I want to sell products to China and USA. What is needed for this?
Miscellaneous / / December 21, 2021
1. Research the market and purchasing power
Check out similar products on local sites - this will allow you to get to know competitors and understand how much the products in your group cost. Let's say that Russian food products are in demand - chocolate, honey, ice cream, wild berries, nuts. One of the promising areas counts sale of beauty and health products - high-quality and inexpensive cosmetics with natural ingredients in the composition.
To delve deeper into the intricacies, you can order a paid study. It will provide a more detailed analysis of sales markets and consumer behavior. You may need to adapt the product to the market: redo the packaging design, change the size or volume of the product, translate the information on the label. When entering the Chinese market, many companies localize the name due to differences in the writing system and the difference in mentality. For example, Reebook known as "Fast Step" and Mr Muscle as "Mister Powerful". Make sure that the title does not sound stupid or obscene when translated.
In order to competently organize international sales, you need to take into account many nuances. The national project โInternational cooperation and exportโยป. Russian sales representatives abroad will tell you what requirements the product must meet and at what exhibitions it can be presented. Entrepreneurs with little experience in sales abroad can take an educational course or get marketing support - they will be helped to analyze whether the product will be in demand for abroad.
Get to know the project2. Review the legislation and requirements
Find out what certifications and licenses you need to export your goods. For example, if you sell food, you need to get a veterinary certificate. Check if products are listedLists of controlled goods / Federal Service for Technical and Export Control (FSTEC of Russia) dual-use goods. To take such goods out of the country, a document from the Federal Service for Technical and Export Control is required. Make sure your product can be sold overseas. For example, the American site eBay has a listProhibited and restricted items - overview / eBaby prohibited drugs, food, electronics and other goods.
Export to China may require accreditation from the country's main customs office. For international deliveries, an invoice is drawn up - an invoice for payment of services, which is issued by the seller to the buyer. Sometimes it is compared to an invoice, which is used in Russia, but the documents have different purposes. The invoice is used for tax accounting. And the invoice can also act as an invoice to the goods.
3. Determine your target audience and purchase motivation
Consider gender, age, place of residence, income level, education of potential buyers. If you compose a detailed portrait, it will be easier for you to present the product and choose advertising platforms. Marketing research will help to compose a portrait of the target audience and give recommendations on how to interact with it.
When analyzing, you can use the Jobs to Be Done approach, which allows you to find out what customer tasks your product solves. After all, the user does not just buy a product, but "hires" it to perform a specific task. For example, he buys an exercise bike not because he needs it, but to get a fit figure. The method assumes that the global goal of a person is to become better, and the product should help him in this. Target audience data can be overlaid on Jobs to Be Done and find out not only who your customers are, but what drives them.
4. Find platforms for online trading
Opening a point of sale in another country can be tricky. For example, in the United States, you need to obtain an investor visa (the minimum investment is $ 500 thousand) or register a legal entity and open an account with an American bank. In addition, you have to pay for the rent of the premises, utilities. And you can use electronic platforms - Amazon and eBay in the US, Tmall and Alibaba in China. They provide an opportunity to reach a large audience of buyers, and thanks to the built-in marketing tools, it will be easier to advertise a product than in your own online store.
Check the site rules. To sell in the United States, you need to register your trademark in the country, as well as in the Amazon registry - if you choose this platform. In China, the seller will have to open a legal entity and a bank account. It is important to promptly file an application for registration of a trademark. There is a priority feed systemFeatures of registration of a trademark in China / Trade Representation of Russia in China, and the right to a trademark will be held not by the one who releases the goods, but by the one who first submitted the documents.
5. Define a circle of business partners
You can sell the product yourself or through a distributor company. In the second case, you will have to pay a commission, but you will be able to get quick access to the client base. You can search for such partners, for example, at professional exhibitions. There you will establish useful contacts and understand which foreign companies are interested in your product. Before concluding a contract, check the registration data, look at the reporting and other important information about the company in open databases.
Experts of the Russian Export Center and employees of trade missions abroad will help to analyze the partner company and find a suitable exhibition at which to present the goods. Within the framework of the national project "International Cooperation and Export", they advise companies that want to enter new international markets. Any company, including a small one, can get support. For representatives of small and medium-sized businesses, targeted consultations are available, where they will be advised how to find sales markets and transport channels.
Get support6. Think over the logistics
Find a company that will act as an importer of the product and conclude an agreement with it. You can ship goods to the United States by sea or air. Sea freight is cheaper but can take several weeks. Most often, this option is used to transport large consignments of goods. Air delivery will take 1โ5 days, but it is more expensive. Transportation by train and car is also available in China. In some cases, it is better to combine several modes of transport to make delivery faster and cheaper. If you take over the delivery, in order to choose the best option, consult with the logistician.
7. Select the form of payment
You can use a bank account. And to make the transaction comfortable for your company and your partner company, resort to a letter of credit. This is a deal that ensures that the seller gets paid if he fulfills certain obligations. Once the letter of credit has been issued, the buyer cannot refuse to pay or change the terms of the trail. Indicate in which currency the payment will be made. If in foreign, do not forget to open a foreign currency account with the bank.
If you sell goods through online platforms, there will be some nuances. For example, when selling on Amazon, you need to open a bank account in the United States. To do this, you can register with the Payoneer payment system. It accepts payments from Amazon and transfers them to the recipient's bank account.