Mastering product sourcing for your online store Most people consider it to be the most essential of all e-commerce arts. This is an art that teaches you to call on products that you can sell online and profit. As sourcing savvy, we have already called for some products that will look shiny on your online shopify print on demand store. But we will meet those people at the end of the blog. For now, we are here to teach you the basic product sourcing mantra so you know how to source products that fit, and your store will always be stocked with amazing items that attract customers.
Understanding Product Sourcing First things first- what is sourcing? Product sourcing is the process of finding and receiving the products you want to sell on your storefront. The goal of product sourcing is to find quality products and get them at a reasonable price. This way, you can maintain a premium feel for your brand and still profit from sales. But how does one get quality products for your print on demand store? Unfortunately, this is not a spell for. However, there are five great ways to source products you can get used to, so let’s get started with that. 1. Dropshipping
Drop shipping is the most popular product outsourcing method. It is a business model where you sell third party products without inventory. Yes, the magic of selling products online without inventory is real. Products are kept in a third-party warehouse and shipped to your customers on your behalf. Suppose you have a store online and use a drop shipping service. When a customer places an order from your store, your drop shipping company receives the order, completes it, and then delivers it to your customer. Ta-da! Pros: ● There is no clear investment ● You don't need to buy inventory in advance: you only pay for the product when the customer places an order. ● Easy to jump on trends ● Most drop shipping companies follow the trends and make sure they deliver the desired products. You can list those fashionable products and sell them right away. Drawbacks: ● Strict competition among online sellers ● Many store owners use the same drop shipping companies, so there is a high probability that you are selling the same product as everyone else. ● Long shipping time ● If dropshipping products are stockpiled abroad, it can take months to reach customers. ● The following product sourcing method is similar to Shipping Skip but has its charm. 2. Print on demand Print-on-demand (POD) is a business model of dropping out shipping - you sell third-party products in front of your store without leaving an inventory. What sets print on demand shopify apart is that they also print on products. You can make as many designs as you want and print them on mugs, embroider on bags, engrave on jewellery and much more. The way print-on-demand works - say you have a store online and use a POD company like Shirtee. When a customer wants something from your store, your shopify drop shipping company receives the order and notifies you. The company then prints, packs and distributes the product for your customer on your behalf. Pros: ● ● ● ●
There is no clear investment Like drop shipping, you only pay for products when a customer orders them. Freedom to do You can create your designs and sell original products that no one else offers.
Drawbacks: ● No impact on product and service quality ● With drop shipping, you don't see what your customers have sent. That’s why you must trust your POD company and place an order with them before selling the product. ● Return Policy ● Most print-on-demand companies do not accept returns because of buyer's remorse. Explaining this to your customers can be challenging. ● With both print on demand and dropshipping product sourcing, you can sell products without stock. But there are other sourcing mantras - which enable you to sell the products you have. 3. Wholesale Wholesale is the business of selling large quantities of products at low prices. When you use bulk products, you buy items in bulk and then deliver those goods to customers with markup. For the source of products for your online store, you first need to find a wholesaler who offers products that interest you. You must purchase the products in bulk or: If you complete the customer's order, send the inventory in your way. Carry goods to a third-party logistics (3PL) company that will deliver warehouse and ship products to customers under your brand. Pros: ● Bulk discount ● Buying in bulk means huge discounts on products. You will have more space to mark their price and make a profit. ● Control your stock ● You may not always be able to monitor stock levels when working with POD and dropshipping companies. Since you own the inventory, you can follow the stock level and make sure you don't have more items. Drawbacks: ● Advance investment ● You have to spend money to buy inventory and make sure you can sell the product to get back the money you spent. ● Storage space ● Wholesalers do not come out of the warehouse and carry products as POD, and dropshipping companies do. When you buy from a wholesaler, you must have a way to store the stock and send it to customers. ● The magic of the next product sourcing is wholesale. Come closer, and let me show you how different it is.
Also Read: Sourcing attractive Designs for your Print on Demand store. 4. Manufacturer A manufacturer, like a wholesaler, is a company that sells products in large quantities and at low prices. The difference between a manufacturer and a wholesaler is that they re-sell products made by someone else to wholesalers, but manufacturers sell the products they make. The way you work with a manufacturer is similar to working with a wholesaler. You get a manufacturer that makes the products you want to sell. You then order the products. The manufacturer produces them and sends the inventory to you or your 3PL company, depending on who fulfils your customer order. Pros: ● ● ● ●
Low product base price If you buy from a manufacturer, you will pay a lower price than wholesalers. Unique and premium products You can come up with your exclusive products and make them by a specialist manufacturer.
Drawbacks: ● Advance investment ● All manufacturers work with bulk orders. You have to invest money in products, and hopefully, you will be able to sell them all. ● Storage space ● Not like products for manufacturers, wholesalers, ship warehouses and customers, you should have a way to store and ship stock. Final thoughts Our wonderful journey of learning the art of sourcing products ends here. We have taught you the basics of product sourcing, and now you are ready to find your way to products. We are sure that soon you too will start teaching product sourcing craft to others. However, should you be confused by some more advanced spells like handling inventory, flip this fulfilment out of the warehouse handbook. Good luck!