Companies can start to export and serve international buyers to help increase demand and profits.
Business, no matter the customer base or industry, will always revolve around the principle of supply and demand. Experiencing a drop in demand as a small business can have major implications. However, companies can start to export and serve international buyers to help increase demand and profits.
International trade is beneficial not only for independent businesses but also to help stabilize the worldwide economy. Exporting products from one country to another is an essential aspect of business today. Through global expansion, businesses of all sizes can create more jobs both domestically and internationally, as well as promote economic growth. Additionally, deciding to expand and export goods internationally can improve demand and grow your brand on a global scale.
Are you a small business owner who has thought about expanding internationally? Or maybe you already have experienced demand, but you just don’t know how to get started? Keep reading to learn more about international expansion and how you can get started with relatively no risk and instant solutions with Shipito.
How Global Expansion Can Help Small Businesses
Small businesses have much to gain when deciding to sell their products to international buyers. Here are the primary benefits of expanding into international markets.
1. Supply and Demand
Limiting a small business to within the borders of a country can hinder their ability to sell. Catering to customers worldwide can help increase demand for your products as you start opening yourself to a worldwide audience.
Shipito provides direct sellers with several solutions, including affiliate programs and full-scale website integrations to get their products to international distributors and customers. Online direct sellers use Shipito every day to reach new markets and save money on international shipping.
2. Leverage Country Reputation
If you are selling goods from the United States, you can take advantage of the reputation and popularity of the USA to increase interest from overseas customers. Having a “made in the USA” label can be attractive to customers who wish to leverage quality American goods. USA-based small businesses are especially known for their amazing customer service and support.
International buyers are aware of this and continue to shop online at US-based retailers. In the midst of the Covid-19 pandemic, online shopping has reached an unprecedented level and shows signs that the momentum will continue. If you are not shipping internationally, you are missing out on this lucrative market.
3. Double the Profits
International trade has grown significantly over the past years. The most recent stats available, show international trade has risen from $10 trillion in 2005 to more than $17 trillion in 2017. Companies that exported goods internationally tended to expand faster and more economical compared to those trading domestically only. If you are looking to increase profitability, you should consider global expansion.
4. Business Innovation
Open borders allow people to trade freely around the world. Meanwhile, product development and design tend to be more creative, innovative, and efficient. Having the ability to learn from experts in other industries and cultures can help companies grow and develop faster than being restricted to their home country.
5. Less Risk and Reliance on the Local Market
Risk will always be present when managing a business, yet there are also ways to minimize risk for small businesses. One way to reduce risk is to diversify income by creating other streams of revenue. Small businesses can export their goods overseas and increase their customer base. Doing so also increases demand for their products. If the demand of your customers drops in your home country or your market size projections were a little too ambitious, you can prioritize overseas clients as well.
This has been illustrated many times, especially during the global COVID-19 pandemic. Small businesses that could diversify their income by going the international trade route were able to overcome the economic downturn in their home country.
Things to Consider Before Deciding to Sell Internationally
As you can see, there are several benefits that small businesses can get when they choose global expansion. The primary advantage is that it can help increase profits, develop sustainable operations, and increase brand awareness worldwide. However, selling to international buyers will present new challenges in terms of logistics and shipping so it is important to work with a reputable international package forwarding solution, such as Shipito.
When you take your small business global, you will need the right guidance and tools to succeed. Securing these can help maximize the benefits of international marketing and the strategies you employ. Shipito’s team is happy to help you with your transition and will guide you through the process. Below are some additional tips that can help you move into international markets.
Consider the Advantages
There are many reasons to expand a small business globally. It can allow companies to get their products in front of new customers and can also lead to a sense of accomplishment. Besides learning about new cultures and international consumers, the main advantage is that it can increase profitability.
But before you jump in and create an international commerce strategy, consider the goals of your business for this expansion. If the benefits mentioned above are not in line with your business, then perhaps global marketing is not right for you. However, those who are interested in growing their markets internationally should have a clear outline of their goals to stay focused throughout this initiative.
Expand Only When Comfortable
Unfortunately, having a desire to increase profitability is not enough to be successful in an international market. A business must be ready to grow in this manner.
If you are finding success with your current business and have a strong domestic marketing plan, you have better chances of expanding internationally. However, if you feel stressed in delivering your solutions domestically, then you might want to hold off on global expansion. You should improve existing processes before you decide to take on a foreign market.
You should first be capable of providing quality solutions and products to your domestic customers. If you cannot provide this currently, then you will most likely fail if you decide to expand globally.
Taking a business globally does not mean you need to jump into a fully global market right away. According to experts, it makes most sense if small businesses start with one country or international market. From there, they can slowly expand depending on the results.
This approach allows small companies to shore up their processes and ensure they can handle the additional workload before expanding further. Shipito has solutions for each step in your journey from sending a couple packages a week to hundreds per month. We can help you expand as fast (or slow) as needed.
Choosing to export to markets outside your country requires proper planning, market knowledge, quality products, and an international shipping strategy. The good news is that we are here to provide you with package forwarding services that make it easy to start selling your products internationally, with virtually no risk, quick setup options, and immediate results.
With Shipito, the benefits and solutions for expanding internationally will enable your company to reach its revenue projections and provide a level of service your customers will appreciate. Sign up for your own Shipito account to get started today! If you have any questions about our business offerings, please reach out to firstname.lastname@example.org.