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6 Common Product Sourcing Questions Answered
by Chris Malta & Robin Cowie
Published on this site: August 14th, 2006 - See
more articles from this month
If you've got a question about your eBiz, someone else has probably already
asked it. Matt Hedges, customer support manager of http://www.worldwidebrands.com-
a leader in the product sourcing industry, answers the 6 most common product
sourcing questions he gets from customers wanting to start an eBiz:
- Will suppliers care if I'm a new online retailer working from
home?
Generally no. Says Hedges, "They want to get their product out
to consumers as much as possible, so they're looking to open new accounts."
- How can I convey to a supplier that I'm a serious professional,
not a fly-by-night home business?
- Before you call or email questions to a supplier, read their
website. More often than not the answers are right in front
of you. Taking up their time with questions you could have easily
found an answer to yourself reflects poorly on you.
- If you email or call a supplier- get to the point! Real
Wholesale Suppliers are very busy people. They want to help their
retailers but they don't have a lot of time for chit-chat so try
and get to the meat of your question as quickly as possible.
- Proofread and spell check your emails. It's very difficult
to look professional if your email is full of typos, sentence fragments
and run-ons.
- Be patient. Just because a supplier doesn't respond to
your questions the same day you send them is no reason to get agitated.
If they think you're going to be a demanding customer, chances are
they won't work with you.
- I found a supplier I want to work with-what's
my first step?
Your first step is to check for an online accounts setup form-then
fill it out. Real wholesale suppliers have to have proof that you are
a legitimate retailer before they can give you access to their actual
wholesale pricing structure and set up an account. So step 1 is submitting
your company information to them. You will need to have a Registered
Business Name and Tax ID to work with real Wholesalers! If you don't
have one they are easy to get. Just contact your local County Clerks
Office.
- I only want to sell popular name brand items-how do I get a supplier?
You can't afford to limit yourself to selling only brands you recognize.
Your research should predicate your product line. Many brands you've
never heard of are very popular within certain demographics.
- Should I be focusing on "hot sellers" like iPods, gaming
consoles, designer clothes, and DVDs? Can I drop ship them?
Once everyone knows an item's hot, the market becomes saturated. The
demand is there, but the supply is too. So everyone's trying to undercut
everyone else and the profit margins get really slim.
Also, the manufacturers of these items set astronomical buying minimums-say
$100,000 each contract term. You could mortgage your house to meet the
minimum, and your wholesale prices would
still be much higher than those of the chains that get additional discounts
for spending millions with the suppliers.
Finding a supplier who'll drop ship these items individually is almost
impossible. It's cost-prohibitive for them-especially in clothing where
the return rates tend to be high. And again, your wholesale rate for
one item won't let you compete with someone buying in bulk.
- There's an item I really want to sell, but I can't find a supplier
who'll work with me-what now?
Keep looking. If after you've researched, you still can't find a supplier
for that particular item, don't give up altogether on having an eBiz-just
consider other product options. There are millions of products you can
sell. Hedges advises, "you can find items that you can actually
compete with.but you have to base your product choices off your market
research."
Chris Malta and Robin Cowie of WorldwideBrands.com are
the Writers and Hosts of The Entrepreneur Magazine EBiz and Product Sourcing
Radio Shows. http://www.worldwidebrands.com/EMRinfo
for more free eBiz info from Entrepreneur Magazine Radio!
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