Finding International Buyers for your Export Business
International B2B partners must be chosen carefully to facilitate a seamless export or import process.
Updated: November 29, 2024
The important question that comes in the minds of everyone who starts an export business is how and where to find international buyers and get export orders to successfully sell in the new foreign market, after deciding to start an export business.
The heart of a successful export business is global buyers. But the question is how and where do you find these overseas buyers.
Why to start an export business?
Expanding into international markets opens doors to new customers and opportunities to boost sales. Research shows that small businesses that export can potentially earn three times more than those selling only in local markets. By connecting with global buyers, risks like dependence on local business cycles can be mitigated, leading to improved competitiveness and greater growth potential.
However, starting an export business comes with its own set of challenges. You may face complexities such as dealing with international buyers who have different preferences, navigating legal, political, and economic risks, managing slower payments, adhering to local regulations, handling intricate logistics, and negotiating complex contracts. Therefore, selecting the right international B2B partners is essential to ensure a smooth export or import process.
How to approach importers?
Several different ways are there to enter an international market as an exporter. The approach chosen by you relay on a host of factors. Companies must carefully evaluate the following factors when contemplating how to approach importers:
- Nature of transaction: The acceptable methods of payment and the financial goal of international expansion need to be considered.
- Employee know-how of international trade: The two most important determinants on how to approach importers are the skillset and experience of the staff of a company. They should have knowledge of international transactions, business practices, and foreign culture as well as experienced enough to deal with global buyers.
- Resources available: The way you incorporate the export business into the existing organization really matters. Whether it is incorporated as part of the sales department or as a separate functional unit? and how much budget allocation you have decided for the export business?
- Commitment: Your desire for risk, the funds you are willing to set aside to develop the export market, and the preferred length of time before breaking even is included in this.
- Competitiveness: You should look at the level of competition and your competitive advantages in the international market.
The next step is exploring the best approach to find importers after taking these factors into consideration. There are ideally four possible approaches to exporting. These include:
The direct approach to exporting:
The direct approach to exporting involves engaging with international buyers directly. This can include selling to importers, collaborating with buying agents, working with foreign retailers and distributors, or selling to international B2B traders. Typically, businesses with a dedicated export department use this approach due to its cost-effectiveness. With a direct export model, you are responsible for all aspects of the process, including documentation, insurance, payment collection, shipping, and marketing.
The indirect approach to exporting:
You only engage with intermediaries such as Export Trading Companies (ETC) or Export Management Companies (EMC) in the indirect method of 'how to approach importers'. These firms handle all the export activities including shipping the products, arranging financing, finding local representatives, selecting foreign contacts, and conducting market research, on your behalf at a fee. You may have the risk of losing control over your sales although this approach is significantly easier and more effective on some occasions.
The proactive approach to exporting:
Looking for domestic buyers who represent foreign companies is involved in the proactive approach to exporting. Generally, you are requesting domestic players including retailers, distributors, government agencies, or trading corporations, that are actively involved in international trade in this approach. Your goods will be procured domestically depending on your negotiations and export them.
The reactive/passive approach to exporting:
The reactive/passive approach to exporting is characterized by passively filling orders from domestic buyers. It is decided by someone engaged in domestic trade that your products meet a certain foreign demand and he/she purchase them locally before exporting. This is just like any other domestic sale for the original seller.
Where to find overseas buyers?
To drive your international expansion efforts and secure export orders, it’s crucial to ensure that global buyers are genuinely interested in your product. This means your business idea must be compelling and appeal to a targeted audience of overseas buyers.
Finding international buyers is often one of the biggest challenges when starting an export business. So, how can you find reliable buyers to succeed as an exporter? Typically, the process of locating international buyers falls into two main categories: online and offline methods.
Online methods to find international buyers:
We are now more interconnected than ever before in international trade because of the Internet and globalization. Whether it is seamless communication, instant transactions, fast transportation, access to online marketplaces or getting real-time market insights of a foreign market, all is possible with online methods. Online sources are the most convenient way to find international buyers. Online B2B ecommerce platforms, freelance portals, social media, and SEO (search engine optimization) can be explored for this.
B2B ecommerce marketplace:
The significance of B2B eCommerce marketplaces as a platform for connecting with international buyers becomes clear when you consider the vast number of global buyers and quality suppliers involved. You can join these platforms with a free, limited membership, or opt for a premium membership that unlocks the full potential of the platform to secure export orders. Premium membership often includes benefits such as customer support, preferential treatment, priority product placement, and the ability to list more products.
Freelance portals:
You can source a buying agent for exports from a freelancing platform instead of actively looking for global buyers for your export goods. You can visit a freelancer site, and describe that you are looking for international buyers to fulfil your exports, and then you can choose the best freelancing expert from the applicants. Often, the freelancer allows you to connect with overseas buyers and get export orders as he is well-connected and well-versed in your targeted foreign market. Someone can also be found on these sites to help with marketing for your export company.
Social Media:
The popularity of the platforms can be leveraged by aspiring export businesses to find global buyers. You can either make use of paid social media ads or join trade-focused groups.
SEO:
When looking for a reliable exporter, most consumers start by opening a browser and searching for specific keywords. Before making a buying decision, many buyers research products or services online.
Search engine optimization (SEO) is a strategy designed to improve your position in search engine results pages (SERPs). By using SEO, you can increase your visibility to potential buying agents and international buyers for exports. Alternatively, pay-per-click (PPC) ads can help generate export orders. This method places your posts as ads on the first page of Google for targeted keywords, with a fee charged for each click. However, this approach works best if you have an optimized website, landing page, or opt-in forms.
Offline methods to find international buyers:
Offline methods are the more traditional ways to to connect exporters and importers, and find international buyers.
Exhibitions and trade fairs:
Exhibitions and trade fairs are the direct platforms that give an opportunity to small and large sized exporters to interact with export-import companies and international buyers. Typically, these events are industry specific and the right place for networking and showcasing products. You can even get export orders from one of these events if it is successful.
Government bodies:
A lot of information is offered by Export Promotion Councils and Commodity Boards for exporters looking for international buyers. These organizations help boosting the export industry of the country as they are mandated with the task of helping individuals such as yourself. Contacts of possible buyers, current trends, and applicable international trade events can be accessed.
Personal trips:
Personal trips method is is effective, but resource-intensive. Make sure that you have a guide or contact in a foreign country if you choose this approach. You can also use connections with friends and family in a foreign country to collect relevant information.
Promotion bureaus and market research companies:
The connections of promotion bureaus and market research companies can be leveraged to help exporters find global buyers at a fee. The lists of foreign buyers, the best marketing for your export company, and all shipment related information are offered by them.
Third-party agencies:
A foreign middle-person, foreign agencies, buying agents for exports, or a salesperson in the target market can be hired to act as your representative.
How to find global buyers?
Planning and following the best practices is the key to establish a thriving export business and find international buyers for that matter. The considerations to keep in mind and the necessary steps to overcome the possible obstacles are:
- Always start with in-depth research: You should aways start with in-depth research as an important long-run perspective is provided on the issues that we face on a day-to-day basis with proper research. You need to gather as much information about the foreign market and its buyers by digging through online and offline sources. Always remember to keep an eye on scammers.
- What are the needs of the local market?: Knowing the needs of the local market is an extension of the research phase. You need to familiarize yourself with the needs, trends, and preferences of consumer in the target market. Your products must be able to meet a need that is in demand in order to get export orders.
- Find contacts or partners to facilitate your export business: You should find contacts or partners such as salespeople, distributors, shipment companies, or marketing agencies to facilitate your export business.
- Decide how to approach importers: The best way to approach importers out of direct, indirect, proactive, or passive options need to be selected based on your in-depth research.
- Work on your brand image: Make sure your business is attractive before you interact with international B2B traders or start an export business. Your brand should be both visible and compelling to potential buyers which can be done by investing in your logo, the design of your website, the brand message, or the content. Your presence in the foreign market is established by a great brand image.
- Keep your existing customers happy: Make sure to give the attention and high level of service to your existing clients in addition to find new international buyers.
- Stay active with ears on the ground: Your approach, product offering, or marketing for your export company must be constantly adjusted to remain competitive, as the international market is always changing and evolving rapidly. You need to attending exhibitions, fairs, and any other relevant events.
Finding international buyers for your start-up export business lies in careful planning to understand the market, using the right approach, knowing where to find global buyers, and using the right skillsets to prosper.
What skills do you need to successfully start export business?
The skills you need to successfully find international B2B traders and start your export business are:
- Analytical skills that allow you to analyze, prepare, and strategize.
- The ability to identify and respond effectively to trade risks.
- Finance-related skills to manage the complexity of international transactions confidently.
- The capacity to manufacture or source products for export to meet consumer and market demands.
- The ability to seamlessly handle the variables that characterize international trade.
- Courage to effectively implement sales and marketing plans for the export company.
- The need to hire the right talent to drive your business operations.
Who to included in your export business team?
Success is almost impossible without the right type of employees even with the most elaborate strategies, best products, the most comprehensive foreign buyers list. Employees are the company's greatest asset. The best talent for international business can be identified by the following steps:
- Goal-oriented: You need those employees who understand your objective as a company to succeed in the international market. These goals including the objectives for personal growth should be pursued by them with determination.
- Experience: You need to look for someone experienced in international markets, cultures, trends, and other relevant factors as it generally translates into a competitive advantage.
- Curiosity: Curiosity is just as valuable if the candidate is promising but lack the experience. An employee with curiosity for knowledge and information can be considered as they are always a valuable asset for any organization.
- Flexibility: Your employees should be flexible enough to accept changing circumstances, embrace challenges, and evolve as exporting to international markets comes with a greater chance of fluctuating trends and market conditions.
- Optimism: People who pursue leads with the confidence will get results faster when things get tough.