacturers who would love to be your partners.
Factor in Shipping Times and Costs
When choosing products to sell, one of the first things you’ll want to consider is shipping time. Shipping time varies depending on where your products are coming from.
If you have to ship from China or Hong Kong, expect your products to take a while to arrive in the US.
Generally, it takes:
- 1-2 weeks for a package to arrive when sent by regular post
- 3 days for air express freight
- 8-10 days for regular air freight
- Up to 40 days on the high seas with ocean freight
And for the EU, it takes:
- Approximately 30 days for freight forwarder from China to Europe by sea
- From 3 to 12 days by air freight
It’s also important to factor in how much it will cost you to ship the items. For example, if an item is sold for $50 but needs to be shipped from overseas at a cost of $15 per unit, chances are it won’t make sense for your business. Consider selling other items that don’t require shipping at such high rates.
Request Samples from Multiple Vendors
When looking for a new product to sell online, it’s best to source products as samples from as many suppliers as possible. This will help you get an idea of the quality of the product they offer, and know whether it matches your expectations.
After receiving samples, compare them side by side and evaluate each one based on its appearance and function as well as how they were packaged.
In addition to quality, take note of other factors, such as packaging cost or delivery times before making a decision about who will become your new supplier.
So, requesting a sample will give you an idea of how long the delivery of your orders will take and what the condition of the goods delivered will be.
Test Products Before Your First Order
When you’re just starting out, it’s better to test the market with one or two small orders before committing to bigger quantities.
This way, if your product doesn’t sell well or if there are any other problems with it, you won’t end up stuck with a bunch of inventory that you need to sell quickly at a loss.
Order a Trial Run From the Best Vendor
Once you’ve found a few vendors who seem to be a good match, order a batch of products from them and see how it goes.
Note how long it takes them to process your order, which delivery company they work with, what the lead time is, and how much it costs you.
Select the vendors that deliver your batch on time, at a low cost, and with high-quality materials.
Consider Using More Than One Supplier to Diversify Your Product Sourcing
This will give you more options when it comes to choosing the best product for your store. It also gives you more bargaining power when negotiating prices or terms with suppliers.
In addition, you’ll have the opportunity to switch suppliers in case of overloaded production schedules. So, you’ll be able to ensure the availability of your products even if overdemand for them occurs.
Use Freight Forwarders for International Product Sourcing
Freight forwarders are third-party companies that specialize in helping businesses ship goods internationally.
They can take care of everything from customs clearance and insurance to transportation and delivery – all at a fraction of what it would cost if you tried to do it yourself.
If you’re importing goods from overseas (say, China), freight forwarding companies will help with customs paperwork, distribution, and more so that you don’t have to worry about it yourself.
Final Thoughts on How to Source Products
Online shopping has been gaining momentum over the past years, and the trend isn’t likely to slow down due to the convenience, cost-effectiveness, and wide product selection it brings to the end customer.
To be able to tap into the potential profits it can deliver, you need to make sure you source the right products of high quality at a low price. By doing so, you can become your prospects’ go-to and stay on top of the stiff competition.
Choose the sourcing method and platform that will work best for your target buyer and follow the steps we discussed to make selling online a success for your business.
Remember that there are 2.14 billion online shoppers that could potentially be interested in what you have to offer, so waste no more time. Go out there and find the products that your target customers would love to buy.
