The key to successful overseas business is to understand where the risk and having a risk management plan to deal with them. When you are exporting and importing, there are several advantages and risk come with partners and suppliers overseas.
Here is a guide to help you understand these risks and be prepared to manage them all. Our trade experts have explained the necessary information over there.
Risks in International Trading
· Product Risk
Online business, first of all, covers the demand for the product, pricing sensitivity, packing and your competitors. If you are exporting, you have to overview the demand in the overseas market should match what you are targeting. Be ready to modify your products that should match market needs. If you necessarily depend only on your products, you will not be able to get the benefit. It is necessary to be aware of restrictions or other changes in the market products.
· Competitors Activity
Always keep an eye on your competitor’s activity how they are targeting the customers in the market. Don’t miss the trade shows and always talk to the customers. Browse the competitor’s websites and stay updated with their marketing strategy. Analyzing all and alter your products according to the competition.
It is vital not to price yourself out of the market. For this, do some research on what price customers are paying for products and services? Factors in additional cost are, tariffs and customs charges, freight and insurance, exchange rate fluctuations and regulations compliance. Never underestimate the cost of exporting, you have to ensure your business is profitable.
It is important to make your product reach the market place in a timely manner. One should keep in mind the suitable freight to support your needs and providing protection to your ongoing trading relationship.
· Design & Packaging
Packaging, designing and brand name are among potential risks. It helps in easy research your brand name before launching it in the overseas market. Ensure that packaging and labeling that you use on your product or services should comply with country-specific rules and regulations.
If you need the help of professional in managing with risks that come with international trading, we are here for you. We, at Ismail Alptekin Business Developer, help our clients in assisting the international scale that can be tricky and we offer consultancy on all terms. Feel free to contact and discuss your project with us.