Product sourcing could actually be called product “resource”. Product sourcing consists of actually being a resource for products to the end-user. The most profitable way to be a product “sourcer”, is to buy at a fabulous wholesale price and then retail product at a good profit margin. The key to doing this is in finding the right resource for wholesale pricing.
Often, China sourcing is used for this purpose because products are offered for much less than if purchased from other wholesalers. There are wholesale agents who work directly with the manufacturers to offer low wholesale prices to those who wish to do product sourcing. The low prices they are able to negotiate are often due to purchase agreement where large volumes of product are purchased and then sold to product sourcing representatives at wholesale prices.
For a business owner who doesn’t have millions or even thousand to invest into inventory, working with a wholesale supplier is a sound way to go. At least as long as you do your homework and make sure you are dealing with a reputable source. At times it is possible to work directly with China sourcing suppliers, which means basically working straight with the manufacturer. Often, there is a willingness to offer drop shipping of small product amounts or even of individual products with a large profit margin to be made.