Guide to Selling Products Online in 2024

What is Product Sourcing? How to Source Products for Sale

Product sourcing is the process of purchasing product inventory from a supplier and reselling it. Common methods of product sourcing include finding a manufacturer for custom products, buying goods from a wholesale supplier, and collaborating with a dropshipping supplier. Many of the product sourcing options we’ll cover in this list allow you to use a dropshipping model, which means you won’t need to hold or manage inventory or ship orders yourself – that will be handled by the supplier you choose to collaborate with. This way, you can focus less on logistics and more on building your brand, running effective advertising campaigns, and providing excellent customer support.

How to Source Products for Sale

There are several main ways to source products for online businesses:

1. Working with a Dropshipping Supplier

Dropshipping is the easiest way to source products for an online store. It is not just a method of sourcing products, but also a way to fulfill orders. As a dropshipping supplier, you will sell products only using a supplier that holds the product and ships it for you. There is no middleman.

The process is simple: you just need to collaborate with a dropshipping supplier, like DSers. Then you can add products to your store and start marketing them. After receiving an order, the supplier will receive a notification and will ship the product on your behalf.

There are two ways to get started with dropshipping:

• Work directly with a supplier that offers dropshipping services. You will be responsible for setting up a process to manage orders and payments. Direct businesses work when they are looking for niche products, but they can be difficult to manage.
• Use an app like DSers that connects you with a marketplace like AliExpress. With an app like DSers, you can find products and list them in your store immediately, as long as the item is in stock.

There are other dropshipping sources as well. For example, if you want to work with suppliers in the EU and the US only, you can use Spocket to source products. If you are looking for a supplier for arts and crafts, you can try Creative Hub.

2. Buying from a Wholesale Supplier

Buying products wholesale is a good strategy for sourcing products if you want to get started quickly. It is easier to manage compared to other sourcing options like manufacturing products or making them by hand. Wholesale suppliers and distributors often offer a range of products that are popular in the market. This reduces the risk of selling a product that no one wants.

Margins for wholesale products can range from 20% to 60%. This is because you are ordering in bulk and getting a lower cost per unit. However, the downside to selling wholesale is the competition with products. Many vendors may sell similar products to yours, so you will need to compete with them on branding and price.

3. Collaborating with a Manufacturer

Manufacturing products is ideal for businesses that have a unique idea or a variation of an existing idea. If you have already validated the market for the product and are sure it will sell, this is a good way to source products. Market validation is important here as manufacturing requires a larger initial investment.

You can source two types of products through a manufacturer:

• Private Label. The manufacturer will create private label products exclusively for your company. You control the product’s ingredients, how it is packaged, and how the branding looks. This is best if you are creating unique products.
• White Label. These products are generic products sold to various vendors. They are better for larger customer segments.

General manufacturing gives you more control over branding and pricing. You can also control the quality of the final product, which is unlikely if you are dropshipping. After the initial costs, manufacturing can lead to lower per-unit costs and higher profit margins.

There are
some manufacturing defects, however. Depending on your product cost, you’ll need to meet minimum order quantities (MOQ). This can lead to thousands or tens of thousands of dollars upfront. If the factory is designing a prototype and samples, optimizing, and producing the product, it can take time to get started and operational.

4. Attending Trade Shows

A trade show is an event that brings companies and buyers together to showcase and discuss the latest products and services. These events are often held at convention centers in major cities and can last several days. There are also smaller local trade shows held in various locations around the world.

For buyers, it’s a great opportunity to experience products before purchasing and network with other business owners. It can also provide endless inspiration for new product ideas. Trade shows also offer workshops, presentations, panel discussions, and other events for exhibitors.

5. Producing Handmade Products

Making your own products by hand is a popular approach for many hobbyists. Whether it’s beauty products, clothing, or jewelry, creating products gives you complete control over quality and branding. However, the downside is that it can be time-consuming and difficult to scale.

There are also other costs to consider when making your own products, such as:

• Raw materials
• Storage and warehousing
• Labor

Making your own products can lead to a profitable business venture. Take Old World Kitchen, for example, a family-owned company specializing in handmade kitchen tools. Despite the brand’s growth after moving from Etsy to Shopify, it still sells handmade goods while continuing to tell its family story and grow a profitable online business.

12 Apps for Product Sourcing

Whether you’re running your first or fifth online business, you can explore the following 12 apps for sourcing products for your store:

1. Faire: Your All-in-One Wholesale Shop

Price: Free

Over 100,000 brands sell their products on Faire, with listings that include descriptions, photos, and business information. Sellers on Faire can browse these products and learn more about brands and their merchandise before purchasing, and directly connect with business owners. The best part is that Faire is fully integrated with Shopify’s backend through the Faire: Sell Wholesale app, allowing you to manage everything seamlessly.

Sellers shopping on Faire can discover unique new products from independent brands around the world and save time and money by managing all vendor relationships in one place. Since each brand is vetted by a team of retail experts before joining the platform, there’s less risk for sellers when introducing a new product to the market. Qualified sellers can also conveniently defer payment for new inventory for up to 60 days.

Faire’s catalog features a wide range of products, making this product sourcing app a great way to find the best products to sell in the future, regardless of the category you’re targeting.

2. Printify: Print on Demand Products

Price: Free plan available

If you’re looking for a way to add some personal creativity to what you sell, print on demand products are a popular option. With Printify, you can choose from a large selection of products to customize with your own designs.

While Printify can be used for free (you pay for products per order), you can also upgrade to a paid plan for $29 a month to enhance your profit margins with a 20% discount on all products.

With
Printify, you can place your own designs on:

• T-shirts
• Hoodies
• Handbags
• Coffee mugs
• Wall stickers
• Beach towels
• Notebooks
• Pet beds
• And more

3. Dripshipper: High-Quality Coffee Supplier

Price: $30 per month

Do you consider yourself a coffee connoisseur but worry about selling a subpar product? Dripshipper, a coffee shipping app, may be the solution for you. Whole coffee beans are shipped on the same day they are roasted to ensure you have the freshest coffee possible.

You can upload your own logo, select the type of coffee you want to offer, and customize your labels to sell private label coffee under your brand name directly to your customers. You can even offer a coffee subscription so customers can receive a fresh bag when their previous stock runs out.

You can sell different types of coffee products, including:

• Single origin coffee (Laos, Papua New Guinea, Colombia, etc.)
• Single serve coffee capsules
• Decaf coffee
• Custom coffee product (specify origin, roast level, size, bag type, etc.)

4. DSers: Choose from Millions of Products to Sell

Price: Free plan available

DSers is built to make it easy to find the best products and add them to your Shopify store to ship directly to your customers.

You can choose from millions of products in any marketplace you have in mind, assembling them into an online store that carries your brand to serve a specific audience, such as pet accessories for pet owners or photography equipment for travelers.

Best of all, DSers provides you with data on the performance of each product, so you can make informed decisions about what to add to your store.

Types of products you can sell include:

• Rings
• Sunglasses
• Watches
• Clothing
• Electronics
• Phone accessories
• And more

5. Spocket: Suppliers from the US and EU

Price: Free plan available

Spocket is a product sourcing app that allows you to add products from dropshipping suppliers in the US and EU. It offers a wide variety of high-quality products and premium invoices, along with fast shipping times.

With wholesale pricing, it promises to provide discounts ranging from 30% to 60% off retail prices for all products, allowing you to achieve large profit margins and be creative in offering discounts.

You can source the following products through Spocket:

• Earrings
• Clothing
• Sports and outdoor equipment
• Shoes
• Beauty and cosmetics
• And more

6. Syncee: Global Marketplace for Suppliers

Price: Free plan available

There are many factors to consider when sourcing a supplier, such as inventory, reliability, and delivery times. With Syncee, you can browse a directory of trustworthy suppliers from around the world and easily import products to your store to start selling.

You can import the following products:

• Children’s products
• Watches
• Fashion
• Toys
• Fishing accessories
• Fragrances
• And more

7. Creative Hub: Sell Art Produced by Contemporary Artists

Price: Free to install

With Creative Hub, you don’t have to be an artist to sell art online. This UK-based marketplace gives you access to fine art from contemporary artists to sell in your own store. For each piece, you are informed of the retail price (the minimum price you can sell it for) and your share as a seller (what you can earn at the retail price). Some prints are even limited edition, making them priced higher.

There is a flat rate for international shipping, making shipping straightforward and allowing you to sell your products to anyone anywhere in the world. It’s important to note that frames are not included (although you might be able to source and offer them via one of the other apps on this list).

8. Printful: Custom On-Demand Printing Products

Price: Free to install

Printful

It is another print-on-demand company, like Printify, but with some key differences.

Printful offers more powerful product customization options, as well as the ability to customize the customer experience (with branded labels, packaging inserts, and tags). You can also order product samples at a reduced price, so you can see what your products will look like before you start promoting them.

The types of products you can customize include:

• T-shirts
• Stickers
• Leggings
• Embroidered hats
• Sports bras
• Socks
• Phone cases
• Pillows
• Joggers
• And more

9. My Online Fashion Store: Women’s Clothing and Accessories

Price: $29 per month

My Online Fashion Store is a US-based dropshipping supplier with a large inventory of stylish women’s clothing. From tops to bottoms, jewelry to shoes, there is a vast array of items, each with a suggested retail price.

What makes this app even more appealing is that it offers free returns and great shipping rates; however, it can only service customers in the United States at this time, which limits your market.

The products you can sell include:

• Scarves
• Blouses
• Underwear
• Sunglasses
• Purses
• Hats
• Belts
• And more

10. Lulu Direct: Printed Books and Calendars on Demand

Price: Free to install

Lulu Direct focuses exclusively on books and calendars, allowing you to use print-on-demand to launch your own book product. You can choose the format and size of the book, whether you want a hardcover or paperback, color or black ink, and the quality of paper you want to use for the interior pages.

Do you have an idea for a successful sales book? Lulu Direct is a low-risk way to test your idea before making a large investment.

The types of books you can create include:

• Photobooks
• Novels
• Comic books
• Workbooks
• Poetry books
• Calendars
• Journals and notebooks

11. Shapeways: High-Quality On-Demand 3D Printing

Price: Free to install

Shapeways is a 3D printing and distribution service that allows you to upload your 3D models and turn them into physical products.

Although this may be one of the more expensive apps to use in this list (due to upfront 3D modeling costs), you can use it to create truly unique high-quality products for on-demand sale or rapid prototyping.

The materials available for 3D printing include:

• Plastic
• Steel
• Gold
• Aluminum
• Sandstone
• Carbon
• And more

12. Modalyst: A Large Network of Suppliers with Fast Shipping

Price: Free plan available (5% transaction fee on sales)

Modalyst is a supplier network that gives you access to direct shipping suppliers in the United States with relatively fast shipping times. You can find independent brands, trendy products, and low-cost goods to sell in your own store.

Many of the independent brands included in Modalyst are other Shopify merchants who meet the strict requirements and are open to forming partnerships for direct shipping.

The products you can find on Modalyst include:

• Backpacks
• Formal wear
• T-shirts
• Shoes
• Swimwear
• Jewelry
• Electronics
• And more

Tips for Sourcing Products

Conduct Market Research

Market research involves collecting information about people, businesses, and the market, then analyzing it to understand what this market needs. Market research is used to help business owners make informed decisions about product development, marketing, and targeting.

Gerrid Smith, CEO of Joy Organics, suggests that retailers monitor changes in the market. “What types of goods are most successful in the market? What makes a product suitable for the needs of your target audience? The sustainability of your company depends on finding answers to these questions.”

When sourcing products, you want to understand some key things: industry trends, consumer needs, regulatory trends.

Knowing this information helps you choose the right product offering before finding a supplier. It helps you understand a problem or opportunity and plan to solve it. For example, if a newly developed fabric helps hikers wick moisture and stay dry for hours, your outdoor clothing store might want to test designs with this fabric.

But

Where can you find this data? There are two ways:

• Primary, which is the information you gather yourself, such as surveys, focus groups, or customer interviews.
• Secondary, which is public information, such as magazines, government reports, industry analysts, and trade publications.

Conduct research on your product. Evaluate trends and data. Market research is crucial to determining the right product and price point for your business. You need to ensure there is consumer demand to make what you are selling worth pursuing. This information will allow you to make informed decisions when determining your suppliers.

Get Samples

Once you find a good product with a reliable supplier, you’re ready for the next step: obtaining samples. Requesting samples is important because you want to test the quality of the potential products you will sell in your store. Even though the product may look great in pictures, it
Source: https://www.shopify.com/blog/product-sourcing-apps