The 4 Main Supply Options For Your Online Store

When you start an online store of your own, the only thing you have in your mind is that how to gain profits out of your just started business. Deep down, you yourself know – it’s not so simple to just go out in the market and sell products and gain profit. The profitability lies in – getting some products and sell them in the prices more than you spent acquiring them. This is also important for mobile SEO for ecommerce.

This model comes in play only if you have a relatively inexpensive way to get those products supplied to you which you had plans for – along with a market that has a suitable demand for the products you have in the offer for selling them. Yes, that would enable you to generate a good amount of profit of not more. Also counted as one of the pitfalls of ecommerce.

Here comes the step of improving and increasing your chances of success of an online store. Or more precisely the profit you are making. By doing a proper market research for the niche and demand of your products. The research on the target market enables you to understand your target audiences. Investing in marketing and advertising to generate more traffic – better. But how can you acquire those products more cost effectively?

For this, there are four main supply options that are available. And each one comes with advantages and disadvantages. Your choice could have a massive impact on your eventual profitability. So it’s not one to take lightly. Here are the options discussed in more detail:

‘Do It Yourself’ Online Store

Do It Yourself' Online Store

This is probably one of the most viable options available for you, if you don’t really know what you have to do, in the first place.

  • First of all, simply make a business out of your hobby – make your own products and sell them.
  • Start your own. Start small. This is a great way to boost signups in ecommerce sites too.
  • Because you’re entirely relying on yourself. It will mean you don’t have to go into doing some research on your partners or heavy paperwork.
  • You can literally start immediately. Which is a huge advantage. And you can get moving from the word go.
  • From start to finish, you’re going to have complete control over the execution. You’ll come up with all the ideas.
  • Finally, do all the work and give everything a final quality control check.

However, there’s a downside too. Since you are doing it all by yourself, it requires an intense amount of effort. Especially if you make everything from scratch. Nevertheless, if you enjoy what you’re doing or don’t plan to have many customers. This isn’t a big concern. Also, it will require too much manpower. And it also isn’t easy to grow on your own. Which means it’s virtually impossible to scale an operate an online store like this.

Drop-Ship Online Stores

Drop-Ship Online Stores

Drop-shipping is the surely the next option available to you. That is, if you don’t want to make products all by yourself.

  • This method allows you to sell someone else’s inventory.
  • Consequently, it simply means you will sell the product and have someone else to ship it to your customers. However, you can establish the process the way you want it to.
  • This method is best for bootstrapped businesses which have limited capital. Because you will have to bear no costs as someone else is taking care of the inventory.
  • For this reason. drop-shipping also requires less ongoing attention and management. Because you won’t have to oversee the process directly.

However, the disadvantage here is that – there would be less control over the process. And less insight into quality control. Drop-shipping also typically has lower per-unit profit margins. Which could interfere with your profitability.

Wholesale

wholesale

If these options don’t suit your needs, you can try going the wholesaling way too.

  • In wholesaling, you’ll buy a mass of inventory at a bulk discount, and resell it in smaller quantities at a higher per-unit cost.
  • Secondly, you’ll be working with a brand and company that’s already established, so you’ll have all the support you need and less obstacles in the way of getting yourself established.
  • Also, you can carry a reasonable per-unit profit margin – but this will depend on your partner of choice indeed. Also considered to be a part of latest innovations in ecommerce.

Having to track and manage your own inventory comes with its share of problems. And a higher investment of time too. This can also interfere with the long-term scalability of your operation. Managing a partnership is demanding. And you may have to follow certain branding regulations to resell those products. You also need to consider how much time and stress this method is going to cost you.

Manufacture

manufacture

If doing it yourself seems too much for you, or it might seem it can take a toll on you – you can consider going moving on to the next option available for you to create an ecommerce store, which is manufacturing.

  • In manufacturing, you will be doing a partnership with a large scale factory or a big producer to make all your products.
  • This comes in play where products can’t be handmade and require larger operations.
  • Manufacturing tends to run with the lowest overall cost per unit, and this will again depend on the choice of your manufacturing unit or partner. This, in turn, gives you the highest per-unit profitability.
  • Manufacturing is one of the most scalable ways to get into ecommerce – and that is because manufacturing processes and equipment can be replicated.
  • If your business takes off, you can increase production without even a slightest worry. Read Also – video trends in ecommerce industry.

However, the downside here is – it may take a long time to get your business established in manufacturing. Especially when your products are specially designed. You’ll also need to bear in mind that most manufacturers have minimum orders. Which could cost you more during your initial years.

Pragyan Sharma
Content Writer at BuildaBazaar
A quiet person, likes to keep things to myself - well mostly. Have a passion for writing. Loves singing and playing Guitar. Reader. Dreamer. Wanderlust.

14 thoughts on “The 4 Main Supply Options For Your Online Store

  • November 22, 2016 at 12:15 pm
    Permalink

    Initially when u open ur store, it’s okay to be at d break even point but below dat, it’s dangerous.

    Reply
  • November 28, 2016 at 12:58 pm
    Permalink

    Do not spend too much on shipping, reduce it how much ever you can.

    Reply
  • November 30, 2016 at 5:58 pm
    Permalink

    Reduce ur costs on marketing and advertising and generate more traffic through content marketing. This would shoot up your profits.

    Reply
  • December 1, 2016 at 12:03 pm
    Permalink

    If you want a thing done well, do it yourself.

    Reply
  • December 1, 2016 at 1:13 pm
    Permalink

    You can’t trust other people, if ur business is important for u, do it urself.

    Reply
  • December 1, 2016 at 2:05 pm
    Permalink

    Drop-shipping has lower per-unit profit margins which is a major disadvantage.

    Reply
  • December 1, 2016 at 3:44 pm
    Permalink

    Dropshipping is the only way you can start up without any investment.

    Reply
  • December 1, 2016 at 4:34 pm
    Permalink

    Down the line when you have enough funds from your Dropshipping business, you can hire up some people fo the whole process yourself.

    Reply
  • December 2, 2016 at 11:33 am
    Permalink

    The most important matter in a wholesale business is would the brand really allow you to sell, why wouldn’t they do it themselves.

    Reply
  • December 2, 2016 at 1:17 pm
    Permalink

    In wholesaling we cannot just sell one brand’s product, we need to sell many brand’s together.

    Reply
  • December 2, 2016 at 2:31 pm
    Permalink

    According to me the smartest way of doing an ecommerce business is manufacturing, it’s pretty safe.

    Reply
  • December 2, 2016 at 2:58 pm
    Permalink

    Almost all improvement comes via simplification of manufacturing on a whole.

    Reply
  • December 2, 2016 at 3:39 pm
    Permalink

    People always pay a huge amount for a handmade product. Hence, u cn get more profit.

    Reply
  • December 2, 2016 at 4:04 pm
    Permalink

    Manufacturing is the only way,you can get huge quantity of product within no time.

    Reply

Leave a Reply

Your email address will not be published. Required fields are marked *

Anti-Spam Quiz: