Product sourcing models
What methods are there for soucing products
Methods change in popularity over time, with technology opening up more options. There are a variety of methods to obtain products to sell in your store. Most business can diverify by looking at more than one method, methods to choose from include:
- Wholesale Suppliers: Connect with wholesalers for bulk purchases.
- Dropshipping: Partner with dropshipping suppliers to list their products.
- Local Artisans: Source unique items from local craftsmen.
- Online Marketplaces: Explore platforms like Amazon, eBay, or Alibaba.
- Networking: Attend trade shows or join industry forums.
- Develop Your Own: Develop unique products in-house.
- Consignment: Partner with vendors who share revenue.
- Auctions and Liquidation: Purchase surplus or auctioned goods.
- Affiliate Marketing: Collaborate with affiliates who promote your products for a commission.
These strategies, including affiliate marketing, can help you diversify your website's stock effectively.
What Advantages and disadvantages of different product sourcing models?
Here's a table outlining the positives and negatives of each method for sourcing products for your website:
| Method | Positives | Negatives |
|---|---|---|
| Wholesale Suppliers | - Access to bulk quantities | - High upfront costs for inventory |
| Dropshipping | - Low upfront costs | - Limited control over product quality and stock |
| Local Artisans | - Unique, handmade products | - Limited scalability, potentially higher prices |
| Online Marketplaces | - Wide product selection | - Increased competition, marketplace fees |
| Networking | - Potential for exclusive deals | - Time-consuming, limited scalability |
| Create Your Own (grow, harvest etc) | - Full control over products | - High production and development costs |
| Consignment | - Minimal upfront cost, revenue sharing | - Risk of unsold items, shared profits |
| Auctions and Liquidation | - Potential for discounted stock | - Limited availability, varying quality of items |
| Affiliate Marketing | - Low upfront cost, expanded reach through affiliates | - Commission payouts, reliance on affiliate marketers |
This list and analysis are not exhaustive. Each method has its own set of advantages and disadvantages, so choosing the right approach depends on your specific business goals and circumstances.
Examples of products by supplier type
This table describes three different products that each type of supplier might supply.
| Method | Farming Store Items |
|---|---|
| Wholesale Suppliers | 1. Fertilizers and soil additives |
| 2. Livestock feed and supplements | |
| 3. Agricultural machinery and equipment | |
| Dropshipping | 1. Beekeeping supplies |
| 2. Gardening tools and equipment | |
| 3. Animal health products | |
| Local Artisans | 1. Homemade jams and chutneys |
| 2. Handcrafted farm-themed decor | |
| 3. Custom-made livestock accessories | |
| Online Marketplaces | 1. Seeds and plant starters |
| 2. Poultry coops and enclosures | |
| 3. Farming literature and guides | |
| Create Your Own | 1. Livestock, hatch chicks. |
| 2. Fresh Meat, begetables, or Hay & Grain. | |
| 3. Shearing, animal husbandary services or transport. | |
| Consignment | 1. Used farm tools and equipment |
| 2. Secondhand livestock handling gear | |
| 3. Vintage farming collectibles | |
| Auctions and Liquidation | 1. Surplus livestock feed |
| 2. Overstocked farm clothing and gear | |
| 3. Discounted farm machinery | |
| Affiliate Marketing | 1. Farming and gardening books |
| 2. Livestock care online courses | |
| 3. Eco-friendly farm product recommendations |
These items provide a range of products that a farming store could source from each of the mentioned methods, including creating their own products like hatching chicks, growing vegetables, and offering shearing services