External Expansion Limited

Wednesday, 5 March 2014

DROPSHIPPING : A NEW WAY TO SELL OVERSEAS

Understanding the meaning of export and some nuances about it, we stumbled upon the Dropshipping: expanding process that facilitates the marketing of products internationally.

When someone thinks about exporting, should know that it means to get out from the country of origin domestic goods to be used or consumed abroad. Obviously, this requires the knowhow of an important process that needs many requirements which must be met by the seller .

On the other hand, there is the reverse concept, it´s the importation, consisting of the legal introduction of foreign products or services in the destination country. As in the previous concept, this requires knowledge of a process with many requirements to be met by the buyer.

However, If we export, we should have the knowledge of all the necessary formalities for our products to leave the country and place it at the abroad customs office, and vice versa, if a foreigner buys our products to receive them in their home country, they must know all the requirements to get the products from the customs office, in this case it would be acting as an importer from its own country.

This, plus the contract of sale, is determined by the Incoterms (International Commercial Terms), which are the rules, of three letters each, where voluntary conditions between the seller and the buyer are reflected on the delivery of the goods. With the incoterm EXW (Exworks), the seller offers the buyer their products in front of the seller's facilities without any kind of procedure. Therefore, it is the buyer who must meet all the requirements to transport from the country of origin and introduce the products in its own country. In the opposite side, the incoterm DDP (Delivered Duty Paid), the seller pays all costs felt into the goods until the destination country. The buyer does not perform any kind of procedure, inasmuch even import customs charges are taken by the seller.

These two terms just explained are the most extreme cases, they contain more assets or liabilities of the different parts that interact in an international transaction role. There are other incoterms, and we must know, based on the product we sell, what would be the best suited to our company for export.

It is also true that internationalization is a process that involves all areas of a company, requiring a lot of dedication, effort and preparation to become an exporter along the time. In our consultants are aware of this and it is why we offer our services to prepare businesses and entrepreneurs in order to achieve this goal. However, there are many other companies or people who can not afford entry process of this magnitude, so we are willing to help these businesses, freelancers, entrepreneurs or even individual entrepreneurs to get expand abroad without the need to fully implement a method of internationalization still getting very effective results.

It's not easy. Besides that, if you get a list of requirements that you have to perform at the beginning, we are convinced that many of you will left the idea without giving it a chance, because of lack of knowledge to do all the necessary formalities to carry it out .

Now, many of you will say, justly, that the challenge of selling abroad goes far beyond sending a consignment of a product or take a particular service abroad, because exporting requires time and effort, involving many resources and great commitment to compete in the new more diversified markets. Something that we never stop writing, nevertheless it's a start and before investing time and money on something that you don't know yet, it is preferable to contact specialists who can advise about and get our first export experience.

Sure it will cost us less time and money, and give us an idea of how far we could go if we are prepared to sell abroad like an important activity for our company .

This article is mainly aimed at entrepreneurs, small business owners and those who, without having great infrastructure, believe that exporting over time provide them continue to grow in their home country and abroad.

We know that in today's globalized world we have to be at the forefront of new technologies, both in the production process and management, trying to have a minimal infrastructure to communicate with overseas customers in the shortest time possible. The availability of a website is very important to spread the goods, the company and capture new business opportunities.

About this, we are appreciating that DropShipping expansion is a process that facilitates the marketing of products internationally, both retail and wholesale. This method is that the marketer or retailer at the destination area, sold products by internet stores, without having to store the goods in your inventory as it passes requests from end customers and shipment details to the wholesaler or manufacturers, who then ships the order directly to the customer on behalf of the retailer.

The retailer or online store, is the owner of customer database and is who bill them, making the promotion, availability management and delivery of products. The retailer must have some knowhow of computers, as all new ways to promote products on social media, what we now know as the community manager, digital marketing and management of blogs that provide flow of customers to their speciality stores.

The wholesaler, supplier or exporter, plus dispatch orders, must manage returns, previously produce or buy, store and package the products sold.

This initially will give us an idea of the feasibility of placing the product outside our borders, and with the advice of a specialist interested in selling our product, we will have prepared to sell abroad and we will have saved a few steps to export successfully, because part of it would be carried out by our retail marketing manager.

In Europe there are consultants who specialize in opening online sales channels, which facilitate the marketing of their products on an international basis and continuously with the role just described. One is ours and we will be happy to advise and lend our services in this regard.

It will be a matter of what we are exposed to market and see how your products can reach those end users who are outside the borders of yours country of origin.

For more information or require services related to this article, please contact through our website www.externalexpansion.net or directly to our email info@externalexpansion.net.

Until the next article...

Leonardo Dufau
LinkedIn

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