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Starting A New Business – Product Sourcing

Starting A New Business – Product Sourcing

It has taken a while, but you have discovered your personal Holy Grail product – a definite market, high demand, and good profit margin.  It is time to get your new business up and running. One thing you have to do – get products. Where will you get them? What about customized products? How will they get to you?  There is a term you need to know – product sourcing.

The product sourcing definition

Product sourcing is getting the products you have intentions of selling to you or your retail location and includes several elements: analysis, market, costs of products, price negotiation, and shipping. Each step has specific parts, but the overall goal is the same – find the best possible product at the lowest cost for the highest profit margin. It may sound difficult, but it is not provided you are willing to put in some time and effort. Along the way, Sourcing Nova will help you with your decisions.

How to go about product sourcing

Product sourcing is like any industry or field. There are specifics you need to learn, understand and be able to apply to your business and products. Sadly, missing one or more of these can be a disaster for you and your business. It behooves you to know things like; demand, MOQ, shipping costs, tariffs, and the like. All of this is required, but you need to start at the absolute beginning and recognize running a business selling products is a constant, ever-running process. You need to be looking at competition, listening to your customer base, and adapting your products with consistency. Here are some things you need to consider.

Data and Trends

You have a great product, but is it? Is there a market with strong growth potential? Is there another product that would serve the same need?

Customer Demand

Do yourself a favor now. Take what you want or like out of the product. What you want or like is absolutely irrelevant. The customer is all that matters.

What does the customer want to see in your product? How will you make it most likely for them to post it on social media? What would they change about a current product?

There is the perfect place to look – Amazon.

The Amazon Best-Seller List

Amazon has tons of data on your product and customer base – for free. The Best-Seller list is the first place to look. Get a pencil and paper to make notes while you peruse.

Trending Products

Amazon is constantly in flux with products. You can get ideas of what is and what is not hot based on what is trending. This is perfect for finding what is consistent in sales.

Best-Seller Lists

Amazon categorizes products with incredible efficiency. Scrolling the Top 100 in your product field is gold for your business.

Your product budget

One of the great things about product sourcing from places like China is a relatively small initial setup cost. All you need is a bit of seed income and you can get started with a small business. After that, you need to get product samples.

Samples

Just like you would not buy a home without checking it out or a car without sitting in it, you should not purchase products until you have samples. Besides the opportunity to review the product physically, you can gain an idea of the amount of time it will take your products to get to you from your product sourcing partner.

Review your supplier and the product

The sample, as we said, gives you an idea of the quality of the product and the manufacturer. You need to be sure this is someone with whom you can build a long-term relationship.

Final Review

Product sourcing is not difficult or impossible. All it takes is a bit of time, patience, and investment. You can quickly be on your way to a profitable business venture. Sourcing Nova will be with you every step of the way.

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