The Art of Strategic Sourcing

So, you've mastered the marketing side of the ecommerce world, or as I call it, the art of getting people to click that "Add to Cart" button! But have you ever wondered what goes on behind the scenes when it comes to sourcing those eye-catching products for your online store? It was all so simple at the beginning. You found a product to private label online and thanks to your impressive sales and marketing tactics, BOOM! you are off and running. 

Fast forward to today. You’re growing. And you are growing tired of swimming in the sea of products on platforms like Alibaba, hoping to find that hidden gem for your Amazon or online store. At the end of the day, you’re buying products, and they are the same products everyone else is buying. No matter what your copy says or how your packaging is designed or whatever modification you were able to make to the product. Somebody is already buying it from that supplier.

Picture this: you're at your local farmers' market on a sunny Saturday morning. You're strolling past stands, sampling some of the freshest, most delicious produce straight from the source. You get to shake hands with the farmers, hear their stories, understand the love and sweat that goes into every tomato, every apple. Feels good, doesn't it? 

Welcome to the world of Strategic Sourcing – where the magic happens. 

Imagine taking that same “Farmer’s Market” principle and applying it to your e-commerce business. That, my friends, is the essence of Strategic Sourcing. It's not just a fancy buzzphrase; it's about getting as close as you can to where your products are coming from. It's about cutting out the middleman*, yes, but it's also about so much more than that.  *As a side note, having a middleman isn’t necessarily bad, as long as that middleman is working in YOUR best interest. 

When you source your products directly from a manufacturer, you're not just looking at price tags. You're looking for quality, reliability, and a partnership that can help your business thrive. It's like finding that perfect tomato at the farmers' market. You know where it's coming from, you trust the quality, and you feel good about supporting the farmer behind it.  When sales begin growing from $1M to $10M, this becomes extremely important to your business. In fact, your sourcing strategy will become one of the most integral parts of your business. 

But here's the catch – and there's always a catch, right? This approach requires a bit more legwork. You need to do your homework, find the right suppliers, and build those relationships. Getting on a plane, a train or in the car and showing up in person. It's about negotiation, sure, but it's also about collaboration. You and your suppliers are in this together, growing your businesses side by side. Everyone says win-win but those that truly think of the partner equally to their own self-preservation are the ones that gain the best possible outcome.  

Now, I'm not saying this is easy. There's no magic wand you can wave to make the perfect supplier appear. But I promise you, the effort is worth it. When you get it right, it's like hitting the jackpot. Lower costs, better quality, more control over your inventory – it's all within reach.

And here's the best part: it's not just about business. It's about building a community around your business, your brand, a network of suppliers and customers who believe in what you're doing. It's about creating something bigger than just transactions; it's about creating value that resonates with people.

Over the course of time, let’s dive into specifics together and start our journey in strategic sourcing.  Welcome, my friends!!

Yours in perpetual learning,

Patrick

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