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SOURCING 20 min read

Finding profitable suppliers in saturated categories

Every category looks saturated from the front. The trick is knowing where to look from the side. Here are five frameworks for finding open lanes in apparently crowded markets.

Finding profitable suppliers in saturated categories
  1. 1

    The size lane

    Top sellers stock 'normal' sizes (M, L, XL). Plus sizes, tall sizes, and petite sizes are routinely underserved with 30–40% higher margins.

  2. 2

    The accessory lane

    Big sellers focus on the hero product. The cables, mounts, cases, and replacement parts are owned by smaller sellers with much less competition.

  3. 3

    The bundle lane

    Same products, repackaged as solution bundles. New ASINs, no direct competition, 20–30% margin uplift.

  4. 4

    The geographic lane

    Source from a supplier whose freight cost is high for most US sellers but low for you. Cost advantage = pricing power.

  5. 5

    The seasonal lane

    Stock the off-season inventory other sellers don't. When demand returns and competitors are out, you have the only listing.

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