Sourcing products for your ecommerce business may seem simple initially. You have been reading about a large number of suppliers who can supply products for these ventures. However, once you get involved in this process, you will realize it is not that easy. Most of the suppliers are located in foreign countries. You have to source products from multiple vendors located in different countries. It becomes a complex process quickly if you do not plan it properly. Ecommerce product sourcing does not have to be a difficult process if you develop the right strategies.

Other Brand or White Label

First of all, you have to decide if you want to sell products of other brands or white label products with your label. Both options have their advantages. You have to decide carefully. Branded products are already popular and well-known so you will face less difficulty in selling them. At the same time, you will earn lower profits on these products. Your customers can buy these products from other sources as well. White label products make sense when you want to build your own brand and are ready to invest a big sum of money in your online ecommerce venture.

Wholesale or Dropship

You have these two options to source products at cheaper rates when selling in retail. You can buy products from wholesalers at the wholesale rate and sell at the retail price, earning a profit. This is the old and traditional method of selling products. Most online sellers now prefer the dropship method whereas you connect with a dropship merchant that offers a wide range of products. You bring only the sales leads and send the product orders to the dropship merchant that will ship the ordered items on your behalf. The product package will have shipping label in your name. The customer never gets to know the product is coming from a dropship company. The advantage of this option is that your inventory cost becomes zero.

Manufacturing

This option carries high risk and is limited to specific products. It involves a big investment and takes a lot of time to get the product ready for the market but the advantage is that all profits belong to you. You must get your product prototype made quickly so you can get your product ready for sale faster. You will be in complete control of your product’s brand, quality and other aspects. You can change the product features as per the market demand.

Explore all these ecommerce product sourcing options and choose the one that best meets your business goals and budget. Plan a lot and list products for sale only when you are sure of delivering them.