ProductMart provides a secure platform where suppliers can connect with buyers and sell agricultural produce to them online. The cross-border nature of online interactions means they can seamlessly participate in the international trade of agricultural produce. The following are 4 reasons why taking advantage of an international platform is absolutely necessary for your business.

4 reasons why you need to trade your agricultural produce internationally

Increased Sales

No matter how high a country’s population is, it is only a tiny fraction of the total population of people in the world. The implication of this fact is that trading internationally presents an additional opportunity to grow sales beyond whatever amount you currently sell.

Basically, participating in the international market increases your sales potential and if your strategy is solid enough, it can effectively increase sales as well. Businesses with a vision to meet demands for agricultural produce in regional and global markets stand a chance of earning more money than they would by selling to their local market.

Expanding into the international market is particularly great for medium and large-scale businesses that have already expanded and solidified their grip on the local market. Most businesses reach a point of saturation in their local market beyond which they can no longer make sales to new customers due to population limitations and pressure from competition. Rather than struggle with this, exporting their produce abroad presents an opportunity for such businesses to increase sales.

Economies of Scale

With international expansion comes an increase in demand for your produce. For most suppliers, local orders for farm produce typically come in small units sold to small retailers or even direct consumers. International buyers don’t just buy a few products, in most cases, demand is usually in the form of large containers of produce. Even when orders are not up container-loads, they still come in substantial quantities.

On one hand, this leads to increased profits. But one also has to consider the impact, of making sales on such a bulk scale, on the economics of production. When you receive more orders, you’ll have to start scaling up your operations to meet growing demands. In the long run, this leads to a reduction in the fixed cost of production per unit. In essence, you’ll spend less on each unit of produce you sell and this boosts your profit margin quite significantly.

Suppliers that market and sell their produce on an eCommerce platform like ProduceMart for instance, will be selling to a readily available international market. This helps them to save cost on marketing, leading to a higher profit margin in the long run.

Reduced Risk

Many local producers and suppliers of agricultural produce offer products that may not be very popular at home, but are unique and in high demand overseas. Many countries of the world are more dependent on certain commodity imports than others.

The usual culprits are agricultural products that cannot be grown in their own country. To an international supplier, opening up yourself to a new market ensures that you’re selling to people that are always in need of your produce instead of grappling with domestic slowdowns. Consequently, you’re more likely to sell for a higher price since demand is ever-present and there’s less competition for the produce you offer. https://www.producemart.com/blog/4-reasons-why-you-need-to-trade-your-agricultural-produce-internationally/