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How to Find Product Sourcing Companies?
Product sourcing is simply the ability to find quality suppliers and dropshippers that are willing and able to work with small home-based businesses and online retailers. Sourcing products is a process that occurs on just about every single level of retail sales.
To have a clearer understanding of product sourcing it’s important to understand a few basic steps.
This article will offer tips on
- finding sources of products
- how to find a market
- how to work with wholesale suppliers
As you read to the rest of this article these questions will be answered and you’ll have a better understanding of how to get started with product sourcing.
How To Buy Products, At Or Close To Wholesale
A word of caution!
Be very careful attempting to purchase from overseas manufactures. Many times these can be straight-up scams and put you at huge risk for all kinds of possible problems. There are still lots of products manufactured right here in the U.S. for example, so there is no need to start looking overseas.
You can find companies that are available in your area that you’ll feel much more comfortable with, and still be able to make a wholesale buying relationship.
So here is the big secret resource… Ready?
You can find dropshipping companies by looking for them through trade show directories. Many of the major cities in the U.S. have trade shows every year. They list the vendor’s information on their website with all of their contact info. You can search these directories by product, and locate manufacturers and suppliers.
You’ll want to pick up the phone and call them to find out what their purchasing terms are. They will usually have a vendor package ready to either email to you or mail out that outlines their standard purchasing terms. This is why it’s important that you get the appropriate business certificates that give you the necessary credibility to work with these companies.
After you’ve gotten that package, and returned the required info then it’s time to call them back on the phone, and negotiate the best possible scenario. Not all suppliers are willing to ship single items but the only way to find out is to start dialing the phone, sending emails, and establishing relationships.
You may still be at a disadvantage however because others are able to purchase in larger lots, and in higher volumes per unit. They have the ability to inventory items in greater numbers, and thus are able to purchase at lower costs.
Many distributors and manufacturers sell on a sliding scale. While you may only purchase 10 units in a month another person/company is purchasing 100 units and thus getting them at a cheaper wholesale cost. Ultimately, that is something you simply have to work with.
Remember it’s about profit margin.
As your business gets bigger you can make better deals with companies, because you can buy in light bulk, and inventory good selling items.
As I said, it’s work, and it’s the research that gets you the best deals. Finally, there is a small shortcut to this but I would more consider it an intermediate step to establishing your own relationships with wholesale suppliers.
Here is a Short Cut
There is a company that you may have already seen others talking about, and that company is Worldwide Brands. Of all the online drop shipping companies they are head and shoulders above everyone else.
Simple, because they already do what I just talked about above. They go to the trade shows, they make the phone calls, they do all the research of the manufacturers, and suppliers for thousands of products.
They then compile that information into a database that you can access, and it’s called One-Source. It does make it a lot easier and honestly can save you a lot of time. They also have a massive training resource on their site that makes learning the e-commerce business a whole lot easier as well.
The only problem with Worldwide Brands is the cost. Honestly, it’s expensive, $299.00 for a lifetime membership fee. You have to think of it like this though.
Number one, if you have set yourself up as a business it’s simply a tax write-off, so start with that.
Number two, it can save a lot of time, and that is something that is really valuable and gives you a big head start when searching for suppliers.
So, it’s something to think about.
Beyond that, I’m not sure I would recommend any other way of going about it. The bottom line is that dropshipping with companies does work, but research and follow-up are the keys to success.
How To Choose a Drop Shipping Wholesale Supplier?
Finding and selecting a good drop shipping wholesale supplier can save you time, money, and headaches.
This is because choosing a fly-by-night drop shipping operation may make life difficult if the goods never get delivered to your clients and customers.
It’s important to realize that there are lots of shady schemes online, so be especially careful when selecting a dropshipping company on the internet needs to be done with diligence and research.
Here are some key ideas to consider when selecting a company.
1. When you go about choosing products make sure that you will actually be able to order or get a sample shipment first to test the reliability of the supplier. This gives you the opportunity to inspect the merchandise packaging, and quality prior to it being shipped to customers.
2. Ask the drop shipping company if they can provide you some testimonials, or feedback from existing vendors that buy from them.
3. Do Some Upfront Research on a Drop Shipping Wholesale Company. When getting involved with a dropshipping company it is critical that you evaluate the company you are starting a partnership with.
4. Companies that you decide to do business with, are they the manufacturer, or a wholesale reseller?
If they have already set supply chains, and are distributors for the manufacturer you just simply end up reselling the products for their company. Unfortunately, many dropshipping companies and programs are resellers that cut your profits.
This is not true wholesale drop shipping. Making arrangements with the supplier directly will yield better profits in the long run by setting up your own dropshipping accounts.
Remember it’s vital that you purchase as close to the manufacturing level as possible.
5. When dealing with a drop shipper you should find out if they have an account set up charge or monthly fee based on request counts, or some other reasons. A lot of companies charging fees to resellers should offer some sort of extra services in exchange for the fee. An example of this would be a member’s only website or specialty logo that goes on your orders.
6. Knowing upfront what the drop shipper charges for freight is extremely important. If shipping and handling charges are too much, your clients will probably not either, one purchase from the start, or discontinue ordering from you due to high freight charges.
Remember getting a good deal is part of the reason why people do their shopping on the internet or auction site.
Here’s a quick review of things to remember when selecting a Drop Shipping Wholesale Company
- Be sure and watch out for scams, some companies claim to be a wholesaler when they are simply resellers.
- Order your own product at least a couple of times to ensure quality.
- Does the Drop Shipper require a setup or monthly fee?
- Do you get a value-added service for a monthly charge if required? (I.E.) Website, Logo on the packaging.
- Check shipping and handling charges. Too much can lose customers.
Finally, using good judgment and like anything else common sense, is usually your best ally when making good business decisions. Choosing a drop shipping wholesale company is easier when you do the primary research upfront and find out who you’re dealing with.
Most companies that have a good track record don’t mind sharing the fact that they have happy customers.
Looking for a Short Cut? Here is the Simplest Way of Finding And Choosing Wholesale Products and Suppliers?
Honestly, if you’re looking for the “Easy Button” to finding suppliers that you can be confident in then I would highly recommend checking into Worldwide Brands. This is a simple way to find reliable wholesalers and suppliers. It’s a lifetime membership for $299.00, that instantly gets you to access to literally thousands of real and verified suppliers and manufacturers. Plus all kinds of training materials and videos. It’s a massive shortcut.
How to Start a Wholesaling Business Using Dropshippers?
Setting up and running your own wholesale business from home has become a very attractive thing to do these days.
It’s especially true considering how insanely easy it is to sell things over the Internet. It’s not even necessary to have your own warehouse.
Merchandise can be ordered via the internet from an actual supplier and then shipped to your customer.
When you own a wholesaling business it allows you to connect with other businesses, and work with them to achieve their own goals. While at the same time helping you achieve yours.
Keep in mind that setting up and running a wholesale business is not a way to make a quick buck, and then move on to something else. To truly be successful you need to establish a relationship with the merchandiser.
This partnership lets you sell products at a markup to a buyer of a retail store. If you provide good service and timely delivery of quality products chances are the retailer will purchase from you again. Thus establishing a long-term buyer of your products.
Here are some quick tips to running a Wholesale Business
- Make sure to maintain ongoing communication with your customers. Staying in contact with people that have purchased from you in the past further solidifies your reputation and desire to maintain a business relationship.
- Establish great customer service. If something needs attention take care of it and move on.
- Being involved in the wholesale business lets you take advantage of some awesome opportunities when it comes to moving merchandise. Be sure to purchase at real wholesale prices. Usually, closeouts and liquidations are a good indicator of a below retail offer for products.
- Finding real suppliers should be a high priority. Light bulk importing and purchasing directly from the manufacturer should be your goal.
If you are looking to find multiple resources for products that you can purchase at real wholesale. Meaning it comes over on a boat from China, Japan, Indonesia, Taiwan, etc., or just comes from another state or across town.
Dropshipping is a way to grow a Legitimate Business
It stands to reason that if you’re looking to sell products online that you need to have a reasonable source of products that you can sell regular basis. One way to consider finding products is to do it the old-fashioned way treating your business like a real business and get out there and find wholesalers and dropshippers that are in your general vicinity or region. Quite often you’ll find merchandise that is highly marketable and sells quite well but has a whole lot less competition because of the method in which it’s actually sourced. By taking an alternative route you’re already thinking outside the box and using methods that most people who searched just online never get a shot at. Trade magazines and publications offer opportunities as well.
The Secret to Finding a Hot Market
Finding a hot market can be an elusive proposition the best. But here are a couple of ideas that can really help you zero in on what can be a hot and profitable market.
- One thing to remember is that a profitable market is a group of people that are already interested in the product that you have to offer which makes them predisposed to buying your items.
- Additionally, they’re passionate and often irrational in the way that they act when it comes to the product that you’re offering. So any group of people that have something in common could be a potentially hot market.
When you’ve established your market, getting the product from a supplier and having a reliable supply chain should be your next mission.
Making the Most of a Dropshipper and or Wholesaler
Once you’ve established your market getting products of them quickly and on a timely basis will be key to your overall success. Getting to know your supplier and how they operate on a daily basis day in and day out will allow you to provide better service and offer your products to a hungry market that is ready to buy. Drop shippers will they affix a custom label to your packaging to give the illusion that the item is actually coming from a warehouse within your own company rather than a third-party source. They will also provide shipping information with accurate delivery estimates for your customers. Working out the details with your supplier upfront will ensure that your business starts smoothly and remains that way for a long time.
Finally, locating a supplier that is able to provide products and goods in a timely manner to your selected market will help you facilitate a manager business much more easily and effectively allowing you to grow it more quickly in order to further expand into other product lines or services.