Overview: Why Export?

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What is Exporting?

Exporting is selling goods/products, services or knowledge overseas. Some examples of products and services that Australia currently exports include; minerals manufacture, computer software, business consultancies, education services and technologies.

You should be aware that exporting goods from Australia is tightly controlled by laws and regulations which govern the processes and procedures involved in preparing and shipping goods overseas. There are many different ways in which you can become an exporter but as a general rule, they can be classified as either direct exporting or indirect exporting.

Direct exports involve entering into direct relationships with overseas importers and negotiating a contract for the sale of goods and services. Direct exports can also be or conducted by using a commission agent in an overseas market to seek orders and generally represent the exporter's interests.

Indirect exports are transactions arranged in Australia through local merchants or the Australian-based Exporting - Cargo Ship/Freighterbranch of an overseas company. The trader in the exporter's country is responsible for the negotiation of sales and payment is in the form of local currency from the trader's office. Further information on the various types of direct and indirect exports will be discussed in Market Entry Strategies.

Businesses export their products and services for many different reasons, but generally, the benefits that can be achieved through exporting are:

  • Promote business growth
  • Exploit technology and expertise
  • Enhance competitiveness
  • Improve return on investment[1]

As with everything relating to business, exporting has its own share of risks involved. Prior to any commitment, you should be fully aware of these potential risks and develop contingency plans that can be implemented should they occur. Some typical areas of risk in exporting include:

  • Greater business complexity
  • Pressure on resources
  • Increased costs & financial exposure.

[1] Business Victoria