Buyer oriented online sourcing platform
The HKTDC Small-Order Zone is a buyer-oriented online sourcing SAM 3027platform for direct sourcing of quality products in small quantities. This innovative concept creates new global business opportunities for Indian companies and their products on the international stage; provide them real time exposure to focused sellers and buyers relevant to their specific industry and expand their business to international markets.
“Usually trade shows do not cater to the interests of small order buyers and sellers. By small orders, we mean 5 to 1,000 pieces. The maximum transactional value is $10,000. The average order, we are doing now is $100 to $200. Normally it’s 10 to 20 pieces per transaction. The basic principle of small order is fast moving, low inventory. The emergence of e-tailers has helped in growing our platform,” informs Lee.
The Small-Order Zone and the e-commerce platform hktdc.com, enables suppliers to promote and sell quality products in small quantities. This helps suppliers to test markets and maintain a low inventory through small volume orders. Currently, there are over 100,000 products available in quantities ranging from 5 – 1,000 pieces.
“We work on trust,” explains Lee, adding, “We get third parties to verify our suppliers, our companies. We get them authenticated. We also work with a testing, inspection and verifications authority that checks the company’s background, their quality, environmental and safety aspects. HKTDC is a neutral, impartial marketplace. Buyers can rely on us. We are an ideal platform for Indian buyers looking to source online,” asserts Lee.
HKTDC platform benefits small players
The Small Order Zone connects global buyers with third-party authenticated suppliers in a secure sourcing and payment environment without time or geographical constraints. HKTDC has built in a number of safeties for businesses, such as dealing directly with verified suppliers; the ‘Buy Now’ service offers instant order and payment for selected products and protection and processing of payments by PayPal.
According to Lee, the platform suits buyers who don’t have a big inventory and who like to offer variety. “Suppliers like dealing with small buyers and so diversify their risk. They also want to expand their client base. If they sell in small orders, it will give them a better profit margin” he explains.
Since 2012, both buyers and suppliers have been using the Small-Order Zone and the results have been positive, with the online and offline zones together helping a total of over 6,000 suppliers featuring over 100,000 products and resulting in 1.4 million sales leads to date. This easy online transaction process helps suppliers expand their reach internationally, bypassing complicated foreign trade processes and creating actual deals across the globe.
These online transactions carried out with off-line promotions reach out to more buyers, including small-volume buyers who may not have attended trade fairs in Hong Kong. By providing a four-in-one platform comprising a trade portal, trade fairs, trade publications and mobile apps, the HKTDC helps SMEs capture business opportunities effectively and efficiently.
“We do thematic promotions of products. We want more Indians to make use of small order sourcing so we have promotions targeting Indian buyers. Seven per cent of our orders come from India. We want the Indian market to be comparable to the European market. And we have the confidence we can do that. We will also be in touch with some logistics providers in this region to help lower freight costs because when they buy from our platform, the delivery costs are high. We are trying to tackle this issue,” avers Lee.
Small-order.hktdc.com
