International Trade is expected to rise to US $6.17 trillion by 2023
The global Ecommerce market has seen significant growth in recent years. This is no surprise since the business model creates greater accessibility for both buyers and sellers.
Greater global expansion creates greater international trade opportunities for B2B businesses that currently focus on domestic trade.
This article will discuss shifting to international trade from domestic trade. We’ll break down the differences between domestic trade and international trade before we discuss a few reasons why a seller might want to shift to international trade.
1. Tap into the global e-commerce surge
As we mentioned, the global Ecommerce industry is booming. The global e-commerce industry is expected to rise to the whopping US $6.17 trillion by 2023.
Although the COVID-19 pandemic has created many issues, it has sparked an evolution in the global Ecommerce landscape and led to this boom.
Shutdowns left people stuck at home, which perpetuated the growth of Ecommerce in general.3 The global aspect of Ecommerce became more significant when supply chain bottlenecks left companies searching elsewhere for the products and materials that they needed.
The growth of the industry and the subsequent shifts are creating more opportunities for suppliers all over the world. If you’ve ever considered exploring international trade, now is the time to do so.
2. Explore new markets
Greater accessibility is a major appeal of e-commerce. Not only does it allow buyers to access products from other countries with the click of a button, but it allows sellers to reach new markets with almost as much ease.
Of course, exporting comes with a variety of rules and restrictions, but by selling products online, businesses are able to connect with buyers both near and far without traveling from their home countries.
Exploring new markets can open doors to new business connections, partnerships, and more.
3. Reach new buyers
As you explore new markets, your brand will also be exposed to new buyers. This alone is a major benefit for businesses. Since business is, in many ways, a number game, having a larger pool of potential customers can be very beneficial for businesses.
To put this into perspective, if a business jumps from 100 possible buyers to 200 possible buyers, it can double its clientele by simply maintaining the same conversion rate. Of course, the numbers in this example are arbitrary, and the number of new possible buyers will depend on the size of the market you’re entering.
4. Establish a competitive edge
Serving international markets can give brands an edge over their competitors who only serve a local or domestic market. By serving international markets, a supplier can become valuable to their customers that are operating in a variety of countries.
If your wholesale business supports international trade, you can serve retailers with operations in multiple countries.
Let’s say, for example, a wholesaler sells to a popular retail chain that sells sporting equipment. If the retail chain is located in multiple countries, it would be valuable if its suppliers could support their operations in different countries.
5. Create more security
If we’ve learned anything since the start of the pandemic, it’s that change is the only constant. From pandemic-related lockdowns to supply chain bottlenecks, the past several years have thrown businesses for a loop.
When you open your business to new markets, you are creating new streams of revenue for your business. This provides more security because if issues arise in one market, you can rely on deals that you have with buyers in a separate market.
3rd MALAYSIAN SME B2B E-COMMERCE EXPORTING (MySmeExport) FORUM
We are inviting you to learn more about how you can export online in 2023. Join us at the 3rd Malaysian SME B2B eCommerce Exporting Forum on the 23rd November 2022, 9am to 6pm at Taylor’s Lakeside Campus.
Who Should Join Us?
Manufacturers/Wholesalers: CEOs/Business Owners/Marketing Directors/Operation Directors who are ready (or still considering) to start an export business.