If you are considering going one step further in your business and exporting your products, then you need to be thorough with a few things. Exporting can be risky since you will be entering a completely new market. It takes a considering amount of investment and hence need to be analyzed carefully before moving forward. So here are those factors for you could get a better understanding on exporting.
- Country of export
It’s time to do your research. You need to do a complete research on the market you are hoping to enter. Make a list and focus on the top three. The ranking could be done according to the number of customers, competition and rivalry, entry and exit costs, availability of market information etc. The most important factor to consider is the legal procedure for exports in each country. It is compulsory to comply with all related rules and regulations so that you will not face any legal problems in future.
- Selling method
You need to decide on an appropriate sales method that would reach your customers easily. It could either be through an agent, online purchases, joint venture or opening up a branch abroad. Every method has its pros and cons, so carefully analyze each method and select the best. Consider the buying patterns of foreign customers too. For example, if they are more into online purchases, go ahead with that option.
- Payment method
The payment method has to be looked into keenly. Exporting products has its own risks, and there could be a chance of non-payment. Hence always be on the safe side by using negotiable instruments such as bills of exchange, promissory notes etc. and also try to transfer the risk to the buyer’s bank. Have close relationships with banks so that your loyalty will be rewarded by way of credit facilities and other methods. If the products are sold on credit, make sure you have all agreements in writing while clearly mentioning the installment amounts. The costs should be clearly mentioned and agreed upon for payment. The prices could vary according to the products and containers. For example, if you are exporting food items, frozen goods transport is available.
It is essential that your products reach your customer safely in good shape. Different products can have different conditions in which they need to be shipped. For example, frozen goods should be transported through refrigerated freight services. Also consider how long it would take for the goods to be delivered. Have clear agreements on who will bear the cost of freight.