The Ultimate Guide to Product Sourcing

Product sourcing is the main stage of the import business.

Many businesses try to source high-value products from international markets. Retailers, import/export, e-commerce, and manufacturing businesses need to source products.

However, it's not just about sourcing products for your e-commerce business. You cannot run a successful business without access to the right quality products at competitive prices.

Therefore, we will try to cover the basics of the product sourcing process.

Simply put, product sourcing is the simple process of finding products for your business to sell.

This is independent of whether the source is international or domestic. It's all about making the product always available to your business.

If you are a new business, keep in mind that your business must operate before sourcing products.

Otherwise, you won't be able to sell, and the product may sit unsold in the warehouse for a long time. Some things you must have before purchasing a product;

All business documents

You have to define your niche business and market etc accordingly.

A well-established approach to product sourcing

You can source your products in a number of ways. You can apply one or more sources at a time. It depends on your requirements, you decide.

Most e-commerce businesses use a combination of three methods, as follows:

Have you cut your hair, sewed clothes, managed investments? If yes, this is the simplest example of a DIY product or service. DIY means "do it yourself".

DIY, if explained, means you do the task or make the item yourself, rather than buying it from a store or artisan.

The most significant advantage of DIY is that you have no or fewer competitors. On the other hand, you have to consider factors such as time management and scalability.

This option is best for sellers who don't want to assemble or manufacture the product themselves. 

You can expand your business. In other words, it allows you to add more products to your brand. Partnering with a manufacturer allows you to manage your time and run your business on a higher level.

On the other hand, you should invest heavily.

This is a hands-free approach to product sourcing. It allows wholesalers to list items to sell from suppliers and pay when they sell.

You don't need to deal with the product at all. You can open an online store and access various products.

The problem with this approach is; that you have more competition because there are several wholesalers selling these products. Also, you will enjoy lower profit margins.

Buying products from wholesalers is a proven mode of finding popular products.

You can find Chinese wholesale suppliers on trade shows and e-commerce platforms. Many wholesalers often offer deep discounts, and they also stock popular products.

So independent retailers with retail outlets at flea markets can buy products right away.

In short, you can buy high-quality products from wholesalers at low prices. After that, you can sell your products locally with good profit margins.

Sourcing agents are professionals who can develop a product sourcing strategy for you. They are experts in sourcing products.

They also help businesses grow and become more profitable. They can perform their duties in a variety of industries and work environments.

Purchasing agents are experts in;

He has extensive experience in providing strategic sourcing services.

He has an in-depth understanding of commodity manufacturing practices.

He has a comprehensive understanding of Access and SQL technologies.

He is familiar with procurement and procurement procedures.

Product sourcing is a business where you consult your customers about what to buy and where to buy from. For small purchases, it may seem simple.

Although it is a lucrative business, you should make some strategic moves.

All e-commerce retailers must do adequate research on existing products. Check for factors such as minimum order quantity, how much inventory you need, online demand, and more.

Remember, every successful e-commerce business starts with good research. So make sure you follow more than one method for in-depth analysis.

In market research, you end up with a list of potential products, buyers, and competitors.

However, experts recommend starting with the smallest niche. Once successful, you can add more categories to your business.

You may also need to consider legal formalities before sourcing products. It includes tasks such as ensuring product quality, paying customs duties, and more.

Handmade items sold at craft stores often receive tax discounts. But every product in transit needs to go through a verification and documentation process.

Many times, the purchasing company will handle this task on your behalf. Product sourcing companies often have a separate team to handle legal proceedings.

Make sure to evaluate it against the manufacturer's work ethic and other factors. One of those aspects is ordering product samples. Dropshipping suppliers often provide product samples to assess quality.

Some wholesale manufacturers do not offer this facility. But if their minimum order quantity is high, you should ask for a sample.

You don't have to face this situation when working with a product sourcing company. They can ensure product quality by visiting the factory.

In this day and age, you cannot deny the importance of technology. At a minimum, you must have purchasing and purchasing management software to handle your purchasing business.

It will help you in many ways and simplify the basic work of your team.

In this article, we try to uncover aspects related to product sourcing. We start from the importance and complete the complete product procurement process.

Additionally, we discuss sourcing companies and how these companies can benefit your wholesale business.

If you are looking for a product sourcing agent for your wholesale business, please contact us.

RND is a professional sourcing agent in China, we are located in Yiwu, China, the world's largest international wholesale market. Thousands of buyers come to Yiwu market for the purchase and purchase every year. We started working with Amazon and Shopify sellers 6 years ago on product sourcing, development, bundling, packaging, manufacturing, supplier management, FBA shipping, and more. With our help, more and more of their products become Amazon Choice and Best Seller.