In this instalment of our eBay Elevate webinar series, retail expert Nicola Higgins shares her top tips and tricks for sourcing the ideal inventory for your business, managing suppliers and perfecting your pricing.
Everything you need to know about inventory sourcing
Knowing how to effectively source products can be a minefield for many small business owners. Who are the best suppliers for your industry? Should you use manufacturers from abroad or the UK? How should you price your products to help you turn a profit?
This 1-hour webinar with retail expert, Nicole Higgins, has been designed with small businesses in mind to help you master the tips and tricks of the trade. So you can confidently search for products and deal with suppliers, calculate your prices and know what margins to aim for, and understand the pros and cons of working with local and international manufacturers.
If you missed it, fear not! You can watch the webinar on demand, which explores:
Before you start sourcing, it’s vital to understand…
Your Why:
Mission: What you do, who you do it for, and why you do it
Vision: The bigger picture
Values: The core of your brand’s personality and message
Your Customer:
Age
Past shopping behaviours
Habits
Way they shop
How often they shop
What brands they like
Income
What are they influenced by
Your Competition:
Price points
Customer
Branding
Social Media
Email Marketing
Products
Brand positioning
USP
Ways to buy products for your business
Branded: Product is not exclusive to you unless agreed and carries another company's branding. Branded products are usually bought through a distributor, a wholesaler, or direct from the brand itself.
White Label: Off the shelf product that is bought from a supplier. The product is typically already made and there is a specific range to choose from. You can usually customise white label products.
Made to Order: The product is made specific to your requirements. It is exclusive to you and may have higher minimum quantities than other options.
Dropship: Where you don't own the goods, but customers place an order through your site - but the order comes from the brand directly to the consumer.
Where to source suppliers
Search and Social Media:
Google, LinkedIn, Instagram, Pinterest
Trade Fairs
Spring/Autumn Fair
Top Drawer
Cosmoprof
Pitti Bimbo
I love Playtime
Heimtex
Pure
Canton Fair
Micam
Mipel
Sourcing Websites
Common Objective
Alibaba / AliExpress
Make it British
Re(Source) Fashion
Open Apparel Register (list of factories used by bigger retailers)
British Chambers of Commerce
World Trade Organisation – Artisan
Market Places
Faire UK
Ankorstore
Creoate
Be sure to watch the webinar for top tips on how to maximise your efforts across each channel.
The pros and cons of local versus international manufacturers
Some pros of UK manufacturers include the ability to be able to order smaller quantities of products, more seamless logistics and the freedom to visit factories, which all mean you can apply a test and repeat model. Dealing with UK suppliers also means you’re less likely to be impacted by the complications brought about by Brexit. However, labour costs are higher in the UK.
Looking overseas to Europe and the Near East, costs are generally cheaper than the UK - still with the option for quick repeats. But you’ll have to order in slightly larger quantities, with added complexity brought about by Brexit.
Looking further afield to the Far East, the cost of manufacturing products is far cheaper than the UK. However, you will likely be required to order in larger quantities and will have to factor in added freight costs and currency fluctuations, as well as accounting for the longer shipping times and added complexity of bringing in products from overseas.
Key questions to ask potential suppliers?
What is their minimum order quantity (MOQ) or minimum order value (MOV)?
What is their production and sample lead time?
What are their payment terms?
What audits do the factories have?
What are the quality checks that the factory does on the products?
What testing do they do on the products?
Who else do they supply?
Who would you be dealing with?
What suppliers may need from you?
Purchase orders
Samples
Quantities
Design briefs
Design prototypes
Costings & Quantities - what goes into a price?
Fabric/raw materials
Labour
Trims
Labels and packaging
Shipping and logistics – (including duty, freight and insurance)
Profit of the manufacturing organisation
Other expenses (such as marketing, sampling, testing and fulfilment)
Considerations to decide what quantity you should buy…
How big is your current audience and how engaged are they?
How big is your target audience?
What are the minimum quantities of the supplier?
How quickly can you repeat orders?
Assess the risk and cash flow
Packaging and product
If you found this content useful, subscribe to our Events page to keep up-to-date with upcoming webinars and in-person events, where we’ll be delivering a jam-packed schedule of expert-led sessions tailored for small businesses.