If you ask any good exporter, they’d tell you that deciding on the product to export was likely the first challenge that they had. This is because irrespective of the compliances, documentation and effective marketing, the most important factor to the success of your export business is the product itself. When you find a product that certain foreign markets need, everything else eventually falls into place.
As important as what to export is, finding it out actually starts with knowing what not to export. Some governments have a list of goods and products that cannot be exported. You may need to find out what these products are in your country. But apart from these prohibited products, every other thing that you think people need can be exported.
it is okay to be excited about your new product but you must also understand that you will need more than excitement to successfully pull off exporting and making a profit. Randomly picking a product and shipping it overseas doesn’t guarantee success in foreign markets. You must ensure that you have done your homework and understood all that’s involved.Â
Wondering what to look out for when choosing a product to export? Here are some things to consider:
The product’s uniqueness.
You don’t want to spend thousands of dollars shipping out a product to a country where it is already in excess supply. So you need to choose a product that is unique and in scarce supply.
If you export something that is available in abundance in the country that hosts your prospects, it becomes a problem getting customers to buy at a reasonable price. Ensure that you have done your research so that you can make an informed choice on the right product with high demand or at least shows fair sales prospects.
Check out the product’s demand and supply.
You may have probably decided on a product even before deciding to venture into exportation. As excellent as that is, it’s important that you go the extra mile to find out the supply chain of the product that you want to export. Information like who the producers are, what the materials used in production are, if it is seasonal, what the demand for it is like and, most importantly, if it can be accessed, promoted, guaranteed and easily replaced.
It is also important that you look at the level of demand for the product, whether or not it can be met by you, how long it will take and what it will take to meet it.
Choose a country where there is a constant demand for your product.
Don’t be in a hurry to ship your product out. Ensure that you are shipping it to the right destination. Do your research to ensure that you have identified the right export market in a country that has the demand for your product.
Don’t try to ship tea to a country where the demand that exists is for coffee hoping that things will eventually shift in your favour. You should learn about the economy and political climate of your target audience because these factors affect the growth and sustainability of your business.
Prospects for growth.
The product that you are sending abroad must be one that has the ability to spread and eventually dominate the ever-growing market. If the market doesn’t have the capacity for growth, don’t go there and if you know that there is no future for your products there don’t export them.
The product that you want to export must have prospects in the country of your choice. Your export business shouldn’t be at the same level it started after some years. If it doesn’t have the ability to transmit into something huge, there is no need to invest your money shipping it abroad.
Profit generation abilities.
The product that you intend to export must have the ability to bring you profit. Remember that you are going to spend some money to ship it out. Beyond the shipping costs, there will be other logistics that will have to be taken care of when your product gets to the country of your choice.
You have to ensure that you are going to make enough sales that will cover all the expenses that you’ve incurred in your quest to send these products abroad, and turn in a profit If your products don’t make enough money for you to take care of these other expenses, you will not be in business for too long and you will be running at a loss.
Competition.
Chances are, your product might not be the only product that exists as a solution to the need you’ve identified in your target market. In fact, other products will eventually come in after you’ve launched yours. When this happens, what will be the fate of your product?
Your product must be sophisticated enough to stand the competition. It must be good enough to not go obsolete in the face of competition. Ensure that you have the right product that will be globally accepted and relevant or one that cannot be easily replicated or sourced.
Government regulations
Your product must also be in compliance with the rules and regulations of the country that you are exporting to. This cannot be ignored. Ensure that you are well acquainted with the laws of the land that you are exporting products to, what they allow into their county, the quality that they allow and most importantly, the way they want it handled.
For some products, you might be required to register with the commission in charge of such products in the country before you would be allowed to ship them in, don’t try to bypass this. Ensure that you follow due process, do the necessary registrations and obtain the necessary permits to operate successfully.
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