It’s difficult to start a business when you don’t have any products or ideas for things to make and selling products online from home. If you’re not making the items yourself, finding a supplier is often one of the first steps.
However, if you’re starting a business on amazon, you have a plethora of product-sourcing options to help you populate your store with in-demand items, partner with suppliers who specialize in specific goods or even add your creative spin to white-label products.
Do you need to find profitable products for your selling products online from home? This guide will walk you through the best apps to use, as well as provide you with advice and examples from entrepreneurs and eCommerce experts.
What is product sourcing?
Product sourcing refers to the process of purchasing product inventory from a supplier and reselling it. Finding a manufacturer for custom allows you to focus less on logistics and more on developing your brand, running effective ad campaigns, and providing excellent customer service.
How to find products to sell
1. Find a dropshipping supplier.
Dropshipping is the most convenient way to obtain products for selling products online from home. It is not only a product-sourcing method but also an order-fulfillment method.
As a dropshipper, you only sell products through a supplier who stores and ships them for you. There is no intermediary.
products, purchasing third-party goods from a wholesale supplier, and partnering with a dropshipper are all common product-sourcing methods.
Many of the product sourcing options covered in this list will allow you to use a dropshipping fulfillment model, which means you won’t have to hold or manage inventory or ship orders yourself that will be handled by the supplier you choose to work with.
The procedure is straightforward: You only need to collaborate with a dropshipping supplier. Then you can start adding products to your store and marketing them. When you receive the order, the source will be notified, and the product will be shipped to you.
2. Source from Amazon Retail Arbitrage
The concept appears to be complicated, but it is actually quite simple. It simply entails purchasing low-cost products from retail outlets. The product is then resold on Amazon at a higher price, resulting in a profit.
For example, suppose you go to Target during a sale and discover a toy that normally costs $30. It will most likely be offered at a discounted price of $10 during a sale. You can buy some of them and resell them for $25 on Amazon.
Amazon retail arbitrage can also be referred to as selling products online from home arbitrage. In this case, you purchase discounted products from an online marketplace and resell them.
3. Purchase from a wholesaler
If you want to get up and running quickly, buying wholesale products is a good product-sourcing strategy.
It is simpler to manage than other sourcing options such as manufacturing or handcrafting products. Wholesalers and distributors frequently offer a diverse range of market-tested products. You are less likely to sell a product that no one wants.
Wholesale profit margins can range from 20% to 60%. This is because you are ordering in bulk and thus paying less per unit.
Product differentiation is one disadvantage of wholesale. Many other retailers may sell comparable products to you, so you must compete on both branding and price.
Handshake and other wholesale marketplaces facilitate the purchasing process. A team of retail experts pre-screens each supplier, reducing the risk of bringing a product to market. Many also provide private label services, which allow you to brand and sell their products as your own.
4. Collaborate with a manufacturer
Manufacturing products are ideal for companies that have a novel idea or a variation on an existing one. This is a good way to source products if you’ve already validated the market for a product and are confident it will sell.
Manufacturing requires the most upfront investment, so market analysis is critical here.
Manufacturers can provide you with two types of products:
A manufacturer will create private-label products exclusively for your company. You have complete control over the product’s ingredients, packaging, and label design. It’s best if you’re making one-of-a-kind products.
These are generic products that are sold to a variety of retailers. They are more suitable for larger customer segments.
Overall, manufacturing gives you more control over branding and pricing. You can also control the final product’s quality, which is less likely when dropshipping. Manufacturing can result in lower cost per unit and higher margins after initial expenses.
However, there are some disadvantages to manufacturing. Minimum order quantities will be required depending on the cost of your product (MOQ).
This can cost thousands or tens of thousands of dollars in the beginning. It can take time for a manufacturer to get up and running after prototyping, sampling, refining, and producing a product.
5. Participate in trade shows
A trade show is an event that brings together businesses and buyers to demonstrate and discuss the latest products and services. These events are frequently held in large city convention centers and last several days. There are also smaller local trade shows held in various locations around the world.
It’s an excellent opportunity for buyers to try out products before purchasing them and network with other business owners.
It can also provide you with endless ideas for selling products online from home. Workshops, presentations, panels, and other exhibitor events are also available at trade shows.
6. Make handcrafted items
Making your products by hand is a popular method among many hobbyists. You are handcrafting products, whether beauty, clothing, or jewelry, which allows you complete control over quality and branding. The disadvantage is that it takes time and is difficult to scale.
Other costs to consider when producing your goods include:
- The raw materials
- Warehousing and storage
Making your products can lead to a lucrative business venture. Consider Old World Kitchen, a family-owned company that specializes in handcrafted kitchen utensils. Despite the brand’s growth after switching from Etsy to Shopify, it has remained true to selling handmade goods while telling its family story and growing a profitable selling products online from home
Product sourcing tips
Conduct market research
Market research entails gathering information about people, businesses, and markets, then analyzing that information to determine what that market requires.
Market research can assist business owners in making informed decisions about product development, marketing, and targeting.
When you’ve found a good product from a reputable supplier, you’re ready to move on to the next step: obtaining samples. You should request samples because you want to test the quality of potential products you’ll sell in your store.
As cool as a product may appear in photos, you want to make sure it’s of high quality before offering it to your customers.
A sample run can also be used to assess a supplier’s competence. You’ll understand how they communicate, process, and ship orders, as well as how products are packaged. It will also demonstrate to a potential supplier that you are serious about working together.
When possible, source locally.
Sourcing locally means obtaining products from domestic suppliers rather than international ones. “Local” could refer to your immediate neighborhood or your home country. Local sourcing can help you reduce supply chain costs, launch products faster, and earn more revenue.