Exporting goods is one of the ways to increase the gross national product and is considered vital for the economy of any country. In addition to having a lot of profit for the exporting company or individual, exporting also improves the country’s economy with the arrival of foreign currency. Exporting goods in global markets has special sensitivities and if the basic points are not followed, it will cause 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 2 types of definite export and temporary export of goods and from another point of view it can be divided into 2 types of direct and indirect.
But what should be done for export? Business is very interesting and exciting for many people. But exporting and importing, like any other work, requires knowledge, expertise and experience. If you don’t know what to do to export, it’s time to gather information. Read up on exporting and importing, take training courses and consult with people with experience in the field. In the following article, we will examine the various methods of exporting goods along with the advantages and disadvantages of each.
All kinds of goods export
Exporting goods has different methods and is divided into several sectors:
Definite export of goods
Sending all kinds of goods outside the borders of the country for consumption or sale in other countries is called definitive 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 is forced to return the goods to the country, returning the goods is done easily and there is no customs process for importing the goods.
In temporary export, the exporter leaves an amount as a deposit to the customs and upon the return of the goods to the country, the necessary measures are taken to return the deposited amount.
It should be noted that the export of some goods, including antique items related to cultural heritage, is prohibited.
Direct export of goods
In the direct method, the individual or exporting company exports the desired product to the destination country without intermediaries. In this method, zero to one hundred export of goods is the responsibility of the person exporting the goods. Usually, people export goods directly for the first time.
Advantages of the direct method in exporting goods
Earning more profit: When you export directly, another person or company will not share in the profit and sale of goods with you, and it will increase your profit.
Building links and business connections: Over time you can build a network. After some time, you will realize that you have many business relations with foreign and domestic people in the field of export.
Learning to export from zero to one hundred: After you have exported goods several times, you no longer need the help and company of other people. Because you have been able to learn zero to one hundred goods export. By learning to export, you can also work in other areas of the export chain.
Disadvantages of the direct method in exporting goods
The direct method of exporting goods also has disadvantages, which include 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 create an export department and hire human resources, and you have to pay the cost of being in a foreign country and some other costs.
Spending more time: In this method, you have to spend more time on exporting goods.
Obtaining legal permits: Another disadvantage of this method is obtaining legal permits related to export.
Exporting goods indirectly
In this method, unlike the direct method, an intermediary is used. A person exports with the help of commercial companies and entrusts the export process to another company through a contract. In the indirect method, the profit obtained from the export is divided between the intermediary and the exporter with an agreed percentage.
Advantages of the indirect method in exporting goods
Lower cost: In the indirect method, there is no need to create an export department and other facilities. So the export costs will decrease a lot.
Using people’s experiences: Some intermediaries provide you with their export experiences over time. In this way, your experience and knowledge in the field of exporting goods will gradually increase.
No need for legal permissions: You don’t need to get legal permissions.
Disadvantages of the indirect method in exporting goods
- Lack of direct interaction with the customer: usually you don’t have any direct interaction with the customer and know his needs and wants. Therefore, you cannot expand exports.
Lack of control over the price: determining the price of the export goods and many other things is the responsibility of the intermediary, and you have no involvement in this matter.
Less profit: In this method, a part of the export profit is awarded to the intermediary. Therefore, the profit from export will be less than the direct method.
Classification of export goodsExport goods are divided into three groups according to the export license:Authorized goods
Conditional goods
Prohibited goodsIn the following, we will describe each of the mentioned options.
Authorized goods
Export goods that do not need to obtain a license by complying with the customs regulations for the export of goods. Such as human health certificate, standard criteria, livestock, vegetable, etc.
Conditional goods
Goods that can be exported by obtaining customs permits. After announcing the favorable opinion of the relevant ministries, and communicating it to the customs through the Ministry of Commerce for the export of the goods, the necessary measures for the export of the goods are announced. Also, there is no need for the applicant to go to the ministry and get permission.
Prohibited goods
Goods whose export is prohibited due to special conditions in each country or due to the approval of special laws.
Information on setting up the declaration of export goods
Preparing the declaration of export goods requires information such as:
Buyer details
country of origin
destination country
Details of the exporter
Details of the goods declarant
Terms of the transaction according to the contract
Specifications of the means of transport at the loading point
Product specifications in terms of: type, customs tariff, weight, quantity, quantity and export value according to the documents provided
Cargo details, such as: packages, package type, quantity, mark, net and gross weight
The name of the customs office where the declaration is submitted and the number and details of the declaration registration in the customs office
Steps to export goodsExporting goods requires various procedures and obtaining permits. In general, some of these steps are the same for all exported goods and services. Some services and export goods also have unique conditions and procedures and it depends on their nature and type.
In the rest of the article, you can see the steps of exporting goods in general:
Providing the required infrastructure (such as website, social networks, product catalog and English digital business card. Note that all these must be in multiple languages)
Obtaining necessary permits for exporting goods (obtaining standard permits, obtaining domestic standards and permits for issuing export permits such as commercial cards, preparing acceptable analysis and datasheets and test reports necessary to introduce and present the product at the global level)
Conducting export market research to detect and identify the target market and country
Analysis and review of sales price, customer purchasing power, review of competitors and product conditions that can be supplied to the specified target market
The ability to supply and level the quality of goods according to the market of the target country
Creating product productivity advantage to compete with competitors in the market of the target country
Global brand registration (if desired)
Marketing in the target country
Investigating currency transfer infrastructures
Preparation of relevant documents (transportation of goods, customs procedures and exit of goods from the borders of the country)
Knowing the target country for exporting goodsThe first step of selling products abroad is to find the export target country and know it. You must first choose a country (in some cases more than one country) to export your goods.
There may be different criteria for choosing this country. Some of these criteria are related to the target country and some others may be related to the export product or even to you.
In order to choose the export destination of the goods, we must first answer the following questions:
* To what extent does the country in question have a good political and economic relationship with Iran?
* What are the most important import needs of that country?
* What is the state of production or import of the desired product in that country?
* What are the demographic, geographical and social characteristics of that country?
* What is GDP or gross domestic product (GDP), gross national product (GNP) and per capita income of the people of that country?
* What is the geographical distance between Iran and the destination country and what are its communication routes?
* How is Iran’s export and import situation with the target country?
* What are the export statistics of the desired product to that country?
* What is the status of import and export of the desired product in Iran?
* What are the commercial laws and tariffs of the destination country?
Based on the collected information, it may be necessary to revise and replace other export destinations regarding the selected country. If the points mentioned in the selection of the target country are not checked, the costs of exporting goods and the risk of trade may increase.
After choosing the right country, checking the demand for your export goods in that country should be on the agenda. This stage is a 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 various tools available to us.
Methods and tools of export marketing of goods
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 exporter to have a list of these foreign sites and to register in them.
Basically, in internet searches, we can find a list of export marketing sites and register. To use the information and reports of some of these sites, you must buy a subscription from them. One of the ways to export and sell products is to use store sites such as Amazon. If you want to export your products without finding customers and marketing, be sure to read the article on buying and selling on Amazon.
Another new way to communicate with foreign companies are yellow pages.
Setting up a website and internet advertising in other countries is one of the other ways to find foreign customers and export goods.
2- Participation in business events:
Exhibitions and events are held to introduce companies and their services and products. These events can be product-oriented to introduce the products of a specific field or country. The information and dates of these exhibitions are announced on reliable websites. Take participation in these exhibitions seriously for the purpose of export marketing.
3- Joint Chamber of Commerce of Iran and the target country:
Another way to facilitate the export of goods is to benefit from joint chambers of commerce. Chambers of commerce generally organize meetings, conferences and seminars in various fields of goods export.
You can refer to the joint chamber of commerce of that country with Iran according to the country to which you intend to export goods and communicate with them. If the desired country does not have a common chamber of commerce, you can get help from business consultants in this matter.
4- Business offices of Trade Development Organization:
Among the commercial offices, we can mention the office of Arab and African countries, the office of Europe and America, the office of Asia and the Pacific and some other offices. Usually, these offices have representatives in some foreign countries that you can contact.
Market Research: (MARKET RESEARCH)
Every business, regardless of its size and type, is formed based on a need and continues 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 goods.
Finding needs and focusing on them is the best suggestion for starting a business. Even after establishing a business, one should always try to identify new needs and respond to them. A customer’s 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 the opinions of customers about their products and services and their market measurement. Measuring the market situation is done 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 view of the brand, their level of satisfaction with the consumption of products, or even to attract their ideas. Customers are the most important capital of a business, and their satisfaction and opinions should be sought before exporting goods.
Market segmentation:
One of the most common market research methods is related to market segmentation, based on which you can categorize your market and customers by age, gender, geography, education or other characteristics.
Product testing:
In some cases, market research may be conducted in order to measure and test a new product to the market. In this method, the main focus is on the product to see how customers react to it.
Review of competitors:
Sometimes it is also possible to look for the situation of competitors, to measure the success rate and customers’ views towards them. In this type, the main focus is on competitor analysis. Although we may get other information in this direction.
When we are planning and thinking about a business idea to export goods, market research is one of the topics that is not given much attention, and most of us start producing and selling products without considering the value of market research.
But of course every business needs market research. This point is especially important for small businesses and even digital businesses. Every start-up business needs to get sales and customers as quickly as possible, and the market research process ensures that these sales and customer acquisitions are done as quickly as possible. It is very important for a businessman to guarantee the sale of his product after exporting the goods.
What is market research?
Market research does not only have a specific method or the use of a specific tool, but it refers to all the processes related to market research that businesses do to obtain information about target market customers and to identify the customers’ buying behavior as accurately and intelligently as possible. .
Reasons why market research is important
Market research is very important, including:
1. Find business opportunities
Creating business connections:
Learning about your target customers, including their demographics, can help you find similar businesses that serve them. You can also identify your complementary products that your customers use and negotiate with them for joint promotions that are sure to be beneficial and profitable for both businesses.
Updating and upgrading products with the aim of achieving more profit:
Finding out about other products and services that customers of both businesses tend to use in common will help you to increase the average shopping cart of each order by offering them.
Finding opportunities and more beneficial conditions for selling and exporting goods:
Gaining information about the purchasing power of specific customers will help you plan to sell more to them and launch targeted campaigns tailored to the needs and culture of customers.
2. Reduce business risks
According to the US Bureau of Labor Statistics, about half of all businesses fail to last five years. The way to ensure that your business lasts longer is to have a steady stream of income.
Export market research, by examining the opinions and needs of current and future customers, gives you the assurance that you are still successful in meeting their needs and wants and creating a revenue stream. To achieve this goal, take the following steps.
* Specify the reason why your customers do not repeat the purchase:
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 form a special team to find the reason why customers don’t buy again.
* Learn about problem areas:
If your popular products have been experiencing a drop in sales for more than three months, you need to take action to resolve the issue before it causes serious damage to your business’s profitability.
Survey the customers who have made the most purchases and find the problem. The reason for the problem may be product quality reduction or problems in your online store; In any case, you will not be able to identify the source of the problem until you survey and ask the customers.
3. Producing appropriate advertising content
If you are in doubt about the choice of photo or text for advertisements, website or social networks, you will know exactly what to do by thoroughly studying the market. In fact, with the help of market research, you get very good information about competitors and consumer behavior in your field of work. Also, knowing your customers or target audience and surveying them regarding their main problems and asking market research questions will help you to produce attractive and persuasive content. Especially when it comes to exporting goods and foreign customers, having different cultures may require different advertisements.
In order to produce appropriate advertising content, you need to know where your business is currently, what its strengths and weaknesses are, and what your purpose is for advertising. Then, according to the answers to these questions, the desired budget and the knowledge you have of your customers, plan and act for advertising. Trading companies can help you with this.
4. Finding the right places to advertise
One of the problems that small businesses face is budget constraints. That’s why you need to use your marketing budget in the best possible way to get the best results.
Online market research for exporting goods will help you choose channels for marketing where the probability of your target audience being present in these channels and viewing your message by them is high.
For market research, you can follow social groups on WhatsApp, Telegram and other social networks that are related to the export market of your product.
Source of GTG website
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