Source Code: Cracking the Product Supply Puzzle

Finding the right products to sell can feel like solving a complicated puzzle, especially for anyone running their own business. This week we talked about the type of business models that we can use in our up and coming businesses and the steps to get us there as well. First and formost, what is a business model? This is the framework for your business and comes in a few steps that need to be followed in order to learn the most about the ecommerce of your business. And with that there are three types of people in a business, the Brokers, the Manufacturers, and the Wholesalers. Which will you be?

Where are we getting our product from?

We really put an emphasis on this topic this week. The two main options we focused on were Affiliate Marketing and Drop Shipping Marketing. Affiliate Marketing is where you are almost the middle man for other brands or places that sell the product you are trying to sell. You have a contract with the company and you sell their products for a peice of the profit. Sadly not the whole thing, just the amount you both decide on (usually around 5% or more). But there is less hassel with the customers complaints or other problems that may arrise, as well as the stress of coming up with the amount of product that you would need in an orderly amount of time. With Drop shipping, you are the one in charge. You are selling your own products and getting most of the profit without the hassel of a third party. But the downside would be you are the main man when it comes to customer satisffaction and outreach. Everythign comes to you, and the stress of prodicing products on your own seems like alot to me.

What is your missing piece?

With the two in mind , and your product picked out now is the time to pick the business model. Personally, I really like the Affiliated marketing strategy over Drop-Shipping. The main reason being the time commitment that would be necessary. I am very busy, and working with someone that already has a product that they know sells, like Amazon, Free People, or other companies with my same product. Making my job easier to just handle the selling of the product while they handle the grit work of shipping, services, and all that jazz.

Which would you rather choose to fit your puzzle?

Ashley Chaddock

A variety of package boxes ready for product supply.