Tapping into new and international Markets

Disadvantages: Direct exporting merchandise and services generally required more
monetary resources, energy, efforts and time that SMEs may not able to afford. In
addition, it also needs huge people power so to cultivate customer base and buffer zone in
this process is generally absent that are some of the disadvantages of direct exporting.
Indirect exporting processes: the another type of process of export in which
organisational goods are sell to intermediary firm that further sells the commodities to
customers through direct selling as well as importing wholesalers. By using the exporting
type, SMEs can transfer selling responsibilities to another firms that are known as
independent marketing middlemen. Using this method, an entities itself is not responsible
to collect payments form customers locating overseas.
Advantages: Indirect exporting generally demands low involvement of domestic
organisations in exporting process. When SMEs will adopt the process then they will
enjoy limited liability related to problems of product marketing and it is one of risk free
way for initiating an enterprise.
How to Start an Exporting Business
As a Business Adviser on International Trade for Barclays, they have to produce
brochure and it covers the various information and it about how business can expand their
business in the international market. Further discussion mentioned below:
Advantages and disadvantages of various exporting processes for exporting
merchandising along with services and ways a deal can be secured
Export is mentioned as process to trade internationally in which commodities
manufactured in one nation are shipped to other nations for the purpose of further sale
along with trade. Few exporting process types that Small and Medium enterprises may
use to send their manufactured items to other locations outside their nations boundaries
are as evaluated:
Direct exporting: The process includes exporting directly to purchaser who are
interested in buying the organisational products. It is one of effective process for selling
merchandising as well as services directly to international buyers and earning more
revenues. SMEs if wants to sell their goods directly to foreign customers then they are
majorly responsible to handle foreign distribution, shipment invoices, market research
and invoicing.
Advantages: Direct exporting provides huge advantages to SMEs as with this
process, they can avoid various costs as well as removes workings of middlemen which
provides more control on sales to the entity. Moreover, these enterprises can also
strengthen their customer base through direct interactions with clients and can develop
understanding of market in better manner.
Tapping into new and international Markets

Import merchandise and service is associated with bringing tangible goods addition to
intangible services within domestic country for satisfying needs of domestic population
but export merchandising and servicing are concerned with sending the commodities to
international nations for increasing revenues with sustaining growth.
Required documents such as letter of credit, packing list, commercial invoice, terms
of payment, customs document Exporting is a lengthy practice as it comprises various
steps. It begins with having export order that is type of written contract among exporter
and importer. It involves various documents that are send through exporter's bank as well
as other entities to importer's nation. Few of the documents that SMEs would require for
exporting commodities are as follows:
Letter of credit: It is a letter of undertaking or documentary credit which is used
in foreign trade in order to provide economic guarantee from bank of creditworthy to
exporter of commodities. In context to SMEs, with this document a guarantee will be
provided to seller or exporter by the importer to pay correct amount on predetermined
time.
Packaging list: the another document that identifies commodities in shipment as
well as involves weights and dimensions concerned with packages in terms of imperial as
well as metric measurements.
Commercial Invoice: It is one of legal document among customer and supplier
which illustrates sold commodities as well as due payment on customer. In relevance with
SMEs that wants to initiate export business, it is essential document that will be used in
customs for determining necessary custom duties.
Payment terms: The document that comprises relevant terms and conditions
concerned with payment amounts. Moreover, payment terms encompasses aspects related
to period for payment, method of payment such as cash on delivery, wire transfers and
many more.
Customs document: One of import document in exporting process that involves all
shipping documents which are needed for clearing the customs.
Disadvantages: Indirect exporting also has some disadvantages that SMEs have to face
while opting the process. The process results in lower profitability, limited control of
international sales, lose opportunities for tailoring offerings and long term overlook for
exports may change rapidly.
In order to have secured dealing with exporting processes, SMEs could use direct
exporting method as it assist in controlling sales transactions, understanding market and
customers ion better manner, intensive market cultivation, shorter channels, more
expertise within global marketing and providing goods on demand to end customer that
leads in secured dealings.
Differences among merchandise and service imports with merchandise and service
exports
Merchandise and service imports are said to bringing merchandise and services
into domestic nation from the international country. The commodities and services which
are shipped through boats or other transportation medium into home country is termed to
merchandise and service imports.
Merchandise and service exports are mentioned as sending or selling
merchandise and services to other countries from the domestic one. The goods and
services which are sold to other nations in international market is known as merchandise
and service exports.
Differences between the two are as follows:
Import merchandising and services represents high import level that is sign of
powerful domestic demand whereas export merchandising as well as service represents
huge export level that shows trade surplus.
Import merchandise and service are performed by companies such as SMEs for
fulfilling demand of commodities within home nation but export merchandise and
services are generally undertaken by SMEs for raising global presence as well as
covering international market for improving organisational image.