One of the foundations of retail success is providing a new and attractive product range. You can’t draw consumers with dated or uninspired products, so it’s vital to keep up with the latest product trends constantly and be on the lookout for goods or suppliers that can help you keep up.

But how do you source your products exactly?

In this article, that’s what we’re going to tackle. We have outlined below the various methods of product sourcing in retail, along with key tips and tools to help you locate the right inventory producers, suppliers, or materials.

Let’s dive in.

How do you decide what products to sell?

Let’s first explore how to find out what to sell, before we talk about product sourcing. It is important for suppliers or distributors, but you still need to make sure you’re sourcing goods that customers really want.

Talking to your clients, speaking to your managers, and looking at your retail analytics are the best ways to do this.

Many retailers own a treasure trove of customer insight, but within departments, it’s too often siloed. That’s why we suggest that merchants collect information from all their departments. Your marketing team will help you understand purchasing patterns and combinations of common items.

Those in charge of e-commerce and web analytics can understand what products customers are looking for, what products they consider instead, and which products receive minimal attention.

Once you have collected enough customer information and gained insights into the types of products or brands that you should stock more of, you will be able to go out there with more trust and find the right merchandise and vendors for your store.

How to Source Products?

When it comes to sourcing items, retailers usually have three key choices. Some merchants deal with suppliers directly, while others purchase from B2B wholesale suppliers. A variety of retailers are now producing their items themselves.

Let’s discuss the variations between these approaches.

Work directly with manufacturers

By taking out the middlemen, working directly with B2B manufacturers will help retailers get their inventory at the lowest possible rates like wholesalers and distributors. Retailers will get inexpensive, high-quality goods that are in demand without any intermediaries to deal with, further helping them raise profit margins.

It is not unusual that a producer, depending on the commodity, demands minimum order quantities (MOQs). What’s more, many manufacturers would rather partner with retailers who place bigger orders with them, committing to sales of hundreds or even thousands of units. This means that negotiating with producers might not be so easy if you’re new to the game and don’t have a big budget.

And there is the matter of actually working with manufacturers. Working with manufacturers means that you are in charge of submitting specifications and ironing out information such as imports from the warehouse. All that can take time and can stop you from concentrating on your retail business.

By entering industry associations and trade groups that are oriented towards the products you want to market, you can easily find B2B manufacturers. Through creating the right network and attending trade show events, you can also communicate with domestic and overseas manufacturers, but sellers still have the option of contacting a manufacturer directly to discuss their options.

Work with wholesalers

Wholesale products are offered by many online retailers, either as is or with their personalized brand applied to the product. B2B Wholesale suppliers serve as intermediaries between the retailer and the product manufacturer. This is the most likely source of retail products for online retailers that are unable to buy from a manufacturer or distributor directly.

The lowest prices for new online sellers may be offered by wholesale suppliers from Asian nations, including China. By browsing sites such as Alibaba, AliExpress, Global Sources, Bambify, IndiaMart, and Made-in-China.com, you can find B2B wholesalers.

Other directories are also available to help online retailers get the items they need while keeping to their budget, such as Wholesale Central and Wholesale Network. Plus, to locate and meet the perfect wholesalers who can provide them with the right inventory at the right price, sellers can also browse through trade magazines and attend trade shows.

Work with distributors

Some manufacturers might not be willing at all to deal directly with retailers, so working through a distributor will be another choice. It can help you get access to better bulk discounts by contacting a vendor and asking them for a list of their preferred distributors and can also ensure a higher degree of quality control.

Although distributors seldom directly sell goods, they are typically the manufacturers’ preferred contact points.

Some distributors have exclusive purchasing agreements with suppliers, so you will have to go through a distributor if you want to sell a very specialized product. Distributors will also have the right to sell the product in a given area, so depending on the item, you will again have to go through them. Most distributors do not sell directly to consumers, so you may need to go through a wholesaler to get the item you want.

Make your own products

Since it’s difficult to keep up with demand, it’s uncommon for medium to large corporations to produce their own goods. But if you’re in the right niche and have a small team behind you who can satisfy demand while delivering high-quality goods, it’s totally doable.

If you plan to make your own products, you will first need to find out where your supplies are to be sourced and you will also need to figure out how long it takes for each item to be produced.

If you’re planning to hire a team, calculate the labor costs so that you don’t run up a huge bill without realizing it.

Where to find product sources?

So, you know what you want to sell, and you’ve got a general idea of how to get it. Now it’s time to talk about where certain origins of goods can be located. To find the best suppliers, wholesalers, or vendors, what tools can you tap into?

Let’s have a look at some of our alternatives.

1. Events

Expos, shopping shows, and other business activities provide several ways to learn about the industry’s upcoming trends. More importantly, producers, wholesalers, suppliers, and their goods, encourage you to get critical face time, so you can see and touch materials or items firsthand.

2. Trade Publications

Instead, consider specialty or trade magazines. Industry magazines are, like trade shows, excellent sources for product ideas and knowledge from suppliers.

Their content could give you insights into the goods that others sell and who supplies them. What’s more, several vendors advertise on trade magazines, so they could place some noteworthy suppliers on your radar by perusing them.

3. Industry Associations

To help you communicate with vendors, most trade organizations offer networking and directory services. And in certain situations, to take advantage of these advantages, you don’t even have to be a member of an association. And you can always turn to good old Google to search for organizations in your field if you can’t find what you need there.

4. Online Directories

Some of the online directories you should go to when looking for goods and suppliers are SaleHoo, ThomasNet.com, supermelon.com and Alibaba.com.

These two sites give you access to thousands of profiles of suppliers and provide search and browsing functionality so that you can quickly zero in on the products or suppliers you need.

Conclusion

Part of the success of retail means never being complacent with your new goods or suppliers. By actively searching for ideas and suppliers that can keep your merchandise fresh and motivated, aim to gain or keep a competitive edge.