In this multi-part article, we are going to be looking at suppliers and how to discover them for the goods that you want to market. Our company has been sourcing a ton of products and has helped to our clients to source their products from America, and we have found many drop shippers in the United States.
We also have amazing specialists that can explain to you how to correctly source goods from China, as a lot of you presumably want to source goods from China, because China is the word factory in an absolute sense for many products.
However, now in this article, we will focus more deep into the sourcing products from America.
We will go into three steps in this multi-part article where I will show you the exact process of sourcing from America, so you will understand perfectly well how to do that. So let’s get started.
THE MOST SIGNIFICANT ESSENTIAL TERMS THAT YOU WILL WANT TO KNOW FOR SOURCING GOODS AND LOOKING FOR SUPPLIERS
Let’s look at some key terms that you surely want to understand when it comes to vendors and purchasing products and all that kind of stuff. There are just a couple that you may already know so this could be a review, but if you are not sure, then check them all.
First key term: PRIVATE LABEL
That is what apparently you will be doing. Most of the people want to be private label business owners. Moreover, that is only the retails name that is used on the product that is sold by the retailer but another company manufactures it. So you are going to have a private label brand.
So that means that you are going to sell products that you do not manufacture. You might have a custom formulation, or you might have a personal ad on to the widget that someone else produces, but someone else, some other manufacturer is going to be creating the product, you are going to buying it and branding it under a private label.
So you will put your label on it, and it is going to be your own brand name, and you are going to be purchasing the right to it from that manufacturer so you can sell it.
Second key term: RESELLER
You need to definitely make sure that you do not buy from a reseller. A Reseller is a person or a company that buys goods or services with the intention of selling rather than consuming or using them. So they do not actually make the things, and they are just reselling them.
Also, you want to make sure that when you are buying from anyone, that this is the actual company or person that makes the product or manufacture the product.
Third key term: WHOLESALER
A wholesaler is a kind of like a reseller except for that they buy an enormous quantity of goods from various producers and vendors, and they warehouse them, and they resell them to retailers. They are selling B to B (B2B) or business to business, which means that they are selling to you and you are selling B to C (B2C) which means business to consumer.
A wholesale is great if you cannot find a manufacturer and there is just no way for you to find the actual person that makes to a product that you can buy from then you can go to a wholesaler. However, it is much better if you can purchase your product directly from a manufacturer and that is a company or person who makes the product.
So your manufacturer can be a person in the backyard in Minnesota who hand make soaps or might be a factory in China that makes the cell phone cases that you are selling – whoever it is, they are actually making the product.
Third key term: MOQ (Minimum order quantity)
This specifies the lowest quantity of a certain product that a manufacturer or supplier is willing to sell and we will focus on that more when I show to how to do the research for American suppliers. (Of course, we have Chinese sourcing experts, and we will write more information about sourcing from China in following articles, and MOQ is important in both of those types of sourcing.)
The MOQ is essentially the minimal amount that the supplier will sell you if you want to buy the products as a private label. Which means that you are going to purchase it in bulk, you will put your logo in it, and put it in your box and put your brand.
So after doing all of this then what is the minimal amount that the supplier will sell you. This is a crucial thing to know when you are looking for a supplier.
Those are the main key terms that you want to understand. It is nothing too special, but it is important to know those key terms.
From Where To Start With Suppliers?
Now let’s move one and see from where to start depending on the product type that you are looking for. So what is the country you should start in essentially? Most of the time you almost always want to start in the USA or China when it comes to sourcing your products.
IS YUR PRODUCT GOES IN OR ON YOUR BODY?
If your product is like a topical cream of some kinds, perhaps a beauty product or let’s say injectible of some kinds probably some food product or maybe coffee or a supplement, then you usually want to source that stuff in the US.
IS YOUR PRODUCT REQUEST USA CERTIFICATION (FDA, ETC.)?
If your products is like some kind of medical device or some supplement like food for human and animals (which is, by the way, a big market) those products often have an FDA or other regulatory necessities for you to be able to sell them. Then you manufacturer is going to need all of those certifications and regulations in which case you probably want your product to be made in the US.
IF YOU ARE GETTING RAW MATERIALS THAT ARE NATIVE TO THE USA OR THE COUNTRY THAT YOU ARE GOING TO SELL
If your products include some raw materials that are native to the USA (or the country that you are going to sell) , then you probably want to start to search in the USA, although you can get some stuff that’s made in another country that is native material to the USA and sometimes that does happen.
Start elsewhere in the world if the raw materials are native to the location that you want to sell your products. Let us take for example Peru where you can source your macro powder. Alternatively look in Japan, for example, there you can source your Japanese Brand Cosmetics. You can also source your cow milk in Bulgaria or other country and so on.
IF YOU WANT TO MAKE “MADE IN (YOUR OWN COUNTRY)” SELLING POINT – Example: “Made in USA“
If that is a big thing for you and you want a product that is made in the country that you are going to be selling and that is important in your market, and it is going to give you some sales benefits, then this also can be good.
For example, there are people who sell American perfumes that are made in the USA, and that is a big selling point for them. So If you want to do “made in the USA (or your own country)” selling point, then you need to make them in the country that you live in or that you want to sell the product.
IF YOUR PRODUCT IS MADE FROM PLASTIC, PROBABLY YOU NEED TO START SOURCING IN CHINA
Probably you already know that China produces most of the worlds plastic products and it is likely to be the world’s factory, and that is neither good nor bad, it is just a description of the way the things have gone over the last several decays. So if you start looking at the labels of the products that you are purchasing in almost every country you will probably see that many things are made in China.
IS YOUR PRODUCT NOT OVERLY COMPLEX TO CREATE?
If your product is a real simple type of product, like a Water Bottle, for example, it is very likely that this product is going to be sourced in China and you will surely find people who are already making it in China.
IS YOUR PRODUCTCHEAP UNDER $20 RETAIL?
If your product is inexpensive product and if it is under $20 retail, you will probably go to China for that. Moreover, those are just some general directions on where to start thinking about sourcing or where you need to be thinking based on what type of product you are selling.
To be continued in part 2…