What is exportation

The term export refers to the sale of commercial goods in another country.

In practice, it involves negotiation in the international market.

The modes of transport for export activities are based on road, sea or air.

Over the years, export activities have grown significantly, thanks to the growth of consumer demand at an international level.

How to identify an export market

An export market, as we have already mentioned, is a market that operates internationally.

It is important to know if the product you want to deal with can be practiced in the market at a commercial level and to conduct market research to ascertain whether it can indeed bring success to the company.

An efficient and effective export opportunity is one that allows for economic growth and profitability for the exporter.

Before launching a product on the market, it is important to compare oneself with one's own competitors, to be aware of how they manage their brand and their marketing strategies.

Not to forget, finally, is to conduct market research identifying current trends and to determine an approximate estimate of potential buyers.

Thanks to the use of such information, one can understand which products are effective for export and which are not, but also which countries are precise and have restrictive trade barriers.

For example, if countries have high tariffs, the number of consumers decreases.

The Export Channels

There are two types of export that can be used in sales: direct and indirect.

In direct sales, the seller markets the products directly to the market.

In indirect sales, on the other hand, services from third parties are used, namely Export Managing or Export trading companies.

Thanks to external services, the company can enjoy additional help with payment management, purchasing buyers, and finding the most appropriate shipping methods.

The choice of a distribution channel depends on various factors such as:

• The ease of doing business abroad;
• Size of my company;
• Risk management;
• Quality and quantity of the product;
• Historical export data;
• Market opportunities.

The documents used for export

To start marketing goods in international markets, it is important to have all legal procedures in order.

The most common documents required for export are:

• Certificate of Origin: to sell goods internationally and ascertain their country of origin;
• Bill of Lading: to acknowledge that the goods have been received as cargo and have been transferred to the recipient;
• Commercial Invoice: a billing document that allows understanding what the exact value of the goods is. Thanks to this amount, it is then possible to calculate the customs duty;
• Inspection Certificate: provided by a third-party company and allows confirming that an exporter sells goods that match the description and are of marketable quality.
• Insurance Certificate: serves to certify that the buyer's goods are insured against damage or loss.

To calculate the exact price needed to export a product to the market, one evaluates the cost of the following elements:

• Customs duties;
• Transportation and insurance;
• Fees for foreign agents;
• Export documentation processing expenses;
• Order fulfillment charges.

Payment methods can be made with advance payment or by financing the credit through commercial banks.

The international export industry has seen a rapid growth of global consumers and companies aiming to reach foreign markets.