Chapter 8 - Independent Manfacturing

Not all products are purchased and resold. Some products are produced from raw materials or adapted from existing products.

Handmade goods are most common on marketplaces like Etsy, though there is certainly representation of such goods on eBay and other channels.

The average person has greater access to DIY solutions for producing new consumer products than ever before. Products can be designed in affordable software programs. Prototypes can be produced with 3D printers. The manufacturing process can even be financed with crowdfunding solutions like Kickstarter.

Advantages

  • Sellers can develop unique products and exclusive designs
  • Stock can be replenished through production.
  • Cost per item can be controlled through materials and production process. 
  • Margin can be more generous than other types of sourcing solutions.
  • Risk level is generally low, but depends on how much product is produced
  • This sourcing approach can be scaled effectively to very large operations.
  • Sellers can specialize in a product niche

Disadvantages

  • Stock availability is dependent on production and raw materials
  • Requires organization of production process and schedule, quality control, raw materials
  • Requires efficiency of materials and production process
  • Design process may require skills and training with 2D or 3D design programs
  • Product requires storage once produced.
  • Familiarity with product design and brand can be challenging to build up as an independent
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