General Questions Asked About Product Sourcing
If you want to start your business online, you probably have a lot of questions on how to go about it
. Fear not! Most of your questions have probably already been asked by eager young business people like yourself. Here are some general questions asked about product sourcing that will help you better understand the world of eBusiness.
What Exactly Is Product Sourcing?
Product sourcing refers to locating products to sell through your business. This entails purchasing products at a wholesale price and selling them at an online retail price to gain huge profits. In order to conduct your retail business successfully, you first need to do thorough research on product sourcing. The products that you sell must be good quality to satisfy your customers. They should be sold at a high enough price to ensure a profit, yet low enough to make your customers feel that they are not being cheated or over-charged. In other words, product sourcing is nothing but carrying out in-depth research so that you find genuine, reputable and credible wholesale suppliers to help your online retail business to flourish.
Should I Use Search Engines To Locate A Supplier?
Search engines are flooded with companies and agents that are sure to mislead you by their marketing strategies. If you enter a keyword in a search engine, you will be bombarded with thousands of links that will direct you to the middlemen. So many people flood the search engine with advertisements that the genuine wholesalers and suppliers dont get noticed. Besides, most real wholesalers do not like the search engines to locate them. They keep a low profile because they are especially looking forward to doing business with big business houses rather than small businesses. Working with small businesses can be quite time consuming and painstaking for them because there are many of tasks to be completed, from setting up accounts, stipulating certain terms and conditions, and checking of credit. Because of these reasons, it is better not to use search engines to find a supplier. However, you still need to carry out research on market trends, product sources, and which products are in demand.
How Do I Establish That A Source That I Have Located Is A Genuine Supplier?
It is difficult to determine if a supplier is genuine or not. However, there are a few ways to find out. A genuine supplier will have a physical address Get in touch with the suppliers local chamber of commerce or Better Business Bureau Search for testimonials or complaints filed by customers Contact the manufacturer of the product for the suppliers name and contact information
I Have Been Successful In Locating A Supplier That I Am Interest In Working With. What Do I Do Next?
If you have located a supplier with whom you want to work, the next step is to find out if you can set up an online account. If there is, fill out the form. Wholesale suppliers want to know if you are a genuine retailer before they will give you access to the wholesale prices they offer. So, while filling out the form, make sure to give information about your company. Please note that you need to submit your registered business name as well as tax ID. If you do not have one, you will need to get one. Simply get in touch with the clerks office of your local county.
Will Suppliers Disregard Me The Moment They Find Out That Im An Online Retailer Who Works From Home?
Most suppliers will not be bothered about whether you are working from home or elsewhere. Their main objective is to reach as many customers as possible. So, whether you are doing business online or from a business location, you will receive a warm welcome from them to start your business.
I Want My Supplier To Know That Im A Serious, Conscientious Professional Who Is Eager To Boost My Online Business. How Do I Achieve This?
If you want your supplier to know that youre a serious professional, it is recommended that you first read their website, where youll probably find the answers to most of your questions. If there are answers to your questions on the website but youve still called or emailed the supplier, you will not only have wasted his or her time, but also built up a bad reputation as a retailer. Suppliers are extremely busy people. So, if you do not have any substantial questions dont call or email. When you do email, be sure that you use formal business language. Dont forget to proofread the email before sending it. Use the spell check tool as well. If your email is cluttered with typographical errors, has fragments of a sentence or has run-ons, you will not seem like a professional. As mentioned earlier, suppliers are usually very busy. So, if they havent responded to your email, you need not get agitated or impatient. If you seem like the demanding type, in all probability your supplier will stop doing business with you.
I Am Only Interested In Selling Popular Brand Items. How Do I Find A Suitable Supplier?
It is recommended that you not limit yourself to selling only popular brand items. Youll be surprised to know that certain brands that you have probably never even heard of are quite popular in certain places and among certain people. So, dont restrict your selling capacity.
Designer clothing, iPods, video games and DVDs are considered hot sellers. Should my business be about selling such items? Will I be able to have them drop shiped?
The moment people know that an item is in high demand, the market for that item becomes saturated. As the demand increases, the cost of the supply usually increases as well. Youll find that the profit margins for extremely popular items are extremely slim as everyone is scrambling to undersell other suppliers. So, your best bet would be to sell those items that are rare, yet have a demand.
You may find it difficult to find a supplier willing to drop ship the items to you, because this would only minimize their profit margin. Besides, if you are purchasing a single item at a wholesale price, you wont be able to complete with a company who is purchasing in bulk.
I have an item that I am eager to sell. However, I am unable to find a supplier who will do business with me. What do I do now?
Suppliers are plentiful. If you havent found one yet, keep looking. If, after having done your research, you still havent found a supplier to do business with, its not the end of the road. Consider selling another product. There are many products that you can sell to make a huge profit.
Can I buy products for resale from government auctions? Are they a good source for products?
Government auctions are held online or live in person. They get their products from people who have failed to pay their taxes or who are involved in criminal activities. They also acquire them from a government agency that the agency no longer requires. Since the goods that they acquire are free or cheap, the government will make a profit even if they are sold for less than marke value. If you decide to purchase items from a government auction site, you should first do thorough research to know the market value of the product. The best way to avoid overbidding is to conduct in-depth research on the product well before time. In most government auctions, the items for sale are published two or three weeks before the auction. So, you have ample time to do your homework well. After having done your research, try to decide on what could be the market value of the item. Now subtract the profit that you think you will make. The result that you get gives you the top bid for that item. Always ensure that you stick to the maximum bid that you are willing to pay, or else you may find yourself paying too much for an item.
by: Jane M Dawson
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