Things To Keep in Mind While Exporting Internationally
When getting into international trade, having an in-depth comprehensive knowledge about the import and export procedure of the country one is doing business with is extremely critical. Exporting is a big deal and one has to consider various aspects when getting into exporting such as how friendly the trade laws of the country are, how complicated is the import and export procedure, analysis of the place, regulatory environment, cost, insurance, capital investment, customer’s opinion – when one is well versed with these factors, it becomes easy to export goods and services.
It is vital to research the place & its market standing to know what countries are favourable for the exporters. For instance, in the year 2017 USA was the country that most countries had exported to & their imports were valued at $2.41 trillion.
Things to keep in mind while exporting internationally
In-depth knowledge of the country
When you start exporting products, you should not at all neglect the place selected by you to export your product. You need to take the economic growth rate of the countries you want to export to into consideration and have a clear understanding of how competitive the market is with respect to your product. For instance, if you want to export coffee beans, you need to know whether the market is saturated, can the economic condition of the country even afford such an import – all this due diligence needs to be undertaken before you shortlist a country.
Planning is extremely important when trying to set up an export business, as a well-formulated plan can help determine the steps involved in successfully selling a product in the international market. Planning can improve your growth and one can grow faster if everything has been planned.
A clear understanding of the import and export procedure and regulations in every country that you want to export your products to is important. Because if the rules are violated, it can lead to adverse consequences such as having the product banned.
Product description and acceptance
You must ensure that the products you intend to export are not restricted or prohibited items. Some countries do not allow the import of pork while some countries prohibit the import of products concerned with endangered species. You should be aware of such prohibitive item lists and refrain from exporting your product to the country where it is not allowed.
Reliable payments provider such as Escrow
Mode of payment and payment terms and conditions should be decided beforehand to ensure a smooth export experience. You need to take into account the payment handler, mode of payment, exchange rate, payment currency, and other such factors. Since you are dealing with an international country, it is ideal to go for a safe payments option like an escrow service. Escrow service providers such as Tazapay ensure timely payments and strictly adhere to the contractual timelines. When you are exporting, you may feel insecure about your payment actually reaching you, or the importer not having the intention or capacity to pay. Tazapay will ensure that the money is kept with them beforehand and once the shipment has left the port or your responsibility as the seller has been fulfilled as per the contract, you know that your payment will be dispatched.
The reason Escrow is recommended for cross-border trade is that there is more uncertainty. Since you are dealing with multiple countries with diverse legal and regulatory environments, Tazapay facilitates the payment process by considering all these aspects before they secure, receive, and make payments.
Satisfying the customer
You need to win the trust of your buyer (who is your customer) as well as the end customer (user of the product). Since there may be many other people exporting the same product to the country, you need to stand out by being extremely professional in the way that you do business. On-time commitment, good quality products, delivering as promised, no skimming on quality to save costs are steps that can be taken to build confidence and establish trust with the buyer as well as the end consumer. If you remain consistent with your product quality and business demeanour, it really goes a long way as an exporter.
Other factors to keep in mind:
- Viable and economical logistic options so that the price of the end product is not affected. High logistic costs would increase the cost of the product in the country and not be attractive for many buyers.
- The product should be flexible and change according to the changing market demand. One must have a product that is not rigid and can cater to the evolving market needs.
- Your product as well as the benefits of partnering with you should be marketed and highlighted in your target countries. You must advertise and promote your points of differentiation, your product offering, and what makes you stand out from the rest.
- You must get good insurance that covers damages due to product damage during the export journey.
Once you understand the tricks of the trade and are well versed with the import and export procedure, exporting internationally becomes a very gratifying process.
Export & Import
Things To Keep in Mind While Exporting Internationally
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