What is the Trans-Pacific Partnership (TPP) trade deal?
The TPP is a multi-national trade agreement between twelve countries that share borders with the Pacific Ocean; the list includes the US, Canada, Japan, Australia and Singapore. The details have officially been made public in the past couple days, and they seem more-or-less is line with what we were promised they would be: a general freeing of trade restrictions as a means of encouraging economic growth as a whole.
So what does this mean for you as an online retailer?
The TPP in its entirety can be found online, but the chapter on electronic commerce is what we’ll address here; essentially it allows you to operate in all partnered countries without having to have foreign brick-and-mortar locations. Until now some countries, Australia for example, required e-commerce operators to have local computer infrastructure in the economies in which they want to operate. So if you manufactured and shipped widgets from the US and you saw market potential in Sydney, you would have to set up overseas servers in the land down under before you got anything going. These kinds of restrictions made it harder for small, or even medium-sized business to reach their full potential in the global market due drastically increased overhead.
Additionally, the TPP aims to remove trade tariffs on imports and exports, as well as ensure that other governments don’t discriminate against electronically transmitted services not sourced domestically. You as an entrepreneur have the potential to greatly expand your business for two simple reasons: International trade will be more affordable for you in terms of lower operation costs, and more affordable for your customers in relation to local market prices.
Here’s the major downside:
These factors stand to benefit your competitors just as much as they do you. Currently, only 25-40% of Asia is estimated to have internet access, and the numbers are climbing faster every day. That means there is massive capacity for the growth of your business in that part of the world. With page translation technology tearing down language barriers, the only thing standing between you and a solid Asian or Pacific Islander customer base is how your store stands up to the others in your specific industry. Do you have a smoothly operating website that offers a clean and easy user experience? Is it aesthetically pleasing in a unique way or is it a template that anyone with the slightest savvy could spot with a quick glance from across the room?
With these kinds of questions, sometimes it’s best to trust the experts while you focus on what you do best: creating marketable products and services, and running your operation. And that’s where Redhead Labs comes in. With our advanced programming and developing team coupled with our expertise in search engine optimization, we more than have what it takes to help you take your product anywhere you want to send it. Feel free to check out our extensive list of services we offer.
And if you’re a new retailer working on a tight budget, we can still help. Join our 30 E-Commerce Success Challenge today for free, and you’ll receive daily videos containing everything you’ll need to know to launch a thriving online business.