There has never been a better time for e-commerce than now. According to Statistica’s latest survey reports, global e-commerce is projected to cross the $6.54 million mark by 2023. Therefore, it is your best chance to venture into online selling. Even if you have started your business via offline channels, it is always the smartest strategy to employ a multi-modal channel selling strategy to boost your revenue. After all, the more avenues you pursue the more chances you have to reach more potential customers. However, it is never sufficient to just reach more buyers through multiple channels. To retain your customers, your products must appeal to them and resonate with their needs. This is why product sourcing is of paramount importance for any business.
In case you are wondering where to find the right products for your business, fret not. We have got you covered. In this blog, you will find all the hot spots where you can your products from. As you might be well aware, global trade has been undergone an unprecedented shift in the last decade. Previously, China has been the first choice of sourcing agents to procure goods from. But, with the changing times and shifting e-commerce trends, many other countries across East and Southeast Asia have emerged as lucrative spots to source goods and services from. Other countries are also catching up with the Asian countries to become lucrative sourcing hubs. Analyzing thousands of import reports spanning from 2015 to the later part of 2020, we bring you the list of the top places where you can find the right suppliers for your online as well as multi-channel business.
China is by far the most popular choice for product sourcing. It is the largest sourcing location that exports goods and services to the majority of the world, including the United States of America, the United Kingdom, Canada, Australia, and other parts of the planet. Manufacturers, suppliers, wholesalers, and sourcing agents all swear by the wide variety of products and the ease of doing business in the Asian sourcing hot spot. Whatever product you are looking for, be it electrical goods, machinery, footwear, textile, ceramic, building material, furniture, medical devices and equipment, electronics, or plastic goods, China serves as the world’s topmost trading partner. Apart from the variety of products, the most significant reason for the popularity of sourcing from China is that the country is most consumer-friendly in terms of tax, manufacturing and shipment costs, and the abundant range of suppliers. You can check the major cities of Shanghai, Shenzhen, Beijing, Dalian, Guangzhou, Ningbo, Qingdao, Kunming, and Dongguan among others. However, if you are sourcing from China, be aware of fraudulent suppliers and counterfeit products, for there have been several reports of malpractice.
Since it adopted an open market economy in the early 1990s, India has become one of the major sourcing destinations of Asia as well as in the world. With its large population right after China and numerous resources, the country has been the largest hub of metal and mineral items, textile, fertilizers, chemical and allied items, automobile, glass and stone items, foodstuff, footwear and other leather items, animal products, and plastic goods. However, India has been regarded as the top sourcing destination for IT solutions. The USA, Australia, Canada, the UK, and many other countries outsource the majority of their works that requires IT skills to India. Cities like Bangalore, Delhi, Mumbai, Hyderabad, Gurgaon, Noida, and Kolkata offer large-scale IT services to the rest of the world. The country is also known for supplying industrial products. One of the major reasons for India’s popularity in global sourcing is the low labor cost.
Vietnam is known to be the furniture sourcing hub. The country is also a popular choice for timber and wooden items. Recently, global companies are also taking an interest in Vietnam for its upcoming textile industry.
Perhaps the biggest textile destination in the world is Bangladesh. This Asian country hosts manufacturing units of several global apparel brands. As trade relations between China and the US have been somewhat disrupted in the last few years, Bangladesh has quickly taken over the majority of the textile import shares of the US. To date, the country holds the record of 7% apparel export in the whole world.
Moving to Latin America from the Asian countries, Brazil is steadily coming up as one of the most popular sourcing spots. The country is quite similar to China in terms of its complex segmentation of manufacturing and export hubs. Brazil ranks high in the list for various items like leather goods, garments, and other fashion items, including footwear, fashion accessories, and clothing. It is also the fourth-largest supplier country of cotton fiber in the world.
Among the other up-and-coming sourcing hubs, Mexico is also steadily catching up with the sourcing giants in the world. Since the North American Free Trade Agreement (NAFTA) was put in place back in 1994. The interstate trade across the US and Mexico border has been picked up the pace. A survey report published by Boston Consulting Group has revealed that the average operational costs in Mexico are comparatively lower than most other sourcing countries, even China. This is mostly because of the low cost of natural gas and electricity in the country. The labor cost is quite consumer-friendly as well. Over the years, Mexico has simplified trading terms and an abundance of low-cost labor. Therefore, it is expected to soon become a sourcing hot spot in the coming years.
With the advent of globalization, the whole world has become one big marketplace. So, your options are not limited to a handful of suppliers anymore. You can look out for unconventional locations and procure exclusive items and great deals. But remember, research is the most important thing in product sourcing. No matter how much discount a supplier is offering you, make sure that you conduct full-proof research before entering into any partnership. This way, you can minimize the risk factors and ensure a profitable business.
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