Channelling Your Exports

Getting started in exporting can be confusing - There are many options, and each country has its own idiosyncrasies - Murray Rees and Tony Lobo take us through the dynamics of export distribution channels.

Export is the most common approach to going international. It mainly applies to physical goods, although more services are being exported, too. If you actively seek orders on the internet then an export order can happen. There are indirect and direct exporting methods to get your products onto the global radar.

Indirect export is where intermediaries approach you, order goods, and trans-ship to foreign destinations. You have little control regarding your marketing and where your product ends up. Typical players in indirect export include buying agents, brokers, merchants, and trading companies.

Export buying agents have a relationship with the buyer not the seller (you) while export brokers and trading companies often aim to put deals together between parties. These third parties are usually paid by both buyers and sellers, and payment may be exchanged by a countertrade (barter or similar). Trading companies will often operate transport, physical distribution, marketing, and financing.

Export merchants buy the product and resell it; the exporter has no control once the sale has been made. These distribution channels could represent your competitors if they service whole categories such as food and hardware.

Another technique is using a ‘piggyback’ arrangement, where a manufacturer uses its existing distribution network to carry your products. This is useful for seasonal products­–however, it is wise to remember that it is not the manufacturer’s main game.