Manufacturing Versus
Reselling.

Thinking of creating a product and manufacturing it?

There are lots of pros and cons with manufacturing your own product versus reselling existing brands/products.  We have outlined the pros and cons below to help you decide which is the best option for you. If you’re new to eCommerce, we recommend you start with reselling and then when you’ve gained more experience and are making sales, you can scale your business with confidence and manufacture your own products.

Manufacturing
Products.

PROS

  • You are creative. If you obsess over perfecting the entire product experience and have the expertise to make the product from scratch, this is the model for you.
  • Complete control. Making the product yourself gives you complete control over the entire product experience. You can source materials of your choice, craft them into designs of your choice, and create unique packaging.
  • Unique product. If you come up with a unique product to sell this could be easier and cheaper to market if you have low competition.

CONS

  • Very time-consuming.  From sourcing the raw materials to producing and packaging the finished goods, this method demands a lot of time investment. You’ll find that making the product yourself leaves you with little time and energy to handle other parts of your business, such as marketing, billing, inventory management, and so on.
  • Higher cost.  When manufacturing your own product you need to consider cost to manufacture, production costs, shipping costs, branding, fulfilment centre costs and much more.  There is a higher risk to that your product might not sell.

reselling
Products.

PROS

  • Brands and products already have a market.  When you sell products and brands that people are already buying, you already know that there is a market for them.
  • Less risk. This option is much lower risk than manufacturing a product because there is a demand already for these products and brands that you are reselling.
  • Easy to get started. Buying from wholesalers allows you to stock products at your will.
  • Better flexibility. If you choose a fulfilment centre or drop ship model, you have the flexibility to manage your business from anywhere in the world.  You won’t be locked into certain brands or products either.  This business model makes it easier to pivot, which is essential for business longevity.

CONS

  • Competition. Since your brands and products are already on the market, you will have to compete with other online businesses to attract buyers and make them buy from you.
  • Brands’ rules about price control. Some brands have certain rules and regulations about the minimum price at which you can sell their products.