Product Sourcing Guide

Where to Get Productsto Sell Online

Finding the right products is the foundation of any online business. Compare 15+ sourcing methods from wholesale and dropshipping to print-on-demand and handmade goods.

15+ sourcing methodsAll budget levelsNo inventory optionsHandmade & uniqueWholesale & bulkPlatform comparison

The Quick Answer

4 main categories of product sourcing

๐Ÿ“ฆ

Wholesale

Buy in bulk, higher margins

Startup: $500+

๐Ÿšš

Dropshipping

No inventory needed

Startup: $100-500

๐ŸŽจ

Print-on-Demand

Custom designs printed

Startup: $0-100

โœ‹

Handmade

Create your own products

Startup: $100-1,000

Best for beginners: Start with print-on-demand or dropshipping to test products with minimal risk, then scale to wholesale or private label as you grow.

Main Product Sourcing Methods

Compare the four most popular ways to source products for your online store

๐Ÿ“ฆ

Wholesale

Investment: $500-5,000+ | Margins: 40-60%

Buy products in bulk at discounted prices from manufacturers or distributors.

Best for:

Established sellers with capital who want higher margins and inventory control.

Popular platforms:

Alibaba, Faire, Handshake, ThomasNet

Pros:

  • + Higher margins
  • + Quality control
  • + Faster shipping

Cons:

  • - Upfront investment
  • - Inventory risk
  • - Storage needed
๐Ÿšš

Dropshipping

Investment: $100-500 | Margins: 15-30%

Sell products without holding inventory. Supplier ships directly to your customers.

Best for:

Beginners with limited capital who want to test products without risk.

Popular platforms:

Spocket, CJ Dropshipping, Zendrop, DSers

Pros:

  • + No inventory
  • + Low startup cost
  • + Easy to test products

Cons:

  • - Lower margins
  • - Shipping times
  • - Less control
๐ŸŽจ

Print-on-Demand

Investment: $0-100 | Margins: 20-40%

Create custom-designed products that are printed and shipped when ordered.

Best for:

Artists, designers, and creators who want to monetize their designs.

Popular platforms:

Printful, Printify, Gooten, Gelato

Pros:

  • + No inventory
  • + Unlimited designs
  • + Easy to start

Cons:

  • - Limited products
  • - Quality varies
  • - Lower margins
โœ‹

Handmade

Investment: $100-1,000 | Margins: 50-80%

Create products yourself using raw materials and your skills.

Best for:

Crafters and artisans who can create unique, handcrafted products.

Popular platforms:

Etsy, Amazon Handmade, Own website

Pros:

  • + Highest margins
  • + Unique products
  • + Full control

Cons:

  • - Time intensive
  • - Limited scale
  • - Skill required

More Product Sources

Additional ways to find products for your online store

๐Ÿท๏ธ

Liquidation & Overstock

Investment: $200-2,000

Buy returned or overstock items from major retailers at deep discounts.

Platforms: B-Stock, Liquidation.com, Direct Liquidation

๐Ÿ›๏ธ

Thrifting & Vintage

Investment: $100-500

Source unique and vintage items from thrift stores, estate sales, and flea markets.

Platforms: Local thrift stores, estate sales, Facebook Marketplace

๐Ÿญ

Private Label

Investment: $2,000-10,000+

Work with manufacturers to create products with your brand and specifications.

Platforms: Alibaba, Maker's Row, ThomasNet

๐Ÿ’ป

Digital Products

Investment: $0-100

Create and sell downloadable products like templates, courses, or ebooks.

Platforms: Etsy, Gumroad, Teachable, your own site

๐Ÿงต

Craft Supplies

Investment: $100-500

Source materials for crafters: beads, fabric, tools, kits.

Platforms: Wholesale suppliers, fabric mills, bead wholesalers

๐Ÿค

Local Artisans

Investment: $500-2,000

Partner with local makers to sell their products in your store.

Platforms: Craft fairs, maker spaces, local directories

Sourcing Methods Comparison

MethodStartup CostRisk LevelTime to Start
Print-on-Demand$0-100Very Low1-2 days
Digital Products$0-100Very Low1 week
Dropshipping$100-500Low1-2 weeks
Thrift/Vintage$100-500Low1 week
Handmade$100-1,000Low-Medium2-4 weeks
Wholesale$500-5,000Medium2-4 weeks
Private Label$2,000-10,000+High2-3 months

How to Find Products: Step-by-Step

1

Define Your Niche

Choose a product category based on your interests, skills, and market demand.

2

Set Your Budget

Determine how much you can invest in inventory, samples, and testing.

3

Choose Method

Select a sourcing method that fits your budget and risk tolerance.

4

Validate Suppliers

Research suppliers, order samples, and verify quality before committing.

5

Start Small

Begin with small orders, test demand, then scale what works.

Research Product Trends

Pro Tips for Product Sourcing

๐Ÿ”

Always Order Samples First

Never commit to large orders without testing product quality, packaging, and shipping times yourself.

๐Ÿ“Š

Research Before Sourcing

Validate demand using tools like InsightAgent to see what's actually selling before investing in inventory.

๐ŸŒ

Diversify Your Sources

Don't rely on a single supplier. Build relationships with backup suppliers to avoid stockouts.

๐Ÿ’ฐ

Calculate All Costs

Include shipping, customs, packaging, returns, and platform fees when calculating your true margins.

๐Ÿค

Build Supplier Relationships

Long-term relationships lead to better pricing, priority during busy seasons, and exclusive products.

โš–๏ธ

Start with Low MOQs

Many suppliers offer lower minimum order quantities for new buyers. Ask for samples and small test orders.

Common Sourcing Mistakes to Avoid

โœ—

Ordering too much inventory upfront

โœ“

Start with small test orders to validate demand before committing to large quantities.

โœ—

Not calculating true profit margins

โœ“

Include all costs: product, shipping, customs, fees, returns, marketing, and your time.

โœ—

Choosing products based only on trends

โœ“

Consider competition levels, your ability to differentiate, and long-term sustainability.

โœ—

Ignoring shipping times and costs

โœ“

Factor in customer expectations. Consider domestic suppliers for faster delivery.

โœ—

Not verifying supplier legitimacy

โœ“

Check reviews, request samples, verify business registrations, and start with escrow payments.

โœ—

Copying exact products from competitors

โœ“

Add value through better quality, unique variations, superior branding, or better customer service.

Sourcing for Etsy Sellers

Etsy's Product Requirements

Etsy has specific rules about what you can sell. Your products must fall into one of these categories:

  • โ€ขHandmade: Items you make yourself or with disclosed production partners
  • โ€ขVintage: Items 20+ years old
  • โ€ขCraft Supplies: Materials, tools, and ingredients for creating
  • โ€ขDigital Products: Downloadable files you created

Best Sourcing for Etsy

  • + Handmade products you create
  • + Print-on-demand with custom designs
  • + Vintage items from thrift/estate sales
  • + Digital products (templates, art)
  • + Craft supplies from wholesalers
  • + Production partners (with disclosure)

What NOT to Sell on Etsy

  • - Mass-produced items you didn't make
  • - Reselling wholesale without adding value
  • - Items from AliExpress/Alibaba as-is
  • - Counterfeit or trademarked items
  • - Products violating Etsy's policies
  • - Non-vintage items claiming to be vintage

Frequently Asked Questions

Everything you need to know about finding products to sell online.

You can source products from many channels: (1) Wholesale suppliers like Alibaba, Faire, and Handshake, (2) Dropshipping suppliers who ship directly to customers, (3) Print-on-demand services for custom designs, (4) Local manufacturers and artisans, (5) Liquidation and overstock auctions, (6) Thrift stores and estate sales for vintage items, (7) Creating handmade products yourself, (8) White-labeling existing products with your brand. The best source depends on your budget, niche, and business model.
Starting with little or no money is possible through: (1) Print-on-demand services (Printful, Printify) - create designs, they handle inventory and shipping, (2) Dropshipping - no inventory costs, you pay after customers order, (3) Handmade products from materials you already have, (4) Digital products like templates, ebooks, or courses, (5) Thrifting and reselling items found cheaply, (6) Affiliate marketing - promote others' products for commission. Print-on-demand and digital products are the lowest-risk options.
Find legitimate wholesale suppliers through: (1) Alibaba - largest B2B marketplace, great for bulk orders from China, (2) Faire - curated wholesale for unique and handmade goods, (3) Handshake by Shopify - verified suppliers with no fees, (4) Industry trade shows (ASD Market Week, NY NOW), (5) Direct manufacturer outreach, (6) Wholesale directories like ThomasNet and SaleHoo, (7) Domestic distributors in your country. Always order samples before committing to large orders and verify supplier legitimacy.
Yes, dropshipping remains profitable but requires differentiation. Challenges: increased competition, longer shipping times, lower margins (15-30% typical). Success strategies: (1) Niche focus rather than general stores, (2) Use domestic suppliers for faster shipping, (3) Build a brand rather than a generic store, (4) Focus on customer service, (5) Add value through content and expertise. Profitable niches include home goods, pet products, and specialty items. Avoid ultra-competitive categories with many sellers.
Print-on-demand (POD) lets you sell custom-designed products without inventory. How it works: (1) You create designs and upload to a POD service (Printful, Printify, Gooten), (2) You list products on your store at your prices, (3) Customer orders and pays you, (4) POD service prints and ships directly to customer, (5) You keep the profit margin. Products include t-shirts, mugs, phone cases, posters, and more. Margins are typically 20-40%. Best for: designers, artists, and anyone with creative ideas but no manufacturing capability.
Find manufacturers through: (1) Alibaba - filter by "manufacturers" to find factories, (2) Maker's Row - connects with US manufacturers, (3) ThomasNet - industrial supplier directory, (4) Industry trade shows and expos, (5) Local business directories, (6) LinkedIn outreach to factory contacts. When contacting manufacturers: request samples, ask about MOQs (minimum order quantities), negotiate pricing, verify certifications, and sign contracts protecting your designs. Start with small test orders before scaling.
Best-selling Etsy categories: (1) Handmade jewelry and accessories, (2) Digital downloads (printables, templates, planners), (3) Personalized/custom items, (4) Home decor and wall art, (5) Craft supplies, (6) Vintage items (20+ years old), (7) Wedding and party supplies, (8) Pet products and accessories. Success factors: uniqueness, personalization options, good photography, and targeting underserved niches. Use InsightAgent to research trending categories and keyword demand before launching.
Buy liquidation products from: (1) B-Stock - brand-name overstock auctions, (2) Liquidation.com - pallets and lots from major retailers, (3) Direct Liquidation - Amazon and Target returns, (4) BULQ - curated lots by condition, (5) Via Trading - large liquidation supplier, (6) Local auctions and bankruptcy sales. Tips: start small to learn how to assess condition grades, factor in shipping costs, understand return policies, and research selling prices before bidding. Margins vary widely - inspect manifests carefully.
Source vintage and thrift items from: (1) Thrift stores (Goodwill, Salvation Army), (2) Estate sales and auctions, (3) Garage and yard sales, (4) Flea markets and antique malls, (5) Facebook Marketplace and Craigslist, (6) eBay auctions for undervalued items. Success tips: develop expertise in specific categories, use apps to scan barcodes and check values, visit stores on restock days, build relationships with estate sale companies, and focus on quality over quantity. Popular resale categories: clothing, home goods, collectibles.
White labeling: putting your brand on generic products made by others (same product, different packaging). Private labeling: working with manufacturers to create products to your specifications with your brand. White label is faster and cheaper to start; private label offers more differentiation. Common white label products: cosmetics, supplements, electronics accessories, food products. Find suppliers on Alibaba or through domestic white label companies. Margins are typically higher than reselling (40-60%) but require larger minimum orders.
Starting costs vary by sourcing method: (1) Digital products: $0-50 (software tools), (2) Print-on-demand: $0-100 (design software, mockups), (3) Dropshipping: $100-500 (store setup, samples), (4) Thrift reselling: $100-300 (initial inventory), (5) Wholesale: $500-5,000 (minimum orders), (6) Private label: $2,000-10,000+ (MOQs, samples, shipping). Start with low-cost methods, reinvest profits, then scale to higher-margin sourcing. Many successful sellers started with under $500.
Consider both: Local/domestic sourcing pros - faster shipping, easier communication, higher perceived quality, support local claims. Cons - higher costs, limited selection. Overseas sourcing (China, Vietnam, India) pros - lower costs, massive selection, scalability. Cons - longer shipping, quality control challenges, communication barriers. Best approach: start domestic for testing and validation, then explore overseas for scaling. Many sellers use a mix: overseas manufacturing with domestic fulfillment centers.

Sourcing platforms, fees, and policies change frequently. Always verify current information on each platform's official website before making business decisions.

Ready to Find Your Best-Selling Products?

InsightAgent helps you discover trending products on Etsy, analyze what sells, and find the keywords that convert - so you can source products buyers actually want.