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Product sourcing for home business--your home business, or what I call the micro business, is a crucial issue for those of us wishing a greater measure of financial freedom. We--you and I--may even like our day jobs and the people with whom we work. The fact of the matter is, that your micro business, regardless of how successful, allows you a say in your fate and control over your life that could otherwise be missing. The psychological equivalent of a cleansing deep breath of fresh mountain air.

Your own online home business that you run from your apartment or dorm room is not so far removed from a vegetable garden, the produce from which you sell at a local farmers' market or by the side of a road. That is your patch of freedom that no one else owns. Although growing your own products is one way to source your home business, in this article I hope to clarify some of the issues surrounding the use of drop ship wholesale and wholesale items to solve the problem of product sourcing where your home business is concerned.

Dropshipping can be a wonderful service if properly understood and can provide a solution to many of the problems surrounding home business product sourcing. Dropshipping generally refers to a product distributor who agrees to ship inventory to your customers under your business name. In other words, the dropshipper warehouses all inventory. Your customers buy a product from you, you then send the dropshipper payment and shipping information, and the dropshipper ships the goods under your business name to your buyers. This is actually called blind dropshipping. You profit from this by marking up the cost of your items from the dropshipper cost. For that reason, a low single item cost from the dropshipper is important. And that means it is also important to understand that some drop shippers are retailers selling to you at a discount, whereas others are true wholesalers selling at wholesale prices.

What is a true wholesaler? A genuine wholesale business is a company with a special business license that allows them to sell only to resellers (or retailers) without charging sales tax. Therefore, any wholesale business that requires proof of your sales tax permit is a genuine wholesaler, and you can rest assured that your buying directly from an authorized distributor and not from another retailer. When you evaluate product suppliers, it is important to remember that no matter how frequently the terms "wholesale," "wholesale prices," and "wholesale to the public" are used, unless a business requires proof of a sales tax permit, it is not a true wholesaler. A sales tax permit, by the way, is simply your permit from your state of residence that allows you to buy goods without paying sales tax. These are usually easy to get and free of charge.

A third means of product sourcing that works well for almost any home business is retail liquidation inventory and closeout stock. Liquidation-closeout product supply refers to inventory sold off from retail outlets for literally pennies on the dollar. Closeout items often come from major retail businesses such as Macy's or Neiman Marcus, they are often brand names, and in new or good-as-new condition. If you've ever wondered how some eBay sellers are able to sell legitimate Nike's for $40 a pair, brand name baby items, and bedding and high quality linens at prices that make K-Mart look expensive, liquidation stock is one of the secrets. The trick, here, is buying in bulk. Liquidated inventory is frequently sold by the truck and pallet load; however, it is an investment that should turn over quickly once you've established the means of selling.

In this short article, I've only been able to just touch on the "how to" of home business product sourcing. Buying cheap and selling dear is a time honored means of cultivating sustainable income. To get detailed wholesale seller secrets, specific product suppliers, and information on how to find drop shippers and wholesalers, please be sure to follow the breadcrumbs to success in the resource box just below.