25 Jul

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5 Tips To Optimize Your Product Sourcing

5 Tips To Optimize Your Product Sourcing

Sales is an important skill. However, what you sell and where your product is sourced makes all the difference. A number of factors affect this decision, including demographics, competitors and manufacturers. A number of questions are there to ponder before zeroing in on a product and the product sourcing. Once done with the “what” factor, the “where” becomes the question.

To tackle this problem, here are five tips that will definitely improve your product sourcing:

  1. Find an affordable manufacturer

    The more borders your product crosses, the less profit you make. Customs, transportation, labour costs, etc. vary by country. So it’s best to do a bit of research. If your product can be produced affordably in your home country, that’s even better.

  2. Keep a check on the sourcing cycles

    When your product is in demand and selling fast, you might forget to check on the next sourcing cycle. This can lead to a shortage which causes you to miss out on profits. So always be thinking one step ahead and be in constant contact with the manufacturer.

  3. Keep a tab on how much you can handle

    Buying in bulk often increases your profit margin; however, there’s a downside, it may also increase your expenses if you can’t sell them off fast. Always order only what you can handle.

  4. Adopt Dropshipping the right way

    Drop Shipping is on the rise. It’s a term that refers to a retailer giving the address of the buyer to the manufacturer. This way, the retailer doesn’t even see the product before it goes on sale.

  5. Do your homework

    Market research is the most important part of a successful business. This point cannot be emphasized enough. The demand of a product should be high. No matter how superior the quality of your product or how innovative it is, if there’s no demand, there’s no profit.

To learn more, call Michaels Global Trading today at (888) 471-5066 or contact us here.

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Marlon McPherson is the CEO of Michaels Global Trading, certified appraiser and liquidator in Toronto, Ontario. With over 7 years of experience in the industry, he has worked with companies such as Druxy’s Deli, Blackberry and Thomson Reuters. Marlon is very involved in the day to day operations of MGT from marketing messages to sales meetings. When not working Marlon enjoys spending his time wine tasting, travelling and cooking at home with his family.

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