Speak to an advisor: +852 5803 2409
Register with Sleek and subscribe to accounting to save HK$2000 OFF T&C apply


HK$2000 OFF

when you

 when you register your company with Sleek

and subscribe to our accounting plans.

register your company with Sleek and subscribe to our accounting plans.


5 Benefits of Local Suppliers for E-Commerce Business

8 minute read


The viral outbreak that left the world with serious consequences has exposed the vulnerable spots of companies that preferred to source internationally. Global supply chains have been hit badly by the pandemic and, consequently, many businesses have gone through a difficult phase trying to find new local suppliers to keep the operations above the water level.

It is clear that many companies no longer source internationally. They now know they have to source locally due to various measures implemented by governments all around the globe.

But that’s not necessarily a bad thing. Nowadays, when registering a business, it’s good to know that a local supplier is a more reliable supplier.

If you too have felt the effects of a disrupted supply chain, keep reading. Below you will see all the benefits of having a local supplier for your eCommerce business.


1. Improved Access To Markets

In a word, local suppliers have a more holistic approach to goals, which usually contributes to a more long-term partnership that aligns with the interest of their partners.

When an eCommerce business has to rely on a supplier from another region, it usually has to deal with the issue of shipping. In general, it takes at least a few weeks to ship parts from foreign countries.

And this works well when there are no delays in ports or customers on both ends. But what happens when there is a crisis that affects the whole world? That is when problems happen.

On top of that, sometimes language barriers can really create numerous problems on both ends. When this happens, one side usually has to fix the issue due to flawed expectations.

For instance, if you agreed on certain conditions regarding the shipment of your new parts and the other side made a mistake due to the bad language proficiency, you will have to wait on the delivery, since they will need additional time to create a new order and ship you the right parts.

On the other hand, when you place your trust in local suppliers, their position plays into your favor strategically. Thanks to the fact that local suppliers are near you, you can launch products faster, and you can improve your speed to market and maintain a competitive edge.

2. More Flexibility And Greater Control

It is fair to say that local suppliers tend to be more open-minded than larger corporations. Small suppliers pay more attention to making a relationship with a company.

This means that they are more likely to go an extra step to suit your business needs. And in this dynamic business world, one can never know when an opportunity or a challenge will arise. A buyer would rather know the growth pattern for the product that is sourced before actually choosing a partner.
When you source locally, you can ramp up to meet increasing demand.

Local suppliers are more reactive than suppliers who are farther away. They can deliver products faster, and it is much easier for a supplier to coordinate a shipment across a single country or city than around the whole world.
This also paves the way for better control.

The further away you are from different stages of your supply chain, the less control you have over them. Suppliers usually state that they treat all of their customers and purchase orders the same, but if they anticipate a website visit or a drop-in meeting from you, chances are they will keep you top of mind.

3. Reduced Supply Chain Cost

According to recent data, businesses in the US alone spend a whopping $1.64 trillion a year on simple supply chain management and logistics. Therefore, switching to local suppliers would translate to cutting on supply chain management costs significantly.

When a business’s supply chain is spread out across the globe, the chances are that a lot of money gets spent on supply chain management even though most people go overseas to save on logistics and shipping.

If your business sends and receives parts and products all over the world, the expenses can add up quite fast. To make the matter even worse, sometimes the pieces and parts have to be stored in warehouses before they get shipped again to the next supplier.

Fortunately, as it was mentioned, a lot of these costs can be reduced if you localize your supply chain. Moreover, when less money is spent on logistics, there will be less strain on your bottom line.

If you want to cut costs even further, you should also consider reducing your inventory. Since local supply chains allow for shorter lead times, shorter lead times then indicate that you can place smaller orders.

Smaller, more frequent orders bring better cash flow, lower warehouse costs, increased inventory turns, and a lower risk of overstocking on a product that does not sell.

4. Helps The Environments

When a business reduces shipping and storage, it also reduces emissions and energy usage.

Localizing the supply chain opens the opportunity to help the environment. Sourcing locally not only contributes to green manufacturing but ultimately helps build consumer confidence.

Once shoppers start purchasing your products with confidence, you can rest assured that the business will enjoy a better brand image, brand awareness, and customer loyalty. This is especially attractive when you consider that nowadays consumers like to buy items that bear ‘clean labels’ due to the increasing eco-awareness.

Of course, an eco-friendly initiative should not be followed only because your business will enjoy positive PR points. Being environmentally aware and eco-friendly needs to be a regular business policy and taken seriously.

5. Builds Goodwill With Your Customers

Your local customers are becoming more supportive of the idea of following and stimulating local businesses. Sourcing locally, in its essence, also helps other suppliers and manufacturers in your area. This brings positive effects to your local economy and the people that live there.

Customers know that when they support a local business that is partnered up with other businesses from the area, they are actually helping their own economy. This means that you will have zero issues finding customers if you successfully show that your commitment to the local economy is true.

Ultimately, this can lead to an increase in revenue and profits. Once you start acquiring more revenue, you can further improve your reputation by contributing to your local communities through fundraising, volunteering, benefits, and sponsored activities.

Remember, people care about the origins of the products they buy. It is only natural for a person to prioritize products that come from their region compared to imported foreign products.

Wrap Up

It is understandable why people decide to look overseas when it comes to their suppliers. But situations like the one we are going through at the moment really show how important it is to have a local supply chain.

On top of that, when you turn to local suppliers, you show your support to your fellow countrymen. And the logistics and management costs that you can reduce by choosing local suppliers is no doubt another huge benefit.

Talk to our sales team to get started!


Some of our other articles you might want to read:

Ready to grow your business?

Our expert team is here to help you. Explore our incorporation services or contact our team to get personalised advice today.

Start a business in less than 3 hours with us. Talk to our experts today.

Subscribe to our newsletter

Our jam-packed newsletter covers monthly compliance updates, upcoming events and exclusive offers

Other articles that might interest you

Related content

What is unique business identifier (UBI) and what every hong kong limited company needs to know

Phasing out of Company Registration Number: What is Unique Business Identifier and What Every Hong Kong Limited Company Needs to Know

The Unique Business Identifier (UBI) system is intended to provide a streamlined approach for businesses operating in Hong Kong, increasing communication effectiveness between them and government departments. This blog post delves into what this means for companies here. How can it help improve business operations and ensure they remain competitive within this rapidly changing commercial environment?

top feng shui for business success 2024

Maximize Prosperity: Top Feng Shui for Business Success 2024

As the Wood Dragon Year approaches, businesses worldwide are eager to harness its energy to maximize prosperity and success. In this blog post, we explore the ancient Chinese practice of Feng Shui for business success 2024, which offers a wealth of strategies to help businesses thrive in the dynamic and transformative energy of the Wood Dragon Year. From understanding the Wood Dragon energy to optimizing office space and aligning with the Fire element, let’s delve into the world of Feng Shui and uncover its secrets to business success.

complete guide to business registration

Your Comprehensive Guide to Business Registration in Hong Kong

Are you considering expanding your business horizons and tapping into the thriving market of Hong Kong? With its strategic location, business-friendly environment, and robust legal framework, Hong Kong is an attractive destination for entrepreneurs and investors alike. But before you can start your business ventures in this dynamic city, you must first understand the ins and outs of business registration in Hong Kong.

Contact us

We’d love to help. Share your contact details and we’ll call you back

Contact us

We’d love to help. Share your contact details and we’ll call you back

Start a business in less than 3 hours with us. Talk to our experts today.

WhatsApp Us

Get HK$2000 off on
your first Sleek
service purchase!

Offer valid when you register your company with Sleek and subscribe to our accounting OR audit and tax plans. T&Cs apply. Privacy policy.

Terms and Conditions of the Promotion:

Before participating in this promotion, you must carefully read and agree to abide by the following terms and conditions.

  1. Eligible Users: To enjoy this offer, customers must purchase Incorporation package with registered address and audit and tax/accounting services at the same time. Valid customers will receive a fee waiver of HKD 2,000.
  2. Promotion Period: This promotion is valid from Jun 19-Jul 2, 2023. Sleek reserves the right to end this promotion at any time without prior notice to customers.
  3. Fees and Payment: Customers must pay the service fees according to Sleek’s standard payment terms. The HKD 2,000 waiver will be applied as a discount on the customer’s invoice.
  4. Governing Law and Jurisdiction: These terms and conditions shall be governed and construed in accordance with the laws of Hong Kong. Any dispute arising out of or in connection with these terms and conditions shall be subject to the exclusive jurisdiction of the courts of Hong Kong.
  5. Confidentiality: Sleek shall treat all information provided by the customer as confidential and shall not disclose such information to any third party, except as required by law or with the customer’s consent.
  6. Limitation of Liability: To the extent permitted by law, Sleek shall not be liable for any direct, indirect, or consequential loss or damage arising out of this promotion.
  7. Disclaimer: To the extent permitted by law, Sleek shall not be responsible for any loss or damage arising from the customer’s use of this promotion. Sleek does not guarantee the accuracy, completeness, reliability, timeliness, suitability, or availability of the website and its content. Sleek reserves the right to change the website and its content at any time without prior notice to customers.
  8. Cancellation of Orders: If customers wish to cancel an order, they must contact Sleek’s customer service department within 24 hours of submitting the order. Orders cannot be cancelled if they have already been processed
  9. Links to Third-Party Websites: Sleek’s website may contain links to third-party websites that are not under Sleek’s control. Sleek is not responsible for the content, privacy policies, or practices of third-party websites and does not endorse or recommend them. Customers should carefully read the terms and conditions and privacy policies of any third-party website before using it.
  10. Accuracy of Registration Information: Customers warrant that all registration information provided is accurate, complete, and up-to-date. If a customer’s registration information changes, the customer should update their account information promptly. Sleek shall not be liable for any loss or damage arising from the customer’s provision of inaccurate or incomplete registration information.
whatsapp icon

Chat with us on WhatsApp from your mobile


30 Days Money Back Guarantee

Our refund policy:

We care about you – within 30 days from your purchase, if you’re unhappy with our services, we’ll refund our fee. Email or call us, and we’ll process the refund within five working days.

What it doesn’t cover:

We will not be able to refund Government fees once the application has been submitted, nor any third-party processing fees.

When it applies:

We cannot guarantee any specific legal outcomes when you use our services. For instance, a company registration might be filed correctly but still get rejected by the Company Registry for reasons beyond our control. We can only refund our fees for issues we are directly responsible for. In the case that you purchase a service and later change your mind, we can’t issue a refund.

Our customer support team is at your disposal for any questions or issue you may face.

Need help?

Our sales team is available from Mon - Fri 9am to 7pm (Hong Kong Time)

Let's get in touch

Book a time with our experts to guide you in finding the best solution.