Whether you’re new to global sourcing or have been doing it for years, there are still many things you can learn from the experts. In this article, we’ll be exploring the seven steps in implementing a successful global sourcing strategy that works with your existing business model and allows you to compete at the highest level possible. Each of these steps will build on top of each other, so you’ll have the most comprehensive sourcing strategy possible by the end of this guide. Let’s get started!
Conduct Market Research
Although it may seem like an obvious step, doing market research and thoroughly evaluating your target audience will ensure that you know exactly what people want and need. Start by brainstorming questions about potential customers. What problems do they face? How could your product or service help them? What are their pain points? Who is in charge of purchasing decisions within each company? Are you targeting companies that have been around for decades or those in hotbeds of industry change? Investigate how competitors are marketing themselves and how their products stack up against yours. Write down everything, from target markets to pricing options and available resources, so you can analyze your business plan when you’re finished.
Understand Buyer Needs
The first step in developing a successful global sourcing companies strategy is an assessment of buyer needs. By conducting extensive research, you’ll discover what products and services your buyers need from suppliers, along with their ideal delivery times, budget limitations, and other important details. In addition to evaluating your target market as a whole, you also need to think about each buyer individually. The reality is that every customer has different preferences and priorities, which means you’ll have to build customized solutions for each prospect. That being said, it’s just as important that all of your solutions can work together and provide value as a package – i.e., they should fit into a larger ecosystem.
Set Up Your Online Store
Your online store will serve as your storefront and marketplace; you can have multiple stores if you want. We recommend setting up your store on Shopify since it’s so easy to use, but it’s also worth considering Amazon Seller Central and Etsy. If you’re interested in using Shopify, check out our Shopify guide for beginners for all of the information you need about building an online store from scratch. Set Up Legal Entity: As soon as possible, set up legal entity (i.e., LLC or corporation) that will be responsible for owning and operating your business on a day-to-day basis.
Decide on Your Shipping Options
Before you begin with an sourcing company in USA, you’ll need to figure out how and where you want your products shipped. There are many options available—everything from shipping directly to your business location via ocean freight, air freight, or UPS/FedEx ground, or using a combination of carrier and export management company (EMC). A few other things to consider are whether you want products shipped in bulk lots, consolidated into multi-container loads, or batched on individual containers; if the latter is the case, it’s important that items have enough space between them for packaging purposes.
Develop Communication Channels
It’s no secret that business is increasingly global. No matter what type of company you run, chances are you already outsource some services or products—and there’s no reason not to continue expanding overseas. Having access to low-cost labor pools isn’t your only incentive for venturing abroad, though. Accessing new markets and accessing new talent can also open up opportunities for growth—but these potential benefits can be squandered if you lack a plan of action. To ensure that your effort isn’t in vain, put together an outline of goals and strategies before you even think about identifying suppliers.
Invest in Marketing (PR, Advertising, etc.)
While not everyone can afford advertising or public relations, most of us can invest in marketing in some form. Even if you don’t want to hire a professional marketer, you could take an online course (like I did) or check out some books from your local library on how best to market your small business. Or, even easier: network with other business owners and ask them what has worked for them!
Offer After-Sales Support
As you work to grow your new venture and meet demand, you will most likely reach a point where you have understaffed your production lines and overwhelmed customer service reps. One of many ways you can boost sales is by offering strong after-sales support. Consider providing free shipping, offering free return shipping, or giving discounts for customers who order multiple products. If you get positive reviews on these strategies, other buyers will learn of your great deals. In turn, they’ll be more likely to purchase from you in the future. It’s also an excellent way to encourage existing customers to order larger quantities since they know that if something isn’t what they want, there is no problem with returning it or receiving full compensation.
