Sell internationally

One of the oldest forms of trade, export-import has transformed thanks to the internet. Today, you can buy and sell online to global markets provided you can find a unique selling point by comparison to your competitors. There are a wide range of specialist finance, international payment, insurance, sales and marketing services you can use to make sure you are successful. 

1. Looking to export?

Exporting to a foreign country is an exciting way of reaching new customers. commitment of time and energy. Your success depends on your business plan, marketing efforts and the extent to which you’re able to adapt to changes in your chosen markets.

2. The country and product

The major export markets are China, Japan, Germany and the United States. But you don’t have to limit yourself to these countries. Examine your opportunities based on your product, contacts and experience. Africa and Asia provide huge opportunities and ecommerce makes it much easier than ever before. Your trade association and the embassies will provide a lot of information and actual support for you as well. What are the unique features of your services or products that makes them distinctive from competitor products services in foreign markets? If those features are hard to duplicate in those markets, you have a big advantage. This might be compliance with environmental or labour standards, or it might be specific product features or branding, all of which corporate buyers and individual consumers might find important. Exporting common goods for which there’s already substantial competition may require more aggressive marketing. Are your products more durable or safer than competitors’? How can you modify them and be flexible to your international market’s requirements? Be clear on your product’s unique selling proposition in the markets you are targeting.

3.Costs To Analyse

Compute export costs to determine the right price for your product. Purchase the insurance needed to safeguard your export business. Use this checklist: - Product liability insurance, cargo insurance and export credit insurance that protects against risk of non-payment by a foreign buyer. - Freight and handling - Duties and taxes on international shipment - Customs clearance and broker fee - International postage - Product packaging and special packaging costs - Manufacturing and R&D costs - Marketing costs - Ongoing Customer Support Notes: - If you already run local advertising for your product or service and have a business website, how can you best adapt it for international customers. Look for inspiration from foreign competitors! - Set a price that accurately depicts the true value of your product or service, cheapest is not always best! - If you want to reduce your export price, you may need to modify your product or service to ensure that your margins aren’t hit. - Evaluate the benefits of spending more on product R&D, manufacturing and packaging. They could translate to better reception in the foreign market and boost revenue. Spending time in your chosen market will tell you what adaptions would be most worthwhile. Sometimes your international research visits can be paid for by your trade association or or your government because they want to encourage exports.

4. Determine whether you need an export license

An export license is a document issued by the appropriate licensing agency in your country, granting you permission to conduct export transactions. Generally, license requirements depend on the technical characteristics of the product, how the product will be used, the end user and the destination. In many countries, exports that definitely require licensing are food, medicines, antiques and certain chemicals, but check first. Each country has specific agencies that regulate exports and establish rules for legally shipping goods to foreign shores. Brexit has had a big impact in the UK regarding importing and exporting controls, product standards and licensing. In the U.S., the Bureau of Industry and Security (BIS), Department of Agriculture and the U.S. Fish and Wildlife Service are some agencies that control exports. If you’re an Indian resident looking to export to China, you must first establish your business, open a bank account authorized to deal in foreign exchange, obtain an importer-exporter code (IEC) number and acquire the registration cum membership certificate (RCMC) from the concerned commodity boards or export promotion councils.

5.Get assistance from your country’s embassies and consulates

Finding foreign buyers for your product is one of the key aspects of export. Your country’s embassies and consulates abroad are likely to provide you with free useful information and leads, its their job and why you pay taxes! For example, the commercial and economic officers in most consulates and embassies arrange introductions with relevant companies, individuals and foreign government officials. You can reach the officials at your country’s embassies online or via phone to take the talks forward.

6. Decide if you want to use an export agent

An export agent handles all export activities on your behalf. This includes researching your market, preparing an export plan and contacting potential buyers to negotiating deals, handling logistics and readying the paperwork. Export agents don’t take ownership of goods. They generally earn a commission on sales. Some agents may provide, at a lower cost or commission, assistance with specific export services. Using an agent is an easier way to enter a foreign market but adds to your business costs. Assess the trade-offs, your business experience and the time you can realistically devote to setting up your export venture.

7. Understand legal issues

Safety and environmental standards differ from country to country. What’s acceptable in the developing world may be banned in western countries. The following checks are important: - Local product standards, which may include testing and certification by an approved organisation. To cite an example, if your product meets British standards, there is no guarantee that it will meet EU requirements. - Local product regulations, including product liability laws and losses you may potentially suffer due to a legal claim against you. - Local intellectual property rights - Local laws on marketing - Environmental policies usually apply at the national level but consumers may care about your eco credentials. Engage a trade lawyer to understand the foreign market regulations that apply to exporters. Trade lawyers offer several services covering export compliance, duty savings, tariff mitigation and dispute resolution.

8. Contracts

Legal counsel is also necessary to draft a tight sales contract. Key elements include delivery terms, payment methods, dispute resolution and clauses that protect you in the event of non-delivery or faulty products.