{"id":28435,"date":"2022-11-22T14:24:42","date_gmt":"2022-11-22T14:24:42","guid":{"rendered":"https:\/\/localhost:10003\/product-sourcing\/"},"modified":"2024-05-20T09:16:31","modified_gmt":"2024-05-20T08:16:31","slug":"product-sourcing","status":"publish","type":"post","link":"https:\/\/www.ecommercefulfilment.com\/en_US\/resources\/inventory-management\/product-sourcing\/","title":{"rendered":"Product Sourcing: What, How &amp; Benefits"},"content":{"rendered":"\n<p>For eCommerce businesses, products are their bread and butter. While good products aren\u2019t all you need to succeed (enter customer experience, a <a href=\"\/distribution-logistics\/\">good distribution strategy<\/a>, and a strong brand), it\u2019s your products that will draw your customers in.<\/p>\n\n\n\n<p>How and where we source our products, then, is vital to your business\u2019 success. It\u2019s not just about high-quality products; it\u2019s also important to consider the margin you\u2019ll make on each sale, as well as the reliability of your suppliers.<\/p>\n\n\n\n<p>Product sourcing can be time-consuming, but it\u2019s one of the most important things to get right. Today, we\u2019re going to take a deep dive into product sourcing by offering guidance on how you can reliably source good products, and explain some of the benefits of having a solid product sourcing strategy in place.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\"><p class=\"ez-toc-title\" style=\"cursor:inherit\">In this article<\/p>\n<\/div><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.ecommercefulfilment.com\/en_US\/resources\/inventory-management\/product-sourcing\/#what-is-product-sourcing\" >What is product sourcing?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.ecommercefulfilment.com\/en_US\/resources\/inventory-management\/product-sourcing\/#what-do-product-sourcers-do\" >What do product sourcers do?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.ecommercefulfilment.com\/en_US\/resources\/inventory-management\/product-sourcing\/#where-do-product-sourcers-find-suppliers\" >Where do product sourcers find suppliers?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.ecommercefulfilment.com\/en_US\/resources\/inventory-management\/product-sourcing\/#why-its-important-to-have-multiple-suppliers\" >Why it\u2019s important to have multiple suppliers<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.ecommercefulfilment.com\/en_US\/resources\/inventory-management\/product-sourcing\/#quick-guide-to-product-sourcing\" >Quick guide to product sourcing<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"what-is-product-sourcing\"><\/span>What is product sourcing?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Product sourcing is pretty straightforward; it\u2019s the process of researching, approaching, and negotiating with suppliers to obtain products to sell from your store. Whether you\u2019re selling online or from a physical premises, product sourcing is a continuous process whether you\u2019re launching a start-up or working on behalf of a large retailer to expand their offerings.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"what-do-product-sourcers-do\"><\/span>What do product sourcers do?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>You might source products yourself, or you might employ somebody to do it for you. Regardless of who\u2019s sourcing your products, a product sourcer will research and enquire to multiple suppliers to inform their purchasing decisions, and then build relationships and negotiate prices to get the best price for their goods.<\/p>\n\n\n\n<p>Depending on your business model, a product sourcer will prioritise one or several channels to obtain their goods. This includes buying raw materials to develop products in-house, approaching manufacturers directly to order items, buying third-party goods to sell on at a better price, or even working with dropshippers.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"where-do-product-sourcers-find-suppliers\"><\/span>Where do product sourcers find suppliers?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Unless you\u2019re selling something incredibly niche, it shouldn\u2019t be difficult to find a large variety of suppliers who are willing to do business with you. It\u2019s unlikely that one supplier will be able to meet all of your business needs, so you\u2019ll likely need a range of good suppliers at your disposal.<\/p>\n\n\n\n<p>Filtering out the good from the bad, however, can be challenging. Now we\u2019re living in an increasingly digital, online world, it\u2019s not difficult for suppliers to appear reliable and trustworthy when the reality couldn\u2019t be more different.<\/p>\n\n\n\n<p>That being said, common sense goes a long way when it comes to product sourcing. As long as you keep your wits about you, and only approach suppliers from reputable sources, the worst you\u2019ll have to overcome is the odd time-waster.<\/p>\n\n\n\n<p>These days, you can easily work with suppliers anywhere in the world. Here are some of the best avenues for sourcing products.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Online<\/h3>\n\n\n\n<p>Sourcing products online is how the vast majority of eCommerce brands do business these days. To ensure you don\u2019t end up scrolling through Google listings for the rest of your days, you\u2019re best to approach suppliers directly, either through their own website or via a listing on a reputable wholesale directory.<\/p>\n\n\n\n<p>Any supplier worth their salt will have a solid online presence, with a professional website, ample reviews, and in most cases, a strong SEO presence. While some hidden gems can be found off the beaten track, it\u2019s better to walk the well-trodden path, at least until you already have a reliable network of suppliers.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Exhibitions<\/h3>\n\n\n\n<p>Another way product sourcers often obtain new suppliers is at exhibitions or trade shows. They\u2019re often a nice change of pace from doing everything online, and suppliers often travel far and wide to advertise their products.<\/p>\n\n\n\n<p>Exhibitions are a great way of building relationships from the outset, as well as giving you the option to see, touch, and feel the products you\u2019re interested in. This often has advantages over conducting business solely online, and prevents instances where stock turns up differently to how you expected.<\/p>\n\n\n\n<p>Finally, exhibitions are a chance to broaden your horizons and discover opportunities you weren\u2019t necessarily looking for.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"why-its-important-to-have-multiple-suppliers\"><\/span>Why it\u2019s important to have multiple suppliers<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\">Avoid stockouts<\/h3>\n\n\n\n<p><a href=\"\/stockout-costs\/\">Stockouts<\/a> happen when you don\u2019t have enough inventory to meet demand. It can be a result of poor inventory management, or an unexpected surge in demand.<\/p>\n\n\n\n<p>Having multiple suppliers at your disposal means that you\u2019ll have plenty to fall back on in case of an emergency, while also giving you tools to fall back on if a supplier is having trouble meeting your requirements.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Secure the best prices<\/h3>\n\n\n\n<p>Having more than one supplier means you\u2019re in a better position to negotiate a better deal all around. When a supplier knows you have alternatives available, they\u2019re more likely to bring better offers to the negotiating table.<\/p>\n\n\n\n<p>It\u2019s also easier to compare prices and move away from suppliers that aren\u2019t able to keep providing value.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Compare quality<\/h3>\n\n\n\n<p>When you&#8217;re constantly buying products from different suppliers, it\u2019s easy to notice when the quality of the goods you\u2019re getting from particular suppliers decreases. This allows you to investigate the cause of the issue, and move away from the suppliers in question if necessary.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"quick-guide-to-product-sourcing\"><\/span>Quick guide to product sourcing<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><strong>Research &#8211;<\/strong> You\u2019ll need to begin by researching the types of products you want to sell. Perhaps you have a particular interest, or maybe you\u2019re simply looking for products that are popular and have the best margin. The better you understand what you\u2019re looking for, the better results you\u2019ll have with your suppliers.<\/p>\n\n\n\n<p>After you\u2019ve got your mind set on products, it\u2019s time to look for suppliers. Search online and attend trade shows, while keeping your business acumen at front and center at all times.<\/p>\n\n\n\n<p><strong>Contact &#8211;<\/strong> If you find a supplier you\u2019re interested in, make contact. We\u2019d always recommend speaking to somebody on the phone if possible, as it\u2019s easier to make a judgement call when communicating with new suppliers verbally. That being said, it\u2019s always good to write a follow-up email in case anything gets lost in translation.<\/p>\n\n\n\n<p><strong>Negotiate &#8211;<\/strong> Explain what you\u2019d like, and ask for a quote. Don\u2019t be afraid to barter and negotiate the best deal, it\u2019s all part of doing business. Repeat this with multiple suppliers.<\/p>\n\n\n\n<p><strong>Test &#8211;<\/strong> Before you commit to spending a lot of money with a new supplier, it\u2019s important to ask for samples. It\u2019s an incredibly important step, especially if you\u2019re buying online. It gives you an opportunity to ensure the products meet your standards, are as advertized, and gives you a chance to get a second opinion.<\/p>\n\n\n\n<p>If you\u2019re happy with the products, don\u2019t commit to any long-term commitments straight away. Remember that a supplier should be judged on more than just their products; you need to ensure that they get products out to you in the time agreed, that they\u2019ve got a good supply chain network, and it gives you a chance to get customer feedback, too.<\/p>\n\n\n\n<p><strong>Monitor &#8211;<\/strong> It\u2019s important to check-in with your suppliers regularly to maintain a healthy working relationship. As you grow, you may end up making larger orders from your supplier, and so negotiate better rates. Now&#8217;s also the time to account for the supplier in your <a href=\"\/logistics-planning\/\">logistics plan.\u00a0<\/a><\/p>\n\n\n\n<p>Always be on the lookout for other suppliers, too. It never hurts to have several suppliers on hand should one go order, become unreliable, or too costly.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Spend more time product sourcing by outsourcing your fulfillment<\/h2>\n\n\n\n<p>Product sourcing &#8211; when done properly &#8211; takes time. Know what takes just as much time? Fulfillment.<\/p>\n\n\n\n<p>By outsourcing your fulfillment to a 3PL like J&amp;J, not only do you benefit from a fast and reliable <a href=\"\/en_US\/order-fulfillment\/\">fulfillment process<\/a> your customers will love, you\u2019ll also get tonnes of hours back every week to spend on other important business activities, like product sourcing.<\/p>\n\n\n\n<p>Via our <a href=\"\/en_US\/fulfillment-centers\/\">international network of fulfillment center,<\/a> we store, pick, pack, and ship your products to where they need to be, anywhere in the world. With 97% of orders shipped same-day at an industry-leading 99.9% accuracy, we have the skills and infrastructure to help scale your business globally.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Spend more time product sourcing with our award-winning inventory management platform, ControlPort<\/h2>\n\n\n\n<p>In addition to best-in-class fulfillment services, J&amp;Jclients also benefit from our award-winning eCommerce software, ControlPort. Built, maintained, and regularly updated by us, ControlPort allows you to <a href=\"\/en_US\/fulfillment-software\/\">seamlessly manage your inventory across all channels, brands, and locations.<\/a><\/p>\n\n\n\n<p>Unique in the amount of data it holds, ControlPort saves you time and effort spent on calculations, forecasting, and optimising operations, as it does most of the heavy lifting for you!<\/p>\n\n\n\n<p>To learn more about our fulfillment services and software, don\u2019t hesitate to give us a call or enquire through our <a href=\"#requestQuote\">online form.<\/a> We love to chat!<\/p>\n","protected":false},"excerpt":{"rendered":"<p>For eCommerce businesses, products are their bread and butter. While good products aren\u2019t all you need to succeed (enter customer experience, a good distribution strategy, and a strong brand), it\u2019s your products that will draw your customers in. How and&#8230;<\/p>\n","protected":false},"author":9,"featured_media":28060,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_lmt_disableupdate":"yes","_lmt_disable":"","footnotes":""},"categories":[383],"tags":[],"class_list":["post-28435","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-inventory-management"],"acf":[],"modified_by":"James Dillon","featured_image_src":"https:\/\/www.ecommercefulfilment.com\/wp-content\/uploads\/2022\/11\/Product-sourcing-landscape.png","featured_image_src_square":"https:\/\/www.ecommercefulfilment.com\/wp-content\/uploads\/2022\/11\/Product-sourcing-landscape.png","author_info":{"display_name":"J&amp;J Global Fulfilment","author_link":"https:\/\/www.ecommercefulfilment.com\/author\/james-and-james\/"},"_links":{"self":[{"href":"https:\/\/www.ecommercefulfilment.com\/wp-json\/wp\/v2\/posts\/28435","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.ecommercefulfilment.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.ecommercefulfilment.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.ecommercefulfilment.com\/wp-json\/wp\/v2\/users\/9"}],"replies":[{"embeddable":true,"href":"https:\/\/www.ecommercefulfilment.com\/wp-json\/wp\/v2\/comments?post=28435"}],"version-history":[{"count":0,"href":"https:\/\/www.ecommercefulfilment.com\/wp-json\/wp\/v2\/posts\/28435\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.ecommercefulfilment.com\/wp-json\/wp\/v2\/media\/28060"}],"wp:attachment":[{"href":"https:\/\/www.ecommercefulfilment.com\/wp-json\/wp\/v2\/media?parent=28435"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.ecommercefulfilment.com\/wp-json\/wp\/v2\/categories?post=28435"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.ecommercefulfilment.com\/wp-json\/wp\/v2\/tags?post=28435"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}