The Ecommerce Sourcing Guide: 7 Steps To Build a Resilient Supply Chain

For many ecommerce businesses, sourcing starts as a simple search for the lowest price. 

But as brands grow, that approach gets harder to sustain. Rising costs, supply chain disruptions, shifting customer expectations, and increasing competition all put pressure on sourcing decisions.

In an episode of the Unboxing Logistics podcast, host Lori Boyer sat down with Mattia Miglio of Alibaba.com to discuss how sourcing is evolving and what businesses can do to build stronger supplier strategies. 

We’ve turned their conversation into a seven-step guide that walks you through everything from supplier vetting and diversification to the growing role of AI in procurement.

It all starts with understanding your business’s pricing, positioning, costs, and customers.

Step 1: Understand your competitive position

Many businesses look for sourcing opportunities without first understanding how their costs compare to the rest of the market. 

But in order to effectively evaluate suppliers, you need to understand where your business stands in relation to the competition.

To gain this understanding, Mattia recommended conducting a competitive analysis 

Specifically, compare:

• Product pricing
• Production costs
• Shipping and logistics costs
• Product positioning
• Customer expectations

This creates a benchmark that helps you determine whether your current sourcing model is still competitive.

Without that context, it’s hard to know whether rising costs are a supplier problem or simply a reflection of broader market conditions.

A few extra tips …

Look beyond manufacturing costs

One common mistake when choosing suppliers is focusing only on unit cost.

The cheapest supplier isn’t always the most cost-effective one once transportation, lead times, quality issues, and operational complexity enter the equation.

As Lori pointed out, supply chains have become increasingly complex and difficult to navigate. Understanding the full cost of getting a product into customers’ hands often matters more than shaving a few cents off manufacturing costs.

Make competitive analysis an ongoing process

Sourcing isn’t a one-time decision.

Mattia recommends regularly comparing your products, suppliers, and costs against the broader market. Even if you’re happy with your current supplier relationships, keeping an eye on alternatives ensures you aren’t missing new opportunities.

Step 2: Vet suppliers carefully

These days, finding suppliers is easier than ever. Finding reliable suppliers? Not so much.

Fortunately, there’s a simple solution: conduct supplier assessments.

Whether you’re sourcing through an online marketplace, attending trade shows, or working through referrals, keep the evaluation consistent across the board.

What to look for

Before moving forward with a supplier, consider:

• Business verification
• Customer reviews
• Years in operation
• Manufacturing capabilities
• Certifications
• Research and development capacity

With so many areas to delve into, this assessment will take some time. But don’t rush! Thoroughly exploring each of these categories will give you a comprehensive picture of a supplier’s legitimacy and reliability.

Warning signs

When evaluating suppliers, keep an eye out for the following red flags:

• Few or no reviews
• Limited operating history
• Missing certifications
• Unclear communication
• Pricing that seems dramatically lower than competitors

Bottom line? If something feels too good to be true, it’s worth taking a closer look.

Step 3: Focus on relationships, not transactions

One of Mattia’s key takeaways was that strong supplier relationships can create advantages that go far beyond pricing.

In fact, he prefers to steer clear of the term supplier altogether, focusing more on the mutual benefits of a partnership.

“I always recommend [finding] the right partner, not a supplier.”

Reliable partners are often more flexible during inventory shortages, production delays, or peak season demand spikes. They also have a deeper understanding of your products and long-term business goals.

Step 4: Start small

Even if a supplier looks great on paper, Mattia cautioned against moving too quickly. Before committing significant volume to a new supplier, consider following these steps:

1. Request samples
2. Evaluate quality
3. Verify certifications
4. Place a small initial order

Step one is especially important. When Lori asked about balancing quality control with speed to market, Mattia’s answer was immediate: “Never, never, never bypass [the product sample stage].”

Testing product quality early can help prevent expensive mistakes later, especially when launching new products or working with unfamiliar suppliers.

Step 5: Diversify your supplier network

Many businesses still rely heavily on a single supplier. While that strategy may work during stable periods, recent years have shown how quickly conditions can change.

So even if you have a trusted supplier relationship, keeping alternatives on hand can provide valuable insurance.

Mattia recommended:

• Keeping backup suppliers available
• Monitoring emerging suppliers
• Evaluating regional alternatives
• Comparing pricing regularly

He also reminded listeners that supplier diversification isn’t only about quantity—it’s also about geography.

He noted that many businesses are exploring suppliers closer to their customers while maintaining their global sourcing relationships. 

These balanced networks can help reduce shipping costs, shorten lead times, and create contingency options when disruptions strike.

Step 6: Use AI to source smarter

One of the most interesting parts of the conversation focused on the growing role of artificial intelligence in sourcing.

Historically, supplier discovery required extensive research, manual comparisons, and significant procurement expertise. Today, AI is beginning to simplify many of those tasks.

As Mattia explained, “AI is revolutionizing how businesses are doing ecommerce, and especially B2B ecommerce.”

Where AI can help today

Modern sourcing tools can help with:

• Supplier discovery
• Product research
• Request for quotation (RFQ) creation
• Quote comparisons
• Market analysis
• Product concept development

For smaller businesses without dedicated procurement teams, these capabilities help level the playing field.

AI doesn’t replace judgment

Despite its advantages, AI isn’t a substitute for supplier relationships, product testing, or strategic decision-making. Instead, it’s a tool that helps you evaluate more options in less time. The final decisions still require human judgment.

Step 7: Keep improving your sourcing strategy

Businesses that periodically review their sourcing approach are often better positioned to adapt when conditions change.

Mattia recommended continuing to compare and monitor suppliers, explore new technologies, and attend industry events to stay up-to-date with market trends.

Even if you don’t switch suppliers, understanding your options gives you leverage and flexibility.

Building a sourcing strategy that lasts

Supply chains have become more complex, but they don’t have to become more chaotic.

The businesses best positioned for long-term success aren’t necessarily the ones with the lowest costs. They’re the ones that understand their market, build strong supplier relationships, diversify risk, and continuously look for ways to improve.

Whether you’re sourcing products locally, globally, or somewhere in between, the goal remains the same: create a supply chain that’s dependable enough to support growth and flexible enough to handle change.

For additional insights from Lori and Mattia, be sure to watch the full podcast recording.