Ecommerce Product Sourcing in 2023 and the Latest News
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Today’s tips and news has 610 words and takes 2 ½ minutes to read.
With seller fees and shipping costs on the rise, one of the biggest trends for 2023 is efficiency. Sellers are making cost cutting moves at every level of their business from marketing and ad buys to packaging and fulfillment. And since the chain starts with a product source, that’s the best place to implement a cost-efficient model.
To help reach your efficiency goals this year, our tips this month will focus on ways you can streamline your product sourcing channels and cut costs out of the gate. This week, we’ll focus on alternative ways to source your products.
Sourcing Ecommerce Products in 2023
One of the greatest assets to running an online store is reduced overhead. It gives online sellers an opportunity to increase margins and the ability to adjust to shifting market conditions.
During the current downturn, sellers are analyzing their supply channels and seeing where they can make adjustments. And sometimes that means changing the channel altogether. Let’s look at some ways you can shift or expand your product portfolio.
1. Working with Wholesalers
With Asian ecommerce markets getting hit hard last year, many suppliers are looking to offload stored up inventories. If you’re blindly trusting an algorithm or too timid to reach out, it’s time to forge some strong ties with your trustworthy wholesale distributors. Look for ways you can negotiate and secure favorable payment terms, reap discounts, or even gain exclusive access to specific products.
Also consider collaborating with other individual sellers, or companies with established production lines and an interest in expanding their business online.
2. Hire a Manufacturer
If you have a top-selling product you know is a long-term revenue driver, it may be time to cut out the middle person. Sourcing directly from a manufacturer is often cheaper than purchasing from a distributor. But the process can have its own issues.
Manufacturers require you to buy in bulk, which can cut into your budget quickly if the product stalls. Many startups have sunk their business like this because they didn’t do the research. But if you have a gem of a product and find the right contact, it could be worth the effort.
This is the key entry point for most online sellers coming into the market today. If you’re currently surrounded by boxes or piles of product or your garage is completely full, then it may be time to change up your business model.
Dropshipping gives sellers a means of sourcing products directly from a supplier without having to handle storage, packaging, or fulfillment. If you’re not already on this model, platforms like Shopify make it easy for you to integrate tools and solutions so you can connect with vetted suppliers.
Webretailer Product Supply Tools and Services Lists
If you’re looking to change your product supply line this year, you don’t have to go it alone. We have comprehensive lists available of top-tier product sourcing tools and services along with overviews and research on how you can maximize your revenue in different areas of your supply chain.
- Product Sourcing Marketplace Research
- Product Sourcing & Dropshipping Trends
- Product Sourcing and Importing Services
- Product Sourcing Wholesale, Clearance, & Liquidation