Product sourcing is essential for all companies. While a product sourcing app could help make things easier, there are several basic guidelines to take into account. It’s worth revisiting your basic criteria and comparing your suppliers, products, and shipment options against the competition. While the bottom line is a primary point of concern, there are many ways to get there. You might be able to increase your profit margin with careful assessments and a thorough game plan.
1. Criteria
While it’s essential that your products are present on multiple platforms, your products still have to resonate with consumers. A product that isn’t in demand isn’t worth carrying. Remember that strictly seasonal items may not be worth it. Websites like Amazon, Etsy, eBay, Reddit, Alibaba, Flippa, and Alltop provide easy references to see what’s trending.
All products have to be both shippable and sourceable. Be certain that you’re able to reliably acquire your product wholesale. Additionally, it’s worth validating your product. Tens of thousands of new products are launched every year, but few of them are truly successful. Throwing your support behind a failing product is a waste of money, time, and effort.
2. Sales History
This is a fairly easy step. Search Amazon data to look at estimated sales for each month. Even if Amazon isn’t a primary channel for you, it’s worth using Amazon as a key resource for information. Amazon has already surpassed Wal-Mart in terms of sales, so it’s a great baseline to use. Jungle Scout has a Chrome extension you can use to gauge demand. The extension and other apps can be used to search with smart filters. Jungle Scout has a free estimator tool available.
3. Profit
Obviously, you always have to keep your profit margin in mind. Everyone gets into business to make a profit. Check what you’re expecting to pay for the product. If you’re going to be sourcing it from a foreign marketplace, calculate the cost to import it. Remember to think about shipping to consumers, as well as any other associated fees or expenses. If you have your own warehouse, all associated expenses have to be accounted for as well. A ballpark estimate isn’t a bad place to start, but track any changes and record real costs. It’s easy for your profit margin to vanish thanks to unexpected expenses or surprise fees. Calculating these factors initially should prevent you from any unwelcome revelations.
4. Check
Comparison shopping is always recommended for consumers, but it’s something companies have to do as well. This isn’t just true with sourcing and suppliers. It’s also true with your own products. In addition to Google, there are a variety of paid tools that can help you compare yourself against the competition. Consider search traffic and backlink analysis tools. If you’re using eBay as a resource, eBay has seller tools that you can use as well. Check out your competitors, and you’ll have a much better idea as to how competitive you are.
5. Suppliers
When it comes to finding suppliers, Global Sources and Alibaba are both great. There are also webinars and product sourcing applications that you can utilize. Building a list of potential suppliers is the first step, but you will have to reach out to them directly and begin building contacts, as well as relationships. Trade shows could be helpful as well.
A product buyer app is an excellent tool, but product sourcing is an involved process that has to be taken seriously and carefully navigated in order to deliver results. Contact TradeBeyond at 852-2378-6300 to learn more.