Suppliers, also called vendors, are the people or organisations that sell the goods and services you need to run your business.
In ecommerce, you may need to deal with several types of suppliers on any given day. This makes it crucial you learn how to identify and work with reliable suppliers before diving headfirst into sales.
Here are a few examples of common supplier types for Shopify sellers:
Wholesalers – the businesses selling bulk finished goods that are bought and resold by retailers.
Manufacturers – the businesses producing the parts and products that are bought and used or resold by wholesalers or retailers.
Logistics companies – the people that deliver your orders to your customers’ doorsteps.
Software vendors – the businesses that make and sell the digital systems you need to run your business (for example, Shopify and Xero).
Office supply retailers – the businesses from whom you purchase packaging and office supplies.
Consultants – the people that help guide and grow your business, such as financial advisors, marketing consultants, and developers.
With so many options to consider, it’s essential to find the best choice for your business. This process is called procurement.
There are certain qualities and terms that will minimise the risk, costs, and mistrust between yourself and your suppliers. It’s important to identify good suppliers early on so that you don’t end up stuck in a contract with a toxic vendor.
Here are 4 key features of a healthy merchant-supplier relationship:
Flexibility: If you’re just starting out in ecommerce, it can be tough to predict customer demand and ideal reordering quantities. Suppliers that offer flexible contracts with low minimum order quantities are much safer to work with in case of unforeseen changes.
Versatility: The fewer suppliers you have to deal with, the better. If you can source multiple goods, products, or services from a single vendor then you’ll reduce the number of hours spent communicating with suppliers.
Capacity to scale: If you want to grow as a business, you need suppliers and systems that can grow with you. Consider the dream amount of sales you’d like to make in a day – would they be able to support you at this level?
Communication: Clear and quick responses can be crucial in ecommerce, especially in the early stages. If your supplier isn’t readily available and empathetic, it can end up costing your business in the long run.
Most importantly, you want suppliers that you can get along with – at least on a professional level. The better your relationship with your suppliers, the less you’ll have to worry about.
If you’re just getting started, the prospect of sourcing good suppliers can seem daunting. But there’s good news:
Suppliers are just as eager to be found as you are to find them.
That means they’re already out there, waiting for you. You’ve just got to know where to look.
The first place many people look when sourcing suppliers is Google.
Depending on what you want to sell, you may be able to narrow your search to local results and find suppliers that are already in your area.
Top tips for using Google to source Shopify suppliers:
Be specific with your keywords. Rather than just entering, say, “wholesale printer suppliers”, try searching for “wholesale thermal printer suppliers” or “wholesale 3D printer suppliers.” This will narrow your search results and help you find the right suppliers faster.
Use quotation marks around important phrases. When you put quotation marks around a phrase, it tells Google to look for the exact phrase rather than individual words. This can also help you get more specific results.
Explore Google Shopping. Google Shopping can be used to find both retail and wholesale suppliers, and it’s a great place to compare prices. Simply type your product keywords into the search bar and see what’s on offer.
