Product Sourcing
What is Product Sourcing?
Product Sourcing is the Extensive Research to find the "Source" of the product.
What should be your Objectives while sourcing?
- Lowest price for a product without compromising the quality.
- Timely delivery to your warehouse.
- Reach the manufacturer directly.
There are various platforms through which you can source products. Some sourcing platforms are:
- Alibaba
- 1688
- DHGate
- Made-in-China
- Global sources
- Tradekey
- Asian products
- SaleHoo
- WorldWideBrands
- WholesaleCentral
- VietnamManufacturers
- Dropshipping sites and many more.
Based on the origin and nature of the products, the major categories of the products are:
- Manufacturer or wholesaler
- Dropshipping
There are various platforms for product sourcing choice is yours but I will discuss about ALIBABA.
Many sellers are happily engaged with Alibaba suppliers because of
- Lower manufacturing costs.
- A high number of suppliers to choose from.
- Organized categories to find products fast.
Alibaba is the largest network and search engine for factories and suppliers in the world. But if you don't know what you're doing it's incredibly easy to get burned. While there is still no replacement for personally going abroad, Alibaba can be a great starting point. (Alibaba is highly recommended)
The thing to finalize connecting to a supplier:
- Profit margin
- Demand level
- Competition
- Focus on top 5 sellers(No sponsored ads)
- Targetable numbers of reviews
- No Amazon and brand dominancy
- Finalize your 2 competitors and read negative reviews(Negative reviews are the most important factor and convey supplier to change the product according to negative reviews).
- Exact quality, pictures and it's bundling.
- Finalize brand name
- File trademark application
- Brand logo follows 2-color
Contacting the supplier:
- Prepare supplier contact template.
- Introduce yourself as a manager, not a decision-maker.
- Gold supplier at-least 2 years.
- Assessed Supplier
- 3 gems.
- Response rate 80%+.
- Onsite Checked
- Trade Assurance
- Contact at-least 20 suppliers.
- Ask your supplier for a free sample.
Finalizing the supplier
- Finalize at-least 3-5 suppliers
- Finalize according to their communication.
- Relevancy with competitor's product.
- How old on Alibaba
- Payment trend 30/70
Tips for sample:
Consolidate sample within china from the consolidatory company. This service reduces your courier costs by consolidating samples from different suppliers in one central location and have a single address where all your suppliers can send your samples.
- Payment through PayPal.
- Get track id and invoices of that sample.
Negotiate:
- Don't praise and show heist about the product.
- MOQ 100,300,500,700,1000.
- Once you get the lowest price rate share it with suppliers for a bargain.
- When your supplier(whose quality is an exact match to your competitor's product) won’t negotiate on price, you can negotiate on other things that affect your cash flow. For instance, you can negotiate on the amount of deposit or how long it should take to fully pay for a purchased order.
- Other aspects you can negotiate on without affecting price include faster shipping, responsive e-commerce fulfillment, warranty improvements, and better packaging.
What to do when the product is in the manufacturing phase?
- Get your listing done
- Product Photography etc.
Inspecting your product before they're shipped
Of course, you want to be assured that the goods you purchase meet your quality standards and expectations. It could be done through your own reference or using Ali baba's services.
Using Alibaba's Inspection Service, you can have your order inspected by professional third-party independent inspectors and inspection companies listed on Alibaba. These inspectors will visit the manufacturing and/or port facilities anywhere in China and provide reports, including photos, to certify that the goods being produced and shipped meet quality standards.
NOTE: Patent check and dummy listing is mandatory before sourcing
0 Comments