You’ve taken the plunge and decided to start an e-commerce site. You’ve chosen the products you wish to sell. Now it’s time to figure out where those products will come from. The way you source or produce your products will help inform your entire business plan, from inventory to marketing to pricing to packaging.
The chart below explains the four most common methods of obtaining goods to sell – make, manufacture, wholesale and drop ship – and the major pros and cons for each.
The Bottom Line
Most e-commerce sellers have at least a couple of options when decided how to source their products. Carefully consider the pros and cons and how your choice will impact your business. You may have to be prepared to pay upfront for a large inventory of a particular product, or have the flexibility and organizational skills to order as needed. Once you figure out where your products will come from, let the sales begin!
