Exporting to an overseas market can be done in one
of two ways, Direct or Indirect.
method you find overseas buyers and ship
your products to them.
You conduct Direct Exporting by using
Sales Representatives or
Sales Representatives will work for
you on a commission basis.
They will do the work of locating
buyers for your products.
Distributors will will buy the
product from you and turn around and sell it
at a higher price and pocket the difference.
uses an intermediary who will perform the
task of making the export arrangements.
Intermediaries can be Commissioned
Agents or Export Management Companies (EMC)
(or Export Trading Companies (ETC)).
Commissioned Agents will do all of
the work for you (on a commission basis)
such as find the specific foreign buyers for
your products and let you focus on
fulfilling the orders.
EMCs/ETCs do the work of conducting
market research, promoting your product,
accessing distribution channels, etc.
Another way to expand into overseas markets is to
license your product to an overseas manufacturer or
distributor who will then offer that product in an
overseas market and pay you royalties.
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Ventures is another way to expand your business
Forming a partnership with another overseas
company that will sell your products in their
markets is a way to expand into a foreign market
without taking all of the responsibilities that come
with cross-border transactions.
foreign partner will utilize their resources to get
your products into the foreign market.
Setting up production off-shore is another way to
expand the business overseas.
Off-shore production can be a way to benefit
from lower labor cost and avoid costly environmental
Your products can then be sold in foreign
markets or imported back to the U.S. and sold at
Company: Buying a company in an
overseas market is an expensive way to get into the
foreign market. But, it may be the only way
allowed by government rules. The advantage is
that you gain access to a business with an existing
customer base, market share, local licensing, ties
to local manufacturing base, etc.
Piggybacking: If you are
selling products to a domestic customer that also
sells overseas you can approach them with an offer
to include your products in their overseas
offerings. By getting your products sold
overseas by someone who is already doing business
there significantly reduces your cost.