5 Risks of Exporting Manufactured Goods and How to Counter Them?

By
Abdullah Ashraf
-
229
4751
5 Risks of Exporting Manufactured Goods and How to Counter Them

Regardless of which nation you live in, the standard of living is improving. Multinational companies are spreading their wings and have more buying power than ever. In addition, due to the significant increase in global population, it is becoming challenging for local manufacturers to satisfy domestic demand with their limited supply. In order to meet those demands, the nation has to import several consumer goods. On the other hand, to ensure the balance of payment and economic conditions are stable, these nations also export commodities. However, US exporters have to realize all the export risks with manufactured goods.

From dispatching it from the port to having it enter a new market, companies face both logistical and abstract challenges throughout the process. In order to counter these risks, you’ll need all the information, or hire a professional B2B service provider to deal with the export risks for you.

Take a look at five common risks of exporting manufactured goods B2B exporters face and their solutions.

Five Common Export Risks Exporters Face

1.      Lack of Experience with Distribution Laws and Border Control

Tariffs, customs clearance, knowledge of local rules and regulations are just a few problems you may face before your products enter a nation.

To ensure that your products cross the border without any complications, you should consider hiring a local and experienced customs law consultant or a trade compliance service provider. Such organizations can save you from the loss of getting your exports held up at the customs.

Lack of Experience with Distribution Laws and Border Control

The three primary distribution methods you’ll see while exporting to a specific country are partnerships/joint ventures, licensing, and direct shipping. It will depend on the country you are exporting to. For e.g. there are many nations that strongly recommend traders to buy local product. Therefore, in such circumstances you may have to partner up with a local entity or manufacture locally to sell your products in their market.

Be careful with who you choose to collaborate with. Many countries across the globe have adopted a culture of bribery and corruption. You can consider the cost of running a business there. You have to assure that your partners respect and understand all the laws of your home country.

2.      Uncertain Logistical Business Planning

If you are a Chinese supplier planning on exporting your products to Brazil, there are many things that you’ll have to be careful about. From making sure your shipment departs and arrives without any delays to having handlers ready in Brazilian soil to hold the responsibility of receiving the shipment, all have to be arranged. In addition, you have to take in to account any possibility of loss, damage and theft.

Therefore, solid logistical planning is crucial to make sure all things start as planned. You’ll also need to connect with a local logistical partner who is familiar with all Brazilian laws and regulations.

3.      Not Having Regional Experts and Consultants

Exporting your products from one country to another isn’t the real challenge. Once your products reach foreign soil, that’s when the real export risks begin to arise. If you’ve chosen to export via sea, then there are chances that some of your products may end up faulty. On the other hand, your product can also get caught up with local copyright laws. To evade such complications, you need a local consultant and regional expert beforehand to guide you with every rule and complication that may arise in advance. That way, you’ll be prepared for the worst and also try your best to counter all problems. 

Not Having Regional Experts and Consultants

It’s always easier to enter a market with someone familiar with the local culture. Also, local experts are familiar with the native language, which plays a significant role in building trust between domestic and foreign businesses. In order to be effective in exporting manufactured goods, make sure your team is prepared to deal with every economic aspect. If you feel that you can’t arrange a team, then consult a local logistics provider to help you become familiar with the native trading culture.

4.      Having Clear Knowledge of Each Market

Once your shipment lands on foreign land, the last thing you could wish for a conflict with the buyer. Also, if they refuse to make the payment, you’ve landed yourself in a big mess. To get away with such situations without making a loss, you should have complete knowledge of the market you’re about to enter.

That means, before closing a deal and shipping the order, ensure all legal matters are dealt with, and proper documents have been made for the deal. A contract that states all conditions according to the local market will help you stay on the safe side in case any conflict does occur.

5.     Not Knowing the Current Demand of your Product

You can’t expect to sell your products in every country around the world. Just because your product line is a hit in your home country, and neighbor nations, it doesn’t mean that you’ll get the same response from other continents.

Not Knowing the Current Demand of your Product

Before actually spending thousands of dollars on shipping your goods, you should study the market you plan on entering. Visit the country and see if similar products are available or not. If not, then you’re probably in luck. However, if similar goods exist, you can check the quality and flaws to make your product better than the local editions.

Also, take a few samples with you and show them to leading importers of your respective industry. If you feel it isn’t suitable to enter the market on your own, you can partner up with a local supplier and enter the market through a channel. Analyze the business’s performance and market conditions. You wouldn’t want to end up sending your products to a place where it won’t sell. In addition, a proper study of the local market can also help you plan which aspect you can compete in based on uniqueness, quality, value or even price.

Endnote

Exporting manufactured goods is an excellent way of growing your business. Once you start earning foreign income, not only do you benefit your company, but it also improves the BOP of your home country. However, as lovely as it sounds, there are many export risks. The ones mentioned above are the most common so you should start working on them to avoid making any loss from day one.

RELATED ARTICLESMORE FROM AUTHOR

229 COMMENTS

  14. I’ll right away clutch your rss as I can’t to find your email subscription hyperlink or newsletter service.Do you’ve any? Please permit me recognise so that I may just subscribe.Thanks.

  72. Aw, this was a very good post. Taking a few minutes and actual effort to generate a good articleÖ but what can I sayÖ I procrastinate a lot and don’t seem to get nearly anything done.

  83. Vulkan Vegas looks like a professional casino with a lot to offer. At first glance, the platform seems quite simple; however, they genuinely go out of their way to produce some really cool

    Vulkan Vegas brings you a different take on the betting platforms you’ve become so accustomed to. This platform is fresh and exciting. What adds to the appeal is the riveting bonus

    nya vulkan vegas

    From this Vulkan Vegas casino review, it’s evident that it has a lot to offer. Ranging from the vast assortment of games with new ones constantly being added to the fantastic

  126. I will right away take hold of your rss feed as I can’t in finding your email subscription link or e-newsletter service. Do you’ve any? Kindly allow me recognise so that I may just subscribe. Thanks.

  145. Thank you, I have just been looking for information about this topic for a long time and yours is thegreatest I’ve came upon till now. However, what concerningthe bottom line? Are you certain in regards to the supply?

  160. Excellent post. I was checking constantly this blog and I’m impressed! Very helpful information specifically the last part 🙂 I care for such info much. I was seeking this certain information for a very long time. Thank you and best of luck.

  163. Pretty nice post. I just stumbled upon your blog and wanted to say that I’ve really enjoyed browsing your blog posts.After all I will be subscribing to your feed and I hope you write again soon!

  168. Do you have a spam problem on this blog; I also am a blogger, and I was curious aboutyour situation; we have created some nice practices and we are looking to swap strategies with others, besure to shoot me an e-mail if interested. 0mniartist asmr

  173. fantastic publish, very informative. I’m wondering why theother experts of this sector do not notice this.You must continue your writing. I am confident, you have a great readers’ base already!

  181. Unless… you’re just looking for the best scooter rental companies in Chiang Mai for travellers? If so, then you’re in luck! Check them out below. While a lot of the advice & tips in this guide will apply to all of Thailand, I’m focussing on Chiang Mai as this is where I’ve done the majority of my scooter riding. If you get the chance to visit Pai, I highly recommend learning the basics there. Traffic is minimal and the roads are wide making them suitable for beginners.

  192. I’ll right away take hold of your rss as I can not to find your e-mail subscription hyperlink or e-newsletter service. Do you’ve any? Kindly permit me know in order that I may subscribe. Thanks.

  206. Aw, this was an extremely nice post. Taking a few minutes and actual effort to produce a top notch articleÖ but what can I sayÖ I procrastinate a lot and never seem to get anything done.

  211. Nice post. I was checking constantly this blog and I am impressed! Extremely useful info particularly the last part 🙂 I care for such information a lot. I was seeking this particular information for a long time. Thank you and best of luck.

LEAVE A REPLY

Please enter your comment!
Please enter your name here