Part One…Who says your restricted to selling in the continental US? Many of you have shipped merchandise to all 50 States and some of you have even shipped merchandise to other countries…But what about large, volume shipments of apparel or general merchandise to evolving countries? Do you know that exporting can be very profitable as there are many countries who do not have regular access to merchandise we Americans take for granted.
I myself have exported large loads of apparel and worked closely with other exporters, freight brokers and foreign distributors selling thousands of dollars of closeout and used apparel worldwide.
How do you get started exporting? Well, first off plan on doing a lot of research. If you do not have contacts in other countries now you could benefit from a sales representative.
Overseas, a sales representative is the equivalent of a manufacturer’s representative in the United States. The representative uses the company’s product literature and samples to present the product to potential buyers. A representative usually handles many complementary lines that do not conflict. The sales representative usually works on a commission basis, assumes no risk or responsibility, and is under contract for a definite period of time (renewable by mutual agreement). The contract defines territory, terms of sale, method of compensation, reasons and procedures for terminating the agreement, and other details. The sales representative may operate on either an exclusive or a nonexclusive basis.
Exporting to Foreign Distributors
The foreign distributor is a merchant who purchases goods from a U.S. exporter (often at a substantial discount) and resells it for a profit. The foreign distributor generally provides support and service for the product, thus relieving the U.S. company of these responsibilities. The distributor usually carries an inventory of products and a sufficient supply of spare parts and also maintains adequate facilities and personnel for normal servicing operations. Distributors typically handle a range of non-conflicting but complementary products. End users do not usually buy from a distributor; they buy from retailers or dealers.
The terms and length of association between you (Exporter) and the foreign distributor are established by contract. Some exporters prefer to begin with a relatively short trial period and then extend the contract if the relationship proves satisfactory to both parties.
Exporting Direct to Foreign Retailers
You can also sell directly to foreign retailers, although in such transactions, products are generally limited to consumer lines. The growth of major retail chains in markets such as Canada and Japan has created new opportunities for this type of direct sale. This method relies mainly on traveling sales representatives who directly contact foreign retailers, although results might also be achieved by mailing catalogs, brochures, or other literature. The direct mail approach has the benefits of eliminating commissions, reducing traveling expenses, and reaching a broader audience. For optimal results, a firm that uses direct mail to reach foreign retailers should support it with other marketing activities.
American manufacturers with ties to major domestic retailers may also be able to use them to sell abroad. Many large American retailers maintain overseas buying offices and use these offices to sell abroad when practical.
