Exporting can be complicated and take time to understand. It’s worth researching or even signing up to a course that will teach you in depth knowledge to trade internationally. There are many pitfalls and costly mistakes that you should be aware of. Below and the 9 most common and costly:
1. Not understanding effective sourcing techniques.
Result: You’re limiting potential suppliers and perhaps not getting the best products at the most competitive price.
2.Not identifying ALL costs from seller to buyer.
Result: Not realising expected profit margins but increased costs.
3.Not understanding import custom regimes and correct tariff number.
Result: Not minimising your import custom duty leading to higher, unnecessary costs.
4. Not understanding Sea/ Air freight rate structures.
Result: Being overcharged by your Freight forwarder.
5. Not understanding method of payments available.
Result: Negative cash flow, not using method of payment as a negotiating tool.
6. Not undertaking how to conduct in depth and comprehensive market research.
Result: Dead stock or limiting your customer base.
7. Not identifying most advantageous channel to sell your goods through wholesalers, retailers, direct to public via own retail outlet or websites.
Results: Lost sales.
8. Not understanding your responsibilities and costs under the Term of Delivery used in the sales contract.
Result: Charged for costs you are not responsible for, reducing your profit margins.
9. Lacking negotiating skills.
Result: Loosing out on negotiations and not receiving the best deal that you could have.