How To Source Products To Sell Online 2024 Earn Top Dollar

Sharline Shaw

You don’t need to pay thousands of dollars to learn how to source products to sell online. 

At Leeline, we’ve been sourcing products for the past decade. Our team knows EXACTLY how to find trusted & reliable suppliers. 

We’ve put together a guide on product sourcing from anywhere around the globe.

With this guide, you’ll learn how to find products like a boss, 100% FREE. 

Here’s what you’ll learn:

  • What does product sourcing mean?
  • The strategy of product sourcing for your business
  • Types of product sourcing
  • How to source products to sell online
  • How to avoid scams during product sourcing
  • Best platforms to source products

Excited? Let’s go!

How to source products to sell online

What does Product Sourcing Mean?

Product Sourcing Mean

Products sourcing sounds more like- finding products. But a better definition would be the process where online business owners find inventory they want to sell. 

Product sourcing typically involves finding products from manufacturers, wholesale suppliers, or dropshipping suppliers

When done correctly, you can turn your online store into a 7-figure business overnight (literally…)

And not just that…

You’ll have more time to focus on building your brand and providing excellent customer service. 

Suggested reading: Best China Dropshipping Suppliers and Dropship Websites
Suggested reading: Profitable Made in China Products List
Suggested reading: Best 30 Sourcing Websites

The Strategy of Product Sourcing for Your Business

Strategy of Product Sourcing

To be safe, here are our go-to strategies when sourcing products. 

Have a solid professional relationship with your supplier

Your supplier is like a partner. You are both doing business with the aim of bagging huge bucks. 

You MUST nurture these relationships if you want to be their top priority when they have a hot new product. 

This will also help when you receive a faulty order or damaged product. Suppliers will be prompt in solving the issue to retain the relationship. 

Do ALWAYS buy in bulk

I always buy the bulk inventory. The reason is VERY LOW PRICE with efficient quality. 

But you should reconsider the approach if your products aren’t fast-sellers. You don’t want to be stuck with inventory for ages. Also, it becomes hard to make sales when newer models come into the market. 

Always draft a plan “B.”

Suppliers are also humans. And they are prone to risks such as illnesses, data breaches, or other unavoidable circumstances. Consider having backup suppliers to chip in when your primary suppliers aren’t around. It’s a smart move that can save you lots of money and ensure a steady supply of goods. 

Suggested reading: Best 20 USA Sourcing Agents
Suggested reading: FBA Shipping From China to Amazon
Suggested reading: Top 7 China Trade Shows

Looking for the Best China Sourcing Agent?

Leeline Sourcing helps you find factories, get competitive prices, follow up production, ensure quality and deliver products to the door.

What Types of Product Sourcing Fits Your Business Model?

DIY Products or Services

DIY Products or Services

Did you know that the Handicraft Industry hit $680 million in 2021? 

DIY products are EXCELLENT to get your feet wet; especially if you are a small business owner.  

There are a gazillion ideas you can try while navigating this low-competitive industry. These include;

  • T-shirts, shorts, and printed merchandise
  • Bath bombs, soaps, and other beauty products
  • Handmade Jewelry
  • Curated gift boxes
  • Art & Paintings
  • Pottery, and MUCH MORE. (just explore your creativity).

Where will I find materials?

Well, it depends…

What are you making? If you are making customized products (e.g., printed merchandise), you’ll probably work with mass production suppliers. 

But it’s a broad market. You can also work with second-hand material suppliers or flea markets. 

You can also choose to sell DIY kits instead of making the products by yourself. 

EXPERT ADVICE: When pricing, consider shipping, product handling, marketing, and packaging costs. This ensures you set a reasonable price that guarantees big bucks at the end of the month. 

Pros

  • Unique niche. Uniqueness is my favorite feature here. Competitors CAN NOT duplicate my products.
  • ABSOLUTE control over inventory. You can fulfill incoming and open orders with EASE increasing profits.  
  • 100% control over product quality, so you only ship quality products that will trigger customers to come back for MORE.

Cons

  • Meeting HUGE orders is a nightmare
  • Scaling a DIY online store is quite challenging
Suggested reading: Top 50 Trending Products To Sell Online

Source Products from Manufacturers

Source Products from Manufacturers

If DIY products aren’t your thing, you’ll DEFINITELY enjoy sourcing products from manufacturers. Why? 

Manufacturers take away the hassle of scalability, packaging, and shipping (not all). That means you have more time to market and build your customer base. 

You can partner with a manufacturer to produce custom goods or buy their standard products. 

But there’s a catch…

You have to pay for inventory upfront, with zero guarantees that you’ll make a sale. 

Many online stores are adopting the DTC (Direct-to-Commerce) approach. This involves finding a vetted manufacturer, purchasing, and making them ship goods straight to end-consumer. 

Some of the 7-figure DTC stores include Oura and The Farmer’s Dog

Small businesses SHOULD hop onto this trend to reduce storage space or labor costs. 

Where to find manufacturers? 

You can find manufacturers via search engines like Thomas Net or Maker’s Row. Keep in mind it involves painstaking research to find products and the best suppliers. 

Or…

Hit us up, and we’ll gladly do all the donkey work for you at a small fee. 

SWEET.

Pros

  • Easy to scale your product catalog- More products. More sales. More money. That is what I achieve in finding a TOP-NOTCH wholesale supplier.
  • Insight into new niche products. Hence, you can find new products that will attract more customers.  

Cons

  • High upfront investment
  • More paperwork and contracts to deal with
  • High minimum order quantities; you invest a significant amount upfront with no guarantee on ROI (Return on Investment).
Suggested reading: Wholesale Home Decor From China Manufacturers

Source Products From Wholesalers

Source Products From Wholesalers

This method is a lifesaver, especially if you don’t want to design or assemble products on your own. 

It also allows you to upscale or downsize depending on the market demand. 

Now to the nitty gritty details…

Product sourcing from wholesalers is GREAT. For sure. 

Here’s why.

Wholesalers buy and sell in bulk. Thus, they offer you a reduced price-per-unit on all purchases. That means you SAVE MORE money compared to buying directly from retail businesses. 

The bad news is that buying in bulk requires storage space; which increases overhead costs. Also, you pay upfront for goods without a guarantee that they’ll even sell. 

Alibaba is an EXCELLENT platform that connects suppliers in China with international buyers. Just enter your desired product- then BOOM, you get a list of reliable suppliers in NO TIME. (we’ll cover more on this later). 

NOTE: Always have a contract agreement no matter where you source products from. Don’t forget to send your terms via email after meetings. 

Pros

  • Fixed profit margins. You never have to worry about operating at a loss. 
  • More discounts and allowances save you more money to expand your business

Cons

  • Require huge capital to start
  • High possibility of risks
Suggested reading: How to pay suppliers on Alibaba via Pay Later?

Source Products with Dropshipping

Source Products with Dropshipping

So you don’t want to get your hands dirty, eh? Then, product sourcing from a dropshipping supplier is the BEST option. 

Dropshipping suppliers handle all the backbreaking work. These include manufacturing, packaging, and shipping. They give you ample time to find new leads that convert and scale your brand. 

And the best part…

You can start with as little as $100. 

But there are a few critical things you should know before sourcing products from dropshipping sources.

1. Stiff competition: It is easy to start attracting many small business owners. 

Memes

This greatly reduces profit margins making it harder to earn a sustainable income. 

2. Supply chain problems: there are no middlemen to ensure quality control. You might get backlash from customers if they receive faulty or counterfeit goods. 

Click here to read our guide on finding and working with reliable dropshipping suppliers.

Pros

  • Low cost to start a business online. YOU can start with as little as $500 (depending on what you sell). 
  • Zero risks on inventory since you don’t handle goods directly. 
  • No overhead costs such as storage or product handling. You can save money and invest it in other business areas, such as marketing. 

Cons

  • High competition
  • Low profits
Suggested reading: Best Dropshipping Agent In China

Source Products from Trade Shows

Source Products from Trade Shows

Unlike other types of product sourcing, trade shows connect suppliers with buyers in real-time. 

Attending trade shows gives you insight into new private label products or services, never seen before by customers. 

Also, you get to understand product pricing as you compare prices from multiple suppliers. You can negotiate discounts as sellers want to close deals quickly due to high competition. 

WARNING: Don’t be BLOWN away by the prices. Do your research about the company (or supplier) and market prices. 

The best trade fairs to attend in 2022-2023 include; 

  • ASD Market Week- over 2700 exhibitors
  • National Hardware Show (NHS)- over 2800 exhibitors
  • Dubai Expo

These are EXCELLENT opportunities to source quality products, network, and learn from industry experts. 

Pros

  • Spot products in real-time. I manually visit the trade shows to test the quality on the spot. It helps me to avoid purchasing cheap knockoffs from FAKE suppliers.
  • Access to many suppliers at once. You have thousands of suppliers to choose from. In case one doesn’t meet your requirements, just move on to the next
  • Easy deal negotiation saves the time of scheduling countless meetings to discuss deal closure

Cons

  • Travel and attendance costs are HIGH
  • Small enterprise owners find it hard to close deals

Source Products from Marketplaces

Source Products from Marketplaces

There are two ways in sourcing products from marketplaces. 

  • In-person: Visiting private estate sales, annual fairs, farmer’s markets, and garage sales. 
  • Online marketplaces: e.g., Etsy, eBay, AliExpress, etc

Here’s a detailed list of our favorite online marketplaces:

1. Amazon- GREAT for finding niche products i.e., pet supplies, kitchen appliances

2. Alibaba (more on that in a few)- finding wholesale products

3. Taobao- MAINLY deals in clothing and accessories

4. G2A- sells games and electronics

5. Reverb- find stellar musical instruments

Marketplaces allow you to find and partner with small manufacturers and emerging brands. That means you can nurture STRONG supplier relationships and build a sustainable supplier network. This ensures you never run out of stock even on bad business days!

Pros

  • No legal paperwork is necessary. Saves you the time of drafting and signing legal contracts.
  • You don’t need a minimum order quantity, so you can order just enough products that will sell. 
  • Find unique products in no time that competitors CANNOT duplicate. 

Cons

  • Shipping processes are a nightmare- you can wait for days!
  • You pay a high retail price

Looking to find a reliable Chinese supplier?

As the best China sourcing agent, we help you find factories, get competitive prices, follow up production, ensure quality and deliver products to the door.

How to Source Products to Sell Online?

How to Source Products

We are going to run through how to source products like a PRO and find high-profit margin products. 

We noticed that many people lack a well-defined strategy and have unclear standards when working with multiple suppliers. And it’s DETRIMENTAL to the health of an eCommerce business

So, here’s how to find winning products and reliable suppliers. 

  1. Research your product

Listen– this is the single most crucial step to differentiating winning products from losers. 

I will repeat it. Researching products is the MOST CRUCIAL ASPECT of my business. I never compromise on it.

If you don’t do proper market research, then there’s no need to read the next tips. 

Market research involves; 

  • Understanding consumer demand: What does the target market want? What conversation do they hold on social platforms? Are they looking for particular products? All these will help you understand profitable products for your online store. 
  • Being aware of trends: What products are currently trending? Are competitors stocking these products? 

This will help you make better decisions before contacting potential suppliers. 

2. Contact suppliers

Understand what you want from the supplier (jot them down if possible). 

Ask yourself;

  • I’m looking for product samples.
  • Do I need information?
  • I’m I seeking specific goods?

Understanding what you REALLY want ensures a smooth interaction with all suppliers. 

3. Ask for samples

Can you buy an apartment before inspecting it? 

Then why would you buy products before testing them? 

NEVER, I repeat, NEVER place a bulk order before testing product quality. 

You’ll also monitor how the dropshipping supplier handles the first transaction.

That way, you only work with reliable suppliers who guarantee fast shipping and top-notch products. 

Alright, Perfect! You are now ready to source products to sell online. 

But before that…

What Scams Should You Avoid about Product Sourcing?

Memes3

Errrr…That won’t be necessary (I know it’s painful losing your hard-earned money). 

What if…there’s a way to avoid these scams altogether. That way, you don’t have to blow the scammer’s head OFF! (Too much?…)

We’ll show you how. 

1. Watchout for RED FLAGS

If they do or say this, RUN AWAY!

  • Suppliers who say they can produce everything
  • Hesitant to produce business licenses or documents for verification
  • Don’t want to send samples (NEVER forget to order samples)
  • Inconsistent mode of communication
  • Their website is WHACK! And provides little to no contact information
  • Insist on closing a deal without agreeing to your terms

2. Draft a foolproof contract

Many online sellers rush to close deals without protecting their money. Maybe it’s because scammers offer deals that are too good (to be true!). 

Once you get a potential supplier, RELAX. Write down your requirements and ensure they agree to your terms. Your agreement should include; 

  • Mode and shipment date
  • Mode of payments (including dates).
  • Products specifications
  • Quality standards

3. VERIFY supplier’s details

I have been very PICKY. And suppliers’ details have helped me choose a RELIABLE supplier.

Be AGGRESSIVE while cross-checking your supplier’s details. 

I repeat: Leave no stone unturned. 

Here’s our 5-step guide to verifying suppliers’ details.

Step 1: Ask for the supplier’s business license.

Step 2: Skim through the supplier’s website and contact details. Call the office line and send an email. If you don’t receive a reply…that’s probably a scammer.

Step 3: Ask for the supplier’s Quality Management Certificate. This ensures that the quality of products is consistent.

Step 4: Order samples before closing the deal

Feel free to skip these processes. Just don’t cry to us when all your money is GONE.

Suggested reading: Sourcing Agent 101: How to Find Best Sourcing Agent?

Best Platforms for Sourcing Products

Here is our favorite wholesale marketplace to source products and start selling online.           

1. Alibaba

Alibaba

Alibaba is BY FAR the best e-commerce platform to source products and partner with leading suppliers

Prices are affordable, and they also have over 100 million products to choose from. That’s triple the nearest competitor on this list. 

Oh, and did we say that they have over 150,000 suppliers? 

150,000. Suppliers. It’s like a tiny jungle. 

You can find anything you are looking for shipped directly to your doorstep. So you NEVER have to sign-up on different platforms to get specific products. 

Products range from; (***DEEP BREATH***)

  • Consumer electronics
  • Apparel
  • Vehicle Parts & Accessories
  • Sports & Entertainment
  • Machinery
  • Home & Garden
  • Beauty & Personal Care, and much more.

Alibaba’s wholesale prices are quite low, so you should expect profits to go over the roof. 

If you want to source quality & affordable prices, definitely give Alibaba a try. 

My Tip: LOOK. Alibaba has MANY fake suppliers. Be curative and choose the TOP 1% for your business.

Suggested reading: Questions to ask Alibaba suppliers
Suggested reading: How to Avoid Alibaba Scams

2. Global Sources

Global sources is a veteran in the e-commerce space with thousands of tested and trusted suppliers.

Global Sources

There’s one feature that sets it apart from the rest. 

That’s the MATCH option.  This is a customized feature that allows you to connect with verified suppliers who ONLY fit your business requirements. So you don’t have to spend countless hours finding, vetting, and arranging meetings with prospective suppliers. Pretty awesome, right? 

On the downside, Global Sources only has 2 million products on their platforms. Thus, you might have to source other products on a different platform. 

Ultimate verdict: Global Sources is a great platform for product sourcing; if you are starting. They have the best prices, quality products, and expert-vetted suppliers. That means you never have to worry about fraudulent activities. EVER.

Suggested reading: Alibaba vs Global Sources

3. DHgate

DHgate

DHgate is a GREAT platform for product sourcing, with over 37 million product listings. 

They give you access to over 2.4 million sellers worldwide. That means you can get anything or everything you NEED in one place. 

But what’s so special about DHgate?

EXCELLENT mediation services. I have resolved many problems while communicating with the suppliers.

DHgate acts as a mediator between you and the supplier in case there’s a misunderstanding. You can raise a mediation request when there is a delay in shipment, compromised quality, or damaged products. 

DHgate resolves all disagreements within five days. And the best part is…DHgate’s priority is the buyer. 

Unlike many platforms, it has multiple payment options, which means you pay instantly wherever you are rather than opening a new payment account. DHgate supports;

  • Debit cards- EXCEPT Western Union
  • Bank transfer
  • E-wallet- pay using WebMoney or Moneybookers
  • Credit cards- Mastercards, Visas, and American Express

There’s SO MUCH about DHgate that we can’t cover here. 

Click here to read our full review of this platform. 

Suggested reading: Alibaba vs Dhgate
Suggested reading: Dhgate Shipping Time

4. 1688

1688 is a sister to Alibaba but still has its unique strengths.

1688

For starters, prices at 1688 are cheap as hell. Probably because they target the local Chinese market. 

It also has a well-polished UI, and navigating web pages is seamless. You sign-up, find and place an order on desired products in no time.  

This is a platform you want to use only when you are cash-strapped. 

Here’s why…

Prices are CHEAP- hence quality is a hit or miss. You can get top-quality products or complete knockoffs. 99% of the time, I get quality products. And it is possible when you thoroughly research the suppliers.

The entire website is in Chinese. So you need to download Google Translate to understand the language. Also, Suppliers are not fluent in English. This can be a barrier to communication affecting the entire business operation. 

Suggested reading: 1688 Dropshipping

5. Made-in-China

Made-in-China

As the name suggests, Made in China is a platform that connects Chinese suppliers to international buyers. 

The platform primarily focuses on construction products. These include;

  • Textiles
  • Electronics
  • Machinery
  • Auto & MC products
  • Industrial equipment
  • Packaging
  • Sporting goods, etc.

Products are a bit expensive, but I guarantee the quality. Products have QUALITY RAW MATERIALS. Isn’t that better? You don’t have to return goods due to compromised quality or quantity. 

Their minimum order is relatively high compared to other platforms. Which scares away many first-time eCommerce’ers. 

6. Printful

Printful allows you to source custom products to sell online. 

Printful

They have a mockup generator that lets you print your designs on basically EVERYTHING. From phone cases to t-shirts. From bags to caps. You name it. 

Their prints are AWESOME and don’t wash off quickly. Customers won’t be on your neck because of poor quality. (We understand the frustration).

Printful also offers dropshipping services; hence you don’t manage inventory directly. Just partner with manufacturers, send designs, and they ship directly to customers. 

Is it worth it?

Printful is DEFINITELY worth your time. There are zero upfront costs (you can start with no money). You only sign-up for a free account. Design products and list them on your own website at no charge. 

Suggested reading: Cap Manufacturers

Summary

If you are product sourcing, make sure you do it the right way. 

You need to trust your instincts and work with only suppliers that directly align with your brand identity. 

One more thing…

Research. Research. Research again. 

That’s the only way you are gonna make it in this space filled with all sorts of scammers. Don’t rush to close a deal. Ensure you ONLY work with verified suppliers with a solid track record of delivering quality products.  

Suggested reading: Best Small Manufacturing Companies
Suggested reading: Import Tax From China To US
Suggested reading: Amazon Product Photography for Your Website

FAQs about How to Source Products to Sell Online

1. Which product is easy to manufacture?

Small-scale products. They require few raw materials and little investment. These include sweet treats, candles, printed t-shirts, lip balm, enamel pins, etc.

2. Can anyone buy from a wholesaler?

Yes, anyone can buy from a wholesaler. But it’s not the best option for small brands or businesses. This is because inventory storage and other costs for bulk purchases are high, reducing overall profits. 

3. What are sourcing companies?

Sourcing companies are like the UN in finding products. They source products for their clients at low costs in specific quantities. Sourcing companies ensure quality control of products; so you don’t receive faulty or damaged goods. Examples of sourcing companies include Leeline sourcing, Foshan sourcing, etc.

4. Which is more profitable wholesale or retail? 

Wholesale is more profitable than retail. 
Let’s break it down. 
Wholesalers sell products in a high quantity making more money. 
Retailers sell a single product at a time and have to bear overhead costs in every purchase. 

What’s Next

I hope that this guide answers all your questions on product sourcing. 

Remember that a successful product sourcing campaign starts with proper research. 

More importantly, remember only to source products that directly reflect your brand identity. Don’t get carried away by finding winning products. Just put in the work, market yourself, and collect cash. 

Do you want to source products from China? Or find expert-vetted suppliers to work with? We’ve got your back! Send us your request on any of our service pages. We’ll gladly help. 

Suggested reading: How to Buy On Alibaba And Sell On Amazon?

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Sharline

Article by:

Sharline Shaw

Hey I'm Sharline, the founder of Leeline Sourcing. With 10 years of experience in the field of sourcing in China, we help 2000+ clients import from China,Alibaba,1688 to Amazon FBA or shopify. If you have any questions about sourcing , pls feel free to contact us.

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