A Beginner’s Guide to Sourcing Products for Your Online Business

Are you planning to start an e-commerce store?

Smart choice. Retail ecommerce sales are expected to cross $4.13 trillion in 2020, and this number will only grow in the coming years.



You can expect to face tough competition online, but remember, there’s plenty of room in the trillion-dollar industry.

You can establish a successful online business as long as you have a good plan in place. One of the most crucial elements in starting your online venture is sourcing the products.

It can really make or break your e-commerce business, so make sure you pay close attention. Here’s a beginner’s guide to sourcing products for your online business

What is Product Sourcing?

Product sourcing refers to a process through which a business procures a product to sell.

There are plenty of ways to source products, including manufacturing, dropshipping, and wholesale.

Let’s dive into more details to find out which options are better suited for your business.

Manufacturing

The idea of manufacturing your product dates back centuries. It gives you complete control over the specifications and quality of your final product.

However, it comes with several caveats. You need to source the right materials and find the labor or set up the machinery to convert them into finished goods.

It’s a resource-intensive process that will require upfront capital investment and increase your business’s fixed costs.

It’ll also require a lot of your time and attention. So, if you’re new to ecommerce and want to quickly launch your business, it’s not the best choice to source your product.

Dropshipping

Dropshipping involves sourcing products via a vendor without actually buying their inventory. It means you don’t need to handle inventory, packaging, and delivery.



The vendor ships your order on your behalf to your customers and charges you the invoice. It’s a popular option among startups businesses but comes with several drawbacks.

For starters, you’ll find more competition in the niche that is run by drop shippers, which will make it hard to set your business apart and result in reduced sales.

Moreover, dropshipping typically results in a lower profit margin. Therefore, it’s not a suitable choice if you want to earn lucrative returns on your business.

Wholesale

Wholesale is one of the cost-effective and safest ways to source products for your online business, especially if your niche is consumer electronics, toys, and general merchandise.

Partnering with a wholesale vendor will allow you to sell popular products online without making anything yourself while keeping good profit margins.

Finding the right partner can take some time, but you can successfully run and scale up your online business once you connect with the right wholesaler.

Forming a business relationship with a wholesaler also enables you to focus your time and energy on promoting your online business to maximize sales.

Located in NC, JW Carolina Trading is a leading wholesaler and distributor that sell name brand cosmetic products, personal care products, toys, and general merchandise on wholesale.

Whether you’re planning to sell on Amazon or other e-commerce platforms, the company has a wide range of products to meet your product sourcing needs.  

Want to find out more? Visit their website today!

 

 

 

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