Select the right product sourcing companies for your needs

Product sourcing companies are middlemen who facilitate relationships with suppliers. They specialize in importing goods from various regions of the world on your behalf. They locate the best sources at the most competitive prices internationally and locally saving you anything up to 50% or even more on purchase prices.

How does product sourcing actually work?

Product sourcing companies source goods and, usually, store them in their warehouses to provide you with a responsive, reliable and a readily available service. They work with multiple wholesale suppliers and manufacturers aggregating purchasers’ needs into one service. Many products are sourced from low-cost countries in Asia, mostly China.

Who are the product sourcing companies?

They may be called trading companies, third party sourcing, importers, brokers or drop shippers and they only represent the purchaser, not the supplier. Services may include sourcing specified products at the best price to managing the whole import process and all possible services in between.

They make their profit through leveraging group spend, buying in bulk and selling for profit.

The advantages of using a middleman

Using product sourcing companies has the potential to save you costs and management time, and time is money. They can source your products where they get the best price and pass the cost savings, up to 50% directly to you. Some companies will also do new product research for you and deliver you samples for approval and competitive pricing.

  • Selecting the right product sourcing company
  • Many business owners don't even know where to begin because it is complicated and time consuming to find a reputable sourcing company. There are many unreliable and fly-by-night operators in this sector.

  • Reputation is the key
  • A company's track record is a good indicator of the service you can expect. If they have been in business for more than three years and can provide references from satisfied customers, you can be reasonably confident that they care able to perform the services you need. Take up the references.

  • Beware of heavy sales pitches
  • Product sourcing companies that have a hard sell approach and catchy sales literature without any back up evidence should be avoided. Look for third party sourcing companies that have unsubstantiated claims and outdated and incomplete website information.

Lists of product sourcing companies

There are lists available, by industry and type of products that you can buy on the internet but, beware, some of these are outdated and are not reliable. There is specific software available to make this search easier through searching combined directories of suppliers. But there is no substitute for doing your own research and therefore not being misled.


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