What is reverse sourcing and how to benefit from it?

What is Reverse Sourcing.

Simply put, “reverse sourcing” is the act of looking at the market first, then finding the supplier. Adding market tested and user-approved products to your inventory increases your chances of success and lowers your risk.
It involves finding products that are already being sold successfully by other retailers and then finding a way to source those products. Either selling them as is or adding your private label/brand to them. 

Now, you might be wondering, “Why would I want to source products that are already being sold by someone else?” Well, there are actually a few really good reasons why reverse sourcing can be a valuable strategy for sellers on Amazon and other e-commerce platforms:

• Reduced risk: When you reverse source, you are sourcing products that have already been proven to sell. This means you don’t have to worry about investing in a product that may not be successful. Developing and launching a new product can be a risky and expensive endeavor, so reverse sourcing allows you to tap into the success of already established products and minimize your risk.

• Increased margins: By sourcing products at a lower cost, you can increase your profit margins and potentially earn more money per sale. For example, if you can find a supplier who is willing to sell you a product for $10 that you can then sell on Amazon for $20, you’ll be able to earn a $10 profit per sale. If you can negotiate even lower prices with your supplier, your profit margins will increase even further.

• Increased efficiency: Reverse sourcing can be a more efficient way to find products to sell because you don’t have to spend time and resources developing and testing new products. Instead, you can focus on finding and sourcing products that are already proven to sell, which can save you time and money.

• Access to a wider range of products: This sourcing method allows you to access a wider range of products that may not be available directly from the manufacturer. For example, if you’re interested in selling a particular brand of product, but the manufacturer is not accepting new retailers at the moment, reverse sourcing can allow you to still sell that brand by sourcing it from a retailer or wholesaler who already has access to it.