What are the 5 most economical routes to market when selling overseas?
Once the Selloverseas team performs due diligence on your target market in terms of market potential, import regulations, requirements and restrictions, competitive landscape etc. which provides pointers to plan the most economical route for market entry.
Sell Overseas quick market scan report not only saves time but also acts as a compass to reach your sales goals in the shortest possible time via the most economical route.
Here we have tried to outline the most common routes preferred by our customers depending on the outcome of a quick market scan report for their product/ service and business categories.
C&F Or 3PL ( 3rd Party Logistics) Route
C&F route is popular with business segments such as Agro Commodities and Food & Beverages (F&B) primarily because of the perishable nature of products requiring urgent clearances or specific documentation (such as labelling, ingredients declaration etc.)
For example, Dubai (UAE) one of the biggest importers and re-exporter in Food and Agro commodities has released a formal system- FIRS (Food import and Re-Export system).
3PL broadly fulfils 3 main sales processes- order fulfilment, warehousing and inventory management. SellOverseas team has seen particular preference of 3PL route among business categories
- Apparel & Textiles,
- Herbs and Herbal products,
- Beauty and Personal Care
As it provides the best possible route to meet customer delivery expectations (normally within 2-3 days) and ease of managing picking/packing/ kitting/ & managing customer returns for transactions through e-commerce websites.
The companies with exceptionally high BRAND EQUITY in the B2C segment prefer the Franchise route through B2B partnerships on BmB (Business meets Business) platform like Selloverseas.com. Once a BRAND is evolved to a level where it creates its own pull, it makes sense to explore the franchising model. It is popular in business categories like
- Home Based Business,
- Hotel, Travel & Tourism
Selloverseas.com domain experts can help you build franchise models and create franchise manuals, ROI forecasts, working and initial capital investment outlays and templates for franchise contracts between franchisor and franchisee.
Distributor Or Reseller Route
Most of the companies especially in industrial product sales or medical device export prefer this route and we are seeing shifting preferences from FMCG or consumer electronics to C&F agent model or 3PL providers also. The advantage of appointing a distributor or a dealer is consistency in sales orders, local inventory and mitigation of payment risk. The dealership route is popular with business categories
- Electrical/Electronics/IT /Telecom
- Hospital and Healthcare supplies
- Consumer Goods.
B2B e-commerce route
This is a relatively new route as compared to the above traditional routes. With evolving fintech applications and regulatory environment accepting, promoting new technologies like Blockchain etc. this is set to explode in the coming decade. Selloverseas.com has been receiving inquiries from below business categories to understand more about these emerging transactional platforms.
- Ores, Mineral and Metals trading.
- Chemicals, Plastics and Rubber.
- Building and Construction.
Commission Based Sales Or Independent Sales Representatives Route
All business categories in one way or the other are particularly keen to appoint independent sales representatives or commission-based sales agents. The needs run across all business verticals from high tech sales such as software sales application in OEM/ ODM segment to relatively low tech sales such as publishing or education products the demand for sales representatives in the fixed income category is growing steadily & commission-based sales is evergreen.
New interactive platforms like Zoom, MS teams etc. coupled with CRM platforms are boons for sales representatives helping companies save operational costs & boosting sales efficiency.
Selloverseas.com has access to a database of more than 10,000 sales agents worldwide, each of them expert in their respective business domains and local geographical markets with an established network of contacts.
Before embarking on the path to find the best market entry route it is very important to do a quick market scan to select the market wherein your product or service is in line to meet regulatory requirements and customer expectations locally.
Our experience has shown that most of the SMEs keen to enter into new markets normally would like to skip this basic due diligence leading to costly mistakes such as material getting stuck at ports or rejection by customer quality teams for simple issues like non-availability of labelling or O&M manuals in the local language.
Selloverseas team can guide you from the early stage right from market entry regulatory inputs to commercial and price positioning in the market.
How do I select the market for selling overseas?
Selection of export market involves careful consideration of both macro variables like social, geographic, economic and political environment and micro variables like import regulations, tariff structure and competitive landscape or where your product/ service stands in terms of its lifecycle in that market.
Is Route to Market (RTM) is same as Go to Market (GTM)?
Go to Market strategy is applicable for new products or services. It’s a roadmap to the launch of a new product or service.
Route to Market (RTM) refers to the sales channel used to deliver the product or service to end-user.