Product sourcing describes the process of identifying and purchasing products to sell in an ecommerce store.
Since no store can function without products, selecting the right products that not only fit your niche but will also appeal to your target customer is important.
Whether you are new to ecommerce or are looking to improve the performance of your existing store, here are the key details you need to know about product sourcing.
How Does Product Sourcing Work?
There are several ways that ecommerce businesses can source products for their store. The right method is going to depend on several factors, including whether the store sells its own branded products, or resells products from other suppliers.
Alongside manufacturing products in-house, other options for product sourcing include working with another manufacturer, a wholesaler or using a dropshipping company.
Why Product Sourcing Matters For Ecommerce Businesses
An ecommerce store can’t exist without products.
However, it’s not just enough to have stock for customers to purchase, as the quality and availability of the products will also impact customer satisfaction and the overall reputation of the store.
From a business perspective, the cost of manufacturing or reselling products also needs to make sense in terms of profitability. Beyond price, suppliers need to offer reliability so that the store can remain both profitable as well as competitive.
Even small problems such as supplier delays can have a huge knock-on effect on an ecommerce business.
With all things considered, it’s essential to select reliable suppliers who deliver consistency in terms of the quality of the products and overall service.
Considerations When Product Sourcing
Choosing how you will source your products is a major decision. Get things wrong and you could lose a sale not just in the moment, but also potential repeat sales from the customer.
Some of the top aspects to weigh up before you agree to carry products in your store include:
Price – Whether you manufacture your own products or purchase them from a supplier, the cost of the materials or finished items must make sense from a business point of view.
Quality – It’s tricky to make a profit, let alone establish a good business reputation if the quality of the products is poor. Take the time to inspect product samples or materials so that the price point is an accurate reflection. Understand the risks if there is a mismatch between product quality and price.
Reliability – To replenish stock quickly, you must be able to rely on the supplier. While customers can sometimes be happy to go on a waitlist for products, their patience can soon run out if there are lengthy delays in getting what they need.
Ethics – Consumers are becoming increasingly aware of ethical trading practices such as employees receiving a living wage and the topic of sustainability. Opting for the cheapest possible products made elsewhere can mean the supply chain loses transparency, which could land your business in hot water. So always do your research to stay on the right side of things.
Imaginaire – Discover Our Ecommerce Digital Marketing Services
Even with the best product sourcing in the world, your ecommerce store won’t succeed without a user-friendly website and a stellar digital marketing strategy.
Allow us to help you there, as one of the leading ecommerce marketing agencies in the UK.
The Imaginaire team have worked with ecommerce businesses across various niches, and our highly experienced team is ready to make your online store shine.
Tell us more about your ecommerce business and the website or marketing challenges you need help with by giving us a call on 0115 647 4153 or by filling out our contact form.
