If you want to compete in eCommerce today, you need to have the lowest costs so you can sell at the lowest price. Here’s a guide to getting the best price when you source products for your eCommerce business.
What Do You Need?
You may need to source materials, or you may want to find a company that can provide the materials and manufacture or assemble your product. You may want to buy a product that’s already completed for resale. Whatever the case, you’ll need to know which type of suppliers you want.
Where Do You Want to Get It?
You can find a supplier in the United States, or you can go to one that is overseas. There are pros and cons to each.
A domestic supplier may be able to get you the product faster, and you can even visit them if there’s an issue. There’s also the perception that goods made in the US are of better quality, but that may depend on the product. ‘Made in the USA’ could also be a profitable selling point for you. Yet, the cost to source domestically is often higher.
If you go overseas to find a supplier, your costs are likely to be lower. The downside is that it will take you longer to get your product.
What Can You Live Without?
It’s been said that there are three components to any transaction: cost, speed, and quality. In some cases, you might not be able to have all three. So decide which of these three things you can do without. If you sell into a competitive market that values quality, you might need to give up speed. If your customers will wait a bit for your product, but it has to be of the utmost quality, then you might need for forego the supplier with the lowest price.
Where Can You Find the Cheapest Source?
If your goal is to find the least expensive supplier for your eCommerce business, consider these facts:
- If your product requires a material that’s only available in a certain place, using a supplier that’s nearby can save you a bundle.
- When comparing suppliers, be sure to ask about quantities. Have a realistic estimate of the quantity you think you’ll be buying on a regular basis, but also ask about quantities above and below that amount, in case your orders slip a bit or increase faster than you expected.
- Payment terms can be a tiebreaker. If you have two suppliers that are close in price, qualities, and speed, then compare their payment terms. All else being equal, you’d rather work with a supplier who gives you 30 days to pay than one who expects payment on delivery, or up front.
Finding the cheapest supplier requires a little bit of work. The more suppliers you talk to, the more you’ll learn—not only about suppliers but also about what you need in a source. Then you can make an informed decision. Take a look Tekkell, a textile wholesale manufacturer based in Miami, Florida. We carry quality scarves, underwear, Turkish Towels, men’s handkerchiefs, and eco-friendly tote bags that wholesale price that are also customizable. Contact us today for more information and call us at 305-767-4249.