Over the last few years, e-commerce has become an integral part of the global selling structure. It has experienced an extensive revolution following the rise of the internet, and customers now enjoy the perks of online transactions. There has been a rise in digital buyers online, with over two billion people purchasing goods and services online in 2020. The e-retail sales exceeded 4.2 trillion U.S. dollars worldwide, and the figure grew by more than 25% during the pandemic.Product sourcing is an important part of staring your business. This guide will walk you through online product sourcing and selling.
Online selling offers excellent advantages such as reach, expanding sales, visibility, and reputation (when selling at a suitable social media or online marketplace). It is much more cost-effective to sell your products online and relatively low risk. The best part is that you can sell online without ever having to leave your city, country, continent, or even work desk. Now, who wouldn’t like that? However, the real problem arises when you get to sourcing and selling your products online. Thus product sourcing is an important part of starting an online business
This guide will walk you through online product sourcing and selling.
All You Need To Know About Product Sourcing
When you’re not making the products yourself, you’ll acquire them from somewhere else. Getting products from a supplier for selling purposes is called product sourcing. So, how do you do that?
There are five ways to go about it, and since each product sourcing method differs, it will have a different impact on your sales, business operations, etc., so choose the one that best suits your business model.
Here is a detailed analysis of each to help you make a well-rounded decision. You can source products from:
1. DIY Products
The global handicrafts market is projected to flourish at a CAGR of almost 13%, with USD 514.92 bn during 2022-2027. You can explore many great options such as handmade jewelry, vintage, or craft supply. So, if you’re willing to tap into that, it’ll be a great start. There are significant benefits of DIY products, such as they are unique, the competitors will have a hard time replicating, and there is an increasing customers interest.
2. Private Labeling for product sourcing
Private label products are manufactured by an agreement or a third-party manufacturer. However, they are sold under the name of the retailer. Since you are the retailer, you will send in all the specifications regarding the product. From the packaging to what you want the label to look like. You then have to pay the manufacturer to produce the product and get it delivered to your store.
3. Manufacturers for product sourcing
Manufacturing products is the best way to go about your business. It can be an entirely new idea or a variant of one, and if you’ve verified it as per the market and are sure it’ll sell, this is an excellent way for product sourcing. Wholesaling, on the other hand, is ideal. Suppose you wish to get up and compete fast. It is a relatively more easy way when compared to DIY or manufacturing products.
Either of these can be your go-to option if you can’t produce the good yourself and an intelligent way to expand and cater to a greater audience. You get a great deal of assistance with your product production and supply.
4. Sourcing Companies
Sourcing companies help you find products at a lower cost and good quality. If you’re a brand owner struggling to find the right foods, you can source companies abroad. Acquiring products from manufacturers that are located outside of your home country will help in the following ways:
Innovation – an overseas supplier will help transform your current product lines.
Competitive Edge – be the first to bring a new product into your local market.
Cost-Quality Balance – working with an overseas supplier can help you achieve the cost-quality balance you’re aiming for.
5. Wholesalers for product sourcing
A wholesaler is any company or person that purchases products in bulk from manufacturers and sells them to retailers. They obtain large quantities of products at a lower price. There are many types of wholesalers.
Local wholesalers distribute products based in a particular locality or area. State wholesalers are those who function in a particular state or province.
Nowadays, users have access to unlimited online platforms to sell products online and purchase from. Since 2019, online marketplaces have made an enormous contribution to online purchases. Amazon, eBay, and Etsy are the three leading online marketplaces, followed by Walmart Marketplace and Shopify. Each online marketplace is unique with its requirements, product categories, listing fees, and audiences.
WHERE CAN YOU SELL ONLINE AND INCREASE YOUR SALES ?
If you’d like to expand your sales worldwide, you must consider the following marketplaces for buying and selling purposes.
Amazon
An e-commerce giant – Amazon is the leading e-retailer in the U.S., with net sales of approximately 386 billion U.S. dollars in 2020. It offers daily grocery services, consumer electronics, online retail, digital content, etc. With 5.7 billion U.S. visitors to Amazon.com, it is the most promising channel to place for buyers and sellers.
eBay
eBay has the largest market cap and connects sellers and buyers globally in more than 190 markets. It ranks as the second most visited online marketplace in 2021 after its biggest competitor, Amazon. There are different ways to go about selling on eBay. Some sellers will choose a product that will allow them to make a massive profit, while others will find a niche and brand their eBay business. You can choose between making a personal or business account, and you’re charged a fee for listing your products.
Etsy
Etsy is one of the most demanded online marketplaces that work midway between customers and crafters of handmade products, collectors of vintage products, and artists. There are 4.36 million active Etsy sellers and 81.9 million buyers in 2020. In 2020, Etsy’s annual gross merchandise sales volume amounted to 10.28 billion U.S. dollars. So if you’re someone with a hobby, you can share that with the world and make money out of it, thanks to Etsy. In 2020, Etsy’s annual gross merchandise sales volume amounted to 10.28 billion U.S. dollars.
SHOPIFY
Shopify has made life easy for billions – it is a commerce platform, a subscription-based software that will allow anyone to set up an online store and start selling their products wherever they are. It will enable you to sell online and physically and gives you the option to sync your inventory to manage your store from a single account. Businesses built on Shopify have experienced a 50% increase in online sales in 2019. Worldwide sales of Shopify amounted to 4.28 trillion dollars in 2020, with a prediction of 5.4 trillion U.S. dollars in 2022.
Walmart Marketplace
Walmart’s marketplace exceeded 100,000 sellers in July 2021. It allows you to display your products to a massive audience, and with the increase in people shopping from Walmart online, you can make vast amounts by selling your products.
Trade Shows
Trade shows involve retailers big and small to showcase their products. They are efficiently aimed to link suppliers, and distributors with potential brand access are a variety of trade shows lined up for 2022. They will allow you to access a host of different suppliers at once and give you the chance to see modern products and choose your product and supplier.
Let’s Get Selling!
Now that you’re aware of different product sourcing and selling methods, you can efficiently market your business online and maximize revenue.
You can also learn more about dropshipping here The ultimate guide to dropshipping- Success secrets 2023 (onlinegreatretail.com)
