Globalisation has left a profound impact on small businesses as well as the e-commerce industry at large. And owing to the fast-paced development and improvement in technologies, the world has become an even smaller place than before.
The rapidly growing e-commerce ecosystem, which includes diverse marketplaces, payment gateway options, including online logistics are all helping to lessen the barriers to trade across borders. And thanks to this connectivity, many small businesses are gaining an upper hand at growing on a truly global scale. Thus, small businesses will have to start adapting by creating more localised online content to accommodate both their existing and potential international markets. They will have to diversify their markets by exporting as well as importing their products and services to overseas for further growth.
Here are the top four reasons why small firms should consider importing as a way to increase their sales base and reduce the ill effects of a reeling economy due to the pandemic.
Reasons why small businesses should start importing
- Helps to introduce you to new markets and customers
One of the biggest advantages of importing for small businesses is that it opens the doors to new markets and customers. In order to grow the business, small firms must continuously strive to expand their product range. When new product launches are introduced to new markets, it allows you to easily target an entire new range of customers.
So, in case you are looking to start importing, Singapore is the best country to begin trading with. The reason being that it one of the most-developed economies in the world and is also known as a region with very low tax rates.
- Lowers your costs
Another chief benefit of importing is the reduction in the manufacturing costs. Today, many small businesses find importing parts of products and several resources more affordable than manufacturing them locally. This is mainly because many countries offer similar quality products at a much more competitive rate. So, instead of investing in expensive machinery, businesses choose to import goods, thus saving a considerable amount of money.
Another way to easily save your costs is to switch your supplier to that in Asia. Choosing Southeast Asian countries like Singapore can prove to be beneficial as it is known to be an international trading hub, and is one of the friendliest countries in the world when it comes to trading regulations.
- Expands your reach to new territories
Expanding your business to new territories is a sure shot way to grow your business. It opens up new possibilities and helps you to pass on cost savings to your clients. As a result, the lesser the cost of your services and products, the more clients you’ll attract and retain. Not only that, but if your products are cost-effective and better in quality, you’re also to an extent stealing away your competitors’ potential customers.
- Opens opportunities to become an industry leader
One of the prime benefits of importing your products to any Southeast Asian countries like Singapore is that it provides you with ample opportunities to become an industry leader. For instance, petroleum tops the import list chart in Singapore, accounting for almost 35% of its total imports, creating a rather big opportunity for many small businesses to become key trading partners with this country. This is because being the first to import a new and fresh product can quickly propel you to the top of your industry.
Therefore, if you opt to base your business on importing goods, you may expect to receive high-quality products. This is primarily because manufacturing businesses are mindful and cautious about their reputation, which largely depends on the quality of the goods they produce. This is one of the main reasons why small firms should start importing.