When you are expanding your business on a worldwide scale, there can be a lot of red tape to get around. Starting to trade globally can be intimidating, especially if you are used to trading within one country. Once it’s got to the point that your business necessitates the need for global trading, or, at the very least, between two countries, it can be a very difficult thing to implement. But what we have to remember is that, despite all the red tape, there are plenty of positives…
Lower Product Costs
Because manufacturers can produce goods overseas, this results in cheaper cost all round. In large manufacturing zones, such as China, you can feel the benefit in your budget. As the products are cheaper to manufacture, you don’t have to charge as much for the products, which makes you a competitive business in the international market. After all, this is the goal so many of us have!
On the production line, international trading forces us to become more efficient. We’re on a larger scale, and so we are naturally going to keep an ear to the ground for more efficient production processes. It’s not just so you can save money, but because efficient processes can reduce energy consumption, utilise fewer raw materials, as well as reduce labour costs, this gets passed onto the customer. In addition to this, a handy by-product is a reduced carbon footprint. As consumers are choosing companies with more ethics and are more considerate of their impact on the planet, this does wonders for the company’s brand and perception. This is something you can actively put on your marketing material. Whether it’s the fact that you are compliant with the RoHS test or REACH criterion, or you are actively searching for Fairtrade suppliers, these are all things that benefit the company.
The Surplus Products
If your business manufactures perishable products, the big question is if you are producing too much for the demand. The great thing about international trade is that you can make the most of these surplus products in other ways. There are countries that aren’t able to produce certain kinds of food, for example. This means that there’s a gap in the market for specific products in that country. So if you are able to flood the market with surplus products, not only are you exploring a gap in the market, but you are making the most of this product.
You Can Expand Your Wings
Trading internationally gives you the opportunity to tap into new markets that you wouldn’t have potentially explored before. And it’s not just about learning how to comply with different regulations, it’s also about finding new and exciting ways to market the products you have, as well as add more strings to your bow. Trading internationally means that you are able to diversify the types of products you sell. In addition to this, you can access anything!
Starting to trade globally is exciting and intimidating in equal measure. It can be a very difficult thing to get right, but once you find your feet, you may never look back. There’s a world of possibilities out there.