6 Tips for Developing a Product Sourcing Strategy for Your Business

The ability to offer high-quality products or services is essential for any business. However, it can be challenging to determine the right option, especially due to huge competition among manufacturers today.

Ecommerce is the most popular model of selling goods, and the main advantage is that you can collaborate with suppliers from all over the world. The communication is quite simple, and you don’t even need to have a warehouse anymore. That is especially the case with the dropshipping model of business.

The key is to find a reliable supplier with competitive prices so you can secure a good position for your business. If you are having issues finding a good supplier, you can use assistance from experts like Also, we are going to present you some tips for a better sourcing strategy.

1. Research the Market


It is essential to analyze all available options. Be aware that the price is not the only factor that can affect your business. Besides the prices of final products, you should compare the locations, time of delivery, additional expenses for shipping, warranties, and quality. It is very important to never rush with the part where you need to determine the right products and suppliers for your company.

We can notice that suppliers from China are the most popular these days. It is not a surprise since they are offering the cheapest products. On the other side, pay attention to the quality of these items as well, along with the additional expenses you might have.

2. Good Location Is Important


A lot of people today are interested in dropshipping and similar business models. The reason is that there are many suppliers from China that are offering much cheaper products. However, the issue is that shipping in some cases can last for more than a month. That will affect your business since a lot of customers might not be interested in waiting that long for the product.

You should check if there are some faster ways to get a delivery, even if that means that you will have to pay more for the products. Moreover, if you notice that customers are interested in a certain product, and you are getting a lot of purchases, the best solution is to order a larger amount of such product and keep it in your warehouse, so you can ensure much faster delivery for buyers in your area.

3. Try To Be More Flexible


There is no reason to stick only to one supplier. We understand that it might seem like a good option, especially if you have found a manufacturer that is reliable and provides decent quality. However, you can never expect a great selection of products from the same supplier.

Also, keep in mind that higher competition is motivating manufacturers to offer lower prices and work on improvements of quality so they can get a higher position on the market as well. Therefore, the best solution is to research the market all the time and check what would be the best for the next offer on your online store.

There are many benefits for your business when you have more than one supplier. First of all, you will be able to offer competitive prices while securing profit at the same time. Also, it will be much easier to resolve any issues with one supplier by simply contacting another one.

4. Order a Test Product


The biggest challenge with foreign suppliers is that there are plenty of low-quality products presented as much better ones. The best example of that is websites like Ali Express and Wish, where you can find numerous cheap products with fake reviews and pictures. Avoid buying directly from these platforms because you can get an even cheaper price if you contact directly the supplier.

It is essential to keep your customers satisfied, and that could be a problem if you are offering products where you are not even sure how good they are. In that matter, order several items so you can see how long it takes for them to arrive at your address, and check if the quality is as presented by the producer.

5. Focus On Your Profit


While we mentioned that profit is not the only important factor, it still represents the main reason to look for foreign suppliers. Creating a detailed calculation where you can compare the additional expenses will help you to create the price that will ensure profit, while still being competitive on the market. You should check other similar businesses to see their prices and suppliers.

If you notice that there is a chance for you to sell some items for an even cheaper price, that can be a great way to become more attractive to people. However, you will need a proper marketing strategy so that potential customers can find your online store.

6. Choose the Right Niche


It might seem like a good solution to simply add a lot of different products to your online warehouse. However, it will be difficult for your brand to improve its position on the market since you won’t be able to create a proper marketing strategy when you are offering so many products from different industries. You have to understand the importance of branding.

Creating a marketing strategy will be much easier when you choose one sector or industry and focus on products from that area. Keep in mind that trends are changing very fast, and there might be a huge interest for certain products that will last only for a short time.

Last Words

Finding a good supplier is essential because that will directly affect your business, prices that you can offer, time of delivery, and quality. There are many advantages of contacting manufacturers that are cheaper, but keep in mind that longer deliveries could become an issue.

Finding a good contact is always the best option, but there is no reason to avoid further exploration of the market. In fact, the best solution is to stay in touch with the producers and read more about their latest offers all the time.

About Carolyn Lang