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Pillar 1 · Product Sourcing

Product Sourcing

Verify suppliers. Develop products. Navigate OEM and ODM. Without getting cheated.

Supplier VerificationPrivate LabelOEM (Original Equipment Manufacturer)ODM (Original Design Manufacturer)Product Development
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Supplier Verification

How to tell a real factory from a middleman — and why it matters for your price and quality.

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Request a Business Licence (营业执照) and cross-check it against official Chinese registries for China-based suppliers.

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Ask for their export history — a real manufacturer can show you HS codes, shipment volumes, and existing buyers.

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Video audit: ask for a live walk-through of the production floor. Traders will avoid it or show you borrowed footage.

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Use Alibaba Gold Supplier status as a floor, not a ceiling — it just means they paid a fee. Verify independently.

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For Indian domestic suppliers: check GST registration, MSME udyam certificate, and visit in person before bulk ordering.

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Third-party inspection companies (SGS, Bureau Veritas, Intertek) can audit factories for ₹15,000–₹30,000.

Related:Private Label →Factory Selection →
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Private Label

Sell products under your own brand without building a factory. The mechanics, the risks, and the margin maths.

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Private label means the factory manufactures to your spec, you put your brand on it. MOQ typically 200–1,000 units.

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Start with an existing product in their catalogue — add your logo, change packaging. Fastest path to market.

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Custom formulation (beauty, food, supplements) requires regulatory approval in India: FSSAI, BIS, or drug licensing.

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Negotiate exclusivity carefully — a 12-month exclusivity clause on your formula means nothing if the supplier ignores it.

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Margin target: your sell price should be 4–6× your landed cost (product + freight + customs + last mile).

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For India-specific private label: Surat is strong for garments, Rajkot for hardware, Ahmedabad for pharma ingredients.

Related:Supplier Verification →Margin Optimisation →
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OEM (Original Equipment Manufacturer)

You provide the design. They manufacture it. When OEM works, and when it burns you.

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OEM = you own the design/IP, the manufacturer builds to your exact specification. Common for electronics, machinery, auto parts.

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Requires detailed technical drawings, tolerances, material specs. Sloppy specs = sloppy product.

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Tooling cost is real: steel moulds for plastic parts cost ₹1.5–₹8 lakh depending on complexity. Amortised over production runs.

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IP protection is weak in China. File a trademark and patent before sharing designs. Use an NDA as a deterrent, not real protection.

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For Indian OEM: Rajkot has strong OEM capability for auto parts and agriculture machinery. Pune for engineering.

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Minimum viable run: assess the tooling cost as part of your unit economics before committing.

Related:ODM →Quality Control →
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ODM (Original Design Manufacturer)

They design it. You brand it. Faster to market — but you're not the only one selling that product.

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ODM = factory has an existing product design, you license and brand it. Much lower tooling cost, faster launch.

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Risk: same ODM design sold to 10 competitors with different labels. Your differentiation is branding, not the product.

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Best for: accessories, lifestyle products, electronics where design iteration is expensive and speed matters more.

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Request exclusivity by market (e.g. Gujarat only, or India only) — factories will negotiate if your volumes are meaningful.

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ODM is the right entry strategy when testing a new category. Switch to OEM once you know the category converts.

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Check the factory's ODM catalogue carefully — the 'exclusive' product they show you is often shown to 50 other buyers.

Related:OEM →Product Selection →
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Product Development

How to take an idea from sketch to shelf — the realistic timeline and the steps most founders skip.

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Stage 1: Market validation. Sell the product before you manufacture it. Use mockups, pre-orders, or competitor proxies.

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Stage 2: Sample development. Expect 3–5 sample rounds. Each round takes 2–4 weeks and costs ₹5,000–₹25,000.

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Stage 3: Regulatory check. What certifications does your product need in India? BIS for electronics, FSSAI for food, IS marks for safety.

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Stage 4: Costing. Land the product at your target COGS. If your sample cost is above 20% of retail price, rethink.

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Stage 5: Pilot production. 200–500 units. Full quality inspection before payment release.

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Stage 6: Commercial launch. Only after a pilot run where QC passed without major rework.

Related:Private Label →Case Studies →

Need Sourcing Help for Your Specific Product?

Alif works directly with founders who need a trusted, on-the-ground partner to source, verify, and set up their product supply chain.

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Import & Export
Get the product here once sourced
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Manufacturing
Factory-side due diligence
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Retail Growth
Margins and product selection
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