How to Find Local Suppliers?
There are some who may think that local suppliers cannot provide high-quality products or raw materials for their business needs. But this is not true. Nowadays, local business suppliers are an integral part of a company’s supply chain. In fact, sourcing locally is a growing trend for small business owners that cannot afford to outsource their supplies abroad.
Having a local supplier is one of the best ways to save money especially when it comes to shipping costs. It is also environmentally friendly because you can accumulate a lesser carbon footprint. However, it can be quite challenging to find the right one that you can rely on. In this article, I will be sharing what you should know about finding and working with local suppliers so you can enjoy a hassle-free transaction with them.
What is a Local Supplier?
A local supplier is a company or an individual that is based in your town, city, or country and sells products or services to local businesses and consumers. They can be wholesalers (wholesale distributors), dropshipping suppliers (dropshippers), retailers, service providers, or a combination of these. Typically, they use the local market like the local chamber of commerce to reach their target customers. But they can also be found on the internet or through catalogs such as trade magazines and wholesale directories.
The local suppliers can be very useful for your business as they can provide you with the right type of product at a very low cost. They are also aware of the market trends and know what the customers want.
Why Should You Use Local Suppliers for Your Business?
Local suppliers can help you big time in growing your business. Just like overseas, they can offer a wider range of products and services. They also provide the convenience of delivering your order right at your doorstep. If you are thinking to start sourcing locally, here are the benefits you can get.
Cheaper Price
One of the benefits of purchasing products locally is that you can take advantage of their low pricing strategies. There is always a cheaper option available for your niche within your own city, town, or even neighborhood. Wholesale suppliers can even give you a discounted rate if you purchase their merchandise in bulk. This is beneficial to your business as it allows you to save a lot of money by lowering production costs. As a result, you can sell your products at competitive prices to your customers.
Faster Shipping
Local suppliers have more reliable shipping and can deliver your orders within a few days, especially in this time of the pandemic. You can leverage that shipping time is significantly faster than global trade because shipping processes are shortened. For example, the products do not need to go to customs for some clearance and approval. Once you place your order to local suppliers, they immediately arrange the shipment with their partner local delivery services or couriers. Some even offer free shipping for wholesale products or large quantities so make sure to inquire.
Promote Business for Free
If you want to promote your products or services in an efficient way, you need to connect with a variety of different local suppliers. Not only they do sell products at cheaper prices, but they can also advertise your business for free. They usually post the businesses they served with on their social media pages and even on their blogs if they have. For example, if you purchase raw materials for your accessories business, you can give the link to your online store. This is a win-win situation to spread the word about your business.
Factors to Consider When Looking For Local Suppliers
Local suppliers are one of the best ways to get things done without spending too much time and money. But if you source products or services locally, there are various factors you need to consider to ensure you can get the most out of your money and have a smooth transaction.
In this section, I enumerated the most important factors you should know about before placing an order.
Price
Price is a major factor to consider when buying from local suppliers. Not only it can help you determine how much money you will make but also help you decide how much you will be going to sell the products on your online store. If you are a dropshipper or a retailer, it is necessary that you get the items at a price lesser than the alternative options. Compare the price lists of each of your potential local suppliers so you can purchase your products at a much cheaper price.
Product Quality
Along with the pricing, product quality is also an important factor you must need to check before making a deal with your local suppliers. It is still not a wise decision if you get your items at a lower price but the quality is poor. Poor product quality can easily and badly affect your business’ reputation. Always remember that when you offer quality products to your customer even if those are a bit pricey, they will stay loyal to you and will keep coming back to your store because they know that their satisfaction will be well taken care of.
Reputation
It is important to consider a company’s reputation in order to find the right supplier because they will offer better pricing, quality, and customer service. Reputable companies will be careful about the materials they use and treat their customers well. They have great customer service as well which is useful when you need some advice or assistance. A good way to determine whether a local supplier is reputable is to check out their online reviews.
Reliability
When entering into business with local suppliers, you also need to consider how reliable they can be. By doing so, you can rest assured that you are getting what you expect and that any problems will be resolved quickly. In addition, by vetting a company thoroughly before contracting with them, you can avoid any unnecessary headaches down the road especially when it comes to shipping timelines. You can visit their website or social media channels and see if they can come through on what they offer and follow through with their commitments to satisfy the customer. You can also email them to test how responsive they are and accommodating to their potential clients.
Read also: 5 Tips on Choosing the Right Suppliers for Your eCommerce Business
Minimum Order Quantity
Lastly, you need to consider the minimum order quantity (MOQ) of your potential local suppliers. MOQ is the smallest number of items you can purchase from them. Typically, their MOQ is fewer than the MOQ of overseas suppliers. Knowing their MOQ allows you to assess how much inventory the suppliers have and whether they are capable of meeting your needs. You can also foresee how much you will be going to spend on your products and when the next order will happen.
4 Ways on Finding Reliable Local Suppliers
Suppliers are the backbone of your business. They provide raw materials, infrastructure, and services to help you deliver a product or service to your customers. Here’s how you can find reliable local suppliers.
1. Search on Google
The first thing you can do is to search your potential suppliers on Google. This is a good place to start your “supplier hunting” because it offers massive information on practically anything. Even when the local suppliers just only have social media pages or are listed on online business directories and don’t have any active websites, you can still find them on Google.
To narrow down your search, you can try to include certain keywords that will help you find what exactly you are looking for. For example, you can try using the formula below:
<product> + wholesale <country or name of your locality>
or
<product> + <country or name of your locality>
This makes it fast and easy to identify wholesalers in your area. The more specific your search is, the better.
2. Look for the Product
Another way to find a local supplier is by looking for the product. For example, if you want to sell electronics, you can buy a flashlight first so you can try it yourself if the product is durable. If you are satisfied with the quality, check the supplier’s information on the packaging. It is usually written as “distributed by”. When you know who distributed the product, you can search the company online to do a background check. Or you can already contact them and ask if they can supply you with their products.
3. Let the Local Suppliers Look for You
The third way you can, which is actually one of the most powerful methods, is to let the local suppliers look for you. How does it work? The supplier will be the one to contact you (so make sure all your social media pages and websites are active) and offer if you want to get a product or service from their company. If this happens to you, I suggest you take advantage of it because this opportunity allows you to have better bargaining power. You can request them for better deals.
4. Ask for Consignment
Lastly, you can ask for consignment from the local suppliers who contacted you. The good thing about consignment is that there is no need for upfront capital which makes it less risky. However, make sure to reiterate that you are not asking for dropshipping service. Some suppliers do not want this kind of business model and they might turn their back on you before you even close a deal with them. Another reason why you don’t want dropshipping is because you are giving the supplier a reason to offer you very low margins. Usually, local suppliers only give 10% to 15% discount for dropshipping. But if you ask for consignment, they can give you a wholesaler margin even if you don’t purchase in bulk.
Final Thought
Finding a local business supplier is key to reducing the cost of doing business in the long run and promoting your brand efficiently. They can often provide a wide range of goods and services that you need that overseas suppliers may not offer. This is an edge for you especially if you are able to find a local supplier that manufactures unique products. You can find reliable local suppliers by asking around, searching online, or simply going to the nearest supplier fair. Sourcing locally does not only benefit your business but also the local business owners. You are able to support their business’ growth which allows them to hire more people. In this way, you are helping the communities to thrive.
Sourcing domestically is also beneficial because you can test the products first if they are sellable before ordering from China, for example. This way, you do not need to take risks of ordering bulk inventory for anything that might not sell well later.
