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Developing your export import business using Internet - Part I


Since most of the businesses throughout the world have access
to the Internet, many astute entrepreneurs and trading companies
are using the Internet as one of the primary means for
developing their import and export businesses.

Already a big slice of global trades are taking place through
the Internet. According to Forrester Research, a major
marketing research company, worldwide online exports will
escalate to US $1.4 trillion in 2004, and cross-border
e-marketplace trade will exceed US $400 billion in this year
alone.

However, cross-border trading will create a division between
the companies that actively import and export using the
Internet and those that don't. Companies that are slow in
adopting the Internet will loose competitive edge to the more
proactive Internet-savvy counter parts.

If you are already involved in international trade or planning
to either import or export products, Internet could be your
primary source of gathering data, researching prospective
market, finding clients and, may be even, for doing your entire
business online.

First, let’s look into the export side of the international
trade. Like any other business, exporting requires proper
planning. Well-documented and clearly written export
marketing plan will work as your road map to success.
The following steps are essential for any export endeavor.
Identifying products for export

Although, in any given time you may find numerous products
that qualify as exportable one, your chance for success will
increase substantially if your chosen product met the
following criteria:

- You have been handling this product for local market for
several years
- You have full confidence in the quality of the product
- The value of the product matches or exceeds the imported
similar ones
- You have guaranteed availability of this product for export

If you don’t have a product to export yet, and you are
serious about export oriented business, consider checking
out your local trade shows to seek out an exportable product.

Local online marketplaces are good options for finding products
for export as well.

Identifying potential export markets for your products

To identify an export market you have to spend sometimes on
gathering necessary information.

You will need export statistics of your country to see which
markets are presently buying products similar to yours. This
will give an idea which markets are viable for you to target.
Apart from checking the statistics from you own country, you
also should verify export statistics from several other
countries that manufacture and export similar products.

After analyzing this information, choose couple of markets
for further assessment. This time you will need more in depth
information on these markets.
Doing market research

Market research is imperative in order to identify export
potential of a product in a targeted country. There are two
ways you can research your targeted market.

By getting first-hand information from the targeted market

This can be done by hiring a research company from the
targeted market, participating in trade shows, contacting
prospective customers, visiting the market personally, etc.
Although, this method has a great advantage since you can
get exact information tailored to your need. However, this
might be very expensive and time consuming for most of the



first time exporters.

Getting information from the Internet and other sources
Thanks to the Internet you can get almost all the needed
information from various online sources. This includes:
trade data statistics, country profile, demography and
other market related data, list of prospective customers,
etc.

To take an informative decision while selecting a market
you will need answers to the following questions:

- How big is the demand for your product or similar products
in the targeted market?
- What is the ratio between domestic production and import?
- Who are the main competitors in this market?
- What is the growth potential of the market?
- How strong are they in comparison to you?
- What is the import duty structure for your product?
- Is there any incentive available to you from your country
for exporting this product?

Answers to these questions will give you enough facts to
compare the markets you have chosen for assessment. While
taking final decision on export market, don’t forget to
study the business and social cultures of the specific
country. This could be an important issue in selecting the
right market for you.

Selling your products

Once you targeted the market you would like to pursue, you
next step is to start selling your products to that market.

There are several marketing options available for you to
choose from:

Hire an export trading house from your country
The advantage, if you find right export trading house, is
the experience and knowledge the company may have. The
draw back is they might not be interested in your products,
and if they do, you have to pay a major share from your
sales to them as their commission.

Find a distributor in the targeted market to sell your
products

This is, no doubt, a very good option. However, finding
a good distributor for a product which does not have a
proven track record of sale in the market won’t be that
easy.

Sell products to customers from targeted market directly

Initially, you might have to stick to this option only.
B2B exchanges and emarketplaces from the targeted market
can be a good place to start your venture.

Here are the steps you need to take if you would like to
sell your products through E-marketplaces.

1. Seek out the largest emarketplace for the country of
your choice.You should consider both vertical and
horizontal marketplaces.
2. Register with them.
3. Create a Web Site, if you don’t have yet, in the local
language.
4. Add your products to the e-catalog of the emarketplaces.
5. Post your products for sale to the marketplace.
6. Post frequent sell trade leads.
7. Search for companies interested to by products similar
to yours and contact them.

International trade business, same like any other business
requires months, sometimes even several years, to bring
anticipated profit. Aggressive use of the Internet will help
you achieve your goal with lesser investment and faster
result.

About the Author


Nowshade Kabir is the founder, primary developer and present
CEO of Rusbiz.com. A Ph. D. in Information Technology, he
has wide experience in Business Consulting, International
Trade and Web Marketing. Rusbiz is a Global B2B Emarketplace
with solutions to start and run online business.
You can contact him at mailto:nowshaderusbiz.com,
http://ezine.rusbiz.com, http://www.rusbiz.com

 

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