Key takeaways
- Sourcing products starts with a reliable supplier and healthy margins.
- Include the purchase price, shipping, VAT and minimum order quantities.
- Order samples before buying in bulk.
- Track purchasing and inventory in one system.
You have an idea for an online store. Perhaps even a name. Then comes the question that leaves many beginners uncertain for days or weeks: where do I get my products, how much should I buy, and will all my savings end up in boxes sitting in the hallway?
The good news: you can start sensibly without risking a large sum. The trick is not buying as cheaply as possible, but matching the source, quantity and margin. This guide takes you through it step by step — written for someone just starting, not a purchasing department.
Start with the customer, not the supplier
It is tempting to look for the cheapest supplier straight away. Do not. Start with the question: what problem do I solve, and for whom? A product that meets a clear desire or need is halfway to selling itself. A cheap product with no demand remains unsold, however good a deal you got.
Write in one sentence what you sell and to whom. If you are still in doubt, read how to determine what you sell or get inspired with product ideas that work. Only when that is clear do you start purchasing — otherwise you buy based on feeling instead of on demand.
Five ways to source inventory
There is no single best source. What fits depends on your budget, how much control you want and how quickly you want to scale.
| Source | Advantage | Disadvantage | Best suited to |
|---|---|---|---|
| Wholesaler | competitive price at volume | minimum order quantity (MOQ) | those with some budget who want to scale |
| Direct from the manufacturer | highest margin, own brand | high MOQ, long lead time | own brand, serious ambition |
| B2B marketplace | wide selection, quick start | varying quality, more competition | quick testing |
| Local supplier | direct communication, fast delivery | higher unit cost | fresh, local, personal |
| Dropshipping / print-on-demand | no inventory or tied-up capital | lowest margin, less control | starting on a small budget |
Wholesaler
The traditional route: you buy from a wholesaler who buys from manufacturers. Your price falls as you order more, but you are often committed to a minimum quantity. Ideal once you have found a product that sells and want to scale.
Direct from the manufacturer
The highest margin, and the only route if you want to carry your own brand. But manufacturers work with high minimum quantities and long production times. For most beginners, this is step two, not step one.
B2B marketplaces
Online platforms where you can quickly find many suppliers. Useful for testing a product without major commitments, but quality varies and you often sell the same things as others. Always order a sample first.
Local suppliers
Direct communication, fast delivery and personal contact — helpful if you sell fresh, local or handmade products. You pay more per unit, but gain reliability and a good story.
Without your own inventory
If you really want to start small, you can sell via dropshipping or print-on-demand without purchasing anything: you only pay for the product when the customer has paid. The margin is lower and you give up control, but your risk is almost zero. Read start an online store without stock.
How much should you buy to get started?
This is the question that keeps most beginners awake. The answer: as little as possible to test your product. A smaller first order costs a little more per unit, but does not tie up money in inventory that might not sell.
Ask every supplier about the minimum order quantity (MOQ) and whether a trial order is possible. A common beginner's mistake is buying a large batch at once because the unit price is lower, then ending up with a hundred unsold items. Let sales prove the product before you scale.
Also account for working capital: money tied up in inventory cannot be spent on marketing. Without marketing, even the best product will not sell. Keep a buffer for attracting your first customers.
Calculate your margin — or you will earn nothing
Buying without knowing your margin is gambling. Always calculate it before ordering:
| Item | Amount |
|---|---|
| Selling price (including 21% Dutch VAT) | € 25,00 |
| Less VAT | − € 4,34 |
| Less purchase price | − € 8,00 |
| Less shipping | − € 5,00 |
| Less payment fees | − € 0,30 |
| Margin per sale | € 7,36 |
That €7.36 is your real earnings per product — and that still includes your marketing, your time and your fixed costs. If the margin doesn't work, the product doesn't work, no matter how nice it is. The full cost side of a webshop is stated in what a webshop costs.
A rule of thumb for many product stores: aim for a selling price of at least 2.5 to 3 times your purchase price, so enough remains after all costs.
How do you find a reliable supplier?
A good supplier determines your delivery time, your quality and your reviews. Search through wholesale fairs, B2B platforms, manufacturers directly or local parties — and rate them on quality, delivery time, communication and conditions. We have created a separate checklist for this: finding a reliable supplier.
Always order a sample first
Before placing a large order, have the product delivered to yourself and assess it as your customer would. Look at:
- Quality — is it as promised, or disappointing?
- Packaging — does it arrive intact and presentable?
- Lead time — how long did it really take from order to delivery?
- Appearance — does it fit your brand and price?
A low purchase price is worthless if quality disappoints: you get returns, bad reviews and unhappy customers. Those ultimately cost more than you saved.
And once you have inventory?
As soon as you purchase, you need to keep track of your inventory — especially if you sell in sizes, colors or variants. Nothing is more annoying than selling something you no longer have. You can read how to keep this organized in inventory management for your webshop.
Common beginner's mistakes
- Buying on instinct instead of proven demand.
- Buying too much at once because the unit price is lower.
- Not ordering a sample and being caught by surprises.
- Not calculating the margin including shipping, VAT and payment fees.
- Putting all your money into stock and leaving nothing for marketing.
Frequently asked questions
How much money do I need to buy inventory?
As little as possible to test your product. Ask about the minimum order quantity and start with a small first order. Keep money for marketing — inventory without visitors does not sell.
What is an MOQ?
The minimum order quantity: the smallest number a supplier delivers per order. Always ask about it and check whether a smaller trial order is possible.
Can I start without buying inventory?
Yes. With dropshipping or print-on-demand, you only pay when you sell. The margin is lower, but your risk is minimal — ideal for testing.
How do I know whether the quality is good enough?
Always order a sample first and assess the product, packaging and lead time yourself, through your customer's eyes.
What margin should I aim for?
A common rule of thumb is a selling price of 2.5 to 3 times the purchase price, so enough remains after VAT, shipping, payment fees and marketing.
Do I have to pay VAT on my purchases?
Yes, but outside the Dutch small-business VAT scheme you can reclaim that VAT. Keep all your purchase invoices.
Get started
Make it concrete: clearly determine what you sell and to whom, choose one purchasing source that suits your budget, request a sample and calculate your margin. If that is correct, you place a small initial order and test whether the product runs — before you scale up. If you are starting from scratch, first go through the step-by-step plan to start a webshop, and then look for the right party via find a reliable supplier.
Further reading
how you determine what you sell
starting an online store without stock
