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:
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.
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.
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.
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.
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.