Why I recommend ditching the middleman in your shop for gifts.
If you sell gifts, you know the struggle of standing out in a sea of sameness. People looking for gifts often want something unique. Purchasing goods straight from manufacturers can have revolutionary effects. Eliminating intermediaries boosts your profit margins since you avoid paying them and have easier access to uncommon and difficult-to-find products. This approach lets you get a distinctive product range that distinguishes your shop.
Navigating the Challenges of Direct Sourcing
Today, gifts are one category that lends itself to direct sourcing. With wonderful sites like eBay and Aliexpress, you have many products available. Choose products that capture the essence of your store and appeal to your target market.
Sure, there are challenges with direct sourcing, but with the appropriate tactics, you can easily conquer them. Consider that certain products, like newspapers or significant dog food brands, have strict distribution channels, and you must work within existing systems. These systems are not made primarily to help you make sales but for the suppliers to make sales.
But for a vast range of giftware, the possibilities are endless! You do not need them.
Here are some tips to navigate direct sourcing successfully:
Research
The Power of Observation
Keep an eye on what sells well in other shops, especially local competitors. This can give you valuable insights into customer preferences in your area. Are there any gaps in the market you can fill with unique giftware? Observing trends and staying ahead of the curve is critical!
Trade Shows
Trade exhibits are a treasure trove for learning about new products and getting to know possible suppliers in person. You can decide on the quality and fit of the product for your target market by actually seeing and handling it. While trade show prices may not be as competitive as direct sourcing, they're a fantastic way to find your next best-seller and initial orders.
Local products
In general, your customers would appreciate you supporting local businesses. If you have many tourists, sourcing locally made gifts can be a brilliant way to attract customers who value unique local products as souvenirs. Another great advantage is that it shortens your supply chain, and you have reduced shipping costs. One downside is if it's local, what is the best way to stop the locals in your area from going directly?
Your current gift suppliers
These can also be good sources of information. After all, they know what is selling now and often know the trends in their particular niche.
Action plan
Importing Made Easy: Exploring Global Treasures
The internet has revolutionised product sourcing. Some Global e-commerce platforms like Alibaba and eBay connect you directly with manufacturers worldwide, often at competitive prices. Most welcome the opportunity to work directly with retailers and love larger orders. This is where your trusty POS system comes in handy! Use sales data to identify popular gift categories and target manufacturers specialising in those areas. Then, write to them and tell them your requirements. You will find you have just opened the door to products at better prices than you get now.
Here are some additional benefits of online sourcing:
- Wide Selection: Explore a seemingly endless variety of products from all corners of the globe.
- Convenience: Browse and order from the comfort of your shop.
- Consumer Protection: Many online platforms offer buyer protection guarantees so you can shop confidently. Popular payment methods like PayPal and credit cards also provide additional security.
Consider factors like shipping costs, customs regulations, and minimum order quantities when importing. It is vital to start small and build relationships with reliable suppliers.
Overall, I think you will find eBay easier to work with, but Aliexpress will have better prices. Both have heaps of products, here is just the catalogue listing of Aliexpress.
A Small Retailer's Success: The Phone Case Story
To illustrate the power of direct sourcing, let's look at the story of one enterprising retailer. He owned a newsagency and noticed a gap in the local market for phone cases while trying to buy a phone case for his son.
Researching the Market
Not one to miss an opportunity, he did his homework. He started investigating what was selling well in some shops in a major shopping centre. He decided that while phone accessories would be complicated, the cases would be doable.
He then researched the best-selling phone models in Australia and identified the top brands. He asked his customers what they were interested in phone cases.
Armed with this market intelligence, he was ready to explore direct sourcing channels.
Tapping into Global Markets
John turned to the global e-commerce platform eBay, where he connected with wholesalers. After carefully vetting potential suppliers, he placed his first order for a curated selection of phone cases.
The initial order was a calculated risk, but his instincts proved spot-on. The unique and eye-catching phone cases were an instant hit with his customers.
Building on Success
Encouraged by the positive response, they have continued to expand their phone case offerings.
By filling a market gap, he created a profitable revenue stream that set their business apart.
Curating a Winning Selection
Ultimately, the key to success in giftware is offering a curated selection that resonates with your target audience. Use your knowledge of your local market and customer preferences to choose high-quality, meaningful products that will make people say, "Wow!"
Use your computer data to analyse what is selling in your shop to find the most popular gift categories with your customers. This valuable information lets you focus your direct sourcing efforts on the products that sell.
With a combination of direct sourcing strategies and the power of our POS system, you can unlock a world of unique gifts, boost your profits, and create a truly special shopping experience for your customers.
Take your gifts to the next level.
