Finding the right product to sell is a key step in growing export business. If you have a product that has a good demand and complies with regulatory requirements, everything else falls into place. It is the first and most crucial step in successful overseas expansion. And it is not very difficult to find the right one to export with the help of proper research and knowledge.

On the other hand, it is equally important to know what you cannot export. For if you choose the wrong product, you would find it quite challenging to find buyers overseas or meet regulations. We will help you with the right approach that you can use to build your product strategy for exports.

Identifying the Export Product

Here’s a list of key factors that you should consider while selecting a product for your export business:

  1. Analyze the Global Trade Data of your Country – First things first. Start analyzing the export data of your country. You will get an idea of what kinds of products your country is exporting at high volumes. You can find such insights via Trademo Intel. Trademo Intel is a Global trade data intelligence platform powered by a global supply chain knowledge graph. Research about the trends with regard to the volume of commodity/product with different trading partners(countries) over a period of time. It is important to know and understand the types of products your country is exporting and why. For instance, it’s not reasonable to produce and manufacture labor-intensive goods in Europe or the US as it can be done at a much lower-cost in developing countries

  2. Create a List of Products you are Interested In – Now that you already understand the export trends of your country, you probably have an idea about potential products to sell. Curate a list of products that you are interested or are familiar with. Its always better to select a product about where you have prior knowledge, even if it has lower margins than the other ones

  3. Check Resource Availability – Now that you have zeroed in on potential products for your export business, it is also essential to check if the raw material for such products can be sourced in the desired quantities in a timely manner. You have to have a steady supply chain in order to meet the demands of your buyers as per agreed timelines. Timely supply of the product is a key success factor in the export business

  4. Choose Products that are Financially Rewarding – You need to know at what price you can sell in your target markets. Also, you need to check the price at which you can source the raw materials for manufacturing your product and the cost of complying with the required quality standards. You also need to factor in all the related costs – licensing, logistics, insurance, taxes, duties, packaging, labeling etc – to determine your profit margin. Analyzing the potential market price of your product is a crucial step in finally going ahead with the product that you have chosen. And make sure that the market price of this product does not fluctuate very frequently

  5. Leverage FTAs to be More Competitive – Free Trade Agreements or the FTAs open up trade opportunities between countries by reduction or elimination of tariffs. Research about the countries that have FTA with your home country. You can leverage FTAs to compete with suppliers(from other countries) to your target country for exports. This would give you more room for negotiation on your pricing.
    Read here: 7 Important Free Trade Agreements You Should Know About 

  6. Incentives offered for Exports (If any)– Almost all the countries offer several incentives to promote their exports of goods. Identify such incentives/facilities while deciding the product for exports. For instance, in India, the government recently announced that there will be cash incentives for export of products under 38 categories

  7. Trade Restrictions – Many countries impose restrictions on imports and exports via tariffs, quotas, embargoes, licensing requirements, standards, and subsidies. Thoroughly check if there are any trade restrictions related to the export of your product in your target country. If your product attracts higher tariffs in the target market or country, the landed price of it goes up and demand obviously falls. Also, there are embargoes on certain types of goods moving in and out of the country’s borders

  9. Conclusion

    If you’re mulling to start an export business and want to select the right product, consider this: Trademo Intel can help you with insights on various product trends. Find as much information as you can about the market, trade restrictions and the selling price of your product from different exporters. You will definitely be able to choose the right product to export and maximize your business profits.

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