Finding buyers for your export business can be overwhelming - there are thousands of potential customers looking for what you sell. But how do you find them?
In your search, make sure you’re considering these 5 markets.
Foreign Commission Representatives
A foreign commission representative is like having your own commission-based salesperson - except they are very knowledgeable and well-connected in their own country. Foreign-based representatives will connect you with potential customers in their domestic market. They won’t arrange for shipment, negotiate terms, or anything else - they simply introduce you to your ultimate buyers. Someone established in a specific market can usually make inroads to your market far more quickly than you starting from nothing.
Foreign Wholesalers
In the U.S., we may have anywhere from two to five distributors before a product is finally sold to the end-user. Foreign markets have the same middlemen. Finding an established wholesale distributor in your target country may be one of the easiest ways to sell your product. Foreign distributors are used to dealing with imports, already have established distribution channels, and buy in bulk.
Trading Companies
While wholesalers are generally distribution channels, trading companies are often simply resellers - buying directly from you and reselling directly to retailers, without being involved in the physical possession of the merchandise. While trading companies are usually more agile than foreign wholesalers, they may not buy in the same quantities.Foreign Retailers
Consider cutting out the middlemen and selling directly to retailers in your foreign market. While you’ll have to deal with more contacts and keep up with much more paperwork, your profit margins will be bigger. If you have the extra time or if you already have some contacts in the country, this may be the best route for your export business.
End-Users
You can also bypass all the middlemen and sell your products directly to the end-users - not by setting up a retail location but by going directly to your consumers’ doors. You probably want to target larger organizations who can guarantee a minimum purchase. Examples might be universities, hospitals, local manufacturers, and foreign firms operating in the country.
There’s not a best way - only the way that’s best for your business. If you have the time and capital to establish your own network overseas, seriously consider it. If you’re just starting out, you may want to sell to just one or two distributors until you grow larger.
The most important thing is to sell!