Exporting goods is one of the ways to increase the GNP and is vital to the economy of any country. In addition to bringing great profits to the exporting company or individual, exporting also improves the country’s economy with the arrival of foreign exchange. The export of goods in the global market has special sensitivities, and if the basic points are not followed, it will cause the loss of financial and human capital. The first step in exporting goods is marketing. There are different types of export of goods and it can be divided into two types of specific export and temporary export of goods and from another point of view it can be divided into two types direct and indirect.
But what needs to be done to export? The work is very interesting and exciting for many people. But exporting and importing, like any other business, requires knowledge, expertise and experience. If you don’t know what to do for export, it’s time to gather information. Read about exporting and importing, take training courses and consult people with experience in this field. In the following article, we will examine the different methods of exporting goods along with the advantages and disadvantages of each.
Exporting all kinds of goods
The export of goods has different methods and is divided into several sectors:
Specific export of goods
The sending of all kinds of goods outside the borders of the country for consumption or sale in other countries is called final export of goods.
Temporary export of goods
Sending goods outside the borders of the country in order to participate in international exhibitions is called temporary export of goods. If the goods are not sold and the merchant has to return the goods to the country, the goods are returned easily and there are no customs procedures for importing the goods.
In temporary export, the exporter leaves an amount as a deposit for the customs and when the goods are returned to the country, the necessary procedures are taken to return the deposited amount.
It should be noted that the export of some goods, including artifacts related to cultural heritage, is prohibited.
Direct export of goods
In the direct method, the exporting individual or company exports the desired product to the destination country without intermediaries. In this method, the export of goods from zero to one hundred is the responsibility of the person who is exporting the goods. Usually, people directly export goods for the first time.
Advantages of the direct method of exporting goods
Earn more profits: When you export directly, another person or company will not share the profit with you and sell the goods with you, and this will increase your profits.
Build Business Links and Connections: Over time you can build a network. After some time, you will realize that you have many business relationships with both foreign and domestic people in the field of export.
Learn to export from zero to a hundred: Having exported goods several times, you no longer need help and company from other people. Because you managed to learn to export from zero to a hundred commodities. By learning to export, you can also work in other areas of the export chain.
Disadvantages of the direct method of exporting goods
The direct method of exporting goods also has disadvantages including the following:
More cost: It is true that this method has many benefits, but its other costs should not be neglected. In this method, you need to set up an export department and recruit human resources, and you have to pay the cost of being in a foreign country and some other costs.
Spend more time: In this method, you have to spend more time exporting goods.
Obtaining legal permits: Another disadvantage of this method is obtaining legal permits related to export.
Indirect export of goods
In this method, unlike the direct method, an intermediary is used. A person exports with the help of trading companies and entrusts the export process to another company through a contract. In the indirect method, the profit made from the export is divided between the middleman and the exporter in an agreed ratio.
Advantages of the indirect method of exporting goods
Lower Cost: In the indirect method, there is no need to set up an export department and other facilities. So your export costs will be reduced a lot.
Using people’s experiences: Some brokers provide you with their export expertise over time. In this way, your experience and knowledge in the field of exporting goods will gradually increase.
No legal permissions needed: You don’t need to have legal permissions.
Disadvantages of the indirect method of exporting goods
Lack of direct interaction with the customer: You usually do not have any direct interaction with the customer and know his needs and wants. Therefore, you cannot expand exports.
No control over the price: Determining the price of the export commodity and many other things is the responsibility of the broker, and you have no involvement in this matter.
Less Profit: In this method, part of the export profit is given to the middleman. Therefore, the profit from export will be less than from the direct method.
Classification of exported goods
The exported goods are divided into three groups according to the export license:
authorized goods
Conditional goods
prohibited goods
In the following, we will describe each of the options mentioned.
authorized goods
Exporting goods that do not require a license by adhering to customs regulations for exporting goods. Such as human health certificate, standard, livestock, vegetable, etc.
Conditional goods
Goods that can be exported by obtaining customs permits. After announcing the positive opinion of the concerned ministries and informing it to customs through the Ministry of Commerce for the export of goods, the necessary procedures for exporting the goods are announced. There is also no need to go to the ministry and obtain permission.
prohibited goods
Goods that are prohibited from being exported due to special circumstances in each country or due to the adoption of special laws.
Information on preparing the declaration for exported goods
Preparation of the Exported Goods Declaration requires information such as:
Buyer details
country of origin
The country of destination
Source details
Merchandise declaration details
The terms of the deal are according to the contract
The specification of the means of transport at the point of loading
Product specifications in terms of: type, customs tariff, weight, quantity, quantity and export value according to the documents submitted
Goods details, such as: package, package type, quantity, tag, net and gross weight
The name of the customs office where the declaration is to be submitted, and the number and details of registration of the declaration in the customs office
Steps to export goods
Exporting goods requires various procedures and obtaining permits. In general, some of these steps are the same for all exported goods and services. Also, some services and export goods have unique terms and procedures and depend on their nature and type.
In the rest of the article, you can see the steps for exporting goods in general:
Provide the required infrastructure (such as website, social networks, product catalog and English digital business card. Note that all of these must be in multiple languages)
Obtaining the necessary permits for the export of goods (obtaining standard permits, obtaining local standards and permits for issuing export permits such as trade cards, preparing analysis and accepted data sheets and testing reports necessary for product presentation and display at the global level)
Conducting export market research to detect and identify the target market and country
Analyzing and reviewing selling price, customer purchasing power, reviewing competitors and product conditions that can be provided for the identified target market
Ability to supply and adjust the quality of goods as per target country market
Creating a product productivity advantage to compete with competitors in the target country market
Global trademark registration (if desired)
Marketing in the target country
Investigate currency exchange infrastructures
Preparation of relevant documents (transportation of goods, customs formalities, exit of goods from the country’s borders)
Knowing the target country for exporting the goods
The first step to selling products abroad is to find and know the target country for export. You must first choose a country (in some cases more than one) to export your goods.
There may be different criteria for choosing this country. Some of these criteria are related to the target country and others may be related to the export product or even to you.
In order to choose a destination for exporting goods, we must first answer the following questions:
* To what extent does the concerned country enjoy good political and economic relations with Iran?
* What are the most important import needs of that country?
* What is the state of production or import of the required product in that country?
* What are the demographic, geographical and social characteristics of that country?
* What is the Gross Domestic Product or Gross Domestic Product (GDP), Gross National Product (GNP) and per capita income of the population of that country?
* What is the geographical distance between Iran and the country of destination, and what are the ways to contact it?
* How is the Iranian export and import situation with the target country?
* What are the statistics for exporting the desired product to that country?
* What is the status of importing and exporting the required product in Iran?
* What are the trade laws and tariffs in the destination country?
Depending on the information collected, it may be necessary to review and substitute other export destinations in relation to the selected country. If the points mentioned in choosing the target country are not checked, the costs of exporting goods and trade risks may increase.
After choosing the right country, checking the demand for your exported goods in that country should be on the agenda. This stage is part of the market research that we will discuss further.
In the next step we have to try to find customers and buyers and for this purpose we can use the various tools available to us.
Methods and tools for marketing export commodities
In order to export goods, there are various marketing methods and tools, including:
1- External sites:
B2B sites are usually used to find real buyers. It is very important for any source to have a list of these foreign sites and to register with them.
Basically, in internet searches we can find a list of export marketing and registration websites. To use information and reports on some of these sites, you must purchase a subscription from them. One way to export and sell products is to use store sites like Amazon. If you want to export your products without finding clients and marketing, be sure to read the article on buying and selling on Amazon.
Another new way to communicate with foreign companies is the Yellow Pages.
Another way to find foreign customers and export goods is to create a website and advertise online in other countries.
2- Participation in business events:
Exhibitions and events are held to introduce companies, their services and products. These events can be product oriented to present the products of a particular domain or country. Information and dates for these fairs are announced on reliable websites. Take participation in these exhibitions seriously for the purpose of export marketing.
3- The Iranian Joint Chamber of Commerce and the target country:
Another way to facilitate the export of goods is to take advantage of joint chambers of commerce. Chambers of Commerce generally organize meetings, conferences and seminars in various fields of commodity export.
You can refer to that country’s joint chamber of commerce with Iran according to the country you intend to export goods to and communicate with them. If the desired country does not have a joint chamber of commerce, you can get help from trade advisors in this matter.
4- Business offices of the Trade Development Organization:
Among the commercial offices, we mention the Arab and African countries office, the Europe and America office, the Asia and Pacific office, and some other offices. Usually, these offices have representatives in some foreign country that you can contact.
Market Research: (Market Research)
Every business, regardless of its size and type, is shaped based on a need and proceeds on its way based on that need. The purpose of implementing market research guidelines is to identify and examine these needs in order to export commodities.
Finding needs and focusing on them is the best suggestion for starting a business. Even after setting up a business, one should always try to identify and respond to new needs. Customer expectations may change over time and it may be necessary to create new products or make minor changes to previous products.
In fact, business owners always need to check customer opinions about their products and services and gauge the market. Market positioning is measured for the purposes of customer analysis, market segmentation, product testing and competitor analysis.
Customer analysis:
In many cases, the purpose of customer research is to understand the new needs of customers, their vision of the brand, their level of satisfaction with the consumption of products, or even to attract their ideas. Customers are the most important capital in a business, and their satisfaction and opinions must be sought before exporting goods.
Market Segmentation:
One of the most popular market research methods is associated with market segmentation, based on which you can categorize your market and customers by age, gender, geography, education or other characteristics.
Product test:
In some cases, market research may be conducted in order to measure and test a new product in the market. In this method, the main focus is on the product to see how customers interact with it.
Competitors review:
Sometimes it is also possible to research the status of competitors, to gauge the success rate and customers’ views of them. In this genre, the main focus is on competitor analysis. Although we may get other information in that direction.
Depending on the information collected, it may be necessary to review and substitute other export destinations in relation to the selected country. If the points mentioned in choosing the target country are not checked, the costs of exporting goods and trade risks may increase.
After choosing the right country, checking the demand for your exported goods in that country should be on the agenda. This stage is part of the market research that we will discuss further.
In the next step we have to try to find customers and buyers and for this purpose we can use the various tools available to us.
Methods and tools for marketing export commodities
In order to export goods, there are various marketing methods and tools, including:
1- External sites:
B2B sites are usually used to find real buyers. It is very important for any source to have a list of these foreign sites and to register with them.
Basically, in internet searches we can find a list of export marketing and registration websites. To use information and reports on some of these sites, you must purchase a subscription from them. One way to export and sell products is to use store sites like Amazon. If you want to export your products without finding clients and marketing, be sure to read the article on buying and selling on Amazon.
Another new way to communicate with foreign companies is the Yellow Pages.
Another way to find foreign customers and export goods is to create a website and advertise online in other countries.
2- Participation in business events:
Exhibitions and events are held to introduce companies, their services and products. These events can be product oriented to present the products of a particular domain or country. Information and dates for these fairs are announced on reliable websites. Take participation in these exhibitions seriously for the purpose of export marketing.
3- The Iranian Joint Chamber of Commerce and the target country:
Another way to facilitate the export of goods is to take advantage of joint chambers of commerce. Chambers of Commerce generally organize meetings, conferences and seminars in various fields of commodity export.
You can refer to that country’s joint chamber of commerce with Iran according to the country you intend to export goods to and communicate with them. If the desired country does not have a joint chamber of commerce, you can get help from trade advisors in this matter.
4- Business offices of the Trade Development Organization:
Among the commercial offices, we mention the Arab and African countries office, the Europe and America office, the Asia and Pacific office, and some other offices. Usually, these offices have representatives in some foreign country that you can contact.
Market Research: (Market Research)
Every business, regardless of its size and type, is shaped based on a need and proceeds on its way based on that need. The purpose of implementing market research guidelines is to identify and examine these needs in order to export commodities.
Finding needs and focusing on them is the best suggestion for starting a business. Even after setting up a business, one should always try to identify and respond to new needs. Customer expectations may change over time and it may be necessary to create new products or make minor changes to previous products.
In fact, business owners always need to check customer opinions about their products and services and gauge the market. Market positioning is measured for the purposes of customer analysis, market segmentation, product testing and competitor analysis.
Customer analysis:
In many cases, the purpose of customer research is to understand the new needs of customers, their vision of the brand, their level of satisfaction with the consumption of products, or even to attract their ideas. Customers are the most important capital in a business, and their satisfaction and opinions must be sought before exporting goods.
Market Segmentation:
One of the most popular market research methods is associated with market segmentation, based on which you can categorize your market and customers by age, gender, geography, education or other characteristics.
Product test:
In some cases, market research may be conducted in order to measure and test a new product in the market. In this method, the main focus is on the product to see how customers interact with it.
Competitors review:
Sometimes it is also possible to research the status of competitors, to gauge the success rate and customers’ views of them. In this genre, the main focus is on competitor analysis. Although we may get other information in that direction.
Ideally, your business should have regular customers. But if customers don’t come back to buy from you, conduct a survey of old customers or put together a special team to find out why customers won’t buy again.
* Know the problem areas:
If your popular products have been seeing declining sales for more than three months, you need to take action to resolve the issue before it causes serious damage to your business profitability.
Scan the customers who made the most purchases and find out what the problem is. The problem may be caused by low product quality or problems with your online store; In any case, you will not be able to determine the source of the problem until you do a survey and ask customers.
3. Producing appropriate advertising content
If you are in doubt about choosing an image or text for advertisements, a website or social networks, you will know exactly what to do by studying the market thoroughly. In fact, with the help of market research, you get pretty good information about competitors and consumer behavior in your industry. Also, knowing and surveying your customers or target audience regarding their key issues and asking market research questions will help you produce engaging and compelling content. Especially when it comes to exporting goods and foreign customers, having different cultures may call for different advertisements.
In order to produce appropriate advertising content, you need to know where you currently operate, what are its strengths and weaknesses, and the purpose of the advertisement. Then, according to the answers to these questions, the desired budget and the knowledge you have about your customers, plan and work towards advertising. Businesses can help you with this.
4. Finding suitable places for advertising
One of the problems that small businesses face is budget constraints. This is why you need to use your marketing budget in the best way possible to get the best results.
Online merchandise export market research will help you to choose marketing channels where the probability of your target audience being in these channels and displaying your message is high.
For market research, you can follow social groups on WhatsApp, Telegram and other social networks related to your product export market.
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