Believe it or not, it is not that difficult to start a new business selling products online or face-to-face. The difficulty in starting a business lies in the eternal question: What can I sell that will earn me some decent money?
The solution starts with product sourcing – the process of finding the precise product you want using a professional company specializing in the process. The normal steps are as follows:
Product research > Sourcing > Business
Of course, this is very elementary in terms of the process steps, but it is enough to give a general idea of sourcing. This piece will expand on these steps to a larger degree and help you find the products you are certain have the necessary prerequisites you want: easy to ship, small, inexpensive, high quality and decent profit margin.
These may seem impossible, but the fact is with a little bit of help from Sourcing Nova, a professional product sourcing service, the impossible quickly becomes the possible.
Before we talk sourcing
This article will be working under the assumption that you have already taken the necessary steps and are ready to start the sourcing and selling process. The important things you will need to do beforehand include:
- Applying for and receiving your business license
- Building a webpage and establishing your niche
- Marketing for your new products and product line
It is vitally important you have these done before anything else. Again, this particular article is working under the assumption you have previously taken care of these important steps.
The product sourcing process
Recognize that it is an exceptionally rare business and business owner that will create and sell their own products. It is much more common for a business to source products and establish a private label under those products.
The last thing you will want to do is decide on a specific product and attempt to sell those products against well-established businesses with a strong customer base. Doing so will certainly send your business into a death spiral. This is why your backend work – the product research – matters. You should have all of the bases covered: product trends, customer likes and the prospects for the future.
If you have not already done so, it is nothing that is too difficult. All you need is time, a computer, Internet access, a pen/pencil and some paper. Start by going to the primary shopping site for everyone – Amazon.
Using Amazon for product research
Even if you may not be considering selling your products on Amazon, you still need to use the site for your product research needs. As you do, remember one very important thing about retail sales: You and what you like are irrelevant. The customer is what matters. If the customer likes purple but you hate that color, take your personal feelings out of the equation. The customer is not going to buy what you like. They will buy what they like.
Internet keyword search
All research on the Internet begins with a specific keyword search. The purpose is to find products with a search volume over 100,000. This large search volume indicates a product that customers have a solid interest in purchasing now and into the future.
The magic trio
You are after products that have three features: Small, light and tough. You are looking for maximum profit margins, and these products will give you that. Shipping costs and, more importantly, potential damage during shipping, on these products will be minimal.
Look for unbreakable
You do not want to source products that are fragile or damage easily. Things like glass of all sorts, mirrors, lamps, fine china and dishes are better left for some other retail professional.
Read, and learn
The average business has less than a 25 percent chance of success. This is where you can have a distinct advantage and upper hand. Those businesses that fail and the ones that make it have the information you want and need. The businesses that fail tell you what NOT to do; the businesses that make it tell you what TO do.
Failures can teach you much more than a success. Keep this in mind as you begin. Do not let setbacks discourage you. Use them to become better.
The product sourcing fundamentals
These are your key elements you need to consider when selecting a product. You need ALL of these for the best opportunity for success. Leave one out, and the chances of failure are compounded.
- Average of 30 percent profit
- More than 200 reviews
- In the top 2,000 sales
- The three points above – small, light and tough
- A quality product sourcing service
You can, if you think you are capable, go directly to manufacturers and wholesale suppliers for products. However, are you fluent in Mandarin Chinese, able to travel to and around China, knowledgeable on industry clusters and have a fundamental understanding of guanxi? Chances are you do not, but a reputable product sourcing service will have a full understanding of all of these things plus more.
Wow! Did you consider there was so much to take into account when starting a new retail business selling products? Chances are you did not. However, this information is provided to you so you can get a fundamental start on the product sourcing process. The right product and your professional sourcing partner Sourcing Nova is all that it takes to be on the road to success.
You only need to take that first step. We wish you luck!