Premia TNC Singapore Team
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Overseas direct purchasing is currently one of the fastest-growing business models. In particular, overseas direct purchasing businesses leveraging global platforms are offering a powerful challenge to businesses previously limited to the domestic market, opening a wider market and opportunities.
So, in this post, we’ll explain why you should start a business in overseas direct purchasing and what its advantages are.
Upsides of Starting a Business Through Overseas Direct Purchase
The Ability to Access Global Markets
The biggest advantage of starting a business through overseas direct purchasing is that it allows you to directly enter the global market. While traditional business models have limited sales channels to the domestic market, overseas direct purchasing offers the opportunity to expose your products to consumers around the world.
Increased Efficiency via Optimized Logistics System
Global platforms provide integrated logistics management systems to help overseas entrepreneurs efficiently ship their products overseas. This feature allows for both fast delivery and low logistics costs. Their well-developed international delivery system, based in Hong Kong and other Asian regions, allows for a stable logistics system without difficulties in overseas delivery.
Alternatives for Payment Systems
One of the most crucial elements for starting an overseas direct purchase business is the payment system. Global platforms offer a variety of payment options, including Alipay, WeChat Pay, PayPal, and Visa. This allows overseas entrepreneurs to sell products more easily to a global consumer base and build trust by offering a variety of payment methods.
Advantage of Low Startup Investment Requirements
Another major advantage of starting a business overseas is the low initial investment. While starting a traditional offline business requires significant expenses, such as store rent and warehouse costs, starting an overseas direct purchasing business through an online platform can be done at a relatively low cost. By opening a store on a major platform, you can reach consumers around the world simply by opening an online store.
Leading E-Commerce Platforms by Country
When considering starting an overseas direct purchasing business, understanding the leading e-commerce platforms in each country is crucial.
Understanding the consumer characteristics and platform characteristics of each country and choosing the most suitable platform is key to a successful business.
China: Taobao
Taobao, China’s leading e-commerce platform, is a massive platform visited by millions of users daily. Taobao offers innovative features, including AI-based personalised recommendations and live shopping, making it a powerful tool for overseas sellers to access the Chinese market.
Hong Kong: HKTVMall
HKTVMall, Hong Kong’s largest e-commerce platform, offers a diverse range of products, providing opportunities for international direct-purchase brands to sell their products in Hong Kong and the Asian market. Hong Kong also occupies a key position as a logistics hub, offering significant advantages in logistics and delivery.
Singapore: Lazada and Shopee
Singapore is a hub for the Southeast Asian market, home to major platforms like Lazada and Shopee. Shopee, in particular, has established a robust sales network across Southeast Asia, making it advantageous for global expansion from a base in Singapore.
Taiwan: PChome and Momo
Taiwan’s leading e-commerce platforms, PChome and Momo, have significant influence in Taiwan and are advantageous platforms for entering the Taiwanese market, which has high demand for Korean products.
How to Prepare for Launching an Overseas Direct Purchasing Business
Starting an overseas direct purchasing business requires thorough preparation. Below are the key factors to consider at each stage.
Building a Digital Payment System
When starting an overseas direct purchasing business, it is very important to establish a safe and reliable payment system.
Taking Hong Kong as an example, leveraging payment systems like Alipay, WeChat Pay, and PayMe can provide local consumers with convenient and secure payment methods. Introducing a variety of payment options can build trust with global consumers and facilitate smooth transactions.
Developing a Localized Marketing Strategy
A localized marketing strategy is essential for successful startups in Asian markets, including Hong Kong. Actively utilizing social media and search engine marketing can accurately target your target audience and increase brand awareness.
Additionally, it is a good idea to take advantage of the high demand for Korean products in Asian countries to select product items and establish marketing strategies that are suitable for the local market.
Legal and Tax Management Preparation
Starting an overseas direct purchasing business requires thorough preparation for legal procedures and tax management. Doing business in an overseas market requires meeting various legal requirements, including taxation, incorporation, and product certification.
Additionally, trademark registration, consumer protection laws, and personal information protection laws must be thoroughly managed, and receiving professional assistance for this can be very helpful.
Closing Points
Starting an overseas direct purchase business requires more than just selling products. Many factors must be considered, including the process of entering global platforms, localized marketing strategies, and establishing an efficient logistics system. Professional support may be necessary throughout this process, and working with a partner who can assist with legal procedures and tax management will make the process even smoother. Prepare for your overseas direct purchase business with expert advice, and take advantage of this excellent opportunity to quickly enter the global market.
Premia TNC Singapore Team
Author
Premia TNC Singapore is a dynamic team of experts dedicated to supporting businesses and entrepreneurs as they establish, manage, and grow their presence in Singapore and across the region. Premia TNC Singapore specializes in providing tailored corporate services, from company incorporation and compliance to tax planning and accounting. With our extensive experience and deep understanding of the local regulatory environment, we are here to make business operations smoother and more efficient.
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