Congratulations on the thorough research you just did to find the most profitable and suitable product for your e-commerce. You have even taken a step further to find the product cost, high-ranking keywords and created a solid marketing plan. But you are still not sure how to find a supplier for your products. If you want to know how to find a supplier for your inventory, we have provided detailed and comprehensive information on the criteria to consider and the best practices to follow.

Criteria for Selecting a Supplier

 

The below criteria are important because they can make or mar your business. You need to know how to find a supplier based on your business needs and type. For instance, if you sell medical supplies and drugs, it means you need to find a supplier who delivers fast. Similarly, if your customers are prominent individuals and celebrities, consistent quality products should be your watchword. With all that is said, below are the necessary criteria to tick when finding a supplier for your product

 

• Cost
• Quality
• Reliability
• Customer Service
• Delivery
• Financial Security

 

Cost

 

As a newbie in e-commerce, you need to find a supplier with the best price for your products. The best price does not mean the cheapest. It is the cost that will cover your budget. Many new entrepreneurs only think about the cost of goods and leave it like that. Instead, calculate the total price of a product, including the unit price of the material, logistics, maintenance, and packaging. After considering all of these and the suppliers’ price still looks affordable for you to get, select the supplier. Otherwise, it would help if you keep searching.

 

Quality

 

Low-quality material does not speak well about a business owner because customers associate low-grade with your personality and not your suppliers. Therefore, you need to make sure the supplier you are picking is consistent with high-quality products. An excellent way to know a suppliers’ product history is to query his/her previous clients. This way, you get first-hand information about the supplier. A web-based software like JungleScou​t has a section where you can snoop on your competitors’ suppliers.

 

Reliability

 

Regardless of the type of business you do, you need a reliable and trustworthy supplier. Reliability here talks about how efficient, effective and flexible your supplier can be. Is he consistent with his products, or keep changing fortnightly? Can you trust the supplier always to have enough stock? These are pertinent questions you should ask yourself to determine the dependability of the supplier. Remember, if your supplier lets you down, your clients will look for the nearest seller.

 

Customer Service

 

Customer Service is another critical variable you need to check when finding a supplier. A good communication flow between the supplier and the business owner is essential to establish a good relationship. From feedbacks on products to routine meetings, the supplier should communicate openly and be courteous with the entrepreneur. For your business to be successful, you need a supplier who will update you regularly on the status of goods and inform you way ahead if supply is impossible at a particular time.

 

Delivery and Flexibility

 

It would be best if you ask the following questions when considering the delivery of the supplier.

• How fast does the supplier deliver?
• Does he provide the products in good shape?
• Does he provide inventories at the right time?

Besides, buying in small quantities will help you avoid tying up capital. If your supplier is not flexible enough to respond to emergencies and supply changes, you should consider another.

Financial Security

 

Suppliers are the backbone of every business. Hence it is vital to find a supplier with sufficient cash flow to avoid disruption in the supply chain. Before purchasing products, confirm if the supplier is financially capable of delivering your products whenever you want them. By gathering necessary financial information about the supplier, you reduce the threats to your business.

 

Types of Supplier

 

While there are tons of suppliers out there, they are divided into different categories. These include:

 

• Manufacturers
• Wholesalers
• Drop shippers

 

Manufacturer

 

A manufacturer is a person or corporation that makes finished products from raw materials by using various instrument and tools before distributing to consumers, retailers, wholesalers, distributors, and other manufacturers. A manufacturer supplier gives you the chance to purchase directly from the producer. They have incredible and cheaper prices but require large quantities.

 

This type of supplier is most suitable for established and experienced entrepreneurs with large capital.

 

Wholesalers

The wholesalers are the direct clients of manufacturers. They have the capital, experience, and a warehouse to keep the products. They sell to store owners at a small price and provide discounts on large purchases.

 

Dropship Suppliers

 

Dropshippers appear to be the most popular for e-commerce and small business owners since they do not own products. As a business owner, your job is to advertise the products, and the suppliers send them directly to your customers.

 

Tips for Sourcing for Product Suppliers

 

Find e-commerce Suppliers Online.

 

Since your market location is online, the best practice would be to look for e-commerce suppliers online. E-commerce sites like Alibaba, Taobao, Aliexpress come to mind when it comes to e-commerce suppliers. Their products are cheap, and you can make a comparison before purchasing. Besides, if you have competitors in mind, you can keep a tab on them through JungleScout to check their suppliers and contact them directly. Below are other e-commerce suppliers you can use:

 

• Alibaba
• Aliexpress
• eBay
• Dropshipper
• Dropified
• Salehoo
• DHGate
• EK Wholesale
• JD’s Marketing
• Worldwide Brands

 

Look for Backup Product Suppliers

 

Even after choosing the best reliable supplier, you can not control some disruptions in the supply chain. This is why it is best to look for alternative suppliers. Create a list of reliable suppliers and companies you can call anytime to deliver, negotiate a reasonable price with them, and try as much as possible to keep an open relationship with them. Failed orders can be hard to deal with, especially when you have customers on your neck. And this can significantly affect your sales and make customers lose trust in you.

 

Naturally, some suppliers may not be happy that you do not give them all your suppliers. Just offer an attractive price, so they supply you during an emergency.

Check Local Stores Around

 

Sometimes, you will be surprised that you can find suppliers for the desired products near you. While you are fretting over getting as many online suppliers as possible, there are store owners who have the products you want at a cheaper rate. They are ready to sell online, but they do not know how to do it. Instead of stressing, reach out to these entrepreneurs, and ask if you can use their products in your e-commerce. They can sell their products at a discounted price, and you market them at a full cost on your e-commerce. Eventually, everybody wins!

 

Check International Product Supplies

 

Suppliers from countries like China, India, and Turkey cost less than local suppliers. Notably, China is the go-to for many experienced entrepreneurs. The country has an extensive collection of factories and years of experience producing cheap products. Some of the products you can get from China at affordable rates include clothing accessories, electronic gadgets, children’s toys, phones and accessories, skin care products, kitchen supplies, and light and accessories.

 

A good suggestion is to start from websites like Alibaba and Aliexpress that connect e-commerce owners and small businesses to suppliers. These marketplaces are the easiest way to look for suppliers. Once the suppliers tick all the boxes on your criteria, you can transact outside the site to save some cost.

 

Also, you can create a list of dozen of suitable suppliers and presents your requests. After, filter your list down to five suppliers who have quality products and can provide value for your money. Remember that products from overseas suppliers come with import duties.

 

Consider Dropshipping

 

Dropshipping is a business that involves selling products without owning them. When you receive an order from the customer, you send it to the supplier to deliver the product directly to the consumers.

 

Dropshipping is a perfect place to start e-commerce because it cost less to manage. You do not buy the products or store them. And there is no way to detect that you are a drop shipper through your website. What you need to focus on is a successful marketing plan.

 

Many business owners with no products make a ton of money from dropshipping. For instance, about 33.34% of Amazon sales come from drop shippers.​ So, if you are waiting until you have a huge capital, you leave a lot of money on the table.

 

Conclusion

 

Finding a supplier for your products is no one-size-fits. Nevertheless, it would be best to know how to find a supplier based on specific criteria like cost, delivery, reliability, and quality. Depending on your capital and business type, you need to choose to select from different suppliers such as manufacturers, wholesalers, and drop shippers. Eventually, only you know your business better and the right supplier to provide your business-specific needs.