Most creators don’t really know or understand the vast amount of knowledge they need to succeed in today’s modern world. Product sourcing terms can be particularly tricky to master.
Here’s five of the most important terms in product sourcing you’ll need to successfully place your orders online and collaborate with your suppliers.
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5 Product Sourcing Terms for Creators
Traditionally a solo journey until expansion, a creator remains a solopreneur until it’s time to expand the business. Deep down, most creators are also not administrators, nor are they even slightly interested in the paperwork involved in the whole process.
Artists by nature, creators truly just wish to be left alone to create. Given this paradox of needing to know versus wanting to create, it’s understandable that not all words in your creation process may be familiar to you as you progress in your growth.
Amongst these definitions, product sourcing terms that will help you order products online directly from factories are perhaps some of the most important words you will learn.
What is MOQ – Minimum Order Quantity?
Factories online (and offline) will list their MOQ – minimum order quantity. This refers to the minimum number of items in a specific product line you need to order.
This terms comes in handy when needing to place an order. MOQ can be used in a number of scenarios, for instance:
- when asking about sample sizes
- when enquiring about the minimum amount of a product you can order
- when you have an odd or custom order quantity
- and when you place an order for bulk, boxed, or cased products.
What is a White Label Product?
A white label product is a product (or service) is manufactured or produced by one company so other companies can rebrand it and make it their own. The term ‘white label’ originated from the traditionally white label used to brand a product with or to display the content ingredients on.
Conversely, a black label product can refer to either a really premium or exclusive product (according to the Urban Dictionary), or by its darker, more sinister description that includes potions, snake oils, charms, and the like.
What is an OEM Manufacturer?
An OEM manufacturer is someone who makes you a product from scratch, completely customized. OEM therefore refers to ‘original equipment manufacturer’, most commonly seen in technological products and software bundles.
What is Drop Shipping?
Drop shippers hold products in a warehouse on behalf of you, as the seller. This is great if you have a truly unique product with a lock-tight patent, but it’s not something I recommend.
The minute it’s out there, it’s likely to be duplicated. As a new creator relying on yourself to pay your bills, is that a chance you can really take?
What is a 3PL?
3PL is third-party logistics. An example of this is Amazon, who warehouse, process, keep inventory, manage orders, ship products, and liaise with creators/brand owners to take care of returns, etc.
Let me know in the comments below which product sourcing terms you’ve discovered that may be important to know also.
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