Success in business always depends on the quality of the implicit products it offers. Plus what potential that product carries to add value to the lives of end consumers?
The lifecycle of product sourcing starts from inventory tracking, from the supplier to the business, and then availing to the buyers.
China is very popular in the trade industry because of its low-cost materials. The souring of products from China can be the best decision. Furthermore, China product sourcing can be initiated by searching for a supplier in China to acquire goods or services.
Product sourcing is a process of finding credible and reliable product suppliers to purchase quality products at a reasonable price. In short, it sources the products after research, calculations, and negotiations after finalising the right supplier.
After exploring the markets, look for quality products sold at low prices with large markup potential. Try to obtain inventory for different products which are available at cheaper prices, so that businesses can undercut competitors' sales of similar or identical goods. This will result in massive profits.
.png)
Product Sourcing can be done in six different ways:
There are numerous sourcing options to choose from. But there are various factors considered selecting a product sourcing platform:
However, experts suggest that businesses must experiment with more than one method to source products. This way it helps them to determine the best route for their business model.
1. Wholesaler -
This is a majorly used platform to source businesses. This method is suitable for businesses looking to assemble the products themselves as it allows companies to easily scale up or down depending on demand. However, the one condition here is that is a bulk purchase, meaning a larger upfront cost. Additionally, as it is offering various other retailers across various industries, chances are you might find a similar product with your competitors.
2. Manufacturer -
eCommerce retailers and online stores majorly rely on manufacturers for product sourcing.
This is profitable as it eliminates any middlemen and business and manufacturers can execute direct deals. Although it is cheaper if compared to wholesalers, they only allow minimum order quantity. Therefore small businesses often find it difficult to source products from them.
3. Dropshipping -
Companies that use this method deliver the listed items that the business intends to purchase from the supplier. Suppliers deliver products directly to the customer when it is ordered, via drop shipping arrangements. Companies that source products through dropshipping, don’t involve packaging, shipping, or storage.
4. Existing marketplaces -
Depending on the demand for the desired products, it's possible to purchase inventory from other sellers. You can mark up the prices to make a profit as it is an uncommon practice because it can increase the final price of products. These platforms help businesses to gain research insight regarding the popularity of certain items and price points.
5. Product sourcing companies -
This method involves hiring a third party which can provide quality products at the best prices. In addition, businesses would need to take into account the cost of hiring. Don’t forget to check the legitimacy of these companies before moving forward.
6. Sourcing platform -
With the rising popularity of online stores, few online platforms are entirely dedicated to B2B retail product sourcing. The sourcing market platform brings together suppliers and retailers, where they can make comparisons between products and prices. However, these platforms are equally accessible to competitors too.
4 Tips for Product Sourcing:
When it comes to the product sourcing process, businesses must consider a few points to ensure their business is choosing the most profitable suppliers.
Consider these 4 helpful tips:
Product sourcing is continuous and must be seamless-
Even when the product is in high demand and sold quickly, during this time product sourcing is crucial to restock these items.
To customers, product supply should be endless in order to meet the demand. Businesses must not wait for a decrease in sales percentage before initiating the sourcing process again.
Conduct market research
Thorough market research must take into account the customer demand, the target audience, and the durability of the product. The shelf life of the products and what customers are likely to buy must be kept in mind.
Utilize a proven model
Use well-known and familiar methods for product sourcing. Look into existing sourcing methods which are employed for specific product sourcing and consider adopting already tried and tested strategies.
Choose local manufacturers for product sourcing-
Although this does not apply to every case, as a rule of thumb, it is always better to find a manufacturer near. When sourcing products from overseas, the profit margins tend to be smaller. Therefore, it is vital to make a strategy which suits the business needs best. China product sourcing is ideal if you want to bulk quantities of products at a reduced cost. Manufacturers can produce and sell the product at a lower cost by producing large quantities.
Final words
In every sourcing process, if you want to find the right supplier, verify the credentials to check the reliability of the supplier. For quality assurance, you may ask for samples. Hire a sourcing agent like GBSL, if you want to source your materials in China, who can negotiate and communicate with the supplier.
Comments
Post a Comment