Entrepreneurs can find themselves hitting a brick wall when it comes to sourcing products. Whether you plan to manufacture something of your own or find suppliers to purchase from wholesale, good products aren’t always easy to identify.
Sourcing a supplier for your next project includes finding a manufacturer, deciding whether it’s better to work with manufacturers near you or abroad, and evaluating if a manufacturer is legitimate. It’s also essential to ask suppliers certain questions when developing a product for your ecommerce business.
A manufacturer is any business that produces finished goods from raw materials. They sell these goods to consumers, wholesalers, distributors, retailers, and other manufacturers wanting to create more complex items.
Manufacturers typically stick to one type of product. For example, you could work with a glassware manufacturer who creates glass bottles and jars. You could work with one manufacturer for cardboard boxes and another for plastic or natural products.
Retailers often work with multiple manufacturers at once to create an inventory for their store.
Connect with manufacturers
Find the perfect production partner to build inventory for your ecommerce store with our free sourcing and manufacturing outreach template.
Learn MoreSuppliers refer to anyone who can provide you with products and inventory. This encompasses manufacturers, wholesalers, and distributors.
There are a ton of helpful resources online that you can find through Google. But before you begin, there are a few things you need to know and decide.
You should figure out what type of supplier you’re looking for, which could depend on your ecommerce business model. This will help determine the terminology you need to use in your research. There are several supplier options, the most common being:
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Connect with US-based Shopify brands to easily sell their products. With Shopify Collective, you can curate items from like-minded stores and ship them directly to your customers.
Explore Shopify CollectiveIf you plan to manufacture or wholesale, when looking for suppliers you’ll need to decide whether you want to source domestically or from abroad.
It’s a good idea to secure two manufacturers: one domestic and one foreign. Your local manufacturer can be used as a backup. If international orders are late or incorrect, you can fall back on your local supplier. Domestic suppliers are often more expensive, but it’s better to keep products stocked and customers happy instead of waiting for delayed shipments.
It’s often cheaper to source your products overseas, especially in Asian countries, like India, China, and Vietnam, which ranked as the three countries with the cheapest manufacturing costs, according to U.S. News & World Report.
Manufacturers can make your product ideas a reality. Follow these six steps to find the best manufacturers and suppliers for your business.
Finding the right manufacturer for your product is crucial to your success. Manufacturers can play a role in determining your product’s cost, quality, packaging, and shipping. You can use tools to help you find suppliers:
To find manufacturers near you, do a Google search for “manufacturers near me.” Check out their websites, customer reviews, and product specialties.
Google can help you find local manufacturing options.Many suppliers’ websites are old, sparse on information, and have poor search engine optimization. This means you may have to use a variety of search terms to find what you’re looking for. For example, words such as “wholesale,” “supplier,” and “distributor” may be used interchangeably, so you should search for all of them.
Make yourself familiar with Google's advanced search features to improve the quality of your results.
Use different search terms to find new options.Some of the best leads can come from referrals. Ask your professional networks if they have supplier recommendations or if they know someone who might. Look for individuals who’ve found success in an area you’d like to pursue and see if they’re willing to share their contacts. Join Facebook groups and other online ecommerce communities to see if there are helpful reviews.
Even if a supplier isn’t the right fit for you, ask them if they can point you in the right direction. Being in the industry means they’ll likely have contacts to refer you to that could be better fits.
Another way to look for product suppliers is searching for your products by their code in the North American Industry Classification System (NAICS).
The NAICS classifies manufacturers and products with codes, making some manufacturers and suppliers easier to find, especially in professional directories. Here’s the link for the United States’ NAICS code and the link for Canada’s NAICS code.
You’ll need to vet your potential manufacturer. Once you’ve narrowed it down to a few possibilities, continue your research to make sure they’re credible. Check the Better Business Bureau (BBB) to see if there have been any complaints filed and browse the manufacturer’s customer reviews.
Alibaba connects you with manufacturers from China. It’s a popular marketplace to find existing products, but you can also use Alibaba to connect with manufacturers to create custom products. Search for the products you’re looking for and browse through the various suppliers and manufacturers.
Alibaba is a great way to connect with manufacturers for custom products.It’s easy to safely buy from Alibaba. The marketplace lets you vet manufacturers upfront to get the best products at a fair price. When researching manufacturers on Alibaba, make sure they have the following qualifications:
You can continue to search by applying filters. You can sort by certifications (such as SA8000, which ensures humane working conditions) to find a manufacturer that aligns with your business values.
You can also make sure your manufacturer is not a trading company. A trading company is a liaison and won’t be able to produce your products.
Another place to research manufacturers is in an online supplier directory. These directories act as manufacturer catalogs that contain profiles for thousands of manufacturers, wholesalers, and suppliers. A few of the most popular ones for domestic and international suppliers are:
Once you’ve got a few manufacturers on your radar, you’ll want to get quotes. Aim to get a minimum of three quotes to compare options. For local manufacturers, you can also reach out to organize a tour of their facility or a visit to their office.
In addition to pricing information, you’ll want answers to the following questions:
If you’re looking for a supplier for the first time, you’re going to quickly learn about MOQs. It’s not uncommon for a manufacturer to require a commitment to purchase hundreds or even thousands of units for your first order, depending on the product and manufacturer.
MOQs make it difficult when you have limited funds or want to start small and test the market before making larger purchases. MOQs are almost always negotiable.
Before you negotiate, understand why the supplier has imposed a minimum. Is it because there’s a lot of work upfront? Is it because they prefer to work with larger buyers? Understanding the reasons for the minimum will help you better understand their position and allow you to negotiate and propose the best counter offer.
Many suppliers will require new businesses to pay for a full order upfront. This is important to know, since inventory is a major cost for ecommerce businesses. You should also ask if they provide payment terms on future orders.
Suppliers get bombarded with email quote requests all the time from flaky buyers, so it’s not unusual for suppliers to ignore your request. Suppliers’ lack of responsiveness is a common complaint from new ecommerce entrepreneurs.
So how do you ensure you’re not ignored? There are a few things you should do when you reach out to suppliers for the first time:
Many good manufacturing suppliers will be open to negotiating payment terms. One payment strategy you could propose would be to pay for 50% upfront and 50% after you receive the shipment. This holds both parties responsible for the order and doesn’t leave too much risk on either side.
Chances are you won’t use a manufacturing manager when starting your online business. You’ll have to communicate with suppliers on your own. You can do this via phone, email, or text. When working with local manufacturers, you can also do in-person meetings.
Look for companies that are responsive and eager to work with you. If someone is slow to respond to emails and send samples, you may not want to trust them with your business.
Once you talk with a potential manufacturer, ask if they can create your design. Some manufacturers have a product development process with prototyping and 3D modeling—but it can get expensive.
As an alternative, communicate your ideas with them through:
If they don’t do design, you can use Fiverr or Upwork to find freelancers to create drawings for you. Look to hire:
Another option is finding a local designer. You can work with them to develop prototypes and custom molds. It could be more affordable than going through a manufacturer.
Get samples to test before going into production. Once the sample is to your standard, you should date and sign the sample. Save one or two for yourself. These are called your control samples: forensic samples used to assure quality and get consistent consumer products.
For example, you open a package from a manufacturer and find your products’ colors are completely wrong. You can reference the control sample to indicate the products you received are not what was previously agreed upon.
Between the time you get a sample and when you place your order, it’s still possible to negotiate terms on payment or MOQ. When negotiating, put yourself in the manufacturer’s shoes. The goal isn’t to exploit your manufacturing partner to get the best price. It’s to work together so both parties profit and are happy. It’s the only way to build a long-term, healthy relationship.
After completing a quality control check to make sure every product meets your standards, you can place your order and get the production process started.
Sourcing suppliers and manufacturers is one of the costs of starting a business. Partnering with suppliers that are good fits is a critical decision for your new business, and they aren’t always easy to find.
It’s easy to get frustrated when you hit dead ends or brick walls, but in most cases, it just requires a little more patience and perseverance to find the perfect partner for your new venture.
Illustration by Pete Ryan
Manufacturing refers to turning raw materials into finished products through tools, labor, and machinery. It’s an industrial process that allows for the mass production of goods using advanced technologies and assembly processes.
Types of manufacturing include:
The clothing industry has many different manufacturing processes. For example, a clothing manufacturer’s process could include fabrics receiving and relaxing, form layout, laying, marketing, cutting, screen printing, sewing, and quality checks before creating a single garment.
You can find a manufacturer via the directories and suppliers listed above. Some of the most common places to find manufacturers include:
Mugs or teacups and saucers: Most place settings allow you to choose mugs or teacups and saucers. Teacups and saucers are great for entertaining because they’re more formal, and they help keep your tablecloth free of coffee or tea rings. But teacups are polarizing, as they can make one person feel like a bull in a china shop and another like straight-up royalty, so choose whichever style you like better. Whatever you decide, try the handles on the mugs or teacups to be sure they’re comfortable to hold. Likewise, confirm that the circumference of the mug isn’t so narrow that it hits the bridge of your nose. Some people like smaller mugs because tea or coffee tends to remain hotter by the time they reach the last sip. Others may prefer larger mugs so they don’t have to refill them as often. If you’re short on storage space, or if your mug collection already has your cupboards bursting at the hinges, all of our recommended picks in our guide to the best dinnerware are sold as open stock, so you can skip mugs entirely if you want. If you like to take your mug with you in the car, be sure to measure the cup holders first to determine whether it will fit (but we recommend using one of our recommended travel mugs instead).