Even as economizes struggle to recover from pandemic hardships, eCommerce has trudged forward. A huge chunk of the projected 6.5 trillion dollars eCommerce will soon generate annually is being fueled by globalization.
Globalization (as it relates to the economy) describes the process of international consumerism having impacts on the success and failures of local businesses. As globalization continues to impact companies’ bottom lines, we’re anticipating seeing an increased interest in exporting internationally.
As a small business owner, you may have toyed with the idea of exporting products overseas to increase your reach. How exactly can you achieve that end though?
There are several steps to consider to execute a successful exporting strategy. Keep reading to discover what you need to prioritize!
1. Research Market Opportunities
Just because you’re finding success selling a certain product domestically doesn’t mean that success is ensured abroad. Markets across borders are very different given local customs, competition, and regulations.
Before you start building your exporting strategy around what you’re doing at home, research opportunities. You may find that another product will fare better overseas than what you’re currently considering.
Also, keep in mind that different international markets present different opportunities. Just because an export doesn’t make sense in Canada doesn’t mean it wouldn’t make sense in Mexico.
2. Define How You’ll Sell Abroad
Your business likely has a limited presence in whatever international market you’re thinking of breaking into. That begs the question of how you’ll sell your product overseas.
Is your strategy to sell products online and ship them directly to consumers abroad? Are you trying to get into international retail locations? Understanding how you plan on getting your products into the hands of consumers will impact your overall exporting strategy.
If possible, talk to a domestic business. Make sure they’re similar in size and aspirations to your own and see how they’re going about managing their exports. You benefit from their insight.
3. Appreciate Marketing Obligations
Awareness is as important when selling intentionally as it is when you’re selling domestically. How are you going to create awareness around your products in an international market?
The broad answer is via marketing but chances are, you know very little about marketing in a foreign language through mediums that are popular in foreign territories.
This is where partnering with a marketing agency can come in handy. If that sounds like more trouble than it’s worth, you may consider distributing your product as “private label” to an intentional retail operation that will then market your product on your behalf as if it were their own.
4. Start Networking
You’ve given thought to your export product, how you’re going to get it to customers, and how you’re going to create awareness. With those ideas in tow, it’s now time to make connections with people that can bring your aspirations to fruition.
Networking with foreign nationals that are skilled importers can be a challenge since you’re not likely to find them at your local Better Business Bureau mixer. We find that going to import/export trade shows and diving into LinkedIn’s “Groups” feature can help you start to form connections.
5. Wrap Your Head Around Paperwork
Talk to any business that’s exporting internationally and they’ll tell you paperwork is one of the hardest barriers to break.
Every country has very different legislation on what sorts of products can cross its borders, item quantities, and other variables.
It’s your job to figure out the ins and outs of the market you’re interested in, what paperwork they’ll require to receive your products and to execute on your insight to avoid your merchandise being confiscated in customs.
We don’t recommend going through this process alone. A consulting agency that specializes in cross-border trade can streamline this process for you. You may be able to develop a connection with such an agency through the networking tips we shared earlier.
6. Get Insurance
From border confiscations to transit errors, the possibility of incurring losses when shipping merchandise globally is real. To safeguard yourself against catastrophic damage through unforeseen hardship, get a great insurance policy.
Several issuers offer coverage umbrellas that will improve the viability of your business. A quick online search of “importer/exporter insurance” or “cargo insurance” will start you towards finding a quality provider!
7. Don’t Forget Logistical Steps on Your Side
Once your products are shipped internationally, their transport will be in the hands of a receiving party that will get everything to its next destination. But how are you going to manage logistics on your end?
For businesses moving small qualities of products, local logistics may be as easy as dropping packages off at the post office every week. If you’re moving larger quantities, you may need a dedicated fleet of trucks, software for weighbridges, permits to drop items off at ports, etc.
Consider those logistical hurdles as soon as possible as obtaining the support you need to move products in-bulk may take time.
8. Make Adjustments and Stay in the Know
It will be a relief when your export business has delivered its first set of goods. Know though that a successful shipment doesn’t deem workflow bullet-proof.
International trade charters change all the time. You have to be nimble when it comes to compliance.
Keep getting educated and continue to perfect your processes. If you do that, you’ll always be a step ahead of the game.
Exporting Internationally Nets Huge Benefits
Whenever we walk people through some of the considerations that go into exporting internationally, they tend to shy away from the process.
Yes, exporting internationally can be a daunting prospect. Believe us when we say though that doing the work upfront can net you millions of new consumers across hundreds of developing markets.
That’s a payoff that’s worth pursuing.
We wish you the best of luck in your business endeavors and invite you to take in more tips on our blog!
