Sourcing inventory is the process of finding the right products to stock your online store.<\/p>\n\n\n\n
It’s all about figuring out what products you need, finding good suppliers to provide them, and making sure you get them at reasonable prices. This means hunting down the best deals and suppliers to keep your shelves stocked and your customers happy.<\/p>\n\n\n\n
Sourcing your inventory is the foundation of your business. Think about it – you need to be able to meet demand without overstocking or running out of popular items for a successful reselling business.<\/p>\n\n\n\n
Here’s why getting inventory sourcing right is so important:<\/p>\n\n\n\n
It can save you money<\/strong><\/h3>\n\n\n\n![\"\"](\"http:\/\/staging.selleraider.com\/wp-content\/uploads\/2024\/08\/1.-Sourcing-for-resellers-can-save-money-1024x683.png\")
<\/figure>\n\n\n\nFinding cost-effective suppliers and negotiating better deals can save you a ton of money. Imagine cutting down on expenses without skimping on quality \u2013 that\u2019s extra cash in your pocket to invest back into your reselling business. Plus, you will be able to maintain healthy profit margins, which will boost your profits in the long run.<\/p>\n\n\n\n
It might mean better product quality<\/strong><\/h3>\n\n\n\nThe goal of effective sourcing is to do so from reliable suppliers that can provide you with a consistent flow of high-quality products. High-quality products make a massive difference in your business. It means fewer returns and complaints, saving you time and money. Happy customers mean glowing reviews, repeat business, and a steady stream of new buyers from word-of-mouth recommendations.<\/p>\n\n\n\n
It gives you a competitive edge<\/strong><\/h3>\n\n\n\nImagine having items that no one else in your niche is selling or getting your hands on the hottest products before everyone else does. This not only sets you apart from the competition but also makes your store the go-to place for those must-have items.<\/p>\n\n\n\n
When you offer something special or in high demand, customers are more likely to choose you over other online stores. This gives you a serious edge in a crowded market, making it easier to attract and retain customers.<\/p>\n\n\n\n
Online Sourcing vs. In-Person Sourcing<\/strong><\/h2>\n\n\n\nBefore we dive into the ins and outs of sourcing for resellers, you need to choose the method that best meets your inventory needs.<\/p>\n\n\n\n
Online sourcing<\/strong><\/h3>\n\n\n\nSourcing inventory online is both efficient and convenient. And that’s the very reason it is so popular as a method to obtain inventory amongst ecommerce sellers.<\/p>\n\n\n\n
You can shop for products from around the world right from the comfort of your home. Online marketplaces let you compare prices, read reviews, and place orders with just a few clicks.<\/p>\n\n\n\n
You get access to way more options than you could ever meet in person, including liquidation and wholesale companies. These offer great deals on bulk purchases, letting you snag products at rock-bottom prices.<\/p>\n\n\n\n
Plus, sourcing online is super fast – you can contact suppliers and get quotes in no time!<\/p>\n\n\n\n
Advantages<\/h4>\n\n\n\n\n- Convenient:<\/strong> Shop for products and suppliers anytime, anywhere, without leaving your house.<\/li>\n\n\n\n
- Lots of options:<\/strong> Access a diverse range of suppliers and products from all over the world.<\/li>\n\n\n\n
- Quick and easy:<\/strong> Compare prices, read reviews, and place orders with just a few clicks.<\/li>\n\n\n\n
- Fast quotes:<\/strong> Get in touch with suppliers and get quotes way quicker than setting up in-person meetings.<\/li>\n<\/ul>\n\n\n\n
Drawbacks<\/h4>\n\n\n\n\n- Quality:<\/strong> Hard to know the quality of products until they show up at your door.<\/li>\n\n\n\n
- Trust issues:<\/strong> Tricky to figure out if a supplier is reliable without meeting them in person.<\/li>\n\n\n\n
- Less personal:<\/strong> Building a strong relationship with suppliers can be tough without face-to-face interactions.<\/li>\n\n\n\n
- Scam risk:<\/strong> Higher chance of running into shady suppliers or deals.<\/li>\n<\/ul>\n\n\n\n
In-person sourcing<\/strong><\/h3>\n\n\n\nIn-person sourcing is all about visiting suppliers, checking out trade shows, local retail stores, thrift stores, or other places where you can actually touch and feel the products. This gives you a much better idea of their quality.<\/p>\n\n\n\n
Face-to-face meetings can also help you build stronger, more personal relationships with suppliers, which can lead to better deals and more reliable partnerships. You can negotiate on the spot and see the supplier\u2019s reactions.<\/p>\n\n\n\n
Advantages<\/h4>\n\n\n\n\n- Quality check:<\/strong> You can see and touch products to make sure they\u2019re up to your standards.<\/li>\n\n\n\n
- Better relationships:<\/strong> Face-to-face meetings help build stronger, more personal connections with suppliers.<\/li>\n\n\n\n
- Instant deals:<\/strong> Negotiate terms and deals on the spot and see how suppliers react.<\/li>\n\n\n\n
- Special deals:<\/strong> Get access to exclusive deals and unique products that might not be online.<\/li>\n<\/ul>\n\n\n\n
Drawbacks:<\/strong><\/h4>\n\n\n\n\n- Time-consuming:<\/strong> Takes a lot of time, especially if you have to travel.<\/li>\n\n\n\n
- Costly:<\/strong> Travel expenses and time away from your business can add up.<\/li>\n\n\n\n
- Limited options:<\/strong> You\u2019re stuck with the suppliers you can physically visit, which might mean fewer choices.<\/li>\n\n\n\n
- Less efficient:<\/strong> Finding and visiting multiple suppliers takes more effort and time compared to browsing online.<\/li>\n<\/ul>\n\n\n\n
Why not both?<\/h3>\n\n\n\n
Not sure which sourcing method is the right one for you? Not to worry!<\/p>\n\n\n\n
A lot of successful resellers mix both methods. They start with online research to find potential suppliers and then set up in-person meetings to seal the deal and check out the products. This way, they get the convenience and variety of online sourcing plus the trust and quality assurance of in-person interactions.<\/p>\n\n\n\n
Different Ways to Source Inventory<\/strong><\/h2>\n\n\n\nWhether you decide to source inventory online or in person, there are several methods you can use:<\/p>\n\n\n\n
Retail arbitrage<\/h3>\n\n\n\n![\"\"](\"http:\/\/staging.selleraider.com\/wp-content\/uploads\/2024\/08\/2.-Retail-arbitrage-1024x683.png\")
<\/figure>\n\n\n\nRetail arbitrage is when you buy products from retail stores at a low price and then sell them at a higher price to make a profit.<\/p>\n\n\n\n
You basically find those awesome clearance items, discounts, or limited-time sales, purchase them, and then resell them for more than what you paid. It\u2019s a popular strategy among resellers because it can be very profitable if you know what to look for and where to find it.<\/p>\n\n\n\n
Where to source the products:<\/strong><\/h4>\n\n\n\n\n- Big box stores:<\/strong> Places like Walmart, Target, and Costco are goldmines for retail arbitrage. They often have clearance sections and seasonal sales where you can score products at a fraction of the original price.<\/li>\n\n\n\n
- Discount stores:<\/strong> Stores like TJ Maxx, Marshalls, and Ross carry brand-name items at lower prices. You can find everything from clothing to home goods.<\/li>\n\n\n\n
- Thrift stores:<\/strong> Goodwill, Salvation Army, or any local thrift store can be great for finding unique items, especially vintage or hard-to-find products.<\/li>\n\n\n\n
- Outlet stores:<\/strong> Brand-specific outlet stores often have sales and discounts on overstocked or out-of-season items.<\/li>\n\n\n\n
- Online retailers:<\/strong> Don\u2019t forget about online shopping. Websites like eBay, Amazon, and any other online marketplace sometimes offer great deals you can capitalize on.<\/li>\n<\/ul>\n\n\n\n
BONUS: <\/strong>Don’t forget Facebook Marketplace! Thousands of Facebook groups are ideal for online sourcing.<\/p>\n\n\n\nPros:<\/strong><\/h4>\n\n\n\n\n- Low startup costs:<\/strong> You don\u2019t need a lot of money to get started. You can begin with just a few items and reinvest your profits.<\/li>\n\n\n\n
- Quick turnaround:<\/strong> You can often sell products quickly, especially if you find items that are in high demand.<\/li>\n\n\n\n
- Flexibility:<\/strong> You can do this on your own schedule, whether it\u2019s a side hustle or your main gig.<\/li>\n\n\n\n
- No need for a supplier:<\/strong> Since you\u2019re buying directly from retail stores, you don\u2019t have to deal with suppliers or manufacturers.<\/li>\n<\/ul>\n\n\n\n
Cons:<\/strong><\/h4>\n\n\n\n\n- Time-consuming:<\/strong> It takes time to hunt for the best deals and check multiple stores or websites.<\/li>\n\n\n\n
- Inconsistent inventory:<\/strong> You might not always find products at a price that allows for a good profit margin. It can be hit or miss.<\/li>\n\n\n\n
- Competition:<\/strong> Lots of people are doing this, so you might face stiff competition, especially on popular platforms like Amazon.<\/li>\n\n\n\n
- Platform fees:<\/strong> Selling on platforms like Depop, Poshmark, or eBay comes with fees, which can eat into your profits.<\/li>\n\n\n\n
- Market fluctuations:<\/strong> Prices and demand can change quickly, so what\u2019s hot today might not be tomorrow.<\/li>\n<\/ul>\n\n\n\n
Liquidation and wholesale companies<\/h3>\n\n\n\n![\"\"](\"http:\/\/staging.selleraider.com\/wp-content\/uploads\/2024\/08\/3.-Wholesale-1024x683.png\")
<\/figure>\n\n\n\nLiquidation and wholesale companies sell products in bulk at super low prices, usually because the items are overstocked, returned, or the company is closing out.<\/p>\n\n\n\n
Liquidation companies specialize in selling these goods off quickly, often at a fraction of the retail price.<\/p>\n\n\n\n
Wholesale companies, on the other hand, buy products in bulk from manufacturers and sell them to retailers or resellers at a lower cost per unit than what you\u2019d pay at retail.<\/p>\n\n\n\n
Where to source the products:<\/strong><\/h4>\n\n\n\n\n- Online liquidation marketplaces:<\/strong> Websites like Liquidation.com, B-Stock, and Direct Liquidation offer a wide variety of products from electronics to apparel, all available for bidding or purchase.<\/li>\n\n\n\n
- Wholesale marketplaces:<\/strong> Platforms like Alibaba, SaleHoo, and Global Sources connect you with manufacturers and wholesalers around the world. You can buy anything from gadgets to home goods.<\/li>\n\n\n\n
- Warehouse sales:<\/strong> Sometimes companies will have physical warehouse sales where they clear out inventory at steep discounts.<\/li>\n\n\n\n
- Local liquidators:<\/strong> Check out local liquidation warehouses in your area. They often have sales that aren\u2019t advertised online.<\/li>\n\n\n\n
- Trade shows:<\/strong> These events can be a great way to meet wholesalers and liquidation companies, see products in person, and negotiate deals.<\/li>\n<\/ul>\n\n\n\n
Pros:<\/strong><\/h4>\n\n\n\n\n- Lower costs:<\/strong> Buying in bulk from these companies means you get products at a much lower price per unit, which can significantly boost your profit margins.<\/li>\n\n\n\n
- Variety:<\/strong> There\u2019s a huge range of products available, so you can diversify your inventory without breaking the bank.<\/li>\n\n\n\n
- High inventory levels:<\/strong> You can purchase large quantities, ensuring you have enough stock to meet customer demand.<\/li>\n\n\n\n
- Potential for high profits:<\/strong> With the low purchase prices, even modest sales prices can yield significant profits.<\/li>\n<\/ul>\n\n\n\n
Cons:<\/strong><\/h4>\n\n\n\n\n- Upfront investment:<\/strong> You usually need more money upfront to buy in bulk, which can be a barrier if you\u2019re just starting out.<\/li>\n\n\n\n
- Storage needs:<\/strong> Buying in bulk means you need space to store your inventory, which can be an issue if you don\u2019t have a lot of storage room.<\/li>\n\n\n\n
- Quality variability:<\/strong> With liquidation goods, the quality can sometimes be inconsistent, especially with returned or overstock items.<\/li>\n\n\n\n
- Risk of unsellable items:<\/strong> There\u2019s always a risk that some items won\u2019t sell, which means you could end up with dead stock.<\/li>\n<\/ul>\n\n\n\n
Dropshipping<\/h3>\n\n\n\n
Dropshipping is like running a store without ever having to stock any products yourself.<\/p>\n\n\n\n
Here\u2019s how it works: You set up an online store and list products for sale. When a customer makes a purchase, you buy the product from a third-party supplier, who then ships it directly to the customer.<\/p>\n\n\n\n
You never have to handle the product. Your profit comes from the difference between what you charge the customer and what you pay the supplier. It’s a popular model because it\u2019s low-risk and low-investment.<\/p>\n\n\n\n
Where to source the products:<\/strong><\/h4>\n\n\n\n\n- Online marketplaces:<\/strong> Websites like AliExpress, Oberlo, and Spocket are go-to sources for finding dropshipping suppliers. They offer a wide variety of products at different price points.<\/li>\n\n\n\n
- Dropshipping platforms:<\/strong> Platforms like Shopify and WooCommerce have integrations with dropshipping services, making it easy to add products to your store.<\/li>\n\n\n\n
- Supplier directories:<\/strong> Directories like SaleHoo and Worldwide Brands list verified dropshipping suppliers across various industries.<\/li>\n\n\n\n
- Niche suppliers:<\/strong> Sometimes, finding specialized dropshipping suppliers in your niche can offer unique products that aren\u2019t widely available, giving you an edge.<\/li>\n<\/ul>\n\n\n\n
Pros:<\/strong><\/h4>\n\n\n\n\n- Low startup costs:<\/strong> You don\u2019t need to invest heavily in inventory upfront. You only purchase products after a customer orders them.<\/li>\n\n\n\n
- No inventory management:<\/strong> Since you don\u2019t stock products, you don\u2019t have to worry about storage space or managing inventory.<\/li>\n\n\n\n
- Wide product range:<\/strong> You can offer a vast array of products without worrying about storage or upfront costs. If something isn\u2019t selling, you can easily switch to new products.<\/li>\n\n\n\n
- Flexibility:<\/strong> You can run your dropshipping business from anywhere, as long as you have an internet connection. It\u2019s perfect for digital nomads or those who want the freedom to work from anywhere.<\/li>\n<\/ul>\n\n\n\n
Cons:<\/strong><\/h4>\n\n\n\n\n- Lower profit margins:<\/strong> Since you\u2019re buying products at retail prices, your profit margins can be thinner compared to buying in bulk from wholesalers.<\/li>\n\n\n\n
- Quality control issues:<\/strong> You have less control over product quality and shipping times, which can lead to customer dissatisfaction if the supplier doesn\u2019t meet expectations.<\/li>\n\n\n\n
- Reliance on suppliers:<\/strong> Your business relies heavily on the reliability of your suppliers. If they run out of stock or delay shipping, it directly affects your customers.<\/li>\n\n\n\n
- Customer service challenges:<\/strong> Since you\u2019re not handling the products, resolving customer service issues can be more complicated. You have to communicate with the supplier to handle returns, exchanges, or any product issues.<\/li>\n<\/ul>\n\n\n\n
White label & Private label<\/h3>\n\n\n\n![\"\"](\"http:\/\/staging.selleraider.com\/wp-content\/uploads\/2024\/08\/4.-Private-label-1024x683.png\")
<\/figure>\n\n\n\nWhite label and private label are about putting your brand on generic products.<\/p>\n\n\n\n
With white labeling, you take a product that\u2019s already being produced and add your branding to it.<\/p>\n\n\n\n
Private labeling goes a step further \u2013 you work with a manufacturer to create a product to your specifications, and then it gets branded as your own.<\/p>\n\n\n\n
Both methods allow you to sell products that look and feel unique to your brand, without having to create them from scratch.<\/p>\n\n\n\n
Where to source the products:<\/strong><\/h4>\n\n\n\n\n- Online marketplaces:<\/strong> Websites like Alibaba and Global Sources are great places to find manufacturers who offer white label and private label services.<\/li>\n\n\n\n
- Trade shows:<\/strong> Attending trade shows can help you meet manufacturers in person, see product samples, and discuss customization options.<\/li>\n\n\n\n
- Supplier directories:<\/strong> Directories like SaleHoo and ThomasNet list verified manufacturers who can create white label and private label products.<\/li>\n\n\n\n
- Industry networks:<\/strong> Networking with other business owners in your industry can lead to recommendations for reliable manufacturers.<\/li>\n<\/ul>\n\n\n\n
Pros:<\/strong><\/h4>\n\n\n\n\n- Brand identity:<\/strong> Selling products under your brand strengthens your brand identity and makes your store stand out. Customers associate the products directly with your brand.<\/li>\n\n\n\n
- Product customization:<\/strong> With private labeling, you can tweak the product to better fit your market\u2019s needs, adding features or changes that differentiate it from competitors.<\/li>\n\n\n\n
- Customer loyalty:<\/strong> Unique products that carry your brand can help build customer loyalty. When customers love your products, they\u2019re more likely to become repeat buyers.<\/li>\n\n\n\n
- Control over quality:<\/strong> You can set your quality standards and work closely with manufacturers to ensure products meet those standards, leading to higher customer satisfaction.<\/li>\n<\/ul>\n\n\n\n
Cons:<\/strong><\/h4>\n\n\n\n\n- Higher upfront costs:<\/strong> Developing and ordering customized products usually require a larger initial investment than simply buying wholesale or dropshipping.<\/li>\n\n\n\n
- Longer lead times:<\/strong> It can take time to develop and produce customized products, meaning longer lead times compared to sourcing ready-made items.<\/li>\n\n\n\n
- Minimum order quantities:<\/strong> Many manufacturers require you to order a minimum number of units, which can be risky if you\u2019re not sure how well the product will sell.<\/li>\n<\/ul>\n\n\n\n
8 Tips to Help You Source Inventory Like a Pro<\/strong><\/h2>\n\n\n\nKnowing where to find inventory is just the first step, but many resellers still find it tricky to source effectively.<\/p>\n\n\n\n
Take a look at these 8 tips to help you nail the process:<\/p>\n\n\n\n
1. Use automation software<\/h3>\n\n\n\n
<\/figure>\n\n\n\nFinding cost-effective suppliers and negotiating better deals can save you a ton of money. Imagine cutting down on expenses without skimping on quality \u2013 that\u2019s extra cash in your pocket to invest back into your reselling business. Plus, you will be able to maintain healthy profit margins, which will boost your profits in the long run.<\/p>\n\n\n\n
It might mean better product quality<\/strong><\/h3>\n\n\n\nThe goal of effective sourcing is to do so from reliable suppliers that can provide you with a consistent flow of high-quality products. High-quality products make a massive difference in your business. It means fewer returns and complaints, saving you time and money. Happy customers mean glowing reviews, repeat business, and a steady stream of new buyers from word-of-mouth recommendations.<\/p>\n\n\n\n
It gives you a competitive edge<\/strong><\/h3>\n\n\n\nImagine having items that no one else in your niche is selling or getting your hands on the hottest products before everyone else does. This not only sets you apart from the competition but also makes your store the go-to place for those must-have items.<\/p>\n\n\n\n
When you offer something special or in high demand, customers are more likely to choose you over other online stores. This gives you a serious edge in a crowded market, making it easier to attract and retain customers.<\/p>\n\n\n\n
Online Sourcing vs. In-Person Sourcing<\/strong><\/h2>\n\n\n\nBefore we dive into the ins and outs of sourcing for resellers, you need to choose the method that best meets your inventory needs.<\/p>\n\n\n\n
Online sourcing<\/strong><\/h3>\n\n\n\nSourcing inventory online is both efficient and convenient. And that’s the very reason it is so popular as a method to obtain inventory amongst ecommerce sellers.<\/p>\n\n\n\n
You can shop for products from around the world right from the comfort of your home. Online marketplaces let you compare prices, read reviews, and place orders with just a few clicks.<\/p>\n\n\n\n
You get access to way more options than you could ever meet in person, including liquidation and wholesale companies. These offer great deals on bulk purchases, letting you snag products at rock-bottom prices.<\/p>\n\n\n\n
Plus, sourcing online is super fast – you can contact suppliers and get quotes in no time!<\/p>\n\n\n\n
Advantages<\/h4>\n\n\n\n\n- Convenient:<\/strong> Shop for products and suppliers anytime, anywhere, without leaving your house.<\/li>\n\n\n\n
- Lots of options:<\/strong> Access a diverse range of suppliers and products from all over the world.<\/li>\n\n\n\n
- Quick and easy:<\/strong> Compare prices, read reviews, and place orders with just a few clicks.<\/li>\n\n\n\n
- Fast quotes:<\/strong> Get in touch with suppliers and get quotes way quicker than setting up in-person meetings.<\/li>\n<\/ul>\n\n\n\n
Drawbacks<\/h4>\n\n\n\n\n- Quality:<\/strong> Hard to know the quality of products until they show up at your door.<\/li>\n\n\n\n
- Trust issues:<\/strong> Tricky to figure out if a supplier is reliable without meeting them in person.<\/li>\n\n\n\n
- Less personal:<\/strong> Building a strong relationship with suppliers can be tough without face-to-face interactions.<\/li>\n\n\n\n
- Scam risk:<\/strong> Higher chance of running into shady suppliers or deals.<\/li>\n<\/ul>\n\n\n\n
In-person sourcing<\/strong><\/h3>\n\n\n\nIn-person sourcing is all about visiting suppliers, checking out trade shows, local retail stores, thrift stores, or other places where you can actually touch and feel the products. This gives you a much better idea of their quality.<\/p>\n\n\n\n
Face-to-face meetings can also help you build stronger, more personal relationships with suppliers, which can lead to better deals and more reliable partnerships. You can negotiate on the spot and see the supplier\u2019s reactions.<\/p>\n\n\n\n
Advantages<\/h4>\n\n\n\n\n- Quality check:<\/strong> You can see and touch products to make sure they\u2019re up to your standards.<\/li>\n\n\n\n
- Better relationships:<\/strong> Face-to-face meetings help build stronger, more personal connections with suppliers.<\/li>\n\n\n\n
- Instant deals:<\/strong> Negotiate terms and deals on the spot and see how suppliers react.<\/li>\n\n\n\n
- Special deals:<\/strong> Get access to exclusive deals and unique products that might not be online.<\/li>\n<\/ul>\n\n\n\n
Drawbacks:<\/strong><\/h4>\n\n\n\n\n- Time-consuming:<\/strong> Takes a lot of time, especially if you have to travel.<\/li>\n\n\n\n
- Costly:<\/strong> Travel expenses and time away from your business can add up.<\/li>\n\n\n\n
- Limited options:<\/strong> You\u2019re stuck with the suppliers you can physically visit, which might mean fewer choices.<\/li>\n\n\n\n
- Less efficient:<\/strong> Finding and visiting multiple suppliers takes more effort and time compared to browsing online.<\/li>\n<\/ul>\n\n\n\n
Why not both?<\/h3>\n\n\n\n
Not sure which sourcing method is the right one for you? Not to worry!<\/p>\n\n\n\n
A lot of successful resellers mix both methods. They start with online research to find potential suppliers and then set up in-person meetings to seal the deal and check out the products. This way, they get the convenience and variety of online sourcing plus the trust and quality assurance of in-person interactions.<\/p>\n\n\n\n
Different Ways to Source Inventory<\/strong><\/h2>\n\n\n\nWhether you decide to source inventory online or in person, there are several methods you can use:<\/p>\n\n\n\n
Retail arbitrage<\/h3>\n\n\n\n<\/figure>\n\n\n\nRetail arbitrage is when you buy products from retail stores at a low price and then sell them at a higher price to make a profit.<\/p>\n\n\n\n
You basically find those awesome clearance items, discounts, or limited-time sales, purchase them, and then resell them for more than what you paid. It\u2019s a popular strategy among resellers because it can be very profitable if you know what to look for and where to find it.<\/p>\n\n\n\n
Where to source the products:<\/strong><\/h4>\n\n\n\n\n- Big box stores:<\/strong> Places like Walmart, Target, and Costco are goldmines for retail arbitrage. They often have clearance sections and seasonal sales where you can score products at a fraction of the original price.<\/li>\n\n\n\n
- Discount stores:<\/strong> Stores like TJ Maxx, Marshalls, and Ross carry brand-name items at lower prices. You can find everything from clothing to home goods.<\/li>\n\n\n\n
- Thrift stores:<\/strong> Goodwill, Salvation Army, or any local thrift store can be great for finding unique items, especially vintage or hard-to-find products.<\/li>\n\n\n\n
- Outlet stores:<\/strong> Brand-specific outlet stores often have sales and discounts on overstocked or out-of-season items.<\/li>\n\n\n\n
- Online retailers:<\/strong> Don\u2019t forget about online shopping. Websites like eBay, Amazon, and any other online marketplace sometimes offer great deals you can capitalize on.<\/li>\n<\/ul>\n\n\n\n
BONUS: <\/strong>Don’t forget Facebook Marketplace! Thousands of Facebook groups are ideal for online sourcing.<\/p>\n\n\n\nPros:<\/strong><\/h4>\n\n\n\n\n- Low startup costs:<\/strong> You don\u2019t need a lot of money to get started. You can begin with just a few items and reinvest your profits.<\/li>\n\n\n\n
- Quick turnaround:<\/strong> You can often sell products quickly, especially if you find items that are in high demand.<\/li>\n\n\n\n
- Flexibility:<\/strong> You can do this on your own schedule, whether it\u2019s a side hustle or your main gig.<\/li>\n\n\n\n
- No need for a supplier:<\/strong> Since you\u2019re buying directly from retail stores, you don\u2019t have to deal with suppliers or manufacturers.<\/li>\n<\/ul>\n\n\n\n
Cons:<\/strong><\/h4>\n\n\n\n\n- Time-consuming:<\/strong> It takes time to hunt for the best deals and check multiple stores or websites.<\/li>\n\n\n\n
- Inconsistent inventory:<\/strong> You might not always find products at a price that allows for a good profit margin. It can be hit or miss.<\/li>\n\n\n\n
- Competition:<\/strong> Lots of people are doing this, so you might face stiff competition, especially on popular platforms like Amazon.<\/li>\n\n\n\n
- Platform fees:<\/strong> Selling on platforms like Depop, Poshmark, or eBay comes with fees, which can eat into your profits.<\/li>\n\n\n\n
- Market fluctuations:<\/strong> Prices and demand can change quickly, so what\u2019s hot today might not be tomorrow.<\/li>\n<\/ul>\n\n\n\n
Liquidation and wholesale companies<\/h3>\n\n\n\n<\/figure>\n\n\n\nLiquidation and wholesale companies sell products in bulk at super low prices, usually because the items are overstocked, returned, or the company is closing out.<\/p>\n\n\n\n
Liquidation companies specialize in selling these goods off quickly, often at a fraction of the retail price.<\/p>\n\n\n\n
Wholesale companies, on the other hand, buy products in bulk from manufacturers and sell them to retailers or resellers at a lower cost per unit than what you\u2019d pay at retail.<\/p>\n\n\n\n
Where to source the products:<\/strong><\/h4>\n\n\n\n\n- Online liquidation marketplaces:<\/strong> Websites like Liquidation.com, B-Stock, and Direct Liquidation offer a wide variety of products from electronics to apparel, all available for bidding or purchase.<\/li>\n\n\n\n
- Wholesale marketplaces:<\/strong> Platforms like Alibaba, SaleHoo, and Global Sources connect you with manufacturers and wholesalers around the world. You can buy anything from gadgets to home goods.<\/li>\n\n\n\n
- Warehouse sales:<\/strong> Sometimes companies will have physical warehouse sales where they clear out inventory at steep discounts.<\/li>\n\n\n\n
- Local liquidators:<\/strong> Check out local liquidation warehouses in your area. They often have sales that aren\u2019t advertised online.<\/li>\n\n\n\n
- Trade shows:<\/strong> These events can be a great way to meet wholesalers and liquidation companies, see products in person, and negotiate deals.<\/li>\n<\/ul>\n\n\n\n
Pros:<\/strong><\/h4>\n\n\n\n\n- Lower costs:<\/strong> Buying in bulk from these companies means you get products at a much lower price per unit, which can significantly boost your profit margins.<\/li>\n\n\n\n
- Variety:<\/strong> There\u2019s a huge range of products available, so you can diversify your inventory without breaking the bank.<\/li>\n\n\n\n
- High inventory levels:<\/strong> You can purchase large quantities, ensuring you have enough stock to meet customer demand.<\/li>\n\n\n\n
- Potential for high profits:<\/strong> With the low purchase prices, even modest sales prices can yield significant profits.<\/li>\n<\/ul>\n\n\n\n
Cons:<\/strong><\/h4>\n\n\n\n\n- Upfront investment:<\/strong> You usually need more money upfront to buy in bulk, which can be a barrier if you\u2019re just starting out.<\/li>\n\n\n\n
- Storage needs:<\/strong> Buying in bulk means you need space to store your inventory, which can be an issue if you don\u2019t have a lot of storage room.<\/li>\n\n\n\n
- Quality variability:<\/strong> With liquidation goods, the quality can sometimes be inconsistent, especially with returned or overstock items.<\/li>\n\n\n\n
- Risk of unsellable items:<\/strong> There\u2019s always a risk that some items won\u2019t sell, which means you could end up with dead stock.<\/li>\n<\/ul>\n\n\n\n
Dropshipping<\/h3>\n\n\n\n
Dropshipping is like running a store without ever having to stock any products yourself.<\/p>\n\n\n\n
Here\u2019s how it works: You set up an online store and list products for sale. When a customer makes a purchase, you buy the product from a third-party supplier, who then ships it directly to the customer.<\/p>\n\n\n\n
You never have to handle the product. Your profit comes from the difference between what you charge the customer and what you pay the supplier. It’s a popular model because it\u2019s low-risk and low-investment.<\/p>\n\n\n\n
Where to source the products:<\/strong><\/h4>\n\n\n\n\n- Online marketplaces:<\/strong> Websites like AliExpress, Oberlo, and Spocket are go-to sources for finding dropshipping suppliers. They offer a wide variety of products at different price points.<\/li>\n\n\n\n
- Dropshipping platforms:<\/strong> Platforms like Shopify and WooCommerce have integrations with dropshipping services, making it easy to add products to your store.<\/li>\n\n\n\n
- Supplier directories:<\/strong> Directories like SaleHoo and Worldwide Brands list verified dropshipping suppliers across various industries.<\/li>\n\n\n\n
- Niche suppliers:<\/strong> Sometimes, finding specialized dropshipping suppliers in your niche can offer unique products that aren\u2019t widely available, giving you an edge.<\/li>\n<\/ul>\n\n\n\n
Pros:<\/strong><\/h4>\n\n\n\n\n- Low startup costs:<\/strong> You don\u2019t need to invest heavily in inventory upfront. You only purchase products after a customer orders them.<\/li>\n\n\n\n
- No inventory management:<\/strong> Since you don\u2019t stock products, you don\u2019t have to worry about storage space or managing inventory.<\/li>\n\n\n\n
- Wide product range:<\/strong> You can offer a vast array of products without worrying about storage or upfront costs. If something isn\u2019t selling, you can easily switch to new products.<\/li>\n\n\n\n
- Flexibility:<\/strong> You can run your dropshipping business from anywhere, as long as you have an internet connection. It\u2019s perfect for digital nomads or those who want the freedom to work from anywhere.<\/li>\n<\/ul>\n\n\n\n
Cons:<\/strong><\/h4>\n\n\n\n\n- Lower profit margins:<\/strong> Since you\u2019re buying products at retail prices, your profit margins can be thinner compared to buying in bulk from wholesalers.<\/li>\n\n\n\n
- Quality control issues:<\/strong> You have less control over product quality and shipping times, which can lead to customer dissatisfaction if the supplier doesn\u2019t meet expectations.<\/li>\n\n\n\n
- Reliance on suppliers:<\/strong> Your business relies heavily on the reliability of your suppliers. If they run out of stock or delay shipping, it directly affects your customers.<\/li>\n\n\n\n
- Customer service challenges:<\/strong> Since you\u2019re not handling the products, resolving customer service issues can be more complicated. You have to communicate with the supplier to handle returns, exchanges, or any product issues.<\/li>\n<\/ul>\n\n\n\n
White label & Private label<\/h3>\n\n\n\n<\/figure>\n\n\n\nWhite label and private label are about putting your brand on generic products.<\/p>\n\n\n\n
With white labeling, you take a product that\u2019s already being produced and add your branding to it.<\/p>\n\n\n\n
Private labeling goes a step further \u2013 you work with a manufacturer to create a product to your specifications, and then it gets branded as your own.<\/p>\n\n\n\n
Both methods allow you to sell products that look and feel unique to your brand, without having to create them from scratch.<\/p>\n\n\n\n
Where to source the products:<\/strong><\/h4>\n\n\n\n\n- Online marketplaces:<\/strong> Websites like Alibaba and Global Sources are great places to find manufacturers who offer white label and private label services.<\/li>\n\n\n\n
- Trade shows:<\/strong> Attending trade shows can help you meet manufacturers in person, see product samples, and discuss customization options.<\/li>\n\n\n\n
- Supplier directories:<\/strong> Directories like SaleHoo and ThomasNet list verified manufacturers who can create white label and private label products.<\/li>\n\n\n\n
- Industry networks:<\/strong> Networking with other business owners in your industry can lead to recommendations for reliable manufacturers.<\/li>\n<\/ul>\n\n\n\n
Pros:<\/strong><\/h4>\n\n\n\n\n- Brand identity:<\/strong> Selling products under your brand strengthens your brand identity and makes your store stand out. Customers associate the products directly with your brand.<\/li>\n\n\n\n
- Product customization:<\/strong> With private labeling, you can tweak the product to better fit your market\u2019s needs, adding features or changes that differentiate it from competitors.<\/li>\n\n\n\n
- Customer loyalty:<\/strong> Unique products that carry your brand can help build customer loyalty. When customers love your products, they\u2019re more likely to become repeat buyers.<\/li>\n\n\n\n
- Control over quality:<\/strong> You can set your quality standards and work closely with manufacturers to ensure products meet those standards, leading to higher customer satisfaction.<\/li>\n<\/ul>\n\n\n\n
Cons:<\/strong><\/h4>\n\n\n\n\n- Higher upfront costs:<\/strong> Developing and ordering customized products usually require a larger initial investment than simply buying wholesale or dropshipping.<\/li>\n\n\n\n
- Longer lead times:<\/strong> It can take time to develop and produce customized products, meaning longer lead times compared to sourcing ready-made items.<\/li>\n\n\n\n
- Minimum order quantities:<\/strong> Many manufacturers require you to order a minimum number of units, which can be risky if you\u2019re not sure how well the product will sell.<\/li>\n<\/ul>\n\n\n\n
8 Tips to Help You Source Inventory Like a Pro<\/strong><\/h2>\n\n\n\nKnowing where to find inventory is just the first step, but many resellers still find it tricky to source effectively.<\/p>\n\n\n\n
Take a look at these 8 tips to help you nail the process:<\/p>\n\n\n\n
1. Use automation software<\/h3>\n\n\n\n
Imagine having items that no one else in your niche is selling or getting your hands on the hottest products before everyone else does. This not only sets you apart from the competition but also makes your store the go-to place for those must-have items.<\/p>\n\n\n\n
When you offer something special or in high demand, customers are more likely to choose you over other online stores. This gives you a serious edge in a crowded market, making it easier to attract and retain customers.<\/p>\n\n\n\n
Online Sourcing vs. In-Person Sourcing<\/strong><\/h2>\n\n\n\nBefore we dive into the ins and outs of sourcing for resellers, you need to choose the method that best meets your inventory needs.<\/p>\n\n\n\n
Online sourcing<\/strong><\/h3>\n\n\n\nSourcing inventory online is both efficient and convenient. And that’s the very reason it is so popular as a method to obtain inventory amongst ecommerce sellers.<\/p>\n\n\n\n
You can shop for products from around the world right from the comfort of your home. Online marketplaces let you compare prices, read reviews, and place orders with just a few clicks.<\/p>\n\n\n\n
You get access to way more options than you could ever meet in person, including liquidation and wholesale companies. These offer great deals on bulk purchases, letting you snag products at rock-bottom prices.<\/p>\n\n\n\n
Plus, sourcing online is super fast – you can contact suppliers and get quotes in no time!<\/p>\n\n\n\n
Advantages<\/h4>\n\n\n\n\n- Convenient:<\/strong> Shop for products and suppliers anytime, anywhere, without leaving your house.<\/li>\n\n\n\n
- Lots of options:<\/strong> Access a diverse range of suppliers and products from all over the world.<\/li>\n\n\n\n
- Quick and easy:<\/strong> Compare prices, read reviews, and place orders with just a few clicks.<\/li>\n\n\n\n
- Fast quotes:<\/strong> Get in touch with suppliers and get quotes way quicker than setting up in-person meetings.<\/li>\n<\/ul>\n\n\n\n
Drawbacks<\/h4>\n\n\n\n\n- Quality:<\/strong> Hard to know the quality of products until they show up at your door.<\/li>\n\n\n\n
- Trust issues:<\/strong> Tricky to figure out if a supplier is reliable without meeting them in person.<\/li>\n\n\n\n
- Less personal:<\/strong> Building a strong relationship with suppliers can be tough without face-to-face interactions.<\/li>\n\n\n\n
- Scam risk:<\/strong> Higher chance of running into shady suppliers or deals.<\/li>\n<\/ul>\n\n\n\n
In-person sourcing<\/strong><\/h3>\n\n\n\nIn-person sourcing is all about visiting suppliers, checking out trade shows, local retail stores, thrift stores, or other places where you can actually touch and feel the products. This gives you a much better idea of their quality.<\/p>\n\n\n\n
Face-to-face meetings can also help you build stronger, more personal relationships with suppliers, which can lead to better deals and more reliable partnerships. You can negotiate on the spot and see the supplier\u2019s reactions.<\/p>\n\n\n\n
Advantages<\/h4>\n\n\n\n\n- Quality check:<\/strong> You can see and touch products to make sure they\u2019re up to your standards.<\/li>\n\n\n\n
- Better relationships:<\/strong> Face-to-face meetings help build stronger, more personal connections with suppliers.<\/li>\n\n\n\n
- Instant deals:<\/strong> Negotiate terms and deals on the spot and see how suppliers react.<\/li>\n\n\n\n
- Special deals:<\/strong> Get access to exclusive deals and unique products that might not be online.<\/li>\n<\/ul>\n\n\n\n
Drawbacks:<\/strong><\/h4>\n\n\n\n\n- Time-consuming:<\/strong> Takes a lot of time, especially if you have to travel.<\/li>\n\n\n\n
- Costly:<\/strong> Travel expenses and time away from your business can add up.<\/li>\n\n\n\n
- Limited options:<\/strong> You\u2019re stuck with the suppliers you can physically visit, which might mean fewer choices.<\/li>\n\n\n\n
- Less efficient:<\/strong> Finding and visiting multiple suppliers takes more effort and time compared to browsing online.<\/li>\n<\/ul>\n\n\n\n
Why not both?<\/h3>\n\n\n\n
Not sure which sourcing method is the right one for you? Not to worry!<\/p>\n\n\n\n
A lot of successful resellers mix both methods. They start with online research to find potential suppliers and then set up in-person meetings to seal the deal and check out the products. This way, they get the convenience and variety of online sourcing plus the trust and quality assurance of in-person interactions.<\/p>\n\n\n\n
Different Ways to Source Inventory<\/strong><\/h2>\n\n\n\nWhether you decide to source inventory online or in person, there are several methods you can use:<\/p>\n\n\n\n
Retail arbitrage<\/h3>\n\n\n\n<\/figure>\n\n\n\nRetail arbitrage is when you buy products from retail stores at a low price and then sell them at a higher price to make a profit.<\/p>\n\n\n\n
You basically find those awesome clearance items, discounts, or limited-time sales, purchase them, and then resell them for more than what you paid. It\u2019s a popular strategy among resellers because it can be very profitable if you know what to look for and where to find it.<\/p>\n\n\n\n
Where to source the products:<\/strong><\/h4>\n\n\n\n\n- Big box stores:<\/strong> Places like Walmart, Target, and Costco are goldmines for retail arbitrage. They often have clearance sections and seasonal sales where you can score products at a fraction of the original price.<\/li>\n\n\n\n
- Discount stores:<\/strong> Stores like TJ Maxx, Marshalls, and Ross carry brand-name items at lower prices. You can find everything from clothing to home goods.<\/li>\n\n\n\n
- Thrift stores:<\/strong> Goodwill, Salvation Army, or any local thrift store can be great for finding unique items, especially vintage or hard-to-find products.<\/li>\n\n\n\n
- Outlet stores:<\/strong> Brand-specific outlet stores often have sales and discounts on overstocked or out-of-season items.<\/li>\n\n\n\n
- Online retailers:<\/strong> Don\u2019t forget about online shopping. Websites like eBay, Amazon, and any other online marketplace sometimes offer great deals you can capitalize on.<\/li>\n<\/ul>\n\n\n\n
BONUS: <\/strong>Don’t forget Facebook Marketplace! Thousands of Facebook groups are ideal for online sourcing.<\/p>\n\n\n\nPros:<\/strong><\/h4>\n\n\n\n\n- Low startup costs:<\/strong> You don\u2019t need a lot of money to get started. You can begin with just a few items and reinvest your profits.<\/li>\n\n\n\n
- Quick turnaround:<\/strong> You can often sell products quickly, especially if you find items that are in high demand.<\/li>\n\n\n\n
- Flexibility:<\/strong> You can do this on your own schedule, whether it\u2019s a side hustle or your main gig.<\/li>\n\n\n\n
- No need for a supplier:<\/strong> Since you\u2019re buying directly from retail stores, you don\u2019t have to deal with suppliers or manufacturers.<\/li>\n<\/ul>\n\n\n\n
Cons:<\/strong><\/h4>\n\n\n\n\n- Time-consuming:<\/strong> It takes time to hunt for the best deals and check multiple stores or websites.<\/li>\n\n\n\n
- Inconsistent inventory:<\/strong> You might not always find products at a price that allows for a good profit margin. It can be hit or miss.<\/li>\n\n\n\n
- Competition:<\/strong> Lots of people are doing this, so you might face stiff competition, especially on popular platforms like Amazon.<\/li>\n\n\n\n
- Platform fees:<\/strong> Selling on platforms like Depop, Poshmark, or eBay comes with fees, which can eat into your profits.<\/li>\n\n\n\n
- Market fluctuations:<\/strong> Prices and demand can change quickly, so what\u2019s hot today might not be tomorrow.<\/li>\n<\/ul>\n\n\n\n
Liquidation and wholesale companies<\/h3>\n\n\n\n<\/figure>\n\n\n\nLiquidation and wholesale companies sell products in bulk at super low prices, usually because the items are overstocked, returned, or the company is closing out.<\/p>\n\n\n\n
Liquidation companies specialize in selling these goods off quickly, often at a fraction of the retail price.<\/p>\n\n\n\n
Wholesale companies, on the other hand, buy products in bulk from manufacturers and sell them to retailers or resellers at a lower cost per unit than what you\u2019d pay at retail.<\/p>\n\n\n\n
Where to source the products:<\/strong><\/h4>\n\n\n\n\n- Online liquidation marketplaces:<\/strong> Websites like Liquidation.com, B-Stock, and Direct Liquidation offer a wide variety of products from electronics to apparel, all available for bidding or purchase.<\/li>\n\n\n\n
- Wholesale marketplaces:<\/strong> Platforms like Alibaba, SaleHoo, and Global Sources connect you with manufacturers and wholesalers around the world. You can buy anything from gadgets to home goods.<\/li>\n\n\n\n
- Warehouse sales:<\/strong> Sometimes companies will have physical warehouse sales where they clear out inventory at steep discounts.<\/li>\n\n\n\n
- Local liquidators:<\/strong> Check out local liquidation warehouses in your area. They often have sales that aren\u2019t advertised online.<\/li>\n\n\n\n
- Trade shows:<\/strong> These events can be a great way to meet wholesalers and liquidation companies, see products in person, and negotiate deals.<\/li>\n<\/ul>\n\n\n\n
Pros:<\/strong><\/h4>\n\n\n\n\n- Lower costs:<\/strong> Buying in bulk from these companies means you get products at a much lower price per unit, which can significantly boost your profit margins.<\/li>\n\n\n\n
- Variety:<\/strong> There\u2019s a huge range of products available, so you can diversify your inventory without breaking the bank.<\/li>\n\n\n\n
- High inventory levels:<\/strong> You can purchase large quantities, ensuring you have enough stock to meet customer demand.<\/li>\n\n\n\n
- Potential for high profits:<\/strong> With the low purchase prices, even modest sales prices can yield significant profits.<\/li>\n<\/ul>\n\n\n\n
Cons:<\/strong><\/h4>\n\n\n\n\n- Upfront investment:<\/strong> You usually need more money upfront to buy in bulk, which can be a barrier if you\u2019re just starting out.<\/li>\n\n\n\n
- Storage needs:<\/strong> Buying in bulk means you need space to store your inventory, which can be an issue if you don\u2019t have a lot of storage room.<\/li>\n\n\n\n
- Quality variability:<\/strong> With liquidation goods, the quality can sometimes be inconsistent, especially with returned or overstock items.<\/li>\n\n\n\n
- Risk of unsellable items:<\/strong> There\u2019s always a risk that some items won\u2019t sell, which means you could end up with dead stock.<\/li>\n<\/ul>\n\n\n\n
Dropshipping<\/h3>\n\n\n\n
Dropshipping is like running a store without ever having to stock any products yourself.<\/p>\n\n\n\n
Here\u2019s how it works: You set up an online store and list products for sale. When a customer makes a purchase, you buy the product from a third-party supplier, who then ships it directly to the customer.<\/p>\n\n\n\n
You never have to handle the product. Your profit comes from the difference between what you charge the customer and what you pay the supplier. It’s a popular model because it\u2019s low-risk and low-investment.<\/p>\n\n\n\n
Where to source the products:<\/strong><\/h4>\n\n\n\n\n- Online marketplaces:<\/strong> Websites like AliExpress, Oberlo, and Spocket are go-to sources for finding dropshipping suppliers. They offer a wide variety of products at different price points.<\/li>\n\n\n\n
- Dropshipping platforms:<\/strong> Platforms like Shopify and WooCommerce have integrations with dropshipping services, making it easy to add products to your store.<\/li>\n\n\n\n
- Supplier directories:<\/strong> Directories like SaleHoo and Worldwide Brands list verified dropshipping suppliers across various industries.<\/li>\n\n\n\n
- Niche suppliers:<\/strong> Sometimes, finding specialized dropshipping suppliers in your niche can offer unique products that aren\u2019t widely available, giving you an edge.<\/li>\n<\/ul>\n\n\n\n
Pros:<\/strong><\/h4>\n\n\n\n\n- Low startup costs:<\/strong> You don\u2019t need to invest heavily in inventory upfront. You only purchase products after a customer orders them.<\/li>\n\n\n\n
- No inventory management:<\/strong> Since you don\u2019t stock products, you don\u2019t have to worry about storage space or managing inventory.<\/li>\n\n\n\n
- Wide product range:<\/strong> You can offer a vast array of products without worrying about storage or upfront costs. If something isn\u2019t selling, you can easily switch to new products.<\/li>\n\n\n\n
- Flexibility:<\/strong> You can run your dropshipping business from anywhere, as long as you have an internet connection. It\u2019s perfect for digital nomads or those who want the freedom to work from anywhere.<\/li>\n<\/ul>\n\n\n\n
Cons:<\/strong><\/h4>\n\n\n\n\n- Lower profit margins:<\/strong> Since you\u2019re buying products at retail prices, your profit margins can be thinner compared to buying in bulk from wholesalers.<\/li>\n\n\n\n
- Quality control issues:<\/strong> You have less control over product quality and shipping times, which can lead to customer dissatisfaction if the supplier doesn\u2019t meet expectations.<\/li>\n\n\n\n
- Reliance on suppliers:<\/strong> Your business relies heavily on the reliability of your suppliers. If they run out of stock or delay shipping, it directly affects your customers.<\/li>\n\n\n\n
- Customer service challenges:<\/strong> Since you\u2019re not handling the products, resolving customer service issues can be more complicated. You have to communicate with the supplier to handle returns, exchanges, or any product issues.<\/li>\n<\/ul>\n\n\n\n
White label & Private label<\/h3>\n\n\n\n<\/figure>\n\n\n\nWhite label and private label are about putting your brand on generic products.<\/p>\n\n\n\n
With white labeling, you take a product that\u2019s already being produced and add your branding to it.<\/p>\n\n\n\n
Private labeling goes a step further \u2013 you work with a manufacturer to create a product to your specifications, and then it gets branded as your own.<\/p>\n\n\n\n
Both methods allow you to sell products that look and feel unique to your brand, without having to create them from scratch.<\/p>\n\n\n\n
Where to source the products:<\/strong><\/h4>\n\n\n\n\n- Online marketplaces:<\/strong> Websites like Alibaba and Global Sources are great places to find manufacturers who offer white label and private label services.<\/li>\n\n\n\n
- Trade shows:<\/strong> Attending trade shows can help you meet manufacturers in person, see product samples, and discuss customization options.<\/li>\n\n\n\n
- Supplier directories:<\/strong> Directories like SaleHoo and ThomasNet list verified manufacturers who can create white label and private label products.<\/li>\n\n\n\n
- Industry networks:<\/strong> Networking with other business owners in your industry can lead to recommendations for reliable manufacturers.<\/li>\n<\/ul>\n\n\n\n
Pros:<\/strong><\/h4>\n\n\n\n\n- Brand identity:<\/strong> Selling products under your brand strengthens your brand identity and makes your store stand out. Customers associate the products directly with your brand.<\/li>\n\n\n\n
- Product customization:<\/strong> With private labeling, you can tweak the product to better fit your market\u2019s needs, adding features or changes that differentiate it from competitors.<\/li>\n\n\n\n
- Customer loyalty:<\/strong> Unique products that carry your brand can help build customer loyalty. When customers love your products, they\u2019re more likely to become repeat buyers.<\/li>\n\n\n\n
- Control over quality:<\/strong> You can set your quality standards and work closely with manufacturers to ensure products meet those standards, leading to higher customer satisfaction.<\/li>\n<\/ul>\n\n\n\n
Cons:<\/strong><\/h4>\n\n\n\n\n- Higher upfront costs:<\/strong> Developing and ordering customized products usually require a larger initial investment than simply buying wholesale or dropshipping.<\/li>\n\n\n\n
- Longer lead times:<\/strong> It can take time to develop and produce customized products, meaning longer lead times compared to sourcing ready-made items.<\/li>\n\n\n\n
- Minimum order quantities:<\/strong> Many manufacturers require you to order a minimum number of units, which can be risky if you\u2019re not sure how well the product will sell.<\/li>\n<\/ul>\n\n\n\n
8 Tips to Help You Source Inventory Like a Pro<\/strong><\/h2>\n\n\n\nKnowing where to find inventory is just the first step, but many resellers still find it tricky to source effectively.<\/p>\n\n\n\n
Take a look at these 8 tips to help you nail the process:<\/p>\n\n\n\n
1. Use automation software<\/h3>\n\n\n\n
Sourcing inventory online is both efficient and convenient. And that’s the very reason it is so popular as a method to obtain inventory amongst ecommerce sellers.<\/p>\n\n\n\n
You can shop for products from around the world right from the comfort of your home. Online marketplaces let you compare prices, read reviews, and place orders with just a few clicks.<\/p>\n\n\n\n
You get access to way more options than you could ever meet in person, including liquidation and wholesale companies. These offer great deals on bulk purchases, letting you snag products at rock-bottom prices.<\/p>\n\n\n\n
Plus, sourcing online is super fast – you can contact suppliers and get quotes in no time!<\/p>\n\n\n\n
Advantages<\/h4>\n\n\n\n\n- Convenient:<\/strong> Shop for products and suppliers anytime, anywhere, without leaving your house.<\/li>\n\n\n\n
- Lots of options:<\/strong> Access a diverse range of suppliers and products from all over the world.<\/li>\n\n\n\n
- Quick and easy:<\/strong> Compare prices, read reviews, and place orders with just a few clicks.<\/li>\n\n\n\n
- Fast quotes:<\/strong> Get in touch with suppliers and get quotes way quicker than setting up in-person meetings.<\/li>\n<\/ul>\n\n\n\n
Drawbacks<\/h4>\n\n\n\n\n- Quality:<\/strong> Hard to know the quality of products until they show up at your door.<\/li>\n\n\n\n
- Trust issues:<\/strong> Tricky to figure out if a supplier is reliable without meeting them in person.<\/li>\n\n\n\n
- Less personal:<\/strong> Building a strong relationship with suppliers can be tough without face-to-face interactions.<\/li>\n\n\n\n
- Scam risk:<\/strong> Higher chance of running into shady suppliers or deals.<\/li>\n<\/ul>\n\n\n\n
In-person sourcing<\/strong><\/h3>\n\n\n\nIn-person sourcing is all about visiting suppliers, checking out trade shows, local retail stores, thrift stores, or other places where you can actually touch and feel the products. This gives you a much better idea of their quality.<\/p>\n\n\n\n
Face-to-face meetings can also help you build stronger, more personal relationships with suppliers, which can lead to better deals and more reliable partnerships. You can negotiate on the spot and see the supplier\u2019s reactions.<\/p>\n\n\n\n
Advantages<\/h4>\n\n\n\n\n- Quality check:<\/strong> You can see and touch products to make sure they\u2019re up to your standards.<\/li>\n\n\n\n
- Better relationships:<\/strong> Face-to-face meetings help build stronger, more personal connections with suppliers.<\/li>\n\n\n\n
- Instant deals:<\/strong> Negotiate terms and deals on the spot and see how suppliers react.<\/li>\n\n\n\n
- Special deals:<\/strong> Get access to exclusive deals and unique products that might not be online.<\/li>\n<\/ul>\n\n\n\n
Drawbacks:<\/strong><\/h4>\n\n\n\n\n- Time-consuming:<\/strong> Takes a lot of time, especially if you have to travel.<\/li>\n\n\n\n
- Costly:<\/strong> Travel expenses and time away from your business can add up.<\/li>\n\n\n\n
- Limited options:<\/strong> You\u2019re stuck with the suppliers you can physically visit, which might mean fewer choices.<\/li>\n\n\n\n
- Less efficient:<\/strong> Finding and visiting multiple suppliers takes more effort and time compared to browsing online.<\/li>\n<\/ul>\n\n\n\n
Why not both?<\/h3>\n\n\n\n
Not sure which sourcing method is the right one for you? Not to worry!<\/p>\n\n\n\n
A lot of successful resellers mix both methods. They start with online research to find potential suppliers and then set up in-person meetings to seal the deal and check out the products. This way, they get the convenience and variety of online sourcing plus the trust and quality assurance of in-person interactions.<\/p>\n\n\n\n
Different Ways to Source Inventory<\/strong><\/h2>\n\n\n\nWhether you decide to source inventory online or in person, there are several methods you can use:<\/p>\n\n\n\n
Retail arbitrage<\/h3>\n\n\n\n<\/figure>\n\n\n\nRetail arbitrage is when you buy products from retail stores at a low price and then sell them at a higher price to make a profit.<\/p>\n\n\n\n
You basically find those awesome clearance items, discounts, or limited-time sales, purchase them, and then resell them for more than what you paid. It\u2019s a popular strategy among resellers because it can be very profitable if you know what to look for and where to find it.<\/p>\n\n\n\n
Where to source the products:<\/strong><\/h4>\n\n\n\n\n- Big box stores:<\/strong> Places like Walmart, Target, and Costco are goldmines for retail arbitrage. They often have clearance sections and seasonal sales where you can score products at a fraction of the original price.<\/li>\n\n\n\n
- Discount stores:<\/strong> Stores like TJ Maxx, Marshalls, and Ross carry brand-name items at lower prices. You can find everything from clothing to home goods.<\/li>\n\n\n\n
- Thrift stores:<\/strong> Goodwill, Salvation Army, or any local thrift store can be great for finding unique items, especially vintage or hard-to-find products.<\/li>\n\n\n\n
- Outlet stores:<\/strong> Brand-specific outlet stores often have sales and discounts on overstocked or out-of-season items.<\/li>\n\n\n\n
- Online retailers:<\/strong> Don\u2019t forget about online shopping. Websites like eBay, Amazon, and any other online marketplace sometimes offer great deals you can capitalize on.<\/li>\n<\/ul>\n\n\n\n
BONUS: <\/strong>Don’t forget Facebook Marketplace! Thousands of Facebook groups are ideal for online sourcing.<\/p>\n\n\n\nPros:<\/strong><\/h4>\n\n\n\n\n- Low startup costs:<\/strong> You don\u2019t need a lot of money to get started. You can begin with just a few items and reinvest your profits.<\/li>\n\n\n\n
- Quick turnaround:<\/strong> You can often sell products quickly, especially if you find items that are in high demand.<\/li>\n\n\n\n
- Flexibility:<\/strong> You can do this on your own schedule, whether it\u2019s a side hustle or your main gig.<\/li>\n\n\n\n
- No need for a supplier:<\/strong> Since you\u2019re buying directly from retail stores, you don\u2019t have to deal with suppliers or manufacturers.<\/li>\n<\/ul>\n\n\n\n
Cons:<\/strong><\/h4>\n\n\n\n\n- Time-consuming:<\/strong> It takes time to hunt for the best deals and check multiple stores or websites.<\/li>\n\n\n\n
- Inconsistent inventory:<\/strong> You might not always find products at a price that allows for a good profit margin. It can be hit or miss.<\/li>\n\n\n\n
- Competition:<\/strong> Lots of people are doing this, so you might face stiff competition, especially on popular platforms like Amazon.<\/li>\n\n\n\n
- Platform fees:<\/strong> Selling on platforms like Depop, Poshmark, or eBay comes with fees, which can eat into your profits.<\/li>\n\n\n\n
- Market fluctuations:<\/strong> Prices and demand can change quickly, so what\u2019s hot today might not be tomorrow.<\/li>\n<\/ul>\n\n\n\n
Liquidation and wholesale companies<\/h3>\n\n\n\n<\/figure>\n\n\n\nLiquidation and wholesale companies sell products in bulk at super low prices, usually because the items are overstocked, returned, or the company is closing out.<\/p>\n\n\n\n
Liquidation companies specialize in selling these goods off quickly, often at a fraction of the retail price.<\/p>\n\n\n\n
Wholesale companies, on the other hand, buy products in bulk from manufacturers and sell them to retailers or resellers at a lower cost per unit than what you\u2019d pay at retail.<\/p>\n\n\n\n
Where to source the products:<\/strong><\/h4>\n\n\n\n\n- Online liquidation marketplaces:<\/strong> Websites like Liquidation.com, B-Stock, and Direct Liquidation offer a wide variety of products from electronics to apparel, all available for bidding or purchase.<\/li>\n\n\n\n
- Wholesale marketplaces:<\/strong> Platforms like Alibaba, SaleHoo, and Global Sources connect you with manufacturers and wholesalers around the world. You can buy anything from gadgets to home goods.<\/li>\n\n\n\n
- Warehouse sales:<\/strong> Sometimes companies will have physical warehouse sales where they clear out inventory at steep discounts.<\/li>\n\n\n\n
- Local liquidators:<\/strong> Check out local liquidation warehouses in your area. They often have sales that aren\u2019t advertised online.<\/li>\n\n\n\n
- Trade shows:<\/strong> These events can be a great way to meet wholesalers and liquidation companies, see products in person, and negotiate deals.<\/li>\n<\/ul>\n\n\n\n
Pros:<\/strong><\/h4>\n\n\n\n\n- Lower costs:<\/strong> Buying in bulk from these companies means you get products at a much lower price per unit, which can significantly boost your profit margins.<\/li>\n\n\n\n
- Variety:<\/strong> There\u2019s a huge range of products available, so you can diversify your inventory without breaking the bank.<\/li>\n\n\n\n
- High inventory levels:<\/strong> You can purchase large quantities, ensuring you have enough stock to meet customer demand.<\/li>\n\n\n\n
- Potential for high profits:<\/strong> With the low purchase prices, even modest sales prices can yield significant profits.<\/li>\n<\/ul>\n\n\n\n
Cons:<\/strong><\/h4>\n\n\n\n\n- Upfront investment:<\/strong> You usually need more money upfront to buy in bulk, which can be a barrier if you\u2019re just starting out.<\/li>\n\n\n\n
- Storage needs:<\/strong> Buying in bulk means you need space to store your inventory, which can be an issue if you don\u2019t have a lot of storage room.<\/li>\n\n\n\n
- Quality variability:<\/strong> With liquidation goods, the quality can sometimes be inconsistent, especially with returned or overstock items.<\/li>\n\n\n\n
- Risk of unsellable items:<\/strong> There\u2019s always a risk that some items won\u2019t sell, which means you could end up with dead stock.<\/li>\n<\/ul>\n\n\n\n
Dropshipping<\/h3>\n\n\n\n
Dropshipping is like running a store without ever having to stock any products yourself.<\/p>\n\n\n\n
Here\u2019s how it works: You set up an online store and list products for sale. When a customer makes a purchase, you buy the product from a third-party supplier, who then ships it directly to the customer.<\/p>\n\n\n\n
You never have to handle the product. Your profit comes from the difference between what you charge the customer and what you pay the supplier. It’s a popular model because it\u2019s low-risk and low-investment.<\/p>\n\n\n\n
Where to source the products:<\/strong><\/h4>\n\n\n\n\n- Online marketplaces:<\/strong> Websites like AliExpress, Oberlo, and Spocket are go-to sources for finding dropshipping suppliers. They offer a wide variety of products at different price points.<\/li>\n\n\n\n
- Dropshipping platforms:<\/strong> Platforms like Shopify and WooCommerce have integrations with dropshipping services, making it easy to add products to your store.<\/li>\n\n\n\n
- Supplier directories:<\/strong> Directories like SaleHoo and Worldwide Brands list verified dropshipping suppliers across various industries.<\/li>\n\n\n\n
- Niche suppliers:<\/strong> Sometimes, finding specialized dropshipping suppliers in your niche can offer unique products that aren\u2019t widely available, giving you an edge.<\/li>\n<\/ul>\n\n\n\n
Pros:<\/strong><\/h4>\n\n\n\n\n- Low startup costs:<\/strong> You don\u2019t need to invest heavily in inventory upfront. You only purchase products after a customer orders them.<\/li>\n\n\n\n
- No inventory management:<\/strong> Since you don\u2019t stock products, you don\u2019t have to worry about storage space or managing inventory.<\/li>\n\n\n\n
- Wide product range:<\/strong> You can offer a vast array of products without worrying about storage or upfront costs. If something isn\u2019t selling, you can easily switch to new products.<\/li>\n\n\n\n
- Flexibility:<\/strong> You can run your dropshipping business from anywhere, as long as you have an internet connection. It\u2019s perfect for digital nomads or those who want the freedom to work from anywhere.<\/li>\n<\/ul>\n\n\n\n
Cons:<\/strong><\/h4>\n\n\n\n\n- Lower profit margins:<\/strong> Since you\u2019re buying products at retail prices, your profit margins can be thinner compared to buying in bulk from wholesalers.<\/li>\n\n\n\n
- Quality control issues:<\/strong> You have less control over product quality and shipping times, which can lead to customer dissatisfaction if the supplier doesn\u2019t meet expectations.<\/li>\n\n\n\n
- Reliance on suppliers:<\/strong> Your business relies heavily on the reliability of your suppliers. If they run out of stock or delay shipping, it directly affects your customers.<\/li>\n\n\n\n
- Customer service challenges:<\/strong> Since you\u2019re not handling the products, resolving customer service issues can be more complicated. You have to communicate with the supplier to handle returns, exchanges, or any product issues.<\/li>\n<\/ul>\n\n\n\n
White label & Private label<\/h3>\n\n\n\n<\/figure>\n\n\n\nWhite label and private label are about putting your brand on generic products.<\/p>\n\n\n\n
With white labeling, you take a product that\u2019s already being produced and add your branding to it.<\/p>\n\n\n\n
Private labeling goes a step further \u2013 you work with a manufacturer to create a product to your specifications, and then it gets branded as your own.<\/p>\n\n\n\n
Both methods allow you to sell products that look and feel unique to your brand, without having to create them from scratch.<\/p>\n\n\n\n
Where to source the products:<\/strong><\/h4>\n\n\n\n\n- Online marketplaces:<\/strong> Websites like Alibaba and Global Sources are great places to find manufacturers who offer white label and private label services.<\/li>\n\n\n\n
- Trade shows:<\/strong> Attending trade shows can help you meet manufacturers in person, see product samples, and discuss customization options.<\/li>\n\n\n\n
- Supplier directories:<\/strong> Directories like SaleHoo and ThomasNet list verified manufacturers who can create white label and private label products.<\/li>\n\n\n\n
- Industry networks:<\/strong> Networking with other business owners in your industry can lead to recommendations for reliable manufacturers.<\/li>\n<\/ul>\n\n\n\n
Pros:<\/strong><\/h4>\n\n\n\n\n- Brand identity:<\/strong> Selling products under your brand strengthens your brand identity and makes your store stand out. Customers associate the products directly with your brand.<\/li>\n\n\n\n
- Product customization:<\/strong> With private labeling, you can tweak the product to better fit your market\u2019s needs, adding features or changes that differentiate it from competitors.<\/li>\n\n\n\n
- Customer loyalty:<\/strong> Unique products that carry your brand can help build customer loyalty. When customers love your products, they\u2019re more likely to become repeat buyers.<\/li>\n\n\n\n
- Control over quality:<\/strong> You can set your quality standards and work closely with manufacturers to ensure products meet those standards, leading to higher customer satisfaction.<\/li>\n<\/ul>\n\n\n\n
Cons:<\/strong><\/h4>\n\n\n\n\n- Higher upfront costs:<\/strong> Developing and ordering customized products usually require a larger initial investment than simply buying wholesale or dropshipping.<\/li>\n\n\n\n
- Longer lead times:<\/strong> It can take time to develop and produce customized products, meaning longer lead times compared to sourcing ready-made items.<\/li>\n\n\n\n
- Minimum order quantities:<\/strong> Many manufacturers require you to order a minimum number of units, which can be risky if you\u2019re not sure how well the product will sell.<\/li>\n<\/ul>\n\n\n\n
8 Tips to Help You Source Inventory Like a Pro<\/strong><\/h2>\n\n\n\nKnowing where to find inventory is just the first step, but many resellers still find it tricky to source effectively.<\/p>\n\n\n\n
Take a look at these 8 tips to help you nail the process:<\/p>\n\n\n\n
1. Use automation software<\/h3>\n\n\n\n
Drawbacks<\/h4>\n\n\n\n\n- Quality:<\/strong> Hard to know the quality of products until they show up at your door.<\/li>\n\n\n\n
- Trust issues:<\/strong> Tricky to figure out if a supplier is reliable without meeting them in person.<\/li>\n\n\n\n
- Less personal:<\/strong> Building a strong relationship with suppliers can be tough without face-to-face interactions.<\/li>\n\n\n\n
- Scam risk:<\/strong> Higher chance of running into shady suppliers or deals.<\/li>\n<\/ul>\n\n\n\n
In-person sourcing<\/strong><\/h3>\n\n\n\nIn-person sourcing is all about visiting suppliers, checking out trade shows, local retail stores, thrift stores, or other places where you can actually touch and feel the products. This gives you a much better idea of their quality.<\/p>\n\n\n\n
Face-to-face meetings can also help you build stronger, more personal relationships with suppliers, which can lead to better deals and more reliable partnerships. You can negotiate on the spot and see the supplier\u2019s reactions.<\/p>\n\n\n\n
Advantages<\/h4>\n\n\n\n\n- Quality check:<\/strong> You can see and touch products to make sure they\u2019re up to your standards.<\/li>\n\n\n\n
- Better relationships:<\/strong> Face-to-face meetings help build stronger, more personal connections with suppliers.<\/li>\n\n\n\n
- Instant deals:<\/strong> Negotiate terms and deals on the spot and see how suppliers react.<\/li>\n\n\n\n
- Special deals:<\/strong> Get access to exclusive deals and unique products that might not be online.<\/li>\n<\/ul>\n\n\n\n
Drawbacks:<\/strong><\/h4>\n\n\n\n\n- Time-consuming:<\/strong> Takes a lot of time, especially if you have to travel.<\/li>\n\n\n\n
- Costly:<\/strong> Travel expenses and time away from your business can add up.<\/li>\n\n\n\n
- Limited options:<\/strong> You\u2019re stuck with the suppliers you can physically visit, which might mean fewer choices.<\/li>\n\n\n\n
- Less efficient:<\/strong> Finding and visiting multiple suppliers takes more effort and time compared to browsing online.<\/li>\n<\/ul>\n\n\n\n
Why not both?<\/h3>\n\n\n\n
Not sure which sourcing method is the right one for you? Not to worry!<\/p>\n\n\n\n
A lot of successful resellers mix both methods. They start with online research to find potential suppliers and then set up in-person meetings to seal the deal and check out the products. This way, they get the convenience and variety of online sourcing plus the trust and quality assurance of in-person interactions.<\/p>\n\n\n\n
Different Ways to Source Inventory<\/strong><\/h2>\n\n\n\nWhether you decide to source inventory online or in person, there are several methods you can use:<\/p>\n\n\n\n
Retail arbitrage<\/h3>\n\n\n\n<\/figure>\n\n\n\nRetail arbitrage is when you buy products from retail stores at a low price and then sell them at a higher price to make a profit.<\/p>\n\n\n\n
You basically find those awesome clearance items, discounts, or limited-time sales, purchase them, and then resell them for more than what you paid. It\u2019s a popular strategy among resellers because it can be very profitable if you know what to look for and where to find it.<\/p>\n\n\n\n
Where to source the products:<\/strong><\/h4>\n\n\n\n\n- Big box stores:<\/strong> Places like Walmart, Target, and Costco are goldmines for retail arbitrage. They often have clearance sections and seasonal sales where you can score products at a fraction of the original price.<\/li>\n\n\n\n
- Discount stores:<\/strong> Stores like TJ Maxx, Marshalls, and Ross carry brand-name items at lower prices. You can find everything from clothing to home goods.<\/li>\n\n\n\n
- Thrift stores:<\/strong> Goodwill, Salvation Army, or any local thrift store can be great for finding unique items, especially vintage or hard-to-find products.<\/li>\n\n\n\n
- Outlet stores:<\/strong> Brand-specific outlet stores often have sales and discounts on overstocked or out-of-season items.<\/li>\n\n\n\n
- Online retailers:<\/strong> Don\u2019t forget about online shopping. Websites like eBay, Amazon, and any other online marketplace sometimes offer great deals you can capitalize on.<\/li>\n<\/ul>\n\n\n\n
BONUS: <\/strong>Don’t forget Facebook Marketplace! Thousands of Facebook groups are ideal for online sourcing.<\/p>\n\n\n\nPros:<\/strong><\/h4>\n\n\n\n\n- Low startup costs:<\/strong> You don\u2019t need a lot of money to get started. You can begin with just a few items and reinvest your profits.<\/li>\n\n\n\n
- Quick turnaround:<\/strong> You can often sell products quickly, especially if you find items that are in high demand.<\/li>\n\n\n\n
- Flexibility:<\/strong> You can do this on your own schedule, whether it\u2019s a side hustle or your main gig.<\/li>\n\n\n\n
- No need for a supplier:<\/strong> Since you\u2019re buying directly from retail stores, you don\u2019t have to deal with suppliers or manufacturers.<\/li>\n<\/ul>\n\n\n\n
Cons:<\/strong><\/h4>\n\n\n\n\n- Time-consuming:<\/strong> It takes time to hunt for the best deals and check multiple stores or websites.<\/li>\n\n\n\n
- Inconsistent inventory:<\/strong> You might not always find products at a price that allows for a good profit margin. It can be hit or miss.<\/li>\n\n\n\n
- Competition:<\/strong> Lots of people are doing this, so you might face stiff competition, especially on popular platforms like Amazon.<\/li>\n\n\n\n
- Platform fees:<\/strong> Selling on platforms like Depop, Poshmark, or eBay comes with fees, which can eat into your profits.<\/li>\n\n\n\n
- Market fluctuations:<\/strong> Prices and demand can change quickly, so what\u2019s hot today might not be tomorrow.<\/li>\n<\/ul>\n\n\n\n
Liquidation and wholesale companies<\/h3>\n\n\n\n<\/figure>\n\n\n\nLiquidation and wholesale companies sell products in bulk at super low prices, usually because the items are overstocked, returned, or the company is closing out.<\/p>\n\n\n\n
Liquidation companies specialize in selling these goods off quickly, often at a fraction of the retail price.<\/p>\n\n\n\n
Wholesale companies, on the other hand, buy products in bulk from manufacturers and sell them to retailers or resellers at a lower cost per unit than what you\u2019d pay at retail.<\/p>\n\n\n\n
Where to source the products:<\/strong><\/h4>\n\n\n\n\n- Online liquidation marketplaces:<\/strong> Websites like Liquidation.com, B-Stock, and Direct Liquidation offer a wide variety of products from electronics to apparel, all available for bidding or purchase.<\/li>\n\n\n\n
- Wholesale marketplaces:<\/strong> Platforms like Alibaba, SaleHoo, and Global Sources connect you with manufacturers and wholesalers around the world. You can buy anything from gadgets to home goods.<\/li>\n\n\n\n
- Warehouse sales:<\/strong> Sometimes companies will have physical warehouse sales where they clear out inventory at steep discounts.<\/li>\n\n\n\n
- Local liquidators:<\/strong> Check out local liquidation warehouses in your area. They often have sales that aren\u2019t advertised online.<\/li>\n\n\n\n
- Trade shows:<\/strong> These events can be a great way to meet wholesalers and liquidation companies, see products in person, and negotiate deals.<\/li>\n<\/ul>\n\n\n\n
Pros:<\/strong><\/h4>\n\n\n\n\n- Lower costs:<\/strong> Buying in bulk from these companies means you get products at a much lower price per unit, which can significantly boost your profit margins.<\/li>\n\n\n\n
- Variety:<\/strong> There\u2019s a huge range of products available, so you can diversify your inventory without breaking the bank.<\/li>\n\n\n\n
- High inventory levels:<\/strong> You can purchase large quantities, ensuring you have enough stock to meet customer demand.<\/li>\n\n\n\n
- Potential for high profits:<\/strong> With the low purchase prices, even modest sales prices can yield significant profits.<\/li>\n<\/ul>\n\n\n\n
Cons:<\/strong><\/h4>\n\n\n\n\n- Upfront investment:<\/strong> You usually need more money upfront to buy in bulk, which can be a barrier if you\u2019re just starting out.<\/li>\n\n\n\n
- Storage needs:<\/strong> Buying in bulk means you need space to store your inventory, which can be an issue if you don\u2019t have a lot of storage room.<\/li>\n\n\n\n
- Quality variability:<\/strong> With liquidation goods, the quality can sometimes be inconsistent, especially with returned or overstock items.<\/li>\n\n\n\n
- Risk of unsellable items:<\/strong> There\u2019s always a risk that some items won\u2019t sell, which means you could end up with dead stock.<\/li>\n<\/ul>\n\n\n\n
Dropshipping<\/h3>\n\n\n\n
Dropshipping is like running a store without ever having to stock any products yourself.<\/p>\n\n\n\n
Here\u2019s how it works: You set up an online store and list products for sale. When a customer makes a purchase, you buy the product from a third-party supplier, who then ships it directly to the customer.<\/p>\n\n\n\n
You never have to handle the product. Your profit comes from the difference between what you charge the customer and what you pay the supplier. It’s a popular model because it\u2019s low-risk and low-investment.<\/p>\n\n\n\n
Where to source the products:<\/strong><\/h4>\n\n\n\n\n- Online marketplaces:<\/strong> Websites like AliExpress, Oberlo, and Spocket are go-to sources for finding dropshipping suppliers. They offer a wide variety of products at different price points.<\/li>\n\n\n\n
- Dropshipping platforms:<\/strong> Platforms like Shopify and WooCommerce have integrations with dropshipping services, making it easy to add products to your store.<\/li>\n\n\n\n
- Supplier directories:<\/strong> Directories like SaleHoo and Worldwide Brands list verified dropshipping suppliers across various industries.<\/li>\n\n\n\n
- Niche suppliers:<\/strong> Sometimes, finding specialized dropshipping suppliers in your niche can offer unique products that aren\u2019t widely available, giving you an edge.<\/li>\n<\/ul>\n\n\n\n
Pros:<\/strong><\/h4>\n\n\n\n\n- Low startup costs:<\/strong> You don\u2019t need to invest heavily in inventory upfront. You only purchase products after a customer orders them.<\/li>\n\n\n\n
- No inventory management:<\/strong> Since you don\u2019t stock products, you don\u2019t have to worry about storage space or managing inventory.<\/li>\n\n\n\n
- Wide product range:<\/strong> You can offer a vast array of products without worrying about storage or upfront costs. If something isn\u2019t selling, you can easily switch to new products.<\/li>\n\n\n\n
- Flexibility:<\/strong> You can run your dropshipping business from anywhere, as long as you have an internet connection. It\u2019s perfect for digital nomads or those who want the freedom to work from anywhere.<\/li>\n<\/ul>\n\n\n\n
Cons:<\/strong><\/h4>\n\n\n\n\n- Lower profit margins:<\/strong> Since you\u2019re buying products at retail prices, your profit margins can be thinner compared to buying in bulk from wholesalers.<\/li>\n\n\n\n
- Quality control issues:<\/strong> You have less control over product quality and shipping times, which can lead to customer dissatisfaction if the supplier doesn\u2019t meet expectations.<\/li>\n\n\n\n
- Reliance on suppliers:<\/strong> Your business relies heavily on the reliability of your suppliers. If they run out of stock or delay shipping, it directly affects your customers.<\/li>\n\n\n\n
- Customer service challenges:<\/strong> Since you\u2019re not handling the products, resolving customer service issues can be more complicated. You have to communicate with the supplier to handle returns, exchanges, or any product issues.<\/li>\n<\/ul>\n\n\n\n
White label & Private label<\/h3>\n\n\n\n<\/figure>\n\n\n\nWhite label and private label are about putting your brand on generic products.<\/p>\n\n\n\n
With white labeling, you take a product that\u2019s already being produced and add your branding to it.<\/p>\n\n\n\n
Private labeling goes a step further \u2013 you work with a manufacturer to create a product to your specifications, and then it gets branded as your own.<\/p>\n\n\n\n
Both methods allow you to sell products that look and feel unique to your brand, without having to create them from scratch.<\/p>\n\n\n\n
Where to source the products:<\/strong><\/h4>\n\n\n\n\n- Online marketplaces:<\/strong> Websites like Alibaba and Global Sources are great places to find manufacturers who offer white label and private label services.<\/li>\n\n\n\n
- Trade shows:<\/strong> Attending trade shows can help you meet manufacturers in person, see product samples, and discuss customization options.<\/li>\n\n\n\n
- Supplier directories:<\/strong> Directories like SaleHoo and ThomasNet list verified manufacturers who can create white label and private label products.<\/li>\n\n\n\n
- Industry networks:<\/strong> Networking with other business owners in your industry can lead to recommendations for reliable manufacturers.<\/li>\n<\/ul>\n\n\n\n
Pros:<\/strong><\/h4>\n\n\n\n\n- Brand identity:<\/strong> Selling products under your brand strengthens your brand identity and makes your store stand out. Customers associate the products directly with your brand.<\/li>\n\n\n\n
- Product customization:<\/strong> With private labeling, you can tweak the product to better fit your market\u2019s needs, adding features or changes that differentiate it from competitors.<\/li>\n\n\n\n
- Customer loyalty:<\/strong> Unique products that carry your brand can help build customer loyalty. When customers love your products, they\u2019re more likely to become repeat buyers.<\/li>\n\n\n\n
- Control over quality:<\/strong> You can set your quality standards and work closely with manufacturers to ensure products meet those standards, leading to higher customer satisfaction.<\/li>\n<\/ul>\n\n\n\n
Cons:<\/strong><\/h4>\n\n\n\n\n- Higher upfront costs:<\/strong> Developing and ordering customized products usually require a larger initial investment than simply buying wholesale or dropshipping.<\/li>\n\n\n\n
- Longer lead times:<\/strong> It can take time to develop and produce customized products, meaning longer lead times compared to sourcing ready-made items.<\/li>\n\n\n\n
- Minimum order quantities:<\/strong> Many manufacturers require you to order a minimum number of units, which can be risky if you\u2019re not sure how well the product will sell.<\/li>\n<\/ul>\n\n\n\n
8 Tips to Help You Source Inventory Like a Pro<\/strong><\/h2>\n\n\n\nKnowing where to find inventory is just the first step, but many resellers still find it tricky to source effectively.<\/p>\n\n\n\n
Take a look at these 8 tips to help you nail the process:<\/p>\n\n\n\n
1. Use automation software<\/h3>\n\n\n\n
In-person sourcing<\/strong><\/h3>\n\n\n\nIn-person sourcing is all about visiting suppliers, checking out trade shows, local retail stores, thrift stores, or other places where you can actually touch and feel the products. This gives you a much better idea of their quality.<\/p>\n\n\n\n
Face-to-face meetings can also help you build stronger, more personal relationships with suppliers, which can lead to better deals and more reliable partnerships. You can negotiate on the spot and see the supplier\u2019s reactions.<\/p>\n\n\n\n
Advantages<\/h4>\n\n\n\n\n- Quality check:<\/strong> You can see and touch products to make sure they\u2019re up to your standards.<\/li>\n\n\n\n
- Better relationships:<\/strong> Face-to-face meetings help build stronger, more personal connections with suppliers.<\/li>\n\n\n\n
- Instant deals:<\/strong> Negotiate terms and deals on the spot and see how suppliers react.<\/li>\n\n\n\n
- Special deals:<\/strong> Get access to exclusive deals and unique products that might not be online.<\/li>\n<\/ul>\n\n\n\n
Drawbacks:<\/strong><\/h4>\n\n\n\n\n- Time-consuming:<\/strong> Takes a lot of time, especially if you have to travel.<\/li>\n\n\n\n
- Costly:<\/strong> Travel expenses and time away from your business can add up.<\/li>\n\n\n\n
- Limited options:<\/strong> You\u2019re stuck with the suppliers you can physically visit, which might mean fewer choices.<\/li>\n\n\n\n
- Less efficient:<\/strong> Finding and visiting multiple suppliers takes more effort and time compared to browsing online.<\/li>\n<\/ul>\n\n\n\n
Why not both?<\/h3>\n\n\n\n
Not sure which sourcing method is the right one for you? Not to worry!<\/p>\n\n\n\n
A lot of successful resellers mix both methods. They start with online research to find potential suppliers and then set up in-person meetings to seal the deal and check out the products. This way, they get the convenience and variety of online sourcing plus the trust and quality assurance of in-person interactions.<\/p>\n\n\n\n
Different Ways to Source Inventory<\/strong><\/h2>\n\n\n\nWhether you decide to source inventory online or in person, there are several methods you can use:<\/p>\n\n\n\n
Retail arbitrage<\/h3>\n\n\n\n<\/figure>\n\n\n\nRetail arbitrage is when you buy products from retail stores at a low price and then sell them at a higher price to make a profit.<\/p>\n\n\n\n
You basically find those awesome clearance items, discounts, or limited-time sales, purchase them, and then resell them for more than what you paid. It\u2019s a popular strategy among resellers because it can be very profitable if you know what to look for and where to find it.<\/p>\n\n\n\n
Where to source the products:<\/strong><\/h4>\n\n\n\n\n- Big box stores:<\/strong> Places like Walmart, Target, and Costco are goldmines for retail arbitrage. They often have clearance sections and seasonal sales where you can score products at a fraction of the original price.<\/li>\n\n\n\n
- Discount stores:<\/strong> Stores like TJ Maxx, Marshalls, and Ross carry brand-name items at lower prices. You can find everything from clothing to home goods.<\/li>\n\n\n\n
- Thrift stores:<\/strong> Goodwill, Salvation Army, or any local thrift store can be great for finding unique items, especially vintage or hard-to-find products.<\/li>\n\n\n\n
- Outlet stores:<\/strong> Brand-specific outlet stores often have sales and discounts on overstocked or out-of-season items.<\/li>\n\n\n\n
- Online retailers:<\/strong> Don\u2019t forget about online shopping. Websites like eBay, Amazon, and any other online marketplace sometimes offer great deals you can capitalize on.<\/li>\n<\/ul>\n\n\n\n
BONUS: <\/strong>Don’t forget Facebook Marketplace! Thousands of Facebook groups are ideal for online sourcing.<\/p>\n\n\n\nPros:<\/strong><\/h4>\n\n\n\n\n- Low startup costs:<\/strong> You don\u2019t need a lot of money to get started. You can begin with just a few items and reinvest your profits.<\/li>\n\n\n\n
- Quick turnaround:<\/strong> You can often sell products quickly, especially if you find items that are in high demand.<\/li>\n\n\n\n
- Flexibility:<\/strong> You can do this on your own schedule, whether it\u2019s a side hustle or your main gig.<\/li>\n\n\n\n
- No need for a supplier:<\/strong> Since you\u2019re buying directly from retail stores, you don\u2019t have to deal with suppliers or manufacturers.<\/li>\n<\/ul>\n\n\n\n
Cons:<\/strong><\/h4>\n\n\n\n\n- Time-consuming:<\/strong> It takes time to hunt for the best deals and check multiple stores or websites.<\/li>\n\n\n\n
- Inconsistent inventory:<\/strong> You might not always find products at a price that allows for a good profit margin. It can be hit or miss.<\/li>\n\n\n\n
- Competition:<\/strong> Lots of people are doing this, so you might face stiff competition, especially on popular platforms like Amazon.<\/li>\n\n\n\n
- Platform fees:<\/strong> Selling on platforms like Depop, Poshmark, or eBay comes with fees, which can eat into your profits.<\/li>\n\n\n\n
- Market fluctuations:<\/strong> Prices and demand can change quickly, so what\u2019s hot today might not be tomorrow.<\/li>\n<\/ul>\n\n\n\n
Liquidation and wholesale companies<\/h3>\n\n\n\n<\/figure>\n\n\n\nLiquidation and wholesale companies sell products in bulk at super low prices, usually because the items are overstocked, returned, or the company is closing out.<\/p>\n\n\n\n
Liquidation companies specialize in selling these goods off quickly, often at a fraction of the retail price.<\/p>\n\n\n\n
Wholesale companies, on the other hand, buy products in bulk from manufacturers and sell them to retailers or resellers at a lower cost per unit than what you\u2019d pay at retail.<\/p>\n\n\n\n
Where to source the products:<\/strong><\/h4>\n\n\n\n\n- Online liquidation marketplaces:<\/strong> Websites like Liquidation.com, B-Stock, and Direct Liquidation offer a wide variety of products from electronics to apparel, all available for bidding or purchase.<\/li>\n\n\n\n
- Wholesale marketplaces:<\/strong> Platforms like Alibaba, SaleHoo, and Global Sources connect you with manufacturers and wholesalers around the world. You can buy anything from gadgets to home goods.<\/li>\n\n\n\n
- Warehouse sales:<\/strong> Sometimes companies will have physical warehouse sales where they clear out inventory at steep discounts.<\/li>\n\n\n\n
- Local liquidators:<\/strong> Check out local liquidation warehouses in your area. They often have sales that aren\u2019t advertised online.<\/li>\n\n\n\n
- Trade shows:<\/strong> These events can be a great way to meet wholesalers and liquidation companies, see products in person, and negotiate deals.<\/li>\n<\/ul>\n\n\n\n
Pros:<\/strong><\/h4>\n\n\n\n\n- Lower costs:<\/strong> Buying in bulk from these companies means you get products at a much lower price per unit, which can significantly boost your profit margins.<\/li>\n\n\n\n
- Variety:<\/strong> There\u2019s a huge range of products available, so you can diversify your inventory without breaking the bank.<\/li>\n\n\n\n
- High inventory levels:<\/strong> You can purchase large quantities, ensuring you have enough stock to meet customer demand.<\/li>\n\n\n\n
- Potential for high profits:<\/strong> With the low purchase prices, even modest sales prices can yield significant profits.<\/li>\n<\/ul>\n\n\n\n
Cons:<\/strong><\/h4>\n\n\n\n\n- Upfront investment:<\/strong> You usually need more money upfront to buy in bulk, which can be a barrier if you\u2019re just starting out.<\/li>\n\n\n\n
- Storage needs:<\/strong> Buying in bulk means you need space to store your inventory, which can be an issue if you don\u2019t have a lot of storage room.<\/li>\n\n\n\n
- Quality variability:<\/strong> With liquidation goods, the quality can sometimes be inconsistent, especially with returned or overstock items.<\/li>\n\n\n\n
- Risk of unsellable items:<\/strong> There\u2019s always a risk that some items won\u2019t sell, which means you could end up with dead stock.<\/li>\n<\/ul>\n\n\n\n
Dropshipping<\/h3>\n\n\n\n
Dropshipping is like running a store without ever having to stock any products yourself.<\/p>\n\n\n\n
Here\u2019s how it works: You set up an online store and list products for sale. When a customer makes a purchase, you buy the product from a third-party supplier, who then ships it directly to the customer.<\/p>\n\n\n\n
You never have to handle the product. Your profit comes from the difference between what you charge the customer and what you pay the supplier. It’s a popular model because it\u2019s low-risk and low-investment.<\/p>\n\n\n\n
Where to source the products:<\/strong><\/h4>\n\n\n\n\n- Online marketplaces:<\/strong> Websites like AliExpress, Oberlo, and Spocket are go-to sources for finding dropshipping suppliers. They offer a wide variety of products at different price points.<\/li>\n\n\n\n
- Dropshipping platforms:<\/strong> Platforms like Shopify and WooCommerce have integrations with dropshipping services, making it easy to add products to your store.<\/li>\n\n\n\n
- Supplier directories:<\/strong> Directories like SaleHoo and Worldwide Brands list verified dropshipping suppliers across various industries.<\/li>\n\n\n\n
- Niche suppliers:<\/strong> Sometimes, finding specialized dropshipping suppliers in your niche can offer unique products that aren\u2019t widely available, giving you an edge.<\/li>\n<\/ul>\n\n\n\n
Pros:<\/strong><\/h4>\n\n\n\n\n- Low startup costs:<\/strong> You don\u2019t need to invest heavily in inventory upfront. You only purchase products after a customer orders them.<\/li>\n\n\n\n
- No inventory management:<\/strong> Since you don\u2019t stock products, you don\u2019t have to worry about storage space or managing inventory.<\/li>\n\n\n\n
- Wide product range:<\/strong> You can offer a vast array of products without worrying about storage or upfront costs. If something isn\u2019t selling, you can easily switch to new products.<\/li>\n\n\n\n
- Flexibility:<\/strong> You can run your dropshipping business from anywhere, as long as you have an internet connection. It\u2019s perfect for digital nomads or those who want the freedom to work from anywhere.<\/li>\n<\/ul>\n\n\n\n
Cons:<\/strong><\/h4>\n\n\n\n\n- Lower profit margins:<\/strong> Since you\u2019re buying products at retail prices, your profit margins can be thinner compared to buying in bulk from wholesalers.<\/li>\n\n\n\n
- Quality control issues:<\/strong> You have less control over product quality and shipping times, which can lead to customer dissatisfaction if the supplier doesn\u2019t meet expectations.<\/li>\n\n\n\n
- Reliance on suppliers:<\/strong> Your business relies heavily on the reliability of your suppliers. If they run out of stock or delay shipping, it directly affects your customers.<\/li>\n\n\n\n
- Customer service challenges:<\/strong> Since you\u2019re not handling the products, resolving customer service issues can be more complicated. You have to communicate with the supplier to handle returns, exchanges, or any product issues.<\/li>\n<\/ul>\n\n\n\n
White label & Private label<\/h3>\n\n\n\n<\/figure>\n\n\n\nWhite label and private label are about putting your brand on generic products.<\/p>\n\n\n\n
With white labeling, you take a product that\u2019s already being produced and add your branding to it.<\/p>\n\n\n\n
Private labeling goes a step further \u2013 you work with a manufacturer to create a product to your specifications, and then it gets branded as your own.<\/p>\n\n\n\n
Both methods allow you to sell products that look and feel unique to your brand, without having to create them from scratch.<\/p>\n\n\n\n
Where to source the products:<\/strong><\/h4>\n\n\n\n\n- Online marketplaces:<\/strong> Websites like Alibaba and Global Sources are great places to find manufacturers who offer white label and private label services.<\/li>\n\n\n\n
- Trade shows:<\/strong> Attending trade shows can help you meet manufacturers in person, see product samples, and discuss customization options.<\/li>\n\n\n\n
- Supplier directories:<\/strong> Directories like SaleHoo and ThomasNet list verified manufacturers who can create white label and private label products.<\/li>\n\n\n\n
- Industry networks:<\/strong> Networking with other business owners in your industry can lead to recommendations for reliable manufacturers.<\/li>\n<\/ul>\n\n\n\n
Pros:<\/strong><\/h4>\n\n\n\n\n- Brand identity:<\/strong> Selling products under your brand strengthens your brand identity and makes your store stand out. Customers associate the products directly with your brand.<\/li>\n\n\n\n
- Product customization:<\/strong> With private labeling, you can tweak the product to better fit your market\u2019s needs, adding features or changes that differentiate it from competitors.<\/li>\n\n\n\n
- Customer loyalty:<\/strong> Unique products that carry your brand can help build customer loyalty. When customers love your products, they\u2019re more likely to become repeat buyers.<\/li>\n\n\n\n
- Control over quality:<\/strong> You can set your quality standards and work closely with manufacturers to ensure products meet those standards, leading to higher customer satisfaction.<\/li>\n<\/ul>\n\n\n\n
Cons:<\/strong><\/h4>\n\n\n\n\n- Higher upfront costs:<\/strong> Developing and ordering customized products usually require a larger initial investment than simply buying wholesale or dropshipping.<\/li>\n\n\n\n
- Longer lead times:<\/strong> It can take time to develop and produce customized products, meaning longer lead times compared to sourcing ready-made items.<\/li>\n\n\n\n
- Minimum order quantities:<\/strong> Many manufacturers require you to order a minimum number of units, which can be risky if you\u2019re not sure how well the product will sell.<\/li>\n<\/ul>\n\n\n\n
8 Tips to Help You Source Inventory Like a Pro<\/strong><\/h2>\n\n\n\nKnowing where to find inventory is just the first step, but many resellers still find it tricky to source effectively.<\/p>\n\n\n\n
Take a look at these 8 tips to help you nail the process:<\/p>\n\n\n\n
1. Use automation software<\/h3>\n\n\n\n
- \n
- Quality check:<\/strong> You can see and touch products to make sure they\u2019re up to your standards.<\/li>\n\n\n\n
- Better relationships:<\/strong> Face-to-face meetings help build stronger, more personal connections with suppliers.<\/li>\n\n\n\n
- Instant deals:<\/strong> Negotiate terms and deals on the spot and see how suppliers react.<\/li>\n\n\n\n
- Special deals:<\/strong> Get access to exclusive deals and unique products that might not be online.<\/li>\n<\/ul>\n\n\n\n
Drawbacks:<\/strong><\/h4>\n\n\n\n
- \n
- Time-consuming:<\/strong> Takes a lot of time, especially if you have to travel.<\/li>\n\n\n\n
- Costly:<\/strong> Travel expenses and time away from your business can add up.<\/li>\n\n\n\n
- Limited options:<\/strong> You\u2019re stuck with the suppliers you can physically visit, which might mean fewer choices.<\/li>\n\n\n\n
- Less efficient:<\/strong> Finding and visiting multiple suppliers takes more effort and time compared to browsing online.<\/li>\n<\/ul>\n\n\n\n
Why not both?<\/h3>\n\n\n\n
Not sure which sourcing method is the right one for you? Not to worry!<\/p>\n\n\n\n
A lot of successful resellers mix both methods. They start with online research to find potential suppliers and then set up in-person meetings to seal the deal and check out the products. This way, they get the convenience and variety of online sourcing plus the trust and quality assurance of in-person interactions.<\/p>\n\n\n\n
Different Ways to Source Inventory<\/strong><\/h2>\n\n\n\n
Whether you decide to source inventory online or in person, there are several methods you can use:<\/p>\n\n\n\n
Retail arbitrage<\/h3>\n\n\n\n
<\/figure>\n\n\n\nRetail arbitrage is when you buy products from retail stores at a low price and then sell them at a higher price to make a profit.<\/p>\n\n\n\n
You basically find those awesome clearance items, discounts, or limited-time sales, purchase them, and then resell them for more than what you paid. It\u2019s a popular strategy among resellers because it can be very profitable if you know what to look for and where to find it.<\/p>\n\n\n\n
Where to source the products:<\/strong><\/h4>\n\n\n\n
- \n
- Big box stores:<\/strong> Places like Walmart, Target, and Costco are goldmines for retail arbitrage. They often have clearance sections and seasonal sales where you can score products at a fraction of the original price.<\/li>\n\n\n\n
- Discount stores:<\/strong> Stores like TJ Maxx, Marshalls, and Ross carry brand-name items at lower prices. You can find everything from clothing to home goods.<\/li>\n\n\n\n
- Thrift stores:<\/strong> Goodwill, Salvation Army, or any local thrift store can be great for finding unique items, especially vintage or hard-to-find products.<\/li>\n\n\n\n
- Outlet stores:<\/strong> Brand-specific outlet stores often have sales and discounts on overstocked or out-of-season items.<\/li>\n\n\n\n
- Online retailers:<\/strong> Don\u2019t forget about online shopping. Websites like eBay, Amazon, and any other online marketplace sometimes offer great deals you can capitalize on.<\/li>\n<\/ul>\n\n\n\n
BONUS: <\/strong>Don’t forget Facebook Marketplace! Thousands of Facebook groups are ideal for online sourcing.<\/p>\n\n\n\n
Pros:<\/strong><\/h4>\n\n\n\n
- \n
- Low startup costs:<\/strong> You don\u2019t need a lot of money to get started. You can begin with just a few items and reinvest your profits.<\/li>\n\n\n\n
- Quick turnaround:<\/strong> You can often sell products quickly, especially if you find items that are in high demand.<\/li>\n\n\n\n
- Flexibility:<\/strong> You can do this on your own schedule, whether it\u2019s a side hustle or your main gig.<\/li>\n\n\n\n
- No need for a supplier:<\/strong> Since you\u2019re buying directly from retail stores, you don\u2019t have to deal with suppliers or manufacturers.<\/li>\n<\/ul>\n\n\n\n
Cons:<\/strong><\/h4>\n\n\n\n
- \n
- Time-consuming:<\/strong> It takes time to hunt for the best deals and check multiple stores or websites.<\/li>\n\n\n\n
- Inconsistent inventory:<\/strong> You might not always find products at a price that allows for a good profit margin. It can be hit or miss.<\/li>\n\n\n\n
- Competition:<\/strong> Lots of people are doing this, so you might face stiff competition, especially on popular platforms like Amazon.<\/li>\n\n\n\n
- Platform fees:<\/strong> Selling on platforms like Depop, Poshmark, or eBay comes with fees, which can eat into your profits.<\/li>\n\n\n\n
- Market fluctuations:<\/strong> Prices and demand can change quickly, so what\u2019s hot today might not be tomorrow.<\/li>\n<\/ul>\n\n\n\n
Liquidation and wholesale companies<\/h3>\n\n\n\n
<\/figure>\n\n\n\nLiquidation and wholesale companies sell products in bulk at super low prices, usually because the items are overstocked, returned, or the company is closing out.<\/p>\n\n\n\n
Liquidation companies specialize in selling these goods off quickly, often at a fraction of the retail price.<\/p>\n\n\n\n
Wholesale companies, on the other hand, buy products in bulk from manufacturers and sell them to retailers or resellers at a lower cost per unit than what you\u2019d pay at retail.<\/p>\n\n\n\n
Where to source the products:<\/strong><\/h4>\n\n\n\n
- \n
- Online liquidation marketplaces:<\/strong> Websites like Liquidation.com, B-Stock, and Direct Liquidation offer a wide variety of products from electronics to apparel, all available for bidding or purchase.<\/li>\n\n\n\n
- Wholesale marketplaces:<\/strong> Platforms like Alibaba, SaleHoo, and Global Sources connect you with manufacturers and wholesalers around the world. You can buy anything from gadgets to home goods.<\/li>\n\n\n\n
- Warehouse sales:<\/strong> Sometimes companies will have physical warehouse sales where they clear out inventory at steep discounts.<\/li>\n\n\n\n
- Local liquidators:<\/strong> Check out local liquidation warehouses in your area. They often have sales that aren\u2019t advertised online.<\/li>\n\n\n\n
- Trade shows:<\/strong> These events can be a great way to meet wholesalers and liquidation companies, see products in person, and negotiate deals.<\/li>\n<\/ul>\n\n\n\n
Pros:<\/strong><\/h4>\n\n\n\n
- \n
- Lower costs:<\/strong> Buying in bulk from these companies means you get products at a much lower price per unit, which can significantly boost your profit margins.<\/li>\n\n\n\n
- Variety:<\/strong> There\u2019s a huge range of products available, so you can diversify your inventory without breaking the bank.<\/li>\n\n\n\n
- High inventory levels:<\/strong> You can purchase large quantities, ensuring you have enough stock to meet customer demand.<\/li>\n\n\n\n
- Potential for high profits:<\/strong> With the low purchase prices, even modest sales prices can yield significant profits.<\/li>\n<\/ul>\n\n\n\n
Cons:<\/strong><\/h4>\n\n\n\n
- \n
- Upfront investment:<\/strong> You usually need more money upfront to buy in bulk, which can be a barrier if you\u2019re just starting out.<\/li>\n\n\n\n
- Storage needs:<\/strong> Buying in bulk means you need space to store your inventory, which can be an issue if you don\u2019t have a lot of storage room.<\/li>\n\n\n\n
- Quality variability:<\/strong> With liquidation goods, the quality can sometimes be inconsistent, especially with returned or overstock items.<\/li>\n\n\n\n
- Risk of unsellable items:<\/strong> There\u2019s always a risk that some items won\u2019t sell, which means you could end up with dead stock.<\/li>\n<\/ul>\n\n\n\n
Dropshipping<\/h3>\n\n\n\n
Dropshipping is like running a store without ever having to stock any products yourself.<\/p>\n\n\n\n
Here\u2019s how it works: You set up an online store and list products for sale. When a customer makes a purchase, you buy the product from a third-party supplier, who then ships it directly to the customer.<\/p>\n\n\n\n
You never have to handle the product. Your profit comes from the difference between what you charge the customer and what you pay the supplier. It’s a popular model because it\u2019s low-risk and low-investment.<\/p>\n\n\n\n
Where to source the products:<\/strong><\/h4>\n\n\n\n
- \n
- Online marketplaces:<\/strong> Websites like AliExpress, Oberlo, and Spocket are go-to sources for finding dropshipping suppliers. They offer a wide variety of products at different price points.<\/li>\n\n\n\n
- Dropshipping platforms:<\/strong> Platforms like Shopify and WooCommerce have integrations with dropshipping services, making it easy to add products to your store.<\/li>\n\n\n\n
- Supplier directories:<\/strong> Directories like SaleHoo and Worldwide Brands list verified dropshipping suppliers across various industries.<\/li>\n\n\n\n
- Niche suppliers:<\/strong> Sometimes, finding specialized dropshipping suppliers in your niche can offer unique products that aren\u2019t widely available, giving you an edge.<\/li>\n<\/ul>\n\n\n\n
Pros:<\/strong><\/h4>\n\n\n\n
- \n
- Low startup costs:<\/strong> You don\u2019t need to invest heavily in inventory upfront. You only purchase products after a customer orders them.<\/li>\n\n\n\n
- No inventory management:<\/strong> Since you don\u2019t stock products, you don\u2019t have to worry about storage space or managing inventory.<\/li>\n\n\n\n
- Wide product range:<\/strong> You can offer a vast array of products without worrying about storage or upfront costs. If something isn\u2019t selling, you can easily switch to new products.<\/li>\n\n\n\n
- Flexibility:<\/strong> You can run your dropshipping business from anywhere, as long as you have an internet connection. It\u2019s perfect for digital nomads or those who want the freedom to work from anywhere.<\/li>\n<\/ul>\n\n\n\n
Cons:<\/strong><\/h4>\n\n\n\n
- \n
- Lower profit margins:<\/strong> Since you\u2019re buying products at retail prices, your profit margins can be thinner compared to buying in bulk from wholesalers.<\/li>\n\n\n\n
- Quality control issues:<\/strong> You have less control over product quality and shipping times, which can lead to customer dissatisfaction if the supplier doesn\u2019t meet expectations.<\/li>\n\n\n\n
- Reliance on suppliers:<\/strong> Your business relies heavily on the reliability of your suppliers. If they run out of stock or delay shipping, it directly affects your customers.<\/li>\n\n\n\n
- Customer service challenges:<\/strong> Since you\u2019re not handling the products, resolving customer service issues can be more complicated. You have to communicate with the supplier to handle returns, exchanges, or any product issues.<\/li>\n<\/ul>\n\n\n\n
White label & Private label<\/h3>\n\n\n\n
<\/figure>\n\n\n\nWhite label and private label are about putting your brand on generic products.<\/p>\n\n\n\n
With white labeling, you take a product that\u2019s already being produced and add your branding to it.<\/p>\n\n\n\n
Private labeling goes a step further \u2013 you work with a manufacturer to create a product to your specifications, and then it gets branded as your own.<\/p>\n\n\n\n
Both methods allow you to sell products that look and feel unique to your brand, without having to create them from scratch.<\/p>\n\n\n\n
Where to source the products:<\/strong><\/h4>\n\n\n\n
- \n
- Online marketplaces:<\/strong> Websites like Alibaba and Global Sources are great places to find manufacturers who offer white label and private label services.<\/li>\n\n\n\n
- Trade shows:<\/strong> Attending trade shows can help you meet manufacturers in person, see product samples, and discuss customization options.<\/li>\n\n\n\n
- Supplier directories:<\/strong> Directories like SaleHoo and ThomasNet list verified manufacturers who can create white label and private label products.<\/li>\n\n\n\n
- Industry networks:<\/strong> Networking with other business owners in your industry can lead to recommendations for reliable manufacturers.<\/li>\n<\/ul>\n\n\n\n
Pros:<\/strong><\/h4>\n\n\n\n
- \n
- Brand identity:<\/strong> Selling products under your brand strengthens your brand identity and makes your store stand out. Customers associate the products directly with your brand.<\/li>\n\n\n\n
- Product customization:<\/strong> With private labeling, you can tweak the product to better fit your market\u2019s needs, adding features or changes that differentiate it from competitors.<\/li>\n\n\n\n
- Customer loyalty:<\/strong> Unique products that carry your brand can help build customer loyalty. When customers love your products, they\u2019re more likely to become repeat buyers.<\/li>\n\n\n\n
- Control over quality:<\/strong> You can set your quality standards and work closely with manufacturers to ensure products meet those standards, leading to higher customer satisfaction.<\/li>\n<\/ul>\n\n\n\n
Cons:<\/strong><\/h4>\n\n\n\n
- \n
- Higher upfront costs:<\/strong> Developing and ordering customized products usually require a larger initial investment than simply buying wholesale or dropshipping.<\/li>\n\n\n\n
- Longer lead times:<\/strong> It can take time to develop and produce customized products, meaning longer lead times compared to sourcing ready-made items.<\/li>\n\n\n\n
- Minimum order quantities:<\/strong> Many manufacturers require you to order a minimum number of units, which can be risky if you\u2019re not sure how well the product will sell.<\/li>\n<\/ul>\n\n\n\n
8 Tips to Help You Source Inventory Like a Pro<\/strong><\/h2>\n\n\n\n
Knowing where to find inventory is just the first step, but many resellers still find it tricky to source effectively.<\/p>\n\n\n\n
Take a look at these 8 tips to help you nail the process:<\/p>\n\n\n\n
1. Use automation software<\/h3>\n\n\n\n
- Longer lead times:<\/strong> It can take time to develop and produce customized products, meaning longer lead times compared to sourcing ready-made items.<\/li>\n\n\n\n
- Product customization:<\/strong> With private labeling, you can tweak the product to better fit your market\u2019s needs, adding features or changes that differentiate it from competitors.<\/li>\n\n\n\n
- Trade shows:<\/strong> Attending trade shows can help you meet manufacturers in person, see product samples, and discuss customization options.<\/li>\n\n\n\n
- Quality control issues:<\/strong> You have less control over product quality and shipping times, which can lead to customer dissatisfaction if the supplier doesn\u2019t meet expectations.<\/li>\n\n\n\n
- No inventory management:<\/strong> Since you don\u2019t stock products, you don\u2019t have to worry about storage space or managing inventory.<\/li>\n\n\n\n
- Dropshipping platforms:<\/strong> Platforms like Shopify and WooCommerce have integrations with dropshipping services, making it easy to add products to your store.<\/li>\n\n\n\n
- Storage needs:<\/strong> Buying in bulk means you need space to store your inventory, which can be an issue if you don\u2019t have a lot of storage room.<\/li>\n\n\n\n
- Variety:<\/strong> There\u2019s a huge range of products available, so you can diversify your inventory without breaking the bank.<\/li>\n\n\n\n
- Wholesale marketplaces:<\/strong> Platforms like Alibaba, SaleHoo, and Global Sources connect you with manufacturers and wholesalers around the world. You can buy anything from gadgets to home goods.<\/li>\n\n\n\n
- Inconsistent inventory:<\/strong> You might not always find products at a price that allows for a good profit margin. It can be hit or miss.<\/li>\n\n\n\n
- Quick turnaround:<\/strong> You can often sell products quickly, especially if you find items that are in high demand.<\/li>\n\n\n\n
- Discount stores:<\/strong> Stores like TJ Maxx, Marshalls, and Ross carry brand-name items at lower prices. You can find everything from clothing to home goods.<\/li>\n\n\n\n
- Costly:<\/strong> Travel expenses and time away from your business can add up.<\/li>\n\n\n\n
- Better relationships:<\/strong> Face-to-face meetings help build stronger, more personal connections with suppliers.<\/li>\n\n\n\n