Business people are adopting various methods to connect with manufacturers in foreign countries and procure products from overseas. Individuals can conveniently order commodities from nations like China, Turkey, and the USA through dedicated mobile apps and websites, eliminating the need to travel. Fueled by communication and technology advancements, this expanding trend prompts questions about its sustainability, safety, benefits, and drawbacks in the Tanzanian business landscape.
Changing Business Landscape
The business landscape in Tanzania is changing rapidly. In the past, businesses were mainly limited to operating within Tanzania’s borders. However, the rise of communication technology has made it possible for companies to connect with customers and suppliers worldwide. This has led to a shift in how business is conducted, as companies can now reach a wider audience, source goods from cheaper markets, and expand their product offerings.
Tanzanian business people are adapting to these new realities of the global marketplace in several ways. Some Tanzanians are partnering with businesses in other countries to produce goods that can then be sold in Tanzania. And still, others are importing goods from overseas to sell in Tanzania.
Here are some specific examples of how Tanzanian businesses are adapting to the changing business landscape:
E-commerce: Several Tanzanian businesses now sell their products online through platforms like Amazon and eBay. This allows them to reach a wider audience of potential customers worldwide.
International partnerships: Some Tanzanian businesses are partnering with companies in other countries to produce goods that can be sold in Tanzania. This allows them to benefit from the lower labor costs and other advantages these countries offer.
Importing goods: Other Tanzanian businesses import goods overseas to sell in Tanzania. This allows them to offer a wider variety of products to their customers.
These are just a few examples of how Tanzanian businesses adapt to the changing business landscape. As the global economy becomes increasingly interconnected, companies in Tanzania need to be prepared to adjust to the market’s changing demands. By doing so, they can position themselves to succeed in the future.
Communication Technology’s Role
The rise of communication technology has played a pivotal role in the revolution of online cross-border trade in Tanzania. In the past, businesses in Tanzania were limited to operating within the country’s borders. However, the availability of high-speed internet, the growth of mobile commerce, and the declining shipping cost have made it possible for businesses in Tanzania to connect with customers and suppliers worldwide.
Several mobile apps and websites enable Tanzanian entrepreneurs to place orders without needing to travel to foreign countries physically. Some of these apps and websites include:
Alibaba, AliExpress, and 1688.com are Chinese e-commerce websites and apps that allow businesses in Tanzania to purchase goods from China at wholesale prices.
Amazon: Amazon is an American e-commerce website that allows businesses in Tanzania to purchase goods from various countries.
Shopify: Shopify is a Canadian e-commerce platform allowing businesses in Tanzania to create online stores.
Tanzanian Online Market: Tanzanian Online Market is a Tanzanian e-commerce website that connects businesses in Tanzania with customers nationwide.
These apps and websites have enabled businesses in Tanzania to reach a wider audience, reduce costs, and expand their product offerings. They have also made it easier for companies to compete with businesses from other countries.
Advantages of Online Cross-Border Trade in Tanzania
There are many advantages those Tanzania businesspeople are getting through this approach. Online cross-border trade can make it much more convenient for businesses in Tanzania to source goods and services from overseas. Previously, companies had to travel to other countries to meet with suppliers and negotiate deals.
This could be time-consuming and expensive. With online cross-border trade, businesses can log on to a website or app and browse through a wide variety of products and services worldwide. They can then place an order and have the goods delivered to their door.
Online cross-border trade can save businesses money. In the past, businesses had to pay for the transportation of goods from overseas. This could be a significant expense, especially for bulky or heavy items. With online cross-border trade, businesses can often find suppliers who are willing to ship goods to Tanzania at a much lower cost. This can lead to significant savings on the overall cost of goods. Apart from that, a businessperson’s traveling cost to these countries is also saved.
Another significant advantage of online cross-border trade is that it can give businesses in Tanzania access to a broader range of products and services than they would have if they could only source goods from local suppliers. This can be a significant advantage for businesses looking to expand their product offerings or find new ways to differentiate themselves.
Disadvantages of Online Cross-Border Trade in Tanzania
Despite the advantages, this new business approach has challenges these business people face. Some of the common challenges are;
Safety and security: There is always a risk of fraud when conducting online transactions, especially when dealing with businesses in other countries. Companies must be careful to only deal with reputable suppliers and use secure payment methods. They should also be aware of the signs of fraud, such as emails or suspicious websites.
Quality control: There is also a risk of quality control issues when ordering goods from overseas. Businesses must ensure they contain suppliers with a good reputation for quality control. They should also scrutinize the goods when they arrive to ensure they are of the expected quality.
Impact on local industries: Online cross-border trade can negatively impact local industries, especially manufacturing or retail. This is because businesses in Tanzania may be able to source goods from overseas at a lower cost than they can from local suppliers. This can lead to job losses in the local manufacturing and retail sectors.
Risks of fraud and shipping delays: Some risks are associated with online cross-border trade, such as fraud and shipping delays. Businesses must be aware of these risks and take steps to alleviate them. For example, they can use reputable payment methods and shipping companies. They can also build relationships with suppliers and track their orders closely.
Safety and Security Concerns
The rise of online cross-border trade has also raised concerns about safety and security. In particular, Tanzanian business people need to be aware of the following risks:
Fraud: There is always the risk of fraud when dealing with businesses in other countries. This includes fake websites, phishing emails, and credit card scams. Companies need to protect themselves from fraud, such as using reputable suppliers, secure payment methods, and being careful about what information they share online.
Shipping delays: Shipping delays can be a significant problem for businesses that engage in online cross-border trade. This is especially true for companies that are shipping goods from countries that are far away from Tanzania. Companies need to factor in the possibility of shipping delays when planning.
Quality control issues: There is also the risk of quality control issues when dealing with businesses in other countries. This is because the quality control standards may differ in other countries. Companies must carefully inspect the goods they receive before selling them to their customers.
Economic Impact on Tanzania
The economic impact of the rise of online cross-border trade in Tanzania is a complex issue with both potential benefits and challenges. On the one hand, online cross-border trade has the potential to stimulate the local economy by creating new jobs and businesses.
Businesses that provide services to online cross-border traders, such as shipping and payment processing, could create new jobs in Tanzania. Additionally, online cross-border trade could help to diversify the Tanzanian economy by bringing in new products and services from other countries.
On the other hand, online cross-border trade could also pose challenges to local manufacturers and retailers. If businesses in Tanzania start to source goods from overseas, it could lead to job losses in the local manufacturing sector. Additionally, online cross-border trade could make it more difficult for local retailers to compete with businesses from other countries that may have lower prices.
Ultimately, the economic impact of the rise of online cross-border trade in Tanzania will depend on several factors, including the government’s policies and the actions of businesses and consumers. If the government can enact policies supporting the growth of online cross-border trade while protecting local businesses, then the trend could positively impact me. However, if the government fails to take action, the trend could negatively impact the economy by leading to job losses and increased competition for local businesses.
