7 Steps to Export Your Products and Services
Exporting your products and services can be a great way to expand your business and reach new markets. However, it can also be a complex and challenging process that requires careful planning and preparation. In this article, we will guide you through the essential steps to export your products and services successfully and efficiently.
Step 1: Research Your Target Market
Before you start exporting, you need to identify and understand your target market. You need to know the demand, competition, regulations, culture, and preferences of your potential customers. You can use various sources of information, such as trade publications, market reports, online databases, trade shows, and government agencies, to conduct your market research. You should also consider visiting your target market or hiring a local representative to get first-hand insights.
Step 2: Develop Your Export Plan
Once you have a clear idea of your target market, you need to develop a comprehensive export plan that outlines your goals, strategies, resources, and risks. Your export plan should include:
- A description of your products and services and how they meet the needs of your target market
- A pricing strategy that considers the costs of production, transportation, taxes, duties, and exchange rates
- A distribution strategy that determines the best way to deliver your products and services to your customers, such as direct sales, agents, distributors, or e-commerce platforms
- A marketing strategy that defines your unique selling proposition, branding, promotion, and customer service
- A financial plan that projects your expected revenue, expenses, cash flow, and profitability
- A risk management plan that identifies and mitigates the potential challenges and threats that may affect your export operations, such as political instability, currency fluctuations, legal disputes, or quality issues
Step 3: Comply with Regulations
Exporting involves complying with various rules and regulations in both your home country and your target market. You need to ensure that your products and services meet the standards and requirements of both countries. You also need to obtain the necessary permits, licenses, certifications, and documents to export legally and smoothly. Some of the common documents you may need are:
- Commercial invoice
- Packing list
- Bill of lading or air waybill
- Certificate of origin
- Export declaration
- Insurance certificate
- Customs declaration
You should consult with your local trade authorities or experts to get the most updated and accurate information on the regulations and procedures for exporting.
Step 4: Find Your Export Partners
Exporting often involves working with various partners who can help you with different aspects of your export operations. Depending on your export strategy, you may need to find reliable partners such as:
- Freight forwarders who can arrange the transportation and logistics of your products
- Customs brokers who can handle the clearance and documentation of your products
- Trade finance providers who can offer you financing options and solutions for your export transactions
- Trade insurance providers who can protect you from the risks of non-payment or loss of goods
- Trade consultants who can advise you on the best practices and opportunities for exporting
You should do your due diligence and research the reputation, experience, and credentials of your potential partners before engaging them.
Step 5: Prepare Your Products for Export
Before you ship your products to your customers, you need to prepare them for export. This means ensuring that they are properly packaged, labeled, marked, and documented according to the specifications of both countries. You should also consider the following factors when preparing your products for export:
- The mode of transportation (air, sea, land) and the transit time
- The climate and weather conditions of both countries
- The handling and storage requirements of your products
- The safety and security measures of both countries
You should follow the international standards and best practices for packaging and labeling to ensure that your products arrive safely and in good condition.
Step 6: Ship Your Products
After preparing your products for export, you need to ship them to your customers. You should coordinate with your freight forwarder or carrier to arrange the pickup, delivery, tracking, and confirmation of your shipment. You should also provide them with all the necessary documents and information to facilitate the customs clearance and delivery of your products. You should keep a copy of all the documents and records related to your shipment for future reference.
Step 7: Follow Up with Your Customers
The last step in exporting is to follow up with your customers after they receive your products. You should contact them to confirm their satisfaction, address any issues or complaints, solicit feedback or testimonials, and thank them for their business. You should also provide them with after-sales service and support if needed. By following up with your customers, you can build long-term relationships with them and increase their loyalty and retention.
How to Export: A Statistical Analysis of Global Demand
The world of international trade is constantly evolving, with new opportunities and challenges emerging every day. Exporting goods and services can be a profitable way to expand your business, reach new markets, and diversify your income sources. But how do you know which products are in high demand, which countries are the best destinations, and how to overcome the barriers to entry? In this blog post, we will explore some of the latest statistics on how to export, based on data from the World Trade Organization (WTO), the World Bank, and other sources.
What are the most exported products in the world?
According to the WTO’s World Trade Statistical Review 2021, the total value of merchandise exports in 2020 was $17.7 trillion, a decrease of 7.6% from 2019. The top ten product categories accounted for 67.8% of the total value, as shown in the table below.
| Product category | Value ($ billion) | Share (%) |
|---|---|---|
| Electrical machinery and equipment | 2,581.3 | 14.6 |
| Machinery and mechanical appliances | 2,195.9 | 12.4 |
| Mineral fuels and oils | 1,525.5 | 8.6 |
| Vehicles other than railway or tramway | 1,203.5 | 6.8 |
| Pharmaceutical products | 1,019.0 | 5.8 |
| Plastics and articles thereof | 614.4 | 3.5 |
| Optical, photographic, cinematographic, measuring, checking, precision, medical or surgical instruments and apparatus; parts and accessories thereof | 603.9 | 3.4 |
| Iron and steel | 524.7 | 3.0 |
| Organic chemicals | 507.2 | 2.9 |
| Articles of iron or steel | 431.0 | 2.4 |
Source: WTO (2021)
As we can see, electrical machinery and equipment was the most exported product category in 2020, followed by machinery and mechanical appliances, and mineral fuels and oils. These three categories alone represented more than a third of the total value of merchandise exports.
However, the ranking of product categories may vary depending on the region or country of origin. For example, according to the World Bank’s WITS TradeStat Database, the top three product categories exported by China in 2020 were electrical machinery and equipment ($713 billion), machinery and mechanical appliances ($436 billion), and furniture ($99 billion). On the other hand, the top three product categories exported by Germany in 2020 were vehicles other than railway or tramway ($204 billion), machinery and mechanical appliances ($203 billion), and pharmaceutical products ($96 billion).
Therefore, it is important to conduct a market research before deciding what products to export, as different markets may have different preferences, needs, and opportunities.
Which countries are the best destinations for exports?
Another key question for exporters is where to sell their products. The choice of destination markets depends on various factors, such as geographic proximity, trade agreements, tariffs, non-tariff measures, consumer preferences, income levels, exchange rates, and political stability.
According to the WTO’s World Trade Statistical Review 2021, the top ten destinations for merchandise exports in 2020 were:
| Country/region | Value ($ billion) | Share (%) |
|---|---|---|
| China | 2,591.2 | 14.6 |
| United States | 2,112.9 | 11.9 |
| Germany | 1,378.5 | 7.8 |
| Netherlands | 709.3 | 4.0 |
| Japan | 641 | 3.6 |
| Hong Kong | 551 | 3.1 |
| France | 549 | 3.1 |
| United Kingdom | 468 | 2.6 |
| South Korea | 467 | 2.6 |
| Italy | 460 | 2.6 |
Source: WTO (2021)
As we can see, China was the largest destination for merchandise exports in 2020, followed by the United States and Germany. These three countries alone accounted for more than a third of the total value of merchandise exports.
However, again, the ranking of destination markets may vary depending on the region or country of origin. For example, according to the World Bank’s WITS TradeStat Database, the top three destination markets for merchandise exports from India in 2020 were United States ($51 billion), United Arab Emirates ($29 billion), and China ($21 billion). On the other hand, the top three destination markets for merchandise exports from Brazil in 2020 were China ($63 billion), United States ($25 billion), and Argentina ($10 billion).
Therefore, it is also important to analyze the trade patterns and trends of your potential destination markets, as well as the trade barriers and opportunities that may affect your competitiveness.
How to overcome the barriers to entry?
Exporting goods and services can be a rewarding but challenging endeavor, as exporters face various obstacles and risks in the international market. Some of the common barriers to entry include:
Tariffs: These are taxes imposed by the importing country on the imported goods, which increase the price and reduce the demand for the exported products. Tariffs vary depending on the product category, the country of origin, and the trade agreement between the trading partners. Exporters can use tools such as the WTO’s Tariff Analysis Online or the World Bank’s WITS Tariff to find out the applicable tariffs for their products in different markets.
Non-tariff measures: These are regulations, standards, procedures, or requirements that affect the trade of goods and services, such as sanitary and phytosanitary measures, technical barriers to trade, customs procedures, quotas, subsidies, or anti-dumping duties. Non-tariff measures can be legitimate and necessary to protect public health, safety, or environment, but they can also be used as protectionist or discriminatory measures to restrict trade. Exporters can use tools such as the WTO’s Integrated Trade Intelligence Portal or the World Bank’s WITS NTM to find out the non-tariff measures that apply to their products in different markets.
Logistics: These are the activities and costs involved in transporting, storing, and delivering the goods from the point of origin to the point of destination, such as freight, insurance, warehousing, packaging, labeling, documentation, or customs clearance. Logistics can affect the time, reliability, and cost of exporting goods, which in turn can affect the competitiveness and profitability of exporters. Exporters can use tools such as the World Bank’s Logistics Performance Index or Doing Business to compare and benchmark the logistics performance and ease of doing business of different countries.
To overcome these barriers to entry, exporters need to conduct a thorough market research, identify their target markets and customers, understand their competitors and their advantages, comply with the relevant regulations and standards, optimize their logistics processes and costs, and seek support from trade promotion organizations or other sources of information and assistance.
Exporting goods and services can be a great way to grow your business and reach new customers. However, it also requires careful planning, research, and preparation. In this blog post, we have provided some of the latest statistics on how to export, based on data from various sources. We hope that this information will help you make informed decisions and succeed in your export endeavors.
References:
https://doi.org/10.1108%2FJSBED-03-2017-0095
https://ameriaadvisory.am/armenias-export-of-goods-and-services/
https://www.wto.org/english/res_e/statis_e/wts2021_e/wts2021_e.pdf
https://wits.worldbank.org/countrystats.aspx?lang=en
https://lpi.worldbank.org/
https://www.doingbusiness.org/
https://www.export.gov/article?id=The-Basics-of-Exporting
https://www.trade.gov/export-solutions
https://www.sba.gov/business-guide/grow-your-business/export-products
https://www.bdc.ca/en/articles-tools/marketing-sales-export/exportation/pages/exporting-101.aspx
Essential Topics You Should Be Familiar With:
