4 Benefits And Four Trade-Offs Of Direct Furniture Imports
Furniture sourcing offers numerous options, typically through distributors and wholesalers. However, there’s been a pandemic-fueled shift towards Asia Pacific importation. The global furniture industry, worth $1.3 trillion in 2020, is projected to reach $1.6 trillion by 2025. In 2020, $191 billion of the global figure was imports, with Asia Pacific countries experiencing growth.
This shift could be linked to the e-commerce boom and significant third-party wholesaling growth on platforms like Amazon. Despite logistical challenges, sourcing from distant markets can be beneficial for volume sellers and those offering unique, global products. Challenges include cultural barriers, trust building with distant suppliers, currency fluctuations, and shipping logistics and costs.
Despite these complexities, the benefits can often outweigh the risks. These include a significant price advantage when sourcing from markets like China, India, Indonesia, and Vietnam, possibilities for bespoke production and customization without extra costs, exclusivity via product personalization and geo-restrictions, and further price reduction through bulk buying.
For instance, a retailer paying $100 for a dropshipping product could get it for around $60 as a wholesale order, significantly increasing profit margins. However, it’s crucial to note that dropship and wholesale each have their reasons for different pricing and services. Dropship consignments are smaller and go directly to the end consumer without stock holding, hence they cost more. Wholesale products go straight to retailers, often as full container loads directly from the factory, making it ideal for high-volume dealing and ample storage.
The trend towards sourcing from distant places, especially Asia Pacific for furniture, seems to be growing, fueled by the pandemic-induced home renovation boom. Consumers increasingly seek more exotic lines without high price tags.