How to Start a Product-Based Business

A product-based business is a type of entrepreneurial activity related to selling physical goods. This is a promising field that requires minimal initial investment. How do you start a product-based business correctly to ensure profitability? DiFFreight experts have prepared a guide outlining the first steps and common mistakes.

How to Start a Product-Based Business: First Steps

Before launching an online store, build a strategy:

• Conduct market and audience research.
• Create a business plan.
• Find suppliers and calculate the product price.
• Register your brand/company.
• Plan your initial marketing campaigns.
• Perform a precise financial analysis: consider taxes and all expenses to estimate potential profits at launch.

The most popular business format is online-only sales. You don’t need a physical store (which eliminates rental costs). To sell online, you need a small startup capital. Now, let’s explore the steps DiFFreight can assist with.

Suppliers

It’s no secret that China is the king of exports: high-quality products, low prices, and advanced manufacturing. Finding suppliers in China is best left to professionals. DiFFreight experts will locate the best manufacturers in the domestic market, negotiate with them, and establish a stable supply chain.

For any business, wholesale purchasing is the most cost-effective option, allowing you to acquire the maximum number of units at the lowest price.

Choosing Products for Your Business

How do you get into the product business? You must identify demand, find trending products, and set a high markup.

For those unfamiliar with the trade industry, choosing profitable products can be challenging. DiFFreight offers a selection of high-margin Chinese products. Logistics: one of the key aspects of successfully running a product business is ensuring stable and efficient deliveries. Here are some crucial logistics considerations when starting:

• Warehouse in China. DiFFreight recommends consolidating shipments from different suppliers to reduce delivery costs. Inspecting products to avoid receiving defective or incorrect items is also crucial. We have our own warehouse in China, where we inspect products from suppliers.
• Shipping from China to Ukraine. What is the best transportation method—sea, air, or road? What is more cost-effective and reliable for your product? For beginners, sea freight is the best option—while it is not the fastest, it is one of the cheapest. A logistics partner handles container sourcing, loading, and negotiations with intermediaries.

• Customs clearance. Customs brokers handle all necessary documentation. If you purchase wholesale, you will likely have to pay import duties. This process involves handling numerous invoices, certificates, and permits. Entrusting this to professionals will help avoid border issues.

During a consultation, we will advise on the best shipping methods and calculate the cost for your batch. While you focus on market analysis, marketing, and customer service, DiFFreight organizes turnkey product delivery.

How to Run a Product-Based Business: Common Mistakes & How to Avoid Them

DiFFreight works with product-based entrepreneurs and has identified key mistakes that can be avoided at the start:

• Choosing the Wrong Business Model

Many people recommend dropshipping. However, in highly competitive niches, customers are unwilling to wait weeks for delivery. At the beginning, speed and quality of service are crucial. It is better to keep inventory in stock to ensure fast fulfillment.

• Incorrect Pricing Strategy

A low price attracts customers, but are you making a profit? A minimal markup is fine for the first few months, but you need to adjust prices over time to increase profitability.

• Insufficient Marketing Investment

You can save on some aspects of the business, but customers need to learn about your store! SEO, advertising, and social media marketing will require a significant portion of your budget.

• Poor Financial Management

You must carefully track expenses down to the last dollar, including shipping, duties, taxes, and warehouse fees. This will help you determine which areas are profitable and which are losing money.

A product business rarely becomes profitable immediately. Initially, you will research the market, test your niche, and refine logistics.

DiFFreight not only provides international logistics services but also offers cost-effective sourcing solutions. We can purchase products in China and find the best options in terms of quality and price.

DiFFreight — Your Reliable Trade Partner

Importing products from China is a popular and highly competitive business model. That’s why you need a trusted partner to handle part of the operational burden. DiFFreight has many years of experience in deliveries from China:

• Warehousing services and factory inspection;
• Sourcing suppliers from China’s domestic market;
• Ready-made solutions for purchasing high-margin products;
• Transparent pricing and shipping costs;
• Customs brokerage services;
• Optimized routes for faster delivery times.

Selling products isn’t just about quality, marketing, and pricing. Many hidden factors determine whether your business will be profitable. DiFFreight is ready to be your partner so you can focus on business growth!