Way to go, if you are already an exporter or aspiring to become one! Choosing the distribution channel could be a difficult decision, and it may not guarantee growth in your business. How to decide which distribution channel is the right fit for your export business is technical.
There are numerous distribution channels for export business. You could be directly exporting, which means you approach your buyer viz a viz and close a deal to start your business proceedings. Many companies prefer dealing with the manufacturer or a supplier directly. Alternatively, you could choose the option of E-commerce. It is a simple way of approaching your potential buyers, and digital marketing is the best tool. If you don’t have a background in IT, freelance digital marketing experts could solve your problem. This service would help promote your product in the destined country. Alternatively, you could use the old-fashioned way of hiring an intermediary, a commission agent, who would contact the buyer and secure a deal for you. It is essential to consider all the options and come up with the best strategy. We will simplify the process for you.
Firstly, you need to analyze the distribution channels of your competitors. People who are in the same business as you, and maybe more experienced, have a selected distribution channel. You must assess the effectiveness of that channel; evaluate the outcome and the experience. After the evaluation, you need to decide what’s best for your business and your clients. It is also important to note here that you do not blindly copy what your competitors are doing. The point we are making here is that you do your due diligence of research and analysis. The onus is on you to decide whether to go with the same channel or choose a similar one.
You need to consider the cost factor when deciding the distribution channel. If Indirect Exporting is proving expensive for you, you can always start approaching the clients with your efforts while remaining ethical. You cannot merely steal your commission agent’s client as it does not seem noble. However, if the client approaches you or you start using the Direct Export Channel, it might prove more beneficial for your business. Thus, the related costs to a distribution channel are the deciding factor.
Once you are in the process of choosing which distribution channel is the go-to for your export business, it is best to create a strategic road map first. Here you will line out everything from start to end of the trading process. You could also judge from different options of E-commerce or direct/indirect selling, and rank the selections accordingly. Plan your progress with the help of advance-planning. You could also hire the services of an export consultant to rate your different plans. Still, the efficient way is to run a virtual analysis either by you or by an expert.
Change the channel
If your current network is not working out well for you, choose another. It is essential to keep assessing your business strategies and evolving with time. If your selected distribution channel for exports is not cost-effective or the results are not satisfactory, you could add another distribution-channel. Online marketing, for instance, could be added to your current choice. Alternatively, you could change the export channel altogether. After all, this is your business. You will always need to choose what’s looking best for your profits and customers.