Exporting Business: Advantages and Disadvantages

Start Up an Exporting Business (Part 2)
Exporting related to the process in which business are producing goods and
services in one country as well as sell them to buyers in another country. In
the global business there are many advantages as well as disadvantages
related to exporting industry.
Advantages of exporting process for exporting merchandising and
services.
 Extending to global scale- This is help for getting primary
benefit in order to focus more on global market buyers as well
as It has been seen that when a organization use method of
exporting at that time business work on 95% of world's
population. When company not exporting its business, this limit
sales to less than 5% of potential buyers. Increased profits- This is related to profitability in order to
access to global market buyers that means sales will increase by
translating for increased profits. There are different marketing
platforms which provide the opportunities of e- commerce
solution ins order translating payment gateways into multiple
language as well ass going to potential buyers.
Disadvantages of exporting process
for exporting merchandising and
services.
Supply chain disruption- In the
situation of covid-19 it delayed
shipment pose a risk by success of
business as well as it impacted by
product failure that can be reach the
buyers result for unhappy consumer
and refunds and costing of business.
High up front cost- During initial
investment it is required for becoming
successful exporting business that can
be high in terms of market research,
campaign an initiative, travel cost for
employees. This is increasing risk for
merchandising and services in export
process.
Different methods of tapping into new international markets Use localization in online market- with the help of online marketing
is ones of the most effective way for establishing a presence in foreign
market. A website localized on the basis of target market that help for
building trust amongst consumer and potential trade partners. This is
beneficial for target local people as well as it helps to attracting large
number of customer. This is one of the important technique which
help to target the people by committed local people into business. The
limitation of localization in market is related to focused on existing
strategy which is already used by other in order to attract people. This
is mostly understanding by those who are already known with local
products.
The documentation required for exporting business
Letter of credit- This is necessary for having letter of credit for exporting business because
it is shared by importer's bank and then stating importer that will honour payment in order to
exporter by sum specified for completing transaction. This is also depending on terms of
payment that is related to exporter and importer which is dispatched only after exporter
letter of credit.
Packing list- This is states that customs packing list states with list of items that are included
with shipment which can be matched against pro forma invoice also this is related to
concerned parties which involve in transaction. This is secured outside while using
individual container in order to minimise risk.
customs document- This is related with shipping bill of export in order to focus more on all
the document required by custom authority that allowing shipment. Also, shipping bill is
issued by shipping agent and also represent different kind of certificate for all parties that
include ship's owner, buyer, seller etc.
Commercial invoice- This is one of the important document for export trade in order to
focus on custom clearance department also asked for this document that contain all the
information about order also this is including all the necessary details such as selling price,
description, packaging costs, quantity etc.
Terms of payment- There are different type of terms and payment are used for exporting
while exporting and importing business also there are different type of payment terms which
are necessary go followed by individual such as advance payment, letter of credit etc.
Using local affiliate market- This is one of the beneficial method of tapping into
international market as well as it helps to develop the well-established sales
channels for many businesses. This is also help for affiliated networks in order to
prove useful or online marketing mix which is beneficial for attracting large
numbers of customer. This is also related to affiliated marketers that are help for
using content as well as social networks, blogs and podcasts that are helped for
monetize the affiliated relationship. The limitation is related to depend on niche
market and there is no guarantee of revenue also pay per performance can be
tremendous opportunity by considers the significant risk also there is no right way
to attract affiliated marketer.
Recommendation
It has been recommended that there are using affiliated
local market for international tapping is one of the best strategy
which help to target large number of customer in order to more
focus on developing the sales and marketing function with the
help of social media. Chosen country is Europe, at which people
are more focus on expand their business with the help of
promoting its services in international market. Then it is also
necessary for developing the strategy of customer relationship
management in order to target local for their business as well as it
is related to market response That drive its business by focusing
on growth and development. Further, on the website there are
large number of people focus on to global markets that is related
to virtual assistant, finance officer, sales director, PR professional
etc.