Growing your SME business by going global

Over the past few years there has been a significant amount of change to how businesses trade, from the growth in e-commerce to greater complexity at the border. Despite these changes there are great opportunities for businesses trading internationally, with the UK Government continuing to pursue new trade agreements with countries around the world and providing greater support for businesses looking to export.

In the UK a lot of attention has been given to the closure of the high street, and the impact that had on pushing businesses to develop their domestic e-commerce offerings. For businesses looking to grow their exports in 2022, it’s equally important to consider how shopping habits have changed across the world. For example, retail culture in the Middle East was heavily centered on shopping malls, while e-commerce was far less mature than in some other markets. But the closure of malls in locations such as Dubai meant that e-commerce suddenly grew dramatically. This creates an opportunity for UK businesses to sell to the Middle East via e-commerce, where as previously the physical presence required in the Middle East would have been cost prohibitive and prevented many businesses from selling in this region.

The COVID-19 pandemic also contributed to changes in shopping behaviour, creating a new route to market for products you may never have considered buying online, such as wallpaper or certain health and wellbeing products.

If businesses have learnt one thing from the pandemic, it’s to be prepared for change and challenges. To manage any risks associated with overseas trade it's sensible not to put all your eggs in one basket. The more markets a business is operating in, the smaller the ups and downs will seem, for example when exchange rates or economic outlooks differ for a particular country. Smaller SMEs that want to export can consider starting selling internationally via a marketplace. This gives access to many markets as well as the protection of upfront payments. As a business grows and gains knowledge and confidence with international trade, launching their own ecommerce site will become more accessible.

Adapting to trading outside of the single market has brought its challenges, with Customs paperwork now required for trade between GB and the EU, but for businesses who were previously only trading with the EU, the knowledge gained through this experience has prepared them for trade with the broadest possible range of markets. While trading with countries such as India may have seemed challenging before, businesses need to have the confidence that their experience has equipped them with the skills and knowledge to navigate different customs requirements.

Selling internationally is a major opportunity for growth, but SMEs shouldn’t try and do it all or do it alone. It’s important to take a step back and get expert advice to supplement your own knowledge. At DHL Express, we support our customers every day in preparing shipping documentation and clearing goods through customs, as well as providing tools to calculate duty and tax prior to moving goods across borders. We also guide customers on how to increase their international customer base by utilising the recommendations in our ecommerce and sustainability health checks. This all gives businesses the knowledge, control, and opportunities to be successful internationally.