Things To Consider When Exporting Goods

With the world becoming a one global market many countries are open to foreign products and businesses. Many local goods manufacturers are exporting their products to foreign markets. If you are a local manufacturer there are several things you need to consider when exporting goods.

Are you ready to export?

First thing you need to consider is that whether you have the capacity to export. This includes your customer base, the manufacturing capacity and the financial situation. Most local producers are keen to enter in to new markets around the world, but first you need to understand the needs of those markets. First figure out if your products are suitable for those markets and if not what can you do to make them fit their needs. Also the packaging, you need to make sure you can afford an industrial container when sending goods abroad. Research and see what type of packaging is required in those markets and whether you can cater that. Get your license and other document sorted. Figure out if there are any tax involved and if so you need to account that in your prices.

Find a shipping company

Next thing is to find a reliable shipping company. There are plenty of shipping lines available around the world that provides a range of services. Before getting in to a contract with any shipping company first of all compare their prices, services and other extra services they provide. For example some shipping companies would provide the industrial container and do the packaging for you. Whereas some companies do not offer that service. Also there are some companies who offer the packaging but they do not handle the documentations. There are some shipping companies who offer a full range of service including packaging, handling and the insurance, but they are slightly expensive. So based on your products you need to select the services you require.

Know the risks involved

Any business has risks; similarly exporting goods also has a certain level of risk involved. You need to be aware of these and account for these risks. There are risks such as shipwrecks, not being paid, good can be damaged, etc. For example if you are a fruit juice exporter, the goods you export are highly sensitive to time, if the shipping gets delayed or the conditions of whether changed, there is a higher change that the good get spoiled and will not be able to sell them. Or in a case of an accident you cannot recover your goods even though there is an insurance it doesn’t cover the full potential of the selling of the goods.