Advantages and Disadvantages of Direct Exporting

Direct exporting involves delivering a product directly to an interested customer. This can be either delivering to a regional or overseas customer upon making an order of the item. The tasks of the product owner include doing market research, examining foreign distribution, finding shipment modes, and providing payment methods/options. Direct exporting has its own advantages and disadvantages.

Advantages to Direct Exporting

  • High chances of making greater profits since intermediaries/middlemen are eliminated
  • Every step in the transaction is entirely on your hands, hence total control of expenses and delivery modes
  • Allows you to identify the potential buyers and their needs, as well as their buying behaviours
  • Tends to create a sense of satisfaction to the side of customers because they understand more about your products and the business in particular
  • Your marketing and delivery trips are effective and efficient because you have direct contact and interaction with the customers
  • Improved and faster communication, since you know the persons to contact in case of any problem
  • You can receive fast feedback from customers about your product, and make necessary improvements in a timely manner
  • It is easier to protect your trademark and copyrights, as well as official rights to your product
  • You can portray your professionalism in the marketing process, and capture the expectations of the customers
  • It is easier to understand your target market, and make informed decisions whether to expand or reduce the size of target market
  • Since you are reaching foreign market, it becomes easier to extend the market to other proximate countries

Disadvantages to Direct Exporting

  • It may involve additional expenses and time, which you may not be able to cope with over time
  • There is a lot of effort required to build a strong customer base, hence time consuming
  • You have many responsibilities to handle on every stage in the organization, thus very little time to relax
  • In case anything happens to goods being delivered, you are held liable since there are no intermediaries
  • Since there are many feedbacks and comments from the customers, it becomes difficult to handle them because you don’t have an agent for that purpose
  • Every bit of transaction is left on your hands, hence creating a challenging task when dealing with diverse customers’ needs
  • In case your product involves technological changes, you need to have a training service and convince customers to accept the disruptive change

Direct exporting requires very committed individuals, with well developed initiatives that will drive success in the business. Such plans include a good attorney, qualified and highly experienced accountant.