5 Best Organic Marketing Strategies on a Budget

5 Best Organic Marketing Strategies on a Budget

Marketing is always a complicated thing to do for businesses. Sometimes it can be easy and sometimes it can be very hard to do. There are also ways to pay for marketing and then sometimes word spreads organically. Different marketing approaches will have different effectiveness. Organic marketing will typically be more effective and lasting than a paid marketing approach. However, organic marketing strategies are often difficult and need a lot of effort. Luckily, with the ubiquity of the internet, there are budget strategies to achieve organic marketing.

What is Organic Marketing?

Organic marketing is essentially anything outside of the typically paid strategies. This does not mean it is cheap because it is still going to cost money and effort. Its price comes from the randomness of organic marketing. You can never know what works until you try it and that is why it still costs money. Organic marketing generates free traffic into your business. Usually, simple tactics work, but you have to try a lot of things before you can determine which method works best. Organic marketing is usually more robust and effective.

Great examples of organic marketing would be holding workshops that integrate your product or business. People will get value from this event and may be attracted to your business. However, the workshop itself is not a marketing strategy, it is an actual event or even a product. These kinds of things get people talking and therefore develop a more organic type of marketing.

What will you need for effective organic marketing?

Organic will not work with just any business and product. There are requirements that need to be met for it to work.

1. The first thing is a unique and interesting product. Having an interesting product will help a lot since people often talk about interesting products. Having a successful product will definitely help a lot with organic marketing.

2. A clear target audience that fits your business. You need to know who your audience is and what will attract their attention. This way you can tailor your plans and strategies to target your audience more effectively.

3. Great product description and enticing copywriting on your product page. This is so that your viewers or bystanders can be converted into customers. What good is a great marketing strategy if it does not increase customers to your business?

These are the 3 things that you will need to have an effective organic marketing strategy. If you noticed, these things are fairly easy to get. This is because these things are only the foundation to a great organic marketing plan. You will need great strategies for organic marketing.

Organic Marketing Strategies

Now is the part where we will be discussing the strategies you can employ to have effective organic marketing. In essence, organic marketing will utilize anything outside of the typical aid marketing tactics to gain traffic. However, since we are on a budget, we will have to be creative.

1 Create a Blog about your field of business

A blog is one of the easiest and simplest strategies to do. You can create blogs that have topics about the products you are selling. This can range from product reviews, news, education, and many more. However, the hard part about blogs is that standing out amongst the competitors is very hard. There are already millions of other blogs out there. But if you can make an interesting and engaging blog, it will be effective.

2 Make video content on your products

Making video content will be very useful in organic marketing. Many people use videos before they purchase products. Consumers these days usually do research before they purchase. Making content that facilitates research for consumers makes it easy for you to attract them to your business. However, video content may be hard to do since you would need to shoot and edit. But you can also post videos on Instagram or Tiktok where it is significantly easier to make videos since all you would need is a smartphone.

3 Organic social media strategies

Making content and having a presence on social media would be a great idea. Not only is it easy to do, but the reach will also be very high as well. A large part of the population in many countries uses social media. The things you can do are giveaways, competitions, discounts, and more. In addition, many social media sites have a built-in e-commerce feature. This means that you can easily integrate your social media with your business.

4 Great SEO

Discoverability is important for organic marketing. Unlike typical paid marketing, you won’t have a priority placement on platforms and services. You will have to tailor your content to be compatible with the search engine. This is called SEO or search engine optimization. With great SEO your content and business will show up more frequently and more prominently when a consumer searches for something. There are many ways to do this, the most common is using the right keywords or tags.

5 Strategic partnerships

Lastly would be about strategic partnerships. This means that you should try and collaborate with other businesses or influencers. This won’t be like the typically paid sponsorships, you should find a mutual benefit. You can partner with a business that offers a service or augmented product that can add value to your business. In addition, customers from your partner may be attracted to your business and vice versa. This leads to great organic marketing and more value for you.

So that is how we would do organic marketing. There are so many ways to attract new consumers. Marketing that is done organically is a great way to expand your business and grow. However, what about the other parts of your business like procurement or logistics? AsiaCommerce is here to help. We offer services that range from export imports, procurement and sourcing, logistics, and forwarding. We can help with reselling, sourcing, and dropshipping. In addition, we offer extensive educational content that can help you develop your business skills. Check out our many services and gain many awesome benefits for your business!

Upselling: More Value for Consumers and Sellers

Upselling: More Value for Consumers and Sellers

Having a business usually means that you will have to sell your products. However, don’t stop once you sell your product, you still have plenty of chances to sell more. When a consumer decides to buy one of your products, they may be interested in buying more things or even upgrading their purchase. The reason why they might buy more is that they did not know they needed something. By showing consumers what they did not know they wanted, you are giving more value to the consumers. This way everyone can benefit, however, there are issues that can happen when you upsell in the wrong way. Today we will discuss the various things to consider when upselling.

What is Upselling?

Upselling is a sales method where a seller pushes customers to buy more expensive items, upgrades, or other products to generate more revenue. This is very common in businesses and stores. Upselling gives you more revenue but you don’t have to use as many resources. This is because you are using the resources that you used for the original sales to generate more sales from upselling. If done right, upselling can be a great thing for both the consumers and sellers. Consumers feel happier and satisfied knowing they purchased the best products you can offer. Meanwhile, you gain more revenue.

Upselling VS. Cross-selling

You may also hear about cross-selling in addition to upselling. These two concepts are very similar but they have clear differences. Upselling is adding more purchases and value while cross-selling is adding a completely new purchase. However, they can be done in similar ways. A good example is the purchase of a smartphone. Upselling means that you will try and get customers to buy the higher-end model as well as other additional products that add to the smartphone. Cross-selling means you will persuade the customer to buy a tablet in addition to the smartphone.

When to Upsell in the Consumer Experience

There are good times that you can upsell to the consumer. The first is before the purchase and the second is after the purchase. You can also upsell during the purchase, but this is typically seen in physical sales methods like in a retail store. There are advantages to the times to upsell and it depends on the type of product.

Pre-purchase Upselling

Upselling before the purchase is called pre-purchase upselling. This means that when the consumers are trying to pick the product, you can also show them the upselling options. They can then decide to include the upgrades and add-ons to their purchase and complete the transaction. This works best for smaller purchases because it is seen as okay to not have all the information about the product.

Post-purchase Upselling

Post-purchase upselling is upselling after the transaction is completed. This means that you are attempting to upsell to the consumers after the purchase is made. This can be done to products that have a higher price and more commitment. What you need to do is to show them what they can buy to enhance the experience with their purchased product. For example, after a consumer buys a smartphone you can convince them to buy an external memory card so that they can store more data. This has the benefit of not impacting the previous sale and increases conversion rates because it’s more impulsive.

5 strategies For Upselling

We have discussed what upselling is and when you can do upselling. Now let’s discuss how you can do upselling. These are the 5 main strategies for upselling in your business.

1. Choose products that match or fit the original purchase

When upselling to consumers, be sure to choose products that match or fit with the original purchase. You can’t try and upsell a laptop accessory to a customer who bought a smartphone. Consumers will not see the value of upgrading their purchase if they don’t see a good reason for it. So be sure to pick products that match very well together.

2. Use competitive pricing on the add-ons

The products or add-ons that you are upselling should not be sold at the same price when bought on their own. The upsell has to be for a lower price or a discount. Consumers won’t really be attracted to upgrade their purchases without a financial benefit. So it is a good strategy to lower the price of products you are upselling.

3. Offer gifts for the purchase

You can also offer gifts like free products or a discount code for accepting the upsell. This gives a lot more value to the consumers and makes them feel happier with their purchases. Gifts like screen guards, cases, shirts, or even dolls are a great choice. Just make sure that these gifts are cheap and they won’t affect your profits.

4. Offer bundles that upsell

Rather than offering individual products or add-ons, you can offer them using bundles. You can mention that we have a bundle that gives you more products. For example, you can mention that you have a bundle where you get a smartphone and an external memory card for cheaper than if you bought them separately. This way consumers can understand the added value better.

5. Highlight the value that upselling can give

Lastly, you can always highlight the value that the upgrades and add-ons can bring to the consumers. Sometimes consumers may not understand the actual value and benefits of an upgrade. It may be because they don’t care or they don’t understand. Making them realize that an upgrade is good for them will benefit your business greatly. Because now they already have enough reasons to upgrade and you don’t need to use other strategies.

Upselling will do wonders for your business when done right. And now you know how to do them more effectively. However, upselling means that you will need to source more products. This can be hard and complicate your business. This is where AsiaCommerce can help you out. We have an extensive network that can minimize the costs of your logistics and product sourcing. Our services range from export imports, procurement and sourcing, logistics, and forwarding. We can help with reselling, sourcing, and dropshipping. Join AsiaCommerce’s membership today to get many benefits for your business!

Breakeven Analysis: Will My Business be Succeed?

Breakeven Analysis: Will My Business be Succeed?

Making and building a business is always complicated and scary. We never know if a business will succeed or fail because even the best businesses can fail. However, that does not mean we cannot create estimations of our success and the viability of the business. By doing a breakeven analysis before building a business, you can find out whether your business will make money or not. This method is mainly an accounting way of seeing whether you can succeed or not with the business. Don’t be scared though because this method will be very simple. A breakeven analysis is also not just limited to businesses, it can also be used for projects or purchases. This way you can make good decisions and avoid future mistakes.

Breakeven Analysis in a Nutshell

A breakeven analysis is a method of determining how much revenue you need to have to cover the costs of a business. Revenue includes anything that makes money from your business while costs range from the costs of the goods to other costs like electricity and more. It is a financial tool that can show whether your business makes money or not and even how much money you may make. As its name implies, a breakeven point is when your income covers your costs but not making any money as profits. The breakeven point shows you much you need to make in order to not lose money. You can use this to determine the minimum amount of sales.

Let’s say you want to start selling laptops online. You can use a breakeven analysis to know how much laptops you need to sell in order to cover costs like storage, delivery, administration, and more. Any point above the breakeven point is the profit that you can make. There are two types of costs that you need to consider, fixed costs and variable costs. Fixed costs are costs that will stay the same regardless of other factors like rent, car payments, wages, etc. Variable costs are costs that change depending on the level of sales like delivery, storage, packaging, etc.

How to Do a Breakeven Analysis

A breakeven analysis can be done pretty easily as long as you have the determination and know-how. It is not that complicated so anyone can do it. Now we will discuss the 5 steps to do a breakeven analysis.

1. Determine your variable costs

First, you have to find out the costs that change with your sales. You need to find out how much you are spending in order to sell a single product. This can be things like packaging, storage, stickers, printing, and more.

2. Determine your fixed cost

Afterward, you need to find out how much costs you have that don’t change. These costs are not affected by sales and you have to pay them anyway. For example, rent and wages are typically fixed costs. These fixed costs are difficult to change, so before you make a business, make sure your fixed costs are as low as possible.

3. Decide on a selling price

Now you have to decide on the price of your products. Don’t worry about this since you can always change it later on. The prices should be set reasonably and be prepared to change them. Your price should be a range of prices which you can accept. This will affect the sales volume in the next step.

4. Decide on the sales volume and its unit price

 Now you need to determine your sales volume as well as the right price to use for your sales volume. This will be important in determining the breakeven point. The volume that you set will impact your sell price. For example, if the volume is big then the sale price can be lower and vice versa.

5. Create a spreadsheet for ease of use

Lastly, be sure to make a spreadsheet. Spreadsheets can be difficult to make, but if you have experience or help it can be done. To make things easier, you can also download a template for a breakeven analysis on Microsoft Office’s website. This way you can do everything easier and quicker since all you need to do is just input the data.

Another option if you don’t want to use a spreadsheet would be to do it by hand using a formula. However, this would be very complicated and it is easier to do it with a spreadsheet. The formula is:

Breakeven Quantity = Fixed Costs/ (Sales price per unit – variable cost per unit)Although the formula seems simple, determining the costs can be complicated so it is better to use a spreadsheet for the calculation. But don’t worry since you can find plenty of templates for a breakeven analysis where you only need to input the data.

Methods and Strategies to Lower Breakeven point

Once you know your breakeven point you can determine whether you need to lower it or not. There are great strategies to lower your breakeven point which we will discuss now.

1. Lower Your Fixed Costs

One of the best ways to lower your breakeven point is to lower your fixed costs. This is because fixed costs are typically high and not easily changed like variable costs. This can be things like moving offices or even working from home. You can also decrease employees or wages but this can have negative impacts. However, fixed costs can be hard to decrease.

2. Set a Higher Price

If decreasing fixed costs are difficult, you can set a higher price for your products. Higher prices mean more revenue which can cover the costs better. However, increasing sale prices can decrease your sales volume because fewer people will be willing to buy. So be careful how much you increase.

3. Decrease Your Variable Costs

Lastly would be to decrease your variable costs. This can be like using a cheaper packaging material. Decreasing variable costs can decrease your breakeven point because the costs of selling can be lower. However, the effectiveness of decreasing variable costs depends on the number of sales that you have.

Once you do all of that then you are all set. You can analyze your business plans and models so that you can make good decisions and avoid mistakes or hardships. Breakeven analysis can seem hard and complicated but it is actually very simple, so don’t be worried or discouraged to try. Good luck doing business guys!

Now that you know how to do a breakeven analysis, you can be more effective in business decision-making. You can start making the business that you always wanted. These days you can do this easily because of the internet and many services. One of the best ways of decreasing fixed and variable costs are to subcontract or outsource some parts of your business. This is where AsiaCommerce can help you out. We have an extensive network that can minimize the costs of your logistics and product sourcing. We offer services that range from export imports, procurement and sourcing, logistics, and forwarding. We can help with reselling, sourcing, and dropshipping. Join AsiaCommerce’s membership today to get many benefits for your business!

10 Ways to Make Facebook Ads that Convert

10 Ways to Make Facebook Ads that Convert

Marketing is very important to a business especially a new and burgeoning business. Increasing awareness and brand recognition of your business are very important in helping you achieve success. However, increasing awareness and brand recognition is not effective if those ads don’t push the consumers to purchase or visit your business. This is called conversions from ads because people are converted from observers to customers. Today we will discuss how to make effective ads that convert on Facebook. Now you may ask, why Facebook? Aren’t there a lot of other social media platforms as well? Well, we are focusing on Facebook because they are the biggest social media platform in the world. In regions like Southeast Asia, Facebook is synonymous with the internet. In addition, these concepts will also work for other social media platforms with slight tweaks. So, let’s dive right in on how to make Facebook ads that convert.

1. Targeting based on interests and needs

In the world of Marketing, connecting to your customers is the most important thing. Facebook ads help out a lot in this regard because they enable targeted ads. You can choose to target the demographic that you think fits your business best and create a strategy that can entice them. Always put the lead in first and in the most prominent position. This will ensure that the people you are targeting are interested and will visit your page. College-aged people will not be interested in products like home appliances and tools since they typically live in dorms so ads about home appliances will not be effective if shown to them. But targeted ads help ensure that your ads are shown to the right people.

2. Understand and accommodate customer needs and concerns

Understanding who you are marketing to will increase the effectiveness of your Facebook ads. If you know what they like, how they like things, and how they consume content then you can create effective ads. Not understanding your target may lead to rash and unwise decisions. Also, try to solve issues common in your target consumer base. Solutions are typically sought after and make for great leads for Facebook ads.

3. Create an interesting and persuasive Call to Action

Facebook advertising does not stop at just making interesting ads, you also need a good call to action to be able to convert. Call to action has the goal to push a consumer to act how we want. For example, you can add a call to action that pushes consumers to visit your page or to sign up for a newsletter. Call to action helps a lot in converting observers to active users on your Facebook page.

4. Build a unique and engaging landing page on your Facebook page

Now that people are enticed to know more about your business, make sure that your Facebook landing page is interesting. If you have a bland or messy landing page, this will lead to negative opinions on your business. Good landing pages have a proper balance of pictures, product recommendations, resources, and links to more information. Be sure not to be too aggressive on upselling or cross-selling as this may lead to consumers leaving your page.

5. Create aesthetically pleasing pictures and advertising

Something that many people tend to overlook is how important the pictures are on their page. You cannot be overly practical about the pictures that you put there. Pictures and ads on Facebook should be interesting and aesthetically pleasing. Something as simple as a picture of your product should be edited and jazzed up. In addition to engaging consumers, you can also show users that you made an effort in your marketing which increases goodwill.

6. Tailor your ads to fit your demographic

Tailoring your ads to fit the demographic is very important. You cannot use a design template aimed towards young adults when making ads for older people. Even if you understand your target demographic, you have to understand their preferences. Older users may prefer simpler and easy-to-read ads. While younger users may prefer ads that are interesting and humorous. Tailor your Facebook ads based on what works best for your audience.

7. Highlight reviews and testimonials

A great way to convert audiences into customers is to show that your business has a great reputation. You can do this by highlighting testimonials and reviews on your page. Be sure not to make fake reviews as they may damage your credibility. Testimonials increase trust in your business and help in making doubts in customers’ minds disappear.

8. Don’t just sell, convert them to followers

You may be tempted to make your Facebook ads mainly to sell your products. This is not a great idea since people can be aware of that and they may not like it. A good way to convert users is to convert them to followers of your page first. Make your ads and content on Facebook engaging and fun even if they don’t lead to selling. People tend to prefer brands and businesses that offer more than just products.

9. Change up your content once in a while

Once you have a good schedule and content plan, be sure to change up the design and content of your ads. This is to ensure that your customers don’t get ad fatigue. Ad fatigue is when people are so used to looking at the same ad and the same design that they just ignore it. When people lose interest in your ads, it will decrease conversions. Always plan new designs and content so that your Facebook page and advertisement are always fresh and unique.

10. Look back, assess, and make improvements

After you have done all of that, be sure to take a look back at everything and assess the difference between before you started and after. You can also make adjustments and improvements to things you think can be better. Always try and find things to improve. Complacency can kill a good business. If you don’t learn from the past, failure is waiting.

Now that you know how to create Facebook ads that convert, you can be more effective in your business endeavors. Now, you shouldn’t stop trying to improve your business. You can create an effective marketing strategy, but that might not be the case for your logistics or sourcing. Maybe you also feel overwhelmed by these aspects of your business because they are very tedious. This is why you should check out AsiaCommerce’s membership. We offer you support ranging from export imports, logistics, sourcing, procurement, and many more. Not only that, but we also help our members to be their best through our extensive educational resources. What are you waiting for? Join AsiaCommerce today!

The ABCs of a Reselling Business

The ABCs of a Reselling Business

In this day and age, the sheer amount of opportunities for business is amazing. You can start building your business with small amounts of capital and few resources. As long as you have a mixture of luck and determination, anything is possible. A popular business plan is reselling. Becoming a reseller is relatively easy and a good way to start building a business. There are so many platforms and mediums to become a reseller in this day and age. Back then, businesses were constrained to the physical world where people needed to have many connections, an office, and many other things. In the modern age, all we need is knowledge, capital, and internet know-how. Of course, this is to merely start a business, we need much more to grow and expand our business. In this article, we will discuss the basics of reselling. Mainly what reselling is, how to become a reseller, how to get products, and ways to achieve success in your reselling endeavors.

Reselling in a nutshell

In a nutshell, reselling is a business model where an individual or firm purchases goods from suppliers or distributors and sells them in their own stores. This seems like a very basic business model, and it is. However, the definition provided seems simple because it is merely the gist of it and the main goal of reselling. What most people don’t realize is that each step within the reselling process has become complex and varied. From the very start which is the manufacturer, various types of manufacturer and product sources have popped out and give resellers a bunch of options for their business. For example, there are manufacturers who can customize the products to an extent so you can resell their products with more customization. 

Maybe now you’re wondering why can’t the manufacturers just sell it themselves if they can make the products. The answer lies in the focus of a business. Manufacturers focus on creating the products, however, they may not have the capabilities or resources to directly sell to the consumers. It is also a big risk to sell directly because if the goods don’t sell, your loss will be bigger. If they sell to resellers or retail shops, they have a guaranteed consumer base and they don’t have to invest as much in order to sell their products. And then there are distributors who essentially provide a path from manufacturers to resellers or retail and to the consumers. They can sell it by themselves, but their focus is on connecting manufacturers and resellers so it is safer and more profitable for them to not sell it on their own.

Steps to become a Reseller

It is actually very easy to start a reselling business. However, succeeding and growing a reselling business is another thing. But let’s discuss how you can become a reseller first.

1. Think of names and a focus for your business. This would be the most fun stage of building a reselling business. A good name is memorable and interesting. It should also relate to the focus of your business. This is to establish an association with consumers. Your business should have a focus as well so that consumers can know what market you serve and are therefore more easily remembered. A store that sells everything can be a good thing in some cases, but in this context, it is better to be more specific. A good way would be to pick 1 or 2 niche categories to focus on.

2. Choose a product supplier that is reliable and has the perfect price. Having the right supplier is important because it impacts a reselling business heavily. Make sure that they are trustworthy and have good quality products.

3. Determine where you want to sell your products. There are 3 options for where you can sell your products. The first and easiest would be through e-commerce platforms like Amazon, Shopee, Lazada, and many more. These platforms are usually very easy to set up and are a very secure option. The second option is through social media like Instagram and Facebook. Social media platforms have an advantage in the reach that you can get. It is relatively easier to gain exposure through social media. The last option is to sell using your own website by utilizing Shopify or Woocommerce. A really good option for an online reselling business would be onlinestore.id as it is easy to use and offers a wide range of benefits.

4. Choose products from your previously chosen supplier or warehouse. Be sure to choose only one supplier because it will be cheaper that way. The shipping costs and additional costs will be calculated from the warehouse to the client. So it is more cost-effective to use 1 supplier or manufacturer. Using multiple warehouses and suppliers will mean that you will have to pay to ship twice because it is from different places. With one, purchases of even multiple products can be grouped and shipped together in one shipment.

5. When you are selling your products, be sure to create additional value for your consumers. This can be done by giving out discounts, bundles, and limited items. Artificial scarcity or added value engages consumers to purchase your products. The value that consumers see would not just be the inherent value of the products, but it will also be the benefits that you created. This will help make your product stand out and more attractive.

6. Advertise your products on social media platforms. You need to generate buzz and excitement in your products and store. Social media platforms are a relatively easy and cheap way to advertise your products. If you have social media skills, utilize that to the fullest extent to create organic and interesting advertising for your products.

7. You can use online ads for promotions regarding your product. The ads referred to here are not social media posts. But they are actual ads you would usually see on websites. These ads can be a picture or a video. To get the most out of ads, you will have to invest a little bit into them. Internet ads, like those by Google, are usually targeted ads that are very efficient. However, be careful not to spend too much as it can eat into your profits if you spend too much on advertising.

How to find and source products

Finding products to resell is a fundamental aspect of building a reselling business. A smooth and reliable supply chain is the most valuable thing in this field. You can grow your business faster and better with a great supply chain. Knowing how to find and procure goods to resell is not easy, but it’s not hard either. The most obvious thing to consider is the cost of the goods you acquire. The costs have to be low enough that you can implement a healthy profit margin. 

A good place to look for products to sell is usually countries with cheap and large manufacturing industries. Countries like China, Vietnam, and Indonesia are really good options. The deals you make should also be future-oriented and not focused on short-term gains. This is because a good relationship with suppliers is valuable in reselling. However, if you don’t think you can source products effectively or if you don’t have time there is an alternative. There are firms that you can use to outsource these duties. These companies help with sourcing and procuring goods from manufacturers or suppliers. This way you can focus on your reselling business. Although you will have to spend money, the gains outweigh the cost as everything in your business is significantly more effective.

Now you know what a reselling business is and how to start it. You can start all of the aforementioned things relatively easily. All you need is some determination, a little bit of capital, and some know-how. You can learn more about this business field through various resources provided by AsiaCommerce ranging from blogs like this to Webinars with skilled and experienced speakers. However, we offer many benefits if you become a member of our reseller network, we also offer various exemplary services that can make your reseller business run smoothly and effectively. Go to the link below to learn more.

Outsourcing: Third-Party Logistics and Sourcing

Outsourcing: Third-Party Logistics and Sourcing

Businesses that are involved with goods or products cannot escape what is called logistics and supply chain. A supply chain is the system of organization, peoples, activities, information, and resources with the goal of supplying products and services to consumers. Logistic management is essentially the organization of goods from one point in a supply chain to another point. Supply chain and logistics can range from simple to incredibly complex. The complexity typically depends on the size of the business and the type of product. The most complex supply chain and logistics are typically seen in multinational manufacturing and retail. The simplest can be seen in local businesses with local suppliers. However, there is a middle ground between the complex and simple. This spot is typically habited by big domestic businesses and businesses that involve export and imports. Their complexity is brought on by either their size (like with large domestic firms) or the international trade process. These supply chain and logistic systems are usually not as complex as multinationals, but they are more complex than small local businesses. The tricky thing here is that these supply chains and logistics are usually too complex to do on your own but they do not warrant the investment that will be required like in multinationals. This is where outsourcing and third-party logistics come in.


Outsourcing is essentially when a business makes a contract or agreement with another company to take care of an existing or planned activity that can be done internally. For bigger companies it may involve exchange of information, assets, and employees. However, in the context of small and medium enterprises it is usually just giving up certain duties and responsibilities to the outsourced company so you can focus on more important things. There are upsides and downsides to outsourcing your logistics and supply chain. The first advantage is that you can just make requests to your third party to procure products for you, so you can essentially just sit back and wait until it arrives without the hassle. The second advantage is third party firms that accept outsourcing contracts are usually more focused on a particular goal. This means that their operations will be more efficient and effective than if you do it yourself. The disadvantage will be that you lose some control over the operations and if something goes wrong, you do not have a say in how to solve it. The second disadvantage is that you will have to incur more costs. This is because these firms have profit margins on their services so you will have to pay that margin compared to when doing it yourself.

Third-Party Logistics

Now that we understand outsourcing, let’s focus on what a third party logistic provider is. A third party logistic provider is a firm that accepts contracts or businesses to manage their customer’s logistics, sourcing, and many more. Third party logistics will provide advantages for those looking to have a more efficient logistic system, more time for other operations, or even cut down on costs depending on the scale of the operation. The typical third party logistics will serve various functions. These functions include transportation, warehousing, reverse logistics (recycling, returns, disposing), international shipping, and handling. However, the most common usage of third party logistics is to procure and source products from suppliers. They will typically handle everything from packing to shipping the goods from suppliers. Although it is not always the case, third party logistics can also provide services that help relations with suppliers. This can include negotiations, communications, and management. However, their involvement with the business depends on the amount of information sharing between your firm and the third party logistics.

Why and When You Should Outsource

Choosing to outsource logistics will not always apply to every business and situation. You have to have the right reason and situation in order to get the most out of outsourcing. If you are starting out, some third party logistics can be useful especially if they can help with things like customs, delivery, and more. However, it depends on what your business is. If it is domestic or local, you will have to take into account where your supplier is. If the supplier is a great distance from you it will be beneficial. Third parties can also help with finding suppliers, so it will be a great help. However, if it is nearby then it may be unnecessary. For businesses that require export and imports then it is a good decision. The customs and regulations can be burdensome and complex, so having help from an experienced firm will be good. Outsourcing your sourcing and logistics will be a great help to your business. A good reason for this would be if you want to focus on more important parts of your business. For example, you can instead focus on marketing or managing your business. However, if your reason is to cut costs it will depend on your business size and type. Outsourcing logistics will be beneficial for most businesses. However, you will have to analyse your business and see if it is the right decision.

Now that we have learned more about outsourcing and logistics, you can start developing and expanding your business. We have discussed third-party logistics. AsiaCommerce is one such third party that can provide solutions. However, AsiaCommerce is not just a third-party logistic since we also offer export-import services, procurement, and sourcing, as well as many more services. We offer fulfillment services that can satisfy all your business needs for an affordable price. You can just tell us what we want and we will do everything for you. All you need to do is sit back and do what is most important for your business and yourself. Join AsiaCommerce today and gain all of these benefits by clicking the banner below.