Sourcing products for an E-commerce business is not always an easy task. For you to make sales and profit, you have to find unique products that have a high demand and reasonable wholesale prices.
Finding a manufacturer who will not cheat you on the prices and quality is essential. Thus you need to research on the product demand, quality of the products and reputation of the manufacturer.
Below are some tips to help you find the right products and the right manufacturer for your business.
Check The Reputation Of Your Suppliers When Sourcing Products
You should only source products from someone after confirming that they are legit. Therefore search the internet for any reviews regarding the company or the owners.
Also consider checking them on websites such as the Better Business Bureau. Negative reviews can be a red flag, while positive ones are an indication that the manufacturer can be trusted.
However, some negative reviews could have been made by someone who had a bad experience that wasn’t under the control of the manufacturer. Thus, check the details of the complaint before forming any form conclusions.
Ask For A Sample First
When sourcing products, before you buy in bulk, consider asking for a sample. This will help you in establishing whether the product meets your expectations.
You can also buy a small quantity to try out in your store before making a big order. However, note that smaller quantities may cost more. Nonetheless, it is better to be safe than sorry.
Check The Total Cost
A big mistake that many store owners make is asking for the price of the product only. If you do your math without adding the shipping and other hidden costs, you could end up making a loss or very little profit margin.
Therefore when sourcing, ask for the cost of the products, the shipping cost and any other fees involved in processing and delivering the package.
Deal Directly With The Manufacturer
When there is a middleman involved, you end up paying more for the products as opposed to when you deal with the manufacturer directly. Thus by sourcing directly, you can enjoy higher margins. However, an intermediary may be helpful in cases where you are unable to reach a certain market by yourself.
Have A Backup Plan
In every business, it is always important to have a backup plan. For instance, if a manufacturer goes out of business, have another place in mind where you can source your products.
The manufacturers could also raise their prices, making it impossible to continue buying from them. Also, be on the lookout for new products and trends. Customer preferences change with time and thus what’s doing well today may not be so profitable tomorrow.
Sourcing products from a manufacturer is the best way to run your business when you are not making your own products. However, the sourcing process should be planned well to avoid investing in low demand or low-quality products or falling for dishonest manufacturers.
Therefore don’t be in a hurry, but rather take your time to ensure you get the right product from the right manufacturer or supplier.