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Selling overseas: a guide for beginners

Published 1 December 2017

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This page has been withdrawn because it’s out of date. UK companies can read advice for exporting on great.gov.uk.

Graphic shows boats at sea and lighthouse

As the world becomes ever more globalised and digital, the potential for you to reach out to new customers and lucrative new markets beyond the UK has never been greater.

Whatever your sector, there’s a market out there for your products and services.

The demand is out there. You should be too.

People are looking for your goods, skills and services.

If you have a product or service that is performing well at home, there will almost certainly be demand for it overseas. If you’re a small company in an unusual sector don’t be put off: 2 out of 5 companies with fewer than 10 employees are already doing business in at least one high-growth market.

Not only is exporting a way to grow your business, it can also make you more productive, innovative and resilient to economic downturns.

What selling overseas can do for you

Graphic showing a manufacturer, distributor and buyer in different parts of the world.

Whatever your size or sector, the rewards from selling your products or services abroad can be huge.

Doing business outside the UK can:

  • make you more profitable, competitive and innovative
  • help you get better economies of scale that aren’t always possible at home
  • boost your profile at home and internationally
  • give your products and services a longer commercial life, because you have access to new customers and markets
  • help you grow your business, because you’re selling to new customers and accessing new revenues
  • transform your financial performance and balance sheet
  • make you more resilient and allow you to spread your business risk

Get ready to export

Before you start to export, consider:

  • whether you have protected your intellectual property, completed your research and conducted due diligence
  • if you need to work with an overseas partner to succeed
  • evaluating all the potential business risks
  • any legal issues in your chosen markets
  • how you’ll get paid and will ensure your products are delivered on time
  • appointing someone in your company to lead your exporting activity
  • whether you have the right resources (finance, time, expenses and skills) to succeed
  • which country, region, sector or segment you’ll start with

Four steps to exporting

Get help with exporting at the government’s great.gov.uk

There are 4 tried and tested steps you should take to help you write your export plan:

  1. do your research
  2. find finance
  3. plan
  4. find customers

Research

Market and customer research is essential, along with understanding how to protect your rights so make sure you:

  1. define your customer in detail and build a profile of what they look like
  2. quantify the likely demand for your product or service
  3. research your competition and how you compare with them
  4. compare the legal, financial and cultural differences of your target market with the UK, so you know what to expect
  5. read the Intellectual Property Office’s guidance on protecting your property
  6. identify the classification of your goods, the duty relief, VAT, taxes and exchange rates in your market by reading HMRC’s export guides
  7. check to see if you can get funding to visit your identified market from DIT’s Tradeshow Access Programme
  8. visit great.gov.uk to gauge overseas demand for your product or service and decide which market is best for you

Finance

Find out as much as you can about the finance you’ll need to grow your business abroad, including the extra investment you’ll need for advertising, research and other essentials.

Be sure to:

  1. talk to your bank, accountant or one of the many finance providers here in the UK about the money you’ll need
  2. review the extra finance you may need to fund your move overseas, remembering that working capital requirements may need to take into account extended shipping times or payment terms.
  3. always think long-term, being realistic about the time it will take you to get established and make a profit in your planning, so you have the resources you need to keep going

UK Export Finance (UKEF)

UKEF is the UK’s export credit agency and is part of the Department for International Trade (DIT). UKEF can help finance an export deal if your bank can’t do it on their own and can also provide insurance to protect against the risk of not getting paid.

They make sure that no viable export fails for lack of finance or insurance and provide financial support for any size of exporter across all sectors.

With UKEF’s help you’ll:

  • win export contracts because you can offer attractive financing terms to your buyers
  • fulfil your contracts because you have a working capital loan
  • get paid because you’re insured against the risk of non-payment

UKEF works with 70 private credit insurers and lenders to find you the right financial solution, whether that’s from a private provider or from the government.

Plan

Once you’ve completed your research and explored finance options, you need an export plan that sets out how you’ll break into your new market.

An export plan is similar to a business plan but with an international focus.

To get your plan started you should:

  1. get in touch with your local DIT office to talk to an e-commerce adviser if you’re selling online and find out about DIT’s E-Exporting programme
  2. set out how you’ll launch your product or service
  3. decide if you want to sell directly, online or through an agent or distributor
  4. plan your routes and choose the most efficient transport method
  5. check if your goods are insured
  6. think about capital, resources, logistics, distribution and customer support

Your export plan should include:

  • a marketing strategy
  • any modifications you need to make to your product or service
  • your preferred route to market
  • your chosen business model (such as via an agent, distributor or direct to businesses or consumers)
  • whether you need to establish an overseas presence, such as a sales office or by forming a strategic alliance, joint venture or subsidiary
  • your financial resources and how to get paid
  • the right people to help you develop your new export markets
  • relevant information about your chosen market

Customers

Depending on your product and its shelf life, there is a range of ways you can sell to your customers.

This could be selling directly, online or via agents or distributors – you can find out more about all of these on great.gov.uk.

Selling online to overseas customers

The Department for International Trade’s E-Exporting Programme gives you access to the Selling Online Overseas Tool. It’s a free to use, online service that allows you to click, connect, prepare and sell on global e-marketplaces, such as Amazon, eBay and Rakuten, based on your product category and export market of choice. Through the tool, you can also access discounts, including waived commissions and special marketing packages.

Selling through a partner

Some businesses choose to work with a partner who is already familiar with a particular market. There are 2 types – distributors and agents.

A distributor will buy your products directly from you and re-sell them locally. They will be responsible for any profit or loss in stocking and selling on your goods.

Agents will arrange sales on your behalf and receive commission on the sale once payment is made. In both cases they are an invaluable, on the ground resource to feed back market intelligence.

If we can, you can

Read about companies like yours who are already taking advantage of their overseas growth potential.

Eco Glitter Fun

Picture of Sophie Awdry and Noemi Lamanna of Eco Glitter Fun.

(c) Eco Glitter Fun

Sophie Awdry and Noemi Lamanna created biodegradable glitter to replace common plastic glitter that harms the environment. Their London-based company Eco Glitter Fun supplies parties and festivals all over the world, including in India.

Forest Gin

Picture of Lindsay Bond, owner of Forest Gin in a bar with boxes of Forest Gin around her.

(c) Forest Gin

Lindsay and Karl Bond developed their own hand-crafted, small-batch gin using botanicals native to Macclesfield Forest. Now their company Forest Gin exports to Germany.

Norton Motorcycles

Picture of staff at Norton Motorcycles.

(c) Norton Motorcycles

Norton motorbikes, which are hand-built in Castle Donington, are once again exporting to the US after a 30-year gap.

Tangerine

Picture of Martin Darbyshire, founder of Tangerine and CEO and Matt Round, Chief Creative Officer

(c) Tangerine

London-based design consultancy Tangerine works for global brands such as British Airways, Virgin Australia, Samsung C&T, Sky and Nikon. The award-winning company also has overseas offices in Korea and Brazil.

Gummee

Picture of Jodine Boothby of Gummee in front of Gummee products.

(c) Gummee

Jodine Boothby’s high quality teething products for babies are now sold to the U.S, Norway, Finland, South Korea, South Africa, New Zealand, China, Canada and Australia.

Full Grown

Picture of Gavin Munro of Full Grown standing around some of his creations.

(c) Jamie Lau

Using ancient techniques combined with modern technology, Full Grown grows and grafts living trees into furniture and sculpture. Led by designer and artist Gavin Munro, Full Grown is based in the Midlands and recently won an export order to the US. They have also exhibited in Europe.

Rosie Brooks

Picture of Rosie Brooks seated in her studio.

(c) Jamie Lau

Rosie Brooks, from London, is a children’s illustrator whose work has been used in books, advertising, art and film. She has a worldwide profile and attends the Bologna Children’s Book Fair as well as book fairs in Frankfurt and Beijing. Rosie’s clients are based in Europe, the US and Asia.

Monochrome

Picture of Simon Elgar (left) David Marsh (right) of Monochrome in their office.

(c) Jamie Lau

Founded in 1999, Monochrome is an award winning digital agency specialising in exceptional user experience and interactive design, solid development and intelligent, innovative digital solutions. Counting some of the UK’s best brands among its clients, Surrey-based Monochrome now has offices in Hungary and Serbia.

Getting help and advice

Of course, making the move into any new market – especially when you’re dealing with a different language, culture or set of regulations – can feel like a leap into the unknown.

But with the right help and support you can do it.

great.gov.uk

Screenshot of great.gov.uk website.

great.gov.uk is the ideal starting point for UK businesses looking to export for the first time or increase their exporting activity.

It brings together exporting information, guidance and services from across government.

Visit great.gov.uk to:

  • get advice and information on everything from customs and licences to shipping and logistics
  • get seen by international buyers with a ‘Find a buyer’ trade profile
  • get in touch with your nearest international trade advisor for specialist sector and market advice
  • get out there by attending trade missions, expos, conferences and events
  • get exporting by applying for live export opportunities from international buyers

You can get help from these government departments

Department for International Trade (DIT)

DIT has a network of experienced international trade advisers across the country as well as staff based in UK embassies and other diplomatic offices around the world. They’re all ready to provide you with expert trade advice, market know-how and practical support to grow your business internationally.

Contact DIT’s regional office nearest you for help with exporting.

HM Revenue and Customs (HMRC)

HMRC can give you expert assistance on a number of matters relating to the importing and exporting of goods.

This includes information and guides covering topics such as the classification of goods, trading in the EU, imports from outside the EU, duty relief on imports and exports, import and export controls and procedures, VAT, export licences, export taxes and exchange rates.

UK Export Finance (UKEF)

UKEF is the UK’s export credit agency.

It helps UK exporters by providing insurance to exporters and guarantees to banks to share the risks of providing export finance. In addition, it can make loans to overseas buyers of goods and services from the UK.

UKEF works closely with exporters, banks, buyers and project sponsors to support exports to, and investments in, markets across the world.

Intellectual Property Office (IPO)

The IPO is the government body responsible for IP rights including patents, designs, trademarks and copyright.

The IPO operates and maintains a clear and accessible intellectual property system in the UK. The IPO can also help you protect and benefit from your ideas or inventions at home and abroad. This includes access to a range of IP events, guidance, tools and case studies to support your export ambitions.

Other help available

You can also get advice from your bank, accountant or lawyer and from your local Chambers of Commerce or trade association.