How to Source Products to Sell Online?

You don't need to pay thousands of dollars to learn how to source products to sell online. 

At RND, we have been sourcing products for the past 16 years. Our team knows exactly how to find trusted and reliable suppliers. We've put together a guide for sourcing products from anywhere in the world.

With this guide, you'll learn how to find products like a boss for free. 

Product sourcing sounds more like finding products. But a better definition is the process by which online business owners find the inventory they want to sell. Product sourcing often involves sourcing products from manufacturers, wholesale suppliers, or drop-shipping suppliers. 

If done right, you can turn your online store into a 7-figure business overnight.

Not only that……

You'll have more time to focus on building your brand and delivering exceptional customer service. 

To be on the safe side, the following are our preferred strategies when sourcing products. 

Your supplier is like a partner. Your business is all about making a lot of money. If you want to be their number one priority when they have a hot new product, you have to nurture those relationships. It also helps when you receive a questionable order or a damaged product. Suppliers will resolve issues in a timely manner to maintain the relationship. 

Buying in bulk gives you a better price. However, if your product isn't a bestseller, you should reconsider this approach. You don't want to be stuck with inventory for long periods of time. Also, when new models hit the market, sales became difficult. 

Suppliers are people too. And they are vulnerable to risks such as illness, data breaches, or other unavoidable circumstances. Consider having an alternate supplier to help in the absence of your primary supplier. This is a smart move that can save you a lot of money and ensure a steady supply. 

Manufacturers take the hassle out of scalability, packaging, and shipping (not all). This means you have more time to market and build a customer base. 

You can work with manufacturers to produce custom items or buy their standard products. 

But there is a problem...

You have to pay for inventory upfront, and there is zero guarantees that you'll make a sale. 

Many online stores are adopting the DTC (Direct to Commerce) approach. This involves finding vetted manufacturers, sourcing, and having them ship the goods directly to the end consumer. 

Small businesses should follow this trend to reduce storage space or labor costs. 

Where can I find a manufacturer? 

You can find manufacturers through search engines like Thomas Net or Maker's Row. Remember, it involves painstaking research to find the product and the best supplier. 

Or…

Contact us and we'll be happy to do all the heavy lifting for you for a small fee. 

Easily expand your product catalog - more products. More sales. more money. 

Insights into new niche products. So you can find new products that can attract more customers. 

High upfront investment

More paperwork and contracts to process

High MOQ; you invest a lot of money upfront, but ROI (return on investment) is not guaranteed.

This approach can save lives, especially if you don't want to design or assemble the product yourself. It also allows you to scale up or down based on market needs. 

Now to the details...

Sourcing products from wholesalers is great. That's why.

Wholesalers buy and sell in bulk. Therefore, they offer you a reduction in unit price for all purchases. This means you can save more money than buying directly from a retail business. 

The bad news is that bulk purchases require storage space; this adds overhead. Also, you prepay for the item, but there is no guarantee that the item will sell. 

Alibaba is an excellent platform to connect Chinese suppliers and international buyers. Just enter the product you want - then BOOM and you'll get a list of reliable suppliers in no time.

Note: No matter where you source your products, there is a contractual agreement. Don't forget to email your terms after the meeting. 

Fixed profit margins. You never have to worry about operating at a loss. 

More discounts and perks save you more money to expand your business

Requires huge capital to start

High-risk potential

So you don't want to get your hands dirty, do you? Then, sourcing products from dropshipping suppliers is the best option. 

Dropshipping suppliers handle all the heavy lifting. These include manufacturing, packaging, and shipping. They give you plenty of time to find new leads that convert and expand your brand. 

The best is……

You can start with as little as $100. 

However, there are some key things you should know before sourcing products from dropshipping channels.

1. Fierce Competition: It is easy to start attracting many small business owners. 

This drastically reduces profit margins and makes it harder to earn a sustainable income. 

2. Supply Chain Issues: No middlemen to ensure quality control. If a customer receives a defective or counterfeit item, you may get a backlash from them. 

Low cost of starting a business online. You can start as low as $500 (depending on what you sell). 

As you do not handle the goods directly, there is zero inventory risk. 

No overhead costs such as storage or product handling. You can save money and invest it in other business areas, such as marketing. 

Intense competition

Low profit

We'll cover how to source products and find high-margin ones. 

We've noticed that many people lack a clear strategy and standards when working with multiple suppliers. This is detrimental to the health of the e-commerce business. 

So, here's how to find successful products and reliable suppliers. 

Listen - this is the most critical step in distinguishing between successful and failed products. 

If you haven't done proper market research, then there's no point in reading the next tips. 

Market research involves;

Understanding Consumer Needs: What Does Your Target Market Want? What conversations are they having on social platforms? Are they looking for a specific product? All of these will help you understand profitable products for your online store. 

Understand Trends: What products are currently trending? Do competitors stock these products? 

This will help you make better decisions before contacting potential suppliers. 

Find out what you want from the supplier (note it down if possible). 

Ask yourself;

I am looking for product samples.

Do I need information?

Am I looking for a specific item?

Knowing your true needs ensures smooth interactions with all suppliers. 

Can you buy an apartment before an inspection? 

So why should you buy a product before testing it? 

Never place a bulk order before testing the quality of the product. 

You'll also monitor how drop-shipping suppliers handle the first transaction.

This way, you can only work with reliable suppliers who can guarantee fast shipping and top-notch products. 

If you're sourcing products, make sure you're sourcing in the right way. 

You need to trust your instincts and only work with suppliers that align directly with your brand identity. 

There's one more thing…

Research. Research. Study again. 

This is the only way you can succeed in this space full of scammers of all kinds. Don't rush to close the deal. Make sure you only work with verified suppliers who have a proven track record of delivering quality products. Or you can contact a purchasing agent to help you with product purchasing and inspection processes. They source specific quantities of products for customers at low cost. The purchasing company ensures the quality control of the products; so you will not receive defective or damaged items.

RND is a professional Chinese product purchasing agent. Over the past 16 years, we have built trusting relationships with customers from more than 50 countries. Some of them are now part of our family and continue to visit us not only for business. Thanks to many years of experience in most categories, we have established a good resource of reliable partner suppliers.