If you run an e-commerce company, whether on a platform like Shopify or Etsy or via your own website, you will be competing with thousands of other stores in the same niche, and that’s just in the US alone, if you’re selling worldwide, then that will be hundreds of thousands! That means you need to do whatever you can to get the competitive edge and keep it.
One thing that can be very effective in that respect is manufacturing your own products in-house. In order to do this, you may need to invest in factory space and equipment like laser cutting machines, pultruded fiberglass grating, conveyor belts, and of course staff to do the actual manufacturing, so it isn’t something you should do until you’re established and doing well (unless you have a lot of capital to play with and a strong business plan), but it might just be worth it. I mean, if all of your competitors are selling the same stuff with Made in China stamped on the bottom, doing something a bit different, to a higher standard is really going to help you stand out.
Not convinced, check out these very compelling reasons to do your own manufacturing:
Do Something Different
As I mentioned above, when you take control of your own manufacturing process, rather than outsourcing it to China or buying your stock in wholesale, you can do something a bit different from the average online e-commerce company. You can make your products stand out from the crowd and demand attention. In a world with so much competition, this can only be a good thing.
Control the Quality
When you buy your stock in or have a third-party take control of producing it, then it’s almost impossible to ensure that the quality of each and every item you sell is high. When you take your operation in-house, you can keep a much closer eye on it and ensure that your brand is a respectable one.
Made in the USA is a Selling Point
More and more people are trying to purchase locally manufactured goods, not only because they see them as being of a higher quality than mass-produced foreign goods, but also because they want to support local business. If you can capitalize on this, it could be quite lucrative.
If you’re shifting a lot of products, then despite the various expenses that come with doing your own in-house manufacturing (factory space, 3D printers, industrial sewing machines, etc.), it is possible to save money by cutting out suppliers, shipping companies and various other middlemen who will take a cut. Obviously, this isn’t always the case, so you will need to do a cost analysis, but if the figures look good, there’s no reason why it couldn’t work for you.
As you can see, if you run an e-commerce store, there are numerous benefits to manufacturing your own products. However, they generally only start to kick in once you’re moving high volumes of product. Remember this before you make any decisions, and you could seriously beat the competition.