What to keep in mind when sourcing products for retail-chain stores
When you’re a buyer at retail chain-stores, one of the most important things you can do is sourcing the right products with great sell-through. How can you expect people to buy from the store if you don’t have the right products to sell, right?
Gone are the days when traders would board ships set for distant lands, in order to sample foreign spices or fabrics to sell back on home soil. Nowadays, you don’t need to leave your office, or even home, in order to source fantastic products for your stores.
Sourcing trending products is an incredibly critical task because, if done well, it will drive success for your stores. Done badly, and it could spell serious disaster. How do you carry out product sourcing and ensure you order items that your customers will love, and that will work with your business?
We’ve put together this helpful guide to make sure sourcing products for your stores is smooth sailing, even without the ship!
Product Sourcing Key Considerations
Sourcing products is a vital component of the procurement process, and involves finding and vetting suppliers before purchasing goods from them. Getting this right is crucial for avoiding delays or backlog within a retail store’s operations.
There are a number of key things to consider before you set out sourcing products.
Market Research for consumer trends
Analyzing the market is vital for understanding how the supply market works, who your competition is, and the top suppliers that are used. You can use your own existing sales data, as well as keeping an eye on social media, in order to find inspiration and help gauge which types of products will sell best at the times.
Ask Yourself the Right Questions when sourcing products
Once you’ve analyzed the market, it’s time to frame potential products with your store in mind. Asking yourself, “is the product shippable?”, “will it be easy enough to source?”, “is it evergreen or seasonal?” will give you a better idea of your ability to sell the products.
These types of questions can also help provide a deeper understanding of whether products will align with your budget, along with how profitable they will be.
Finding Suppliers for retail stores
After you’ve decided the kinds of products you want to source, you need to consider where to source them from. This is the perfect time to conduct research, and reach out to potential suppliers. Ask plenty of questions that will give you a clearer picture of how your sourcing relationship will work.
This is when you should decide whether to work with manufacturers directly, source products through wholesalers, or whether you want to make your own products.
Manufacturers – This cuts out the middlemen, but can be difficult creating initial relationships. Minimum order quantities (MOQs) are common, meaning you have to commit to large, costly shipments. There are also more time-consuming aspects to deal with, such as warehouse imports.
Wholesalers – Purchase large quantities of goods from manufacturers, and store them to sell to retailers. All the stress of importing and warehousing goods is done by them, leaving you free to run your business.
Request Samples & Review Quality
Asking for samples is imperative, as it enables you to see whether a product will meet the exacting standards of your store. Without samples, you could end up spending a lot of capital on products you can’t sell.
Samples tell you whether the supplier is up to scratch, and also gives you the chance to see how the shipping process runs, how good the customer service is, and whether the packaging was sufficient.
Keep a Supplier List
Keeping a running list of the suppliers you contact and use will help streamline the process for sourcing products in the future. This will help you quickly identify your favorite suppliers, back-up ones, as well as suppliers to avoid completely.
Sourcing Products Globally vs Locally
When sourcing products for retail-chain stores, a big question to ask is how far do you broaden your search? There are pros and cons to both global and local sourcing, all largely relating to things like cost, production capacity, and communication.
Sourcing products locally means there are no language barriers or cultural differences that can hinder the sourcing process. Equally, there can be more control and flexibility with sourcing locally, as well as less environmental impact, but the cost tends to be higher.
Global sourcing can mean higher shipping costs and additional taxes to consider. On the flip side, this sourcing method gives you access to a skilled workforce for a cheaper price. The production capacity is generally far greater than local suppliers, and the infrastructure and technology in place is often superior. This is why global sourcing is more suited to larger operations, like retail-chain stores.
DIG works closely with retail chain buyers, so we know exactly how to make your job of sourcing just the right products as simple as can be. With deep-rooted global connections, you can rely on DIG’s network of over 500 trusted suppliers to source quality products your customers will love.
Be the Ideal Buyer
It makes sense to carefully assess the suppliers you intend to source products from. But, since sourcing products is a two-way street, it’s smart to consider your own conduct too. Being the perfect buyer means manufacturers, wholesalers, and suppliers will be more inclined to work with you again, and could lead to better negotiations on price or priority later on.
In order to build rapport with suppliers and create a good professional relationship, here are some handy tips:
Be clear with what products you want to sell
Go into discussion knowing how you want products to be shipped
Have a good understanding of lead times and the shipping process
Be realistic yet explicit with your expectations
Be reliable and communicative
Nobody likes delays or dealing with difficult individuals, and that goes for the companies supplying the products you want. Being a good buyer will certainly make sourcing products a much smoother process for your retail-chain stores.
Sourcing Products with Lucky DIG
Succeeding in retail means never settling, and always striving to provide the best products that customers will love. Trends are ever-changing, meaning you constantly need to keep a look-out for fresh ideas and great suppliers.
DIG has a weather eye on global trends, and sources unique and exciting products to fit with your retail stores. Our reputation for consistency and trustworthiness and, plus our innovation and quality standards, means you can enjoy product sourcing without any worries. Just ask Walgreen, Meijer, or Dollar General!
Head to our website to learn just how DIG can help you with sourcing products today.
