27 July 2007 13 Comments Print This Post  Email This Post

You know that there are many benefits of starting your own online business. E-commerce can potentially provide an additional stream of income. For some, e-commerce is a full time, and even a primary source of income. The very first step to starting an online business is to find products to sell, otherwise known as product sourcing. An online business is similar to an off line business in the sense that you simply buy products at wholesale price and resell them at a profit. However, there are several factors to consider when you are product sourcing for an online business. First, you have a choice of what type of wholesaler you want to deal with. Then you have to evaluate the wholesaler and see if they fit your needs. You then finally have to research the products themselves. It’s not easy, otherwise everyone would be e-commerce success stories, but if you put in the time and effort you will enjoy the benefits of owning your own e-commerce business soon.

Types of Wholesalers

1. Dropshippers are perhaps the most well-known type of wholesalers in e-commerce. Dropshipping is when you can sell a variety of products on your website or in auctions without ever having to buy the product first. A customer orders and your wholesaler sends the product to the customer on your behalf.
2. Bulk wholesalers are the most common form of wholesalers in the retail industry. This is simply when you buy products in bulk and keep them in stock in exchange for low wholesale prices. You sell your products online and you ship the items to your customers yourself.
3. Liquidation wholesalers sell closeout lots of bulk product for very cheap. Often times this is done in the fashion industry. This is best for selling in auctions such as eBay. The profits are there if you have the right products, however the time investment is high and the profits are not sustainable.

What I prefer is drop shipping, although my current eBay business comprises of bulk product stocking because there is no drop shipping choice. Dropshipping is my number one choice because it frees up my money for marketing efforts, which is the most important part of e-commerce. If you have enough traffic, you can sell ice to an Eskimo. I also prefer dropshipping because it makes your risk extremely low, just about the lowest for any business. You won’t be stuck with product if your business fails. You can easily start another business in another niche if your first business doesn’t make it.

The toughest part about dropshipping is finding wholesalers who will do it. A lot of wholesalers do not prefer dropshipping. If you were a wholesaler, would you rather pack products one by one and send them to different addresses and make small profits from each or would you rather sell 100 products at once to one retailer? Fortunately, there are also many wholesalers out there who will dropship. They see it as extra revenue to deal with small e-commerce businesses. After all, another product sold is another profit for them. So how do you find wholesalers? How do you determine if they dropship? The old way was to simply travel to trade shows or visit wholesale districts and meet individual wholesalers and see if they will work with a home based business. Fortunately there is an easier way.

Enter OneSource

An interactive directory called OneSource was developed a few years ago by World Wide Brands. OneSource is the only legitimate dropship directory in the industry as far as I know. I have been a member since founder and current CEO Chris Malta started the company, which was more than five years ago if I recall correctly. I’ve used many dropshippers from the directory. I’ve founded some websites that never took off but I’ve also developed a few that were successful and eventually sold for thousands of dollars. The latest was called Fine Necklaces(update: site down as of 3/2/08), which I sold a few months ago. The products are all sourced and dropshipped by a member of the OneSource directory. Both of my current e-commerce websites uses suppliers from this software. There are many so-called directories and wholesale list scams out there, none of which have any type of reputation beyond their words and salesmanship. WorldWideBrands is the only company that I know of that is eBay and BBB certified. The company also hosts shows on product sourcing on Entrepreneur magazine’s radio show as well as eBay radio.

OneSource Lives Up To It’s Name

The great thing about OneSource, is one it is not that pricey. It’s a very small investment considering what you could spend actually trying to find the wholesalers yourself. Another thing I like about OneSource, as it gets more advanced is that it takes care of almost all your product sourcing needs. Not only does show dropshippers, but you can also choose to locate bulk wholesalers or liquidators as well. Below is a screenshot of my OneSource account when I search “shoes”. It shows 68 dropshippers but also many more other types of wholesalers as well.

The OneSource software also addresses some of your research needs as well. For example, there is a tool that lets you research the feasibility of making money with a certain product. It takes into account search engine search volume and how saturated that product is. I find it a bit faulty and vague. I prefer the old fashion way. This is my only beef with OneSource, although its main purpose is to list wholesale dropshippers and thats where it shines.

All in all, if your serious about starting an online business, OneSource is a great investment and a very good tool. This is the answer to the question of product sourcing. So far there is nothing like it that I know of. The company’s reputation is impeccable and the success stories they share are real. If you seriously give e-commerce a shot and don’t give up, I don’t see any reason why anyone can’t join the list of successful e-commerce retailers. Click here to visit their website and sign up now.