6 Steps To Finding A Manufacturer Or Supplier For Your Product Idea

Choosing a manufacturer or supplier for your product idea is a critical business decision, It affects your ability to compete on price, deliver products on time, satisfy customer demand, and ultimately determine your profit margins, click here.

Check out this article for 6 steps to find a manufacturer or supplier for your product idea!

Why is it important to strategically choose which products to sell online?

Your online store is a sum of several elements operating harmoniously. It is affected and influenced by the type of products you are selling. This means that without a solid product line, your business faces an uphill battle before it even gets started.

What's more, the products you sell are a primary factor in shaping other details that affect your online business. For example, if you are selling alcoholic beverages, what legal restrictions do you face?

At the end of the day, the products you sell online directly impact the following aspects of your online store:

Branding and Design: Your brand should reinforce your product line, so make sure they match what's being sold well.

Marketing: Your budget and marketing strategies depend on your target audience. These, in turn, are totally determined by your product offering.

Figuring out what to sell online should be a conscious process. This is why conducting market research is so important. Take your time to reflect on this before trying to find a manufacturer or supplier.

Step 1 to Find a Manufacturer or Supplier for Your Product Idea – Define Your Needs

Defining your needs is the starting point. This way, you will be able to use the appropriate terminology in your searches and find what you are looking for more easily. There are three common options: producer, supplier and dropshipper.

Producer

It is a person or company hired to produce your product idea. It's an option that works
particularly well for those with original ideas that aren't yet on the market.

Provider

The supplier can be a manufacturer, wholesaler or distributor. It is ideal for those who want to sell existing products. Often, the relationship with a supplier is determined by your business profile. The size of your business can have a significant influence on pricing.

Dropshipper

If you are unable to store the products you sell, or do not want to work directly with a manufacturer to acquire inventory, you may want to consider using a dropshipper.

You receive a purchase order and pass it on to the dropshipper. This, in turn, sends the sold item to the customer. Dropshipping has become a common practice among e-commerce retailers thanks to its facilities.

2nd Step to find a manufacturer or supplier for your product idea – National or imported?

After defining what your needs are, the next step is to decide whether your products will be domestic or imported. Both have advantages and disadvantages that must be taken into account before making a decision.

Advantages of national products and suppliers

Quality products, due to high work standards.
Simplified communication.
Ease of checking the reputation of suppliers.
Faster delivery.
Increased payment security and intellectual property.

Disadvantages of national products and suppliers
Higher manufacturing cost.
Less product variety.

Advantages of international products and suppliers

Lower manufacturing costs.
Wide range of products.
More choices from manufacturers and suppliers.

Disadvantages of international products and suppliers

Lower quality products.
Lower working standard depending on country.
Insecurity regarding payments and protection of intellectual property.
Communication can be hampered by language.
Difficulty in verifying the origin of the products or the reputation of the supplier.
Delayed delivery and shipping fee.
Dependence on the clearance of products by customs.
Read too - How to sell legally imported products and be competitive.

Step 3 to Find a Manufacturer or Supplier for Your Product Idea - Start the Search

Having defined your needs, weighing the advantages and disadvantages of your options, the third step is to begin the effective search for a manufacturer or supplier.

Search engines are of little use when finding a manufacturer or supplier. Even if you filter the results and look at every page, it is unlikely that you will find a partner for your business.

Step 4 to find a manufacturer or supplier for your product idea – Contact

Once you have found a manufacturer or supplier, you need to contact them accordingly. Your email must be clear and concise, taking into account 5 elements: minimum order quantity, sample prices, production prices, delivery time and payment terms.

Step 5 to Find a Manufacturer or Supplier for Your Product Idea – Negotiate

It is common for manufacturers or suppliers to require you to purchase a minimum quantity of products on your first order. This is a disadvantage when you have few resources or want to buy little.

In contrast, larger purchases are almost always negotiable in price and units. Try to understand the motivation behind minimum orders. That way you can negotiate better and propose a decent counter offer.

Step 6 to find a manufacturer or supplier for your product idea - Establish the partnership

Finding a manufacturer takes patience. For most retailers, this is a new experience and it's easy to get frustrated in the face of adversity.

The products you choose to sell online are the ultimate foundation for your e-commerce operations. Every business decision you make, including website design, marketing communications and operating costs is heavily influenced by your product line.

Equally important is finding a manufacturer or supplier for your product idea, especially in the formative stages of your online store. While it's understandably tempting to just dive without looking at the ocean, take the time to sit down and think strategically about what you're selling.