For a new business owner, product sourcing can be a difficult task. There is a lot to consider when deciding to purchase from wholesalers and the wrong decision could mean profit-loss for your small business. Consider the following when sourcing products for your small business:
- What are you going to sell? You should already have some idea of this if you’re opening a small business but now is the time to determine what product brand will do the best in your target market. Do some market research to determine the best product options for your small business.
- What type of supplier are you going to use? There are a number of different types of suppliers available. Choose one that fits your business the best. Options include:
- Distributors. Distributors often carry a variety of products purchased from manufacturers. Prices are slightly higher than buying direct but the minimum order requirement is very low.
- Manufacturers. Choosing to go with a manufacturer means you are buying direct but there is usually a high minimum order.
- Liquidators. Liquidators can provide products for up to 75 percent off the wholesale value. The downside is, once a product is sold out they usually don’t get anymore.
- Drop shippers. Drop shipping is ideal for an online business. They ship orders directly to the customer and you don’t have to worry about storage costs.
- Importers. Importers are for shipping products from other companies.
- Do your research. Know the supplier’s policies on damages, returns and back-orders. Talk to suppliers if you have questions and be aware of scams out there.
- Contact the vendor and place your order!
For your small business needs, contact the Winflow Financial Group.