What is Export How to Become an Exporter

What is Export?


Export is the event that a person or institution sells the goods or services produced abroad. Export, which is one of the most important titles of foreign trade, together with its opposite import, creates the foreign trade balance of a country.


Exporting mainly be of two types;

·       Direct Exporting

·       Indirect Exporting


Direct Exporting

Direct exporting means selling products abroad without intermediaries. In direct exporting, a firm undertakes to sell its products abroad and is responsible for dealing directly with foreign customers.

A company may carry on direct exporting by any of the following modes;

·       By establishing company’s own corporate export provision,

·       By appointing foreign sales representative and agent,

·       Through foreign based distributors and retailers/ agents,

·       Through foreign based state trading corporation,

·       Through overseas sales branches.


Indirect Exporting

Indirect exporting means the sale of goods abroad through intermediaries. Indirect exporting involves using the help of independent middlemen and sales intermediaries that take the responsibility of sending the products to foreign countries.


Some major types of intermediaries of indirect exporting are as follows;

·       Commission agents

·       Domestic based export merchants or export trade companies

·       Buying or purchasing agents

·       Export agents

·       Export Management Companies (EMCs)

·       Cooperative organizations


There are two types of indirect exporting;

·       Occasional (Passive) exporting

·       Active exporting


Occasional or Passive exporting takes place when company exports from time to time either on its own initiative or in response to unsolicited orders from abroad.

Active exporting takes place when the company commits to expand its exports to a particular market.


In addition, indirect exporting has some advantages over direct exporting.

·       Indirect exporting involves less investment. The manufacturer does not have to develop an export department, an overseas sales force, or a set of foreign contracts.

·       Indirect exporting also involves less risk. International trade marketing intermediaries bring know how and services to the relationship, the seller will normally make fewer mistakes.


How to Become an Exporter?


The following steps should be taken into account in order to become an exporter.


1.     Identify Products to Export

The first thing to do to become an exporter is to determine the product or products to be exported and to determine whether there is a suitable market for these products.


2.     Assess the Risk of Exporting

After deciding on the products and the market, it should be investigated whether there are restrictions on exports to the determined country or countries and the risk of doing business there should be evaluated.


3.     Determine Market Entry

After the risk is determined, the products are ready for export. In this step, how to export should be determined. It should be decided whether to sell directly or to find a distributor.


4.     Get Acquainted with the Major Players

In order to make a start towards export, it is necessary to get acquainted with the major players in international trade. The quickest way to do this is to research their websites.


5.     Get Export Training

There are trainings available for all levels of exporters- from those just getting started to experienced professionals.

-Seminars and trainings organized by government institutions can be useful.

-Private organizations can help for a faster, smarter, more profitable export process.

-Consultants can be preferred as another option.


Official procedures for becoming an exporter differ in each country. Individuals or companies that will export can learn these procedures or necessary documents from the official websites of the Ministry of Commerce of the relevant country or by applying to the relevant public institutions.


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