UNDERSTANDING EXPORTINGThe basics of trading internationally

Why should I think about exporting?

Over 95% of the world’s

purchasing power is

outside the UK

And Britishcompanies are in

an ideal position to sell internationally

DESIGNED INBRITAIN

SOLD FROMBRITAIN

ASSEMBLED IN

BRITAIN

MADE INBRITAIN

‘Brand Britain’ represents quality,

innovation and tradition around

the world

1/4 of the global population

speaks English

International demand for British

goods is strong – and growing

REVENUE FROM OVERSEAS

ONLINE SALES FOR BRITISH RETAILERS:

£4 BILLION2012

£28 BILLION PROJECTED

2020

But only 20% of Britain’s small

and medium-sized companies are

currently trading internationally

So how do I start exporting?

To successfully go global, you will need to think about:

Financial risks

Official regulations

and restrictions

Pricing and payment

Insurance Shipping

Target markets

Cash flow

Sales platforms and channels

Let’s take these one step at

a time...

How do I ensure my products reach an international audience?

Online retail / e-commerce is a

key platform to showcase your products globally

Key sales channels

Online store on your company website

These are not exclusive – use multiple channels for broader exposure

Online marketplacesÈ

È

How should I adjust my e-commerce platform when going global?

Methods of payment

Product pricingLanguages

Depending on your target markets, you may want to expand or adapt the options your website gives for:

Find a balance between

The additional costs of exporting (duties, insurance,

shipping)

Remaining competitive in your

target market(s)

How should I price my goods for the international market?

Ensure your e-commerce platform is set up to process international payments

Shipping and handling fees are a leading cause of

online shopping cart abandonment

There are two approaches to selecting target markets:

Markets where your product

has already gained interest

Which countries should I export to?

1Markets where you think there

is a niche for your product

2

To succeed in any target market, you need to research to:

Understand the local business

culture and trade regulations

1Determine if your

product needs to be adapted

regionally

2

Establish local business relationships

3

Assess local niches and

competitions

4

More info

What rules and restrictions should I be aware of when exporting?

Familiarise yourself with:

The International Commercial Terms (Incoterms®) for trading abroad

1

More info

Shipping documentation requirements

2

More info

The role of Customs

3

More info

What documentation you need to:

4

• Export your goods from the UK

• I mport your goods into their destination country

More infoEnsure you are set up as an exporter with HMRC and have an Economic Operator Registration Identification (EORI) number

Taxes and duties may apply at destination

More info

More info

Keep up-to-date with current

events in your destination

country:

A forward exchange contract with your bank can help protect your business against foreign exchange fluctuations.

Thorough credit checks of your customers and Export Credit Insurance can help safeguard against non-payment.

Foreign exchange control, import restrictions, political events and other

changes can all affect the flow of payment

and goods

More info

What are the key financial risks of exporting?

As the exporter, you need to arrange

insurance cover under Incoterm® 2010

Rules CIF and CIP

More info

How can insurance help me when exporting?When you’re getting started in international trade, insuring your goods will safeguard your business in the event of damage or loss.

What types of insurance exist for international trade?Export Credit Insurance covers the payment risks involved in international trade

Cargo Insurance covers loss or physical damage to goods in transit

How do I make sure my finances stay stable when I start trading internationally?Fulfilling global orders can put pressure on your cash flow – but support is available.

What providers and schemes can help me with export funding?

UK Export Finance,

the government’s export credit

agency

Peer-to-peer lending, e.g. via

the Funding CircleYour bank

Plan for the long term: it can take up to

6 months for a loan to be authorised

What will I need when applying for financial support?Present your prospective lender with information including:

• An overview of your business, with financial details

• Why you require the loan

• How much funding you require, and for how long

• A concrete plan for repaying the funds

What should I look for in a shipping provider?Your shipping provider is an important partner for trading internationally

Look for a provider who offers:

• Detailed knowledge of international shipping procedures, Customs and documentation requirements

• A wide global network, with detailed understanding of local market regulations and idiosyncrasies

• A transparent rate structure that takes into account your individual business requirements

• A clear overview of the shipping process, including shipment tracking

• The capabilities to provide a quick reliable service

Once you have a plan in place for how to address all these areas – your export

strategy – you are ready to start sending your goods abroad

DHL Expresswww.dhlguide.co.uk

DHL Small Business Export Advisors:

0844 248 0675

For additional support in understanding exporting and getting started, contact: