Selection of export products for sale has to be the toughest decision you will face when starting out in international trade. It should be the first step you take even before getting into the details on how to start export business.
The right product to sell is the most critical stage in creating a successful trading.
If you get it right, the rest will be a walk in the park. Selectivity is the key to success in all spheres of life including export market.
Research of product and market should be about finding what achieves the most for a new venture that accomplishes a vision. It is a challenge to find a market or a trend need and be positioned in time to take advantage of it. We have compiled below mentioned checklist to help you make the best choice in this regard –
Export Trends –
Every venture must begin with a thorough market research. The initial market research is usually the hardest because it’s all unfamiliar landscape. But once the data is collected and analyzed this same data points can be applied to other products, markets or ideas.
Product Adaptability –
With thorough knowledge of the target market, you could begin to formulate a product list of promising items. However, just because a product has high demand in a particular market does not mean you should start trading in it. Only go for those items with which you are familiar. Starting a business with a product you know nothing about is a sure recipe for disaster. The needs and requirements of buyers differ from market to market and country to country.
Supply Base –
Along with demand of product in the international market, it is also necessary to analyse its supply base in the domestic market.
Production Capacity and Product Availability –
Sky is the limit for selling a product. If the production capacity or availability is limited, then the exporter should focus on smaller markets.
Target Markets –
Identifying the target market in order to look and study opportunities and tap into them is important. This exercise provides the focus needed on the potential users – buyers that might be interested in what in what is being offer. This can save time as well as money. It is also vital to consider the business environment in potential target markets.
Servicing Facilities –
If the product selected for export is such that it requires servicing after sales, then the exporter should see to it that he could avail such facilities to the overseas buyers. If it is not possible for the exporters to provide such servicing facilities then the exporter should not venture to export such products.
Demand Stability –
The exporter should select such products, which provide a large and stable market.
Trade Restrictions –
Every single market has a unique set of regulations. Export documentation procedures vary from place to place as do compliance requirements.
Profitability is the prime objective of all marketing activities. Product must fetch a fair profit.