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First steps in the International trade.
This a part of the serie of the International Trade mini guide here, that Mr. Ramzi Bouchrit (RB JB Group) has provided us with based on the different transactions he made with his business partners in the field of the International Trade AKA import export.
When deciding to starting exporting you should build based on solid grounds. For sure it’s an important step to increase your sales turnover, but you should consider the pitfalls. You need first to:
– You should start by assessing your export potential, then
– Research export markets, then
– Search the routes to export to the markets, then
– You should make sure to be paid on time by your overseas clients, then
– You should learn also your legal obligations to sell overseas.
– Then make sure that your products reach the overseas markets on time and as requested by the buyers.
How to assess your export potential?
– You need to consider if your products when exporting will be very profitable.
– Also you need to make sure that your products suit the needs of your overseas clients.
– You need to consider also to protect your intellectual property when selling overseas in each of your overseas market.
– Please do not also lose your position in your domestic market when exporting.
How to research and identify your export markets?
– You you need to check first the level of demand for your products in each potential markets overseas markets.
– You need to evaluate first also the potential foreign supply chain.
– Use different online and offline ways to determine the potential overseas market, such as search engines international trade websites and magazines, exhibitions, your sales team, your export team, your network.
– You may use in-house research methods to keep your expenses down, please know from the beginning the data you need in order to take decisions.
– You can use your local Embassy, you may use the embassies, consulats in order to help you in determining your potential markets.
– If you do have the budget, you may use an expert market research agency, they do have the means in order to determine the best overseas markets.
How to choose the best distribution channel when exporting?
– You need to choose the right distribution Channel either sales agent, wholesale distributor, an importer, or the direct end consumer. This depends totally to your marketing strategy
– You need to maintain regular contact with your end buyers, hence a solid support.
– Please consider selling online, so keep your website updated and make sure you can fulfill your orders quickly.
– Please consider also to do a joint venture with a local business entity that will give your business access to their network of buyers and partners.
– If you do have export agents on ground please make sure you maintain regular contact with them and keep them updated of each new development and features.
– You need to clarify every step of the delivery and payment.
– In some cases you might have to travel overseas to do site visits and inspection.
How to guarantee your payment on-time when exporting?
– You need first to clarify your payment terms from the beginning when dealing overseas.
– You need to choose the right payment terms when doing the international transactions.
– Please consider using the right International commercial term (incoterm) when doing International transactions.
– Please also consider the exchange rate fluctuation between the sale date and the date you are paid by your buyers.
– You need to seek assistance from your Bank when it comes to securing your payment before signing the export contract.
How to make sure you deliver your products on-time when exporting?
– Make sure to use an expert transport company in order to deliver well your goods.
– Make sure your transport packaging and labeling meet the international requirements.
– Define your responsibility for your product for your delivery products with your freight forwarder.
– Choose your International commercial term aka incoterm wisely.
– Consider very well the insurance of your transportation in order to cover damages if that happens.
To get more real life examples of successful International Trade transactions in a step by step manner, please visit our Amazon Book (Mike Wilson & Ramzi Bouchrit), 7 Steps to Export Success: https://amazon.com/dp/B0B35HG9PC
