Finding product sources is the process used to locate individual suppliers that you can buy merchandise from at the lowest possible end cost to you. No matter what kind of items you sell, generally you’ll still have to go through the necessary steps to find your best sources. Sources for products that can be purchased directly from suppliers can include a drop shipper, manufacturer or independent distributor. Even if you decide to manufacture your own products, you’ll still need to find sources for the supplies required to manufacture the items yourself. Begin by choosing the method that works best for you and your business.

• Drop Shipper (wholesaler, distributor)
• Manufacturer (supplier, vendor)
• Make Them Yourself (you are the source)

Sourcing Overseas & Domestically:

Good product sourcing means finding a quality item at prices that are low enough for you to still make a profit from each sale. Generally, sources can be established either domestically, overseas or both.

Using a domestic source can be more convenient (mainly location) and may make it easier to communicate or negotiate. You shouldn’t have to worry about language barriers or overseas shipping costs. It may be more difficult to establish a relationship as there may be less sources available, but generally, good negotiators do not have issues finding domestic product sources. The main thing to be aware of with domestic sourcing is the prices you get on merchandise purchased. Your domestic vendor may purchase their items from an overseas source, so you may not be getting the best possible deal, but there are still tons of product still made here in the U.S. that can easily be sold Online.

Using an overseas source can be better mainly due to the special price breaks and generally leaves room for future negotiations. Items manufactured in countries like china or India cost far less than the exact same items made here in the U.S. these countries have been known for manufacturing for decades and almost always offer their items at the very lowest prices possible. So much so that they even have World renowned trade shows, lasting at least a week at a time, where manufacturers get together to show off and display the items they mass produce. These trade exhibits are a great place to find quality items at extremely lower costs compared to similar show in the U.S.

Tips For Finding Product Suppliers:

• Establish contact with suppliers who have a proven track record.
• Visit domestic and international trade show exhibits for suppliers.
• Generate a list of supplier prospects and compare their products.
• Appear to be an expert in whatever product you are researching with suppliers.
• Inquire about special deals, terms, discounts or other perks offered.
• Learn everything you can about the product before meeting suppliers.
• Do not appear to be too eager once you’ve found the product you hope to sell.
• Shop around and talk to numerous suppliers before deciding on one.
• Subscribe to and read industry trade magazines or trade publications.
• Know how different suppliers price their products and shipments to your location.

As mentioned previously, good products are items that do not require a high price to ship. Once, you’ve established your product idea you should begin prospecting vendors and making contacts within the appropriate circles. Visit the trade shows, conduct research and learn about the products you hope to sell.

Some vendors will allow you to purchase product samples and trial orders which are generally below the original minimum quantity limits. Try this with various suppliers and then try to sell a few items through channels such as eBay or other product marketplaces. Marketplaces can provide an immediate means for you to begin selling and testing your new product idea and supplier source. Although eBay is great for some, it may not be your end all solution. Generally, you’ll still have to build an eCommerce enabled site to sell from, but by testing in marketplaces, at least you’ll know your items will sell and that you have a reliable supplier.

This article is one of several within our Start to Finish eCommerce Guides.