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Export Sales Contract- Methods of Exporting

When it comes to exporting, there are two ways in which you can export your product. One is 'Direct Exporting' and the other one is 'Indirect Exporting'. 'Direct Exporting' is engaging with the buyer without any intermediary, while indirect exporting is selling with the involvement of an export management company or partner. Both methods have their pros and cons, so let's understand both to make a better decision for your export strategy.

First is 'Direct Exporting', which means having your own marketing team, sales team, research team, and trade consultants. This is a very challenging method that requires focus, attention and a lot of resources. However, this method is also the best way to achieve maximum profits and long-term growth of the company. For a small and medium enterprise, this method is very risky and time-consuming. Unless there is prior experience in exporting we would not suggest this method of exporting and consider the other option which is 'Indirect Exporting'.

'Indirect Exporting' is the involvement of a third party or multiple parties to export. If you want to promote your product, you would like to consider a marketing agency to reach your potential buyers. You might consider connecting with B2B portals to showcase your product. You can hire a consultant who will guide you throughout the export process. You can also hire a professional to present your product to foreign buyers. Hence, you will engage with a lot of intermediaries who will help you in executing your export process.  

As finding buyers in the international market is very challenging, the intermediary companies are capable of finding foreign markets and buyers for your products. Export management companies, international trade consultants, and other intermediaries can give you access to well-established expertise and trade contacts. You have considerable control over the process and can realize some of the other benefits of exporting, such as learning more about foreign competitors, new technologies, and other market opportunities. You can also take help while facing challenges in countries such as European countries, the USA, Japan, etc where the prospects are wealthy. The only pitfall of indirect exporting is that, do not let the majority of your margins go to the intermediaries. For micro, small and medium enterprises indirect exporting is highly recommended.

Ximpex is very helpful in determining the best approach or mix of approaches for you and your company. The method you choose to export has a significant impact on your marketing needs and export plan.


Author: Sachin Yadav Co-Author: Lisa Goel


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