Several factors impact the current status of global trade today, including economic and political influences. Notably, emerging players in the global economy, like China, Brazil and Russia, have also made a drastic impression and sway in world trade.
Furthermore, the advent of e-commerce in many countries has also provided the opportunity and opened doors for suppliers and consumers to exchange products with their counterparts overseas.
Incoterm can be a little bit overwhelming and daunting for small to medium enterprises and companies that are rookies when it comes to world trade.
Thankfully, a reliable one stop service is the perfect introduction ofincotermfor local businesses. You can test the waters of global trade and network through Alibaba.com–an online one stop service.
The number of business people who can attest to the benefits of one-stop-service e-commerce platforms is constantly growing. You can learn about their testimonies and how a one stop service can help their business build a global network here.
Reasons Why Small And Medium Businesses Should Take Advantage Of One-Stop E-commerce Services
A one stop service e-commerce platform like Alibaba.com is the business’s gateway toincoterm. If you are unfamiliar with the term incoterm, here is a quick definition.
Incoterm, short for international commerce, is the standard global trade terms laid down by the International Chamber of Commerce (ICC). Generally,incotermstates the terms and conditions and responsibilities of the buyer and concerning global shipping. The obligations include shipping, customs clearance, payment for the entire process, and insurance.
Small businesses see these things as too much work to manage, thus, shy away from international trading. It could be a huge missed opportunity for small and medium enterprises. It is where one stop servicee-commerce platforms, like Alibaba.com, enter the picture.
Here’s how a one stop e-commerce service can help your business with global trade.
Expand your global network
The first step in global trade is expanding your network, and becoming abusiness partner with Alibaba.com will benefit you significantly in this department.
Firstly, by creating an account on Alibaba.com, you have already entered a global market. As a seller and supplier, you have the platform to sell your products to foreign companies and individual consumers. Various consumers overseas can connect with you, ask for quotations for your products, and so on.
Global market exposure is a tough task to pull off, but usingAlibaba.com and its one stop servicee-commerce platform, small and medium businesses have the opportunity to export their products.
Secondly, you can use the platform to find reliable suppliers for your products. As a consumer, you can find the product you need by typing the keywords on Alibaba.com’s search bar. You can find reliable tons of manufacturers and suppliers overseas with competitive deals.
Furthermore, you can ask for product quotations, request product demos and samples, among others. Keep in mind that to be a business partner with Alibaba.com, you have to be a legitimate supplier. So you can guarantee thatsourcing from Alibaba.com is safe with its verified suppliers.
Safe transactions
One of the challenges of e-commerce platforms is the safety and legitimacy of the suppliers, sellers, products, and financial transactions. As a small and medium enterprise, being a victim of scams in global trade is paralysing. Seeking accountability seems to be an aimless search.
Alibaba.com is one of the safest e-commerce platforms and business to the business marketplace in the world. Alibaba.com makes sure their partners–suppliers and buyers–are legitimate. Its suppliers are committed to selling high-quality and standard products on the platform.
At the same time, Alibaba.com thoroughly screens all its suppliers for assessment. Alibaba.com awards these sellers a gold verification to help consumers identify which manufacturers are the most reliable on the one stop service e-commerce platform.
Alibaba.com takes the protection of businesses seriously. In case the supplier fails to meet the agreed incoterm, Alibaba.com may offer a refund as part of its trade assurance.
Wholesale trades
As a business-to-business marketplace, Alibaba.com and its one stop service have the upper hand concerning wholesale trades.
Raw materials are crucial for small and medium enterprises, and finding tons of foreign manufacturers and suppliers online with competitive deals is the best place to experiment if you want to begin with global trades.
Most suppliers on the platform are manufacturers and wholesale traders, meaning stock availability is guaranteed.
On the other hand, Alibaba.com hasa minimum order quantity featureto support and promote wholesale traders. If you are a beginner wholesale trader in the global market, Alibaba.com is the best place to test the water.
Familiarise yourself with the incoterm
As a beginner in world trade, incotermis probably the most daunting area to learn for small and medium businesses. There are different incoterm groups to choose from, including Ex Works (EXW) and Delivery Duty Paid (DDP), which Alibaba.com all supports.
These incoterms vary, depending on the agreed obligations of the seller and the buyer.
For example, in delivery duty paid incoterms of Alibaba.com, the seller shoulders all the cost of shipping the item, from the customs clearance to the insurance.
If the buyer wants complete control of the process, they may choose the Ex Worksincoterm, which means the importer shoulders the responsibilities of collecting the product from its origin.
If you want to familiarise yourself with these incoterms and get comfortable with each, an international one stop serviceis the best place for you.
Conclusion
One stop service e-commerce platform, like Alibaba.com, has provided an opportunity for small and medium enterprises to explore the global market, build international connections, and find alternative and additional resources to help grow and expand their companies exponentially. These benefits outweigh the risks, and it is only reasonable for companies to brave global shipping and incoterms much further.
And now that the global economy is slowly getting back to its feet after the pandemic, today is the best time to expand to global trade through a business-to-business marketplace.
There is no better place to start with your global trade journey than Alibaba.com. Alibaba.com is one of the most one-stop B2B servicesin the world. Visit Alibaba.com today.
