When it comes to exporting goods, business owners have a few different strategies to choose from. The export strategies you choose will depend on your products, your target market, and your resources.
In this article, we will explore the three most common export strategies. We will also discuss the pros and cons of each strategy so that you can make an informed decision about which one is right for your business.
What Are The Best Export Strategies?
The first step in determining which export strategies you should choose is to understand what is involved with each one.
There are three common export strategies. These are:
- Exporting through a distributor,
- Exporting through an agent or representative
- Exporting directly to retailers or consumers.
Exporting through a distributor means selling your products to a company. They will handle all the logistics of getting them to your target market. This can be helpful if you don’t have the time or resources to do it yourself. Though, it can also limit your control over the process and make it more difficult to build relationships with buyers.
Exporting through an agent or representative is similar to exporting through a distributor. Though, you maintain direct contact with the buyer. This can be helpful if you want more control over the process or if you want to build relationships with buyers.
Exporting directly to retailers or consumers means selling your products directly to buyers. This is without using any middlemen. This can be risky because there is no guarantee that buyers will want your product. Though, it can also be rewarding because you have more control over the process and build closer relationships with buyers.
Exporting through a distributor is one of the most common export strategies. Distributors are companies that sell products on behalf of other businesses. They do this by handling all logistics involved in getting those goods to their target markets abroad. They often specialize in specific industries or regions. This is to make sure they know how best to serve those customers’ needs regardless of where they live.
Make Sure To Decide Where You Want To Sell Your Products
Before choosing which export strategies are right for you, it’s important to decide where you want your products sold.
This will depend on the type of product you have and what markets are available in different countries or regions around the world. For example, if your company makes furniture that is popular only among Americans then exporting directly to buyers may not be an option. This is because there aren’t many retailers who sell American-style furniture abroad.
Exporting through distributors would probably work better. This is since they can handle all logistics involved with getting your goods overseas. They also deal with prototype manufacturing.
On the other hand, selling via agents could be ideal. This is because of their expertise in navigating local laws governing the international sale of products.
Create An Exporting Plan
Once you have decided on the export strategies you want to pursue, it’s important to create a plan for how you will execute them.
Your exporting plan should include all of the following:
- A list of your target markets and their corresponding countries or regions
- The products you will be selling and their associated prices
- Your estimated shipping costs and any other associated fees
- How you will promote your products in foreign markets (e.g., online, through distributors/agents, at trade shows)
- The contact information for any distributors/agents you are working with.
Keep in mind that this is just a general outline. Your actual plan may vary depending on the specifics of your business.
Stay Up-to-Date With Regulations
When exporting, it’s important to stay up-to-date with the regulations that govern international trade.
This includes knowing what products can be exported to which countries, as well as any restrictions or tariffs that might apply. Ignorance of the law is not an excuse in international trade. So make sure you are familiar with all relevant regulations before starting to export goods.
Utilize Resources From The Government And Other Organizations
There are a number of resources available to businesses looking to start exporting their products.
The government offers a wealth of information on its website, including how to find agents abroad, export financing options, and tips for entering specific markets.
In addition, there are a number of trade organizations that offer support to businesses looking to export their products. These organizations can provide information on specific markets as well as assistance with things like logistics and shipping.
Being successful in exporting takes a lot of work, but by using the right strategies and resources it’s definitely possible for your business to find success overseas.
Develop A Marketing Strategy
Marketing your products in foreign markets can be a daunting task, but it’s important to do if you want to make sales.
There are a number of ways you can go about marketing your products, and the approach you take will depend on your target market.
If you’re targeting consumers directly, then online advertising or social media might be the best way to reach them. However, if you’re selling through distributors or agents then personal visits or attending trade shows in foreign countries might be more effective.
No matter what marketing strategy you choose, make sure that all of your messaging is localized for the region where you’re selling. This means using local language and cultural references wherever possible to make sure that potential customers understand what your product is and why they should buy it.
Consider The Legal Aspects of Exporting
As with any business venture, there are a number of legal considerations you need to take into account when exporting goods.
This includes knowing what products can be exported to which countries, as well as understanding the various restrictions and tariffs that might apply. Ignorance of the law is not an excuse in international trade, so it’s important to do your research before starting to export goods.
Learn More Export Strategies
As you can see, there are a few different export strategies you can apply to your business. The information above can also help you refine your direct exporting strategy.
Do you want to learn more business tips? If so, check out our blog for more helpful articles.
