to the Internet, many astute entrepreneurs and trading companies
are using the Internet as one of the primary means for
developing their import and export businesses.
Already a big slice of global trades are taking place through
the Internet. According to Forrester Research, a major marketing
research company, worldwide online exports will escalate to US
$1.4 trillion in 2004, and cross-border e-marketplace trade will
exceed US $400 billion in this year alone.
However, cross-border trading will create a division between the
companies that actively import and export using the Internet and
those that don't. Companies that are slow in adopting the
Internet will loose competitive edge to the more proactive
Internet-savvy counter parts.
If you are already involved in international trade or planning
to either import or export products, Internet could be your
primary source of gathering data, researching prospective
market, finding clients and, may be even, for doing your entire
business online.
First, let's look into the export side of the international
trade. Like any other business, exporting requires proper
planning. Well-documented and clearly written export marketing
plan will work as your road map to success. The following steps
are essential for any export endeavor. Identifying products for
export
Although, in any given time you may find numerous products that
qualify as exportable one, your chance for success will increase
substantially if your chosen product met the following criteria:
- You have been handling this product for local market for
several years - You have full confidence in the quality of the
product - The value of the product matches or exceeds the
imported similar ones - You have guaranteed availability of this
product for export
If you don't have a product to export yet, and you are serious
about export oriented business, consider checking out your local
trade shows to seek out an exportable product.
Local online marketplaces are good options for finding products
for export as well.
Identifying potential export markets for your products
To identify an export market you have to spend sometimes on
gathering necessary information.
You will need export statistics of your country to see which
markets are presently buying products similar to yours. This
will give an idea which markets are viable for you to target.
Apart from checking the statistics from you own country, you
also should verify export statistics from several other
countries that manufacture and export similar products.
After analyzing this information, choose couple of markets for
further assessment. This time you will need more in depth
information on these markets. Doing market research
Market research is imperative in order to identify export
potential of a product in a targeted country. There are two ways
you can research your targeted market.
By getting first-hand information from the targeted market
This can be done by hiring a research company from the targeted
market, participating in trade shows, contacting prospective
customers, visiting the market personally, etc. Although, this
method has a great advantage since you can get exact information
tailored to your need. However, this might be very expensive and
time consuming for most of the first time exporters.
Getting information from the Internet and other sources Thanks
to the Internet you can get almost all the needed information
from various online sources. This includes: trade data
statistics, country profile, demography and other market related
data, list of prospective customers, etc.
To take an informative decision while selecting a market you
will need answers to the following questions:
- How big is the demand for your product or similar products in
the targeted market? - What is the ratio between domestic
production and import? - Who are the main competitors in this
market? - What is the growth potential of the market? - How
strong are they in comparison to you? - What is the import duty
structure for your product? - Is there any incentive available
to you from your country for exporting this product?
Answers to these questions will give you enough facts to compare
the markets you have chosen for assessment. While taking final
decision on export market, don't forget to study the business
and social cultures of the specific country. This could be an
important issue in selecting the right market for you.
Selling your products
Once you targeted the market you would like to pursue, you next
step is to start selling your products to that market.
There are several marketing options available for you to choose
from:
Hire an export trading house from your country The advantage, if
you find right export trading house, is the experience and
knowledge the company may have. The draw back is they might not
be interested in your products, and if they do, you have to pay
a major share from your sales to them as their commission.
Find a distributor in the targeted market to sell your products
This is, no doubt, a very good option. However, finding a good
distributor for a product which does not have a proven track
record of sale in the market won't be that easy.
Sell products to customers from targeted market directly
Initially, you might have to stick to this option only. B2B
exchanges and emarketplaces from the targeted market can be a
good place to start your venture.
Here are the steps you need to take if you would like to sell
your products through E-marketplaces.
1. Seek out the largest emarketplace for the country of your
choice.You should consider both vertical and horizontal
marketplaces. 2. Register with them. 3. Create a Web Site, if
you don't have yet, in the local language. 4. Add your products
to the e-catalog of the emarketplaces. 5. Post your products for
sale to the marketplace. 6. Post frequent sell trade leads. 7.
Search for companies interested to by products similar to yours
and contact them.
International trade business, same like any other business
requires months, sometimes even several years, to bring
anticipated profit. Aggressive use of the Internet will help you
achieve your goal with lesser investment and faster result.