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A Quick Guide To Product Sourcing For E-commerce Websites

Updated: Apr 8

A Quick Guide To Product Sourcing For E-commerce Websites

Product Sourcing is the base of your supply chain. Whether you're beginning a retail firm or simply trying to expand your inventory, you can source products online.

But how do you source good quality products at good prices with guaranteed good profit margins? To achieve this, you have to do a lot of research and trial.

In this article, we'll cover the sourcing products procedure. Also, give you tips from top insiders, and ultimately help minimize your e-commerce mistakes.

Define Product Sourcing

It is the process of purchasing goods from a supplier to resell them. Typical product sourcing methods include finding a manufacturer for custom products, purchasing third-party products, and partnering with a dropshipper.

The product procurement process includes several steps. Whether it's researching a target product, considering your budget and evaluating product prices and costs, or being able to work with vendors on the best deal.

Each step has a significant impact, and if managed well, it can identify best-selling products, from reputable suppliers, at prices that can generate significant profits.

Where You Should Start Product Sourcing

Given below are the key points, which will tell you where to start sourcing a product:

1. Connect with a wholesaler

The benefit of making a close relationship with an experienced wholesaler will give you a great chance of discovering limitless unique products. Also, making relations with wholesalers gives you more sales, as wholesalers know what kind of product they should create to sell well. With this information, you know there is a warranty for your product.

2. Deal with a Manufacturer

Working directly with manufacturers eliminates two things: the potential middleman, who could be a communication barrier, and the additional costs associated with mediators and transportation.

Negotiating with a manufacturer will give you a better price when ordering products. This is often the case for companies that source products from China. However, the wholesaler would respect the minimum order quantities (MOQ). This could be very difficult for small businesses with smaller budgets.

3. Attend trade shows

Attending trade shows, exhibitions and conferences is a great opportunity to do market research and observe market trends. Most importantly, it's an opportunity to interact and build relationships with manufacturers, wholesalers, and other independent retailers. They often have ideas and access to unique products that are not yet mainstream in the market.

What is the procedure for eCommerce Product Sourcing?

Starting your own online business and finding what you love is always exciting. However, it is crucial to follow this step-by-step product sourcing process, as it perfectly starts your business. Whether it's market demands, minimum order quantities, supplier production, efficiency, or delivery costs, each of these factors can significantly affect your business.

To get a head start on product sourcing success, prepare and conduct product sourcing strategies. So given below are the acknowledgment you should do before sourcing your product:

1. Acknowledge Trends and Market Needs.

2. Check the Budget.

3. Do Research on Suppliers.

4. Ask for Samples.

5. Bargain for Better Terms.

6. Research their Review.

Steps for Successful Product Sourcing

Exploring new products can be very draining and annoying. Fortunately, the internet has enough information that every purchasing manager can easily read a review to be a product sourcing agent. Here are the best and easiest methods of product sourcing to be successful:

Conduct in-depth examination

Know your business model well and find a source product system that works best for you. For example, compare the pros and cons of working directly with wholesalers versus manufacturers. See which method can give you better control over your inventory.

Conduct competitor research

Study your competitor's source product models and build your framework around them. This way, you can avoid building a framework from scratch and avoid predictable errors.

Recite from a booming model

Replicating from a proven sourcing model will give you a head start in the world of e-commerce. Examine your competitors' sourcing strategies or your best-performing e-commerce business models.

Keep a Plan B

Don't put all your eggs in one basket. Investing in a single product carries a risk of exceeding market demand or that its demand will peak.

Major Apps For Product Sourcing

Given below is a list of some amazing product-sourcing apps:

1. Printify

Printify lets you choose from a wide range of products to customize with your designs. Although it's free, you can upgrade to a paid plan for $29 per month.

2. Oberlo

Oberlo is an official Shopify app created to make it easy for shoppers to find products through third-party drop-shippers, add them to your Shopify store, and ship them directly to your customers. It also gives you product performance data so you can make an informed decision on what to do at your store.

3. Lulu Xpress

Lulu Xpress focuses exclusively on calendars and books, allowing you to use print-on-demand to launch your book product.

Additionally, you can choose the format, size, cover, ink color, and paper quality that will be used for your book. So, if you want to sell your book, Lulu Xpress is your best partner for that.

4. Modalyst

Modalyst is a supplier network that gives you access to US-based drop-shippers with fast delivery times. You can find trendy products, independent brands, and low-priced products for sale in your store.


Throughout our guide to the e-commerce product sourcing journey, we've given down the whole process like identifying the right products, getting in touch with the right suppliers, and negotiating prices. Also, we have mentioned some starting tips on source products to minimize the chances of making rookie mistakes.

Hence, through this article, you have learned the importance of building good relationships with product-sourcing agents, product-sourcing strategies, and tips to optimize your strategy. With our guide to find trending products, you are surely ready to start your business on the right foot.


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