There are quite a few ways to source products. A few of the most common methods include:
- Arbitrage – This is the method of purchasing products from retail stores, brick and mortar stores, or wholesalers, and selling those same products online for a profit.
- Dropshipping – In dropshipping, a seller lists a product online before buying it from a manufacturer or supplier. Only after a product is purchased by a customer, does the seller purchase the product from the manufacturer and then request it to be shipped directly to the customer. Simply put, the seller never touches the actual product or pay for a product until purchased by a customer.
- Wholesale – This is the method in which sellers purchase a large quantity of stock/supplies directly from a manufacturer or supplier. Generally, these products are sold discounted due to the large quantity of product.
- Private Label – Private labeling happens when sellers scout out generic products and apply their branding to that product. When a seller uses this method, it means they are working closely with a manufacturer to develop their own version of a generic item.
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