Knowing how to export from the UK can be complicated and take time to understand. It’s worth researching or signing up to an import export training 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:
Follow these nine key steps to better understand how to export form the UK and avoid some very common and costly mistakes:
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.