You have been making good sales and profits domestically. However, you feel it’s time to expand your market overseas.
Maybe you already started selling your goods to international customers. It is not as easy to sell your goods and going your way. There are challenges you are likely to face, or you have already faced.
As an aspiring trader overseas, it’s important to know the likely challenges you may face. Knowing this could save you a fortune since you can curb them in time.
1. The difference in currencies.
When it comes to international trade, the payment method is critical. Most countries have different fiscal systems. There are taxes you will need to pay and other policies you must consider during payment.
When trading in countries that don’t use USD or Euros, you are likely to lose money during the exchange. The fluctuation of the current exchange rates becomes a big challenge.
You will need to have a trusted importer to help with money issues and save you from losing.
2. Documentation challenges.
When trading abroad, you will need commercial, official, transport, insurance, and financial documents. The documents may change depending on the countries your customers are based.
You may fail to export your goods if you lack any of the necessary documents. Additional costs or having a cargo delayed may cost you a customer or two. Too much care has to be taken!
The documentation process may be too complicated and expensive for you. You may need to seek reliable help with this. At parcel broker next day delivery might be the way to save you all this trouble.
3. Language and cultural barriers
If you have a customer overseas, you will like to know what he feels about your product. You will need to communicate once in a while. Whether its through emails, videos or calls.
You will need to engage in detailed exchanges over complex business issues.
However, if he speaks Chinese and can read and write Chinese, and you, on the other hand, are only conversant with English.
How can communication work? What if it’s a private topic you must discuss? You must need an interpreter to avoid misunderstandings or misinterpretation of customer’s needs.
4. Geographical and transportation challenges.
The distance between you and your customer overseas is long! Transporting goods to a different continent might be more complicated than you can ever imagine.
If the goods have to pass other countries before their designated one, then you must check those countries’ norms too.
Since goods take long on transit, especially if shipped via ship, you might need insurance to protect them. Insurance might be more expensive than you planned. Be careful not to spend more than you gain.
You must get conditioned transport containers for goods that are highly perishable. Too much has to be done so as goods can get to your customer in good shape!
Customers mostly pay for goods before delivery. You must send the exact good paid for More so send it in time. If you fail one customer in one country, you may have to compensate or risk losing two more.
Maintaining a customer is a priority. It might be challenging, but if you do things right, profits are inevitable.