No matter what country you live in, the standard of living is getting better. Multinational companies are on the rise, with more purchasing power than ever before. Also, due to the significant increase in the global population, it is becoming more and more challenging for rural producers to meet the housing needs and the limited supply. To accomplish these things, the country will import many goods. On the other hand, to ensure the balance of payments and economic stability, these countries also export goods. However, US exporters must be aware of all the risks of exporting manufactured goods.
From shipping to ports to entering new markets, companies face logistical challenges and abstractions along the way. To overcome these risks, you need all the information, or hire a professional B2B service provider to manage export risks for you.
Take a look at five threats B2B exporters online face and their solutions.
Five risks of exporting are common to exporters
1. Lack of experience in distribution rules and border control
Tariffs, customs clearance, understanding local regulations and standards are just a few of the problems your product may face before it enters the country.
To ensure that you ship your goods safely, you should consider engaging an experienced customs consultant or trade compliance service provider. Such an organization can save you from the loss of your exports being held at customs.
The three main distribution methods you will find when exporting to a country are Partner/Joint Venture, Licensing, and Dropshipping. It depends on the country you are exporting from. For example, there are many countries where consumers are advised to buy local products. So in this case, you can work with a region or manufacture within a region to sell your product in their marketplace.
Choose your partner carefully. Many countries around the world have adopted a culture of bribery and corruption. You can consider the cost of shopping there. You must ensure that your partners respect and understand all laws in your country. Thetradebuzz.com allows its exporters to learn everything before stepping into the business.
2. Uncertain logistics business plan
If you are a Chinese importer planning to ship to Brazil, there are several things you should know. From making sure that your shipment leaves and arrives without delay, to having the agents ready to take care of it on Brazilian soil, everything needs to be in order. Also, you must take into account any possibility of loss, damage and theft.
Therefore, a strong logistics plan is necessary to ensure that everything starts as planned. You will also need to contact a local logistics partner who is familiar with all Brazilian laws and regulations.
3. Lack of local experts and consultants
Shipping your products from one country to another country is not really a challenge. Once your product reaches a foreign border, that’s when export risks begin to arise. If you choose to ship by sea, some of your products may fail. Alternatively, your product may also be subject to local copyright laws. In order to avoid such problems, you will need to call local advisors and local experts in the future to guide you with any rules and complications that may arise in the future. That way, you will be prepared for the worst and do your best to cope with everything.
4. Get a clear understanding of each market
Once your shipment arrives in another country, the last thing you want is a dispute with the buyer. Also, if they refuse to pay, you are in for a mess. To get out of this situation without losing money, you need to have a complete understanding of the market you are about to enter.
This means that, before you complete the transaction and shipment, make sure that you take care of all the legal issues and make the appropriate documents for the transaction. All the terms and conditions applied in the local market will help you stay safe in case of any dispute.
5. You don’t know the demand for your product now
You cannot expect to sell your product in every country in the world. Just because your product line is popular in your country and neighboring countries doesn’t mean you will get the same response from other continents.
Before you spend thousands of dollars on shipping your goods, you should research the market you plan to enter. Visit the community to see if there are similar products. If not, then you might be lucky. However, if there are similar items, you can check the quality and defects to make your product better than the local version.