Business, no matter the industry or customer base, is based on one main principle, supply and demand. As a small business, a drop in demand can have significant implications for your company. But by increasing demand through exporting goods overseas and meeting the needs of international customers, you can increase inquiries, customers and profits.
Not only does international trade support many independent businesses around the world, but it also helps to stabilize the global economy too. Exporting goods from one country to another is a crucial part of business today. By trading internationally, even small businesses are able to grow, creating more job opportunities and economic growth.
For a small company or start-up business, expanding further afield and exporting goods worldwide can increase your demand which in turn helps you to re-invest in your business, secure jobs and grow your brand on a global scale.
In this article, we’re going to highlight some of the main benefits of exporting goods overseas, as a small business and how Alibaba.com can help provide you with a reliable platform to showcase your products, attract customers from another country, and present you with valuable data which can help you to predict global supply and demand trends and make informed decisions.
How Exporting Goods Can Help Your Business
Taking the leap of faith to export goods to an international customer base takes careful considerations. But, once you’ve done your research and established that your business is ready to expand overseas, there is much to gain as a small business by trading outside your local market. Here are just some of the many ways you could benefit from trading internationally.
1. Supply and Demand
If you limit your small business to within your country’s borders, the demand for your products may well be limited too. Deciding to sell goods overseas can help to increase orders, as you are opening yourself up to a worldwide audience online. You may even discover a new stream of revenue that you had never considered or thought of before.
The more revenue stream you generate for your business the better, as this can help to safeguard your company from a drop in domestic sales or a change in buyer trends.
2. Leverage Your Country’s Reputation
If you are selling products from the US, for instance, you can easily leverage the reputation, culture and popularity of your home country to increase interest and sales from overseas customers. Made In The USA, for example, will attract customers looking for high-quality American goods and might just give you the edge you need to grow your business globally.
In addition, items handcrafted from Vietnam will likely attract European customers looking for handmade goods from around the world.
3. Double Your Profits
International trade has increased dramatically over the past 10 years, rising from $10 trillion in 2005 to over $17 trillion in 2017. Businesses that specialize in exporting goods tend to grow faster and more economically than those who trade in their home country only. So, if you’re looking to double your profits, you should really consider selling your goods further afield.
4. Innovation in Business
When borders are open and people can trade freely around the world, product design and development become more creative, efficient and innovative. Being able to learn from the best in each industry and understand different cultures, buying trends and overseas demand helps companies to grow and develop far quicker than if they were restricted or in a bubble within their home country.
5. Reduce Risk & Reliance on Local Market
Risk is just part of managing a business but there are ways to reduce your level of risk as a small business. When we consider supply and demand, this can make or break any business, whether you’re a small company or international corporation.
One way to reduce risk is to diversify your income by creating different streams of revenue. You can do this by exporting goods overseas. When you increase your customer base, you’re increasing the chance that your product will be needed and wanted. If your original customer demand drops, you can focus your attention on overseas clients and vice versa.
This benefit has been illustrated recently during the global pandemic. As some countries remain only slightly affected by Covid-19, others have suffered badly with massive economic implications. By diversifying your income as a small business through international trade you can put in place strategies to overcome an economic downturn in your home country, or overseas.
If you’d like to learn more about exporting goods abroad and how to prepare your business before trading overseas, check out our article on How to start exporting: the ultimate guide.
International Supply & Demand
So, if you’d like to get your piece of the import-export pie, you’ll first need to consider international supply and demand statistics. By figuring out your unique business opportunity, using industry insight, market analysis, buying trends and demand data you will have everything you need to start exporting goods abroad.
To help you along the way, Alibaba.com has actually developed a fantastic for international demand data. Using Alibaba.com’s extensive research and analytics, you can now learn about your industry and it’s place within the international marketplace. Industry Reports and demand signal tool empowers new and existing businesses already trading or thinking of expanding overseas with vital information and industry insight relating to exporting products around the world. Featuring categories such as jewelry, packaging, crafts and textiles among others, you can find your niche and have exclusive access to a wide range of data and key facts on supply and demand. By the way, did we mention that this remarkable tool is completely free to use!
Alibaba - An International Marketplace
Consider the time and budget you might need to invest in selling goods overseas, using a trusted international trading platform like Alibaba.com is the best way to set yourself up. On our platform, you can reach 10M active buyers with steady demand that your business can easily tap into. We also integrate a suite of intelligent tools and features to help you navigate the complexities in international selling and exporting, even if you have zero selling experience. You will have access to specialized support and professional services to make sure your unique needs are taken care of.