Product Readiness for International Exports - Read on to find out more.
Exporting product internationally can be highly rewarding and profitable. However, entering new markets can also be challenging from a compliance and logistical perspective.
Before we assess the challenges of getting your product ready for export, it is important to understand the opportunities and advantages of entering new markets:
- Improved financial performance: If you have product that sells in your domestic market, having a larger market base will allow you to increase sales volumes. As your sales grow, you can also increase your profitability by reducing costs through economies of scale.
- Risk mitigation: As you expand into new markets, you can reduce your dependability on the performance of a single market.
- Gain new knowledge: The experience your company gains in the global market will help you to become more competitive both domestically and internationally. If your product proves to be successful in new markets, it will provide some resilience from foreign competition in your domestic market.
To get your product ready for export several steps must be taken. These generally fall under either compliance or supply chain requirements:
- Shipment documentation: Complete and accurate documentation is key to get your goods into the country where you are exporting. Documents which are commonly required include:
- Commercial invoice
- Packing list
- Certificate of origin
- Certificate of insurance
- Bill of lading (for sea or land transport) or an air waybill
- Certificates of inspection, if required
- Import licences, if required
- Packaging and labelling: Requirements of information on packaging will change from country to country. You may also have to translate the information to the local language. Typical requirements include:
- Name and address of the importer
- Generic or common name of the commodity packed
- Net quantity in terms of standard unit of weights and measurement
- Month and year of packing
- Mark of Origin "Made In" country
- Depending on the country and the type of product, certain certifications are required for export. Food products is a common example where testing is required to ensure adequate standards.
Supply chain requirements:
- Production Capacity: It is important to understand how your production can adjust with varying demand. When entering a new market, demand can be difficult to forecast and not producing enough product can result in missed sales. Conversely, if demand is lower than anticipated you may incur higher warehousing costs.
- Transportation: Transportation is important to help determine anticipated lead times to customer and the associated cost. Understanding these costs means you can incorporate them into your total costs to calculate your margin. Understanding the transportation time is also important to provide expectations to foreign customers on when to expect the product to arrive.
- Samples & product sheets: To enter new markets you will need to provide prospective customers samples of your product. Your product sheet should include pricing as well as product specifications to assist clients in the buying process.
Moving into new markets can be scary and haphazard without some of these guidelines. If you are looking to export to other markets, Triskele Logistics can help you with these aspects and other issues that may also arrive, such as market feasibility, financing issues, marketing the product, sales, etc. Contact us for more information for exporting your products to new markets.