General

With limited budget and manpower, it is difficult for small factories to develop the international trade market and accept foreign trade orders. The difficulty lies in the development of channels and overseas marketing, and supporting the development of channels requires a large amount of funds. If you want to develop steadily at a low cost, you cannot follow the marketing methods of large companies. Large companies can spend money to participate in exhibitions and advertise, but small and micro factories are still in the development stage in all aspects, and conditions are not allowed. So for small factories, it is particularly important to choose a suitable path to develop the international market.

Xiao Zhijun believes that there are six main ways for factories to do foreign trade, which are more suitable for small factories to develop the international trade market.

1： Cooperate with the foreign trade operation center to receive first-hand orders

The foreign trade operation center is a method to help enterprises develop the international trade market with a high success rate. It is more suitable for factories without foreign trade experience and with a limited budget. They will help the factory to make foreign trade orders step by step from scratch. The whole process of teaching hands to take orders, only one or two novices need to be assigned to enter, and a certain percentage will be drawn after the order is closed. As far as I know, the commission rate is not high, and it is acceptable. After all, for factories that have not done foreign trade, the success rate will be much higher if they have full support to do foreign trade.

Advantages: rapid growth, less detours, direct access to product and market information, and the right to determine the price and supply, which will help you develop marketable new products. The first order is received, and the customer is his own. He continues to cultivate his own customer market, without being subject to others.

Disadvantages: certain costs need to be invested in personnel, and salesmen need to be stationed in the foreign trade operation center, and the profits need to be distributed to the operator

2： Join the cross-border supply chain platform

In the early stage of the cross-border supply chain platform, only large enterprises were recruited for cooperation, and the quota for cooperation was not open for small and medium-sized enterprises. Through years of overseas operations, it has built a large number of warehouses and logistics overseas, and has strong resources. At present, it has accumulated millions of enterprise-level users overseas. Since all the orders received are first-hand orders from overseas, it is required to cooperate with the source factory, with an annual turnover of more than 10 million, which requires quality and capacity.

Advantages: The platform has its own traffic and orders, gives higher weight to the source factory than to the trading company, can contact customers directly, and has independent pricing power.

Disadvantages: The quota is limited, the audit is strict, and there are certain requirements for the factory scale and supply capacity. The factory needs to have people who are familiar with the products and have strong ability to follow orders.

3： B2C mode of cooperation with cross-border sellers

There are three main ways to cooperate with cross-border sellers,

1. In cooperation with the big seller, the early order volume is small, the profit is almost zero, and there is no pricing right. The advantage is that the profit scale will also increase after the product is started, and the enterprise will slowly get on the right track. The disadvantage is that it is subject to the big seller, so it has to listen to the big seller, and there is no room to negotiate terms, and the payment cycle is also relatively long.

2. Cooperate with cross-border sellers to operate a certain category and share profits. Factory owners supply goods according to the factory price, share marketing expenses and profits. Generally, marketing expenses are mainly borne by cross-border sellers.

3. Profit sharing mode separated from supply marketing of cross-border sellers: the factory owner supplies goods at a price lower than or equal to the ex-factory price, and the cross-border seller is responsible for all marketing expenses, and the seller needs to pay 10% - 30% of the loan principal and profit earned to the factory in a monthly or quarterly manner.

Advantages: The marketing expenses are hardly borne, and there is no personnel investment. The process is simple, and the goods can be supplied to cross-border sellers after receiving the order.

Disadvantages: low profits, small orders, long payback cycle, many details of cooperation, both parties are prone to quarrel.

4： Cooperate with traders to receive second-hand orders

This is a common way of cooperation. The advantages and disadvantages of this cooperation model are obvious. As a bridge between factories and foreign customers, foreign trade companies can provide suppliers and customers with perfect and reasonable trading methods to reduce the export problems of factories and the difficulties brought by customers' imports. However, the factory has no contact with customers, does not know the real needs of customers, and does not know the market situation. It can only exist as a supplier. In addition, the profits are earned by traders and receive second-hand orders.

Advantages: By taking advantage of traders' foreign channels and export experience, we can quickly open the international trade market without setting up a foreign trade business department, save labor costs, and reduce capital burden and risks;

Disadvantages: low degree of control over product flow and price, unable to quickly grasp market information and market changes, not conducive to providing products with adaptability and competitiveness to the international trade market, and unable to gain direct experience in foreign trade marketing

5： Cooperation with SOHO entrepreneurs, high commission system

In short, they are responsible for finding customers, placing orders to the factory after receiving the order, and the factory is responsible for the delivery and payment process, and after receiving the payment, they will be given the agreed commission. These foreign trade SOHO entrepreneurs are all fighting alone. The foreign trade veteran has rich experience. To some extent, they can also cooperate with them to bring unexpected results. The factory needs to assign a person to facilitate all cooperative SOHO entrepreneurs, including providing samples, product materials, quotation negotiation, and customer visiting the factory.

Advantages: using the experience of soho entrepreneurs can save a lot of labor costs and reduce the financial pressure of developing channels. Compared with traders, they have a certain voice in pricing power.

Disadvantages: The order quantity is limited, which cannot support the production of a factory, and can only be used as a supplement.

6： Own team to do foreign trade, high cost of first-hand orders

Build your own team and manage yourself. For factories that have not done foreign trade, the first one to two years are the most difficult. It is necessary to prepare for zero return in the first year. Of course, it is not true zero return. The return will be very, very low. The input and output are very disproportionate. It is a test of the factory boss's psychological endurance.

The most difficult part is personnel management. Here are some suggestions. In the first few years, when the business volume has not yet risen, I suggest that we recruit two foreign trade managers with 5 to 10 years of experience, one foreign trade salesman and assistant with 1 to 3 years of experience, or a newly graduated college student with zero experience as assistant to the manager. It is too lonely to recruit only one person, and the turnover rate will be higher, which is not conducive to team management. When two people are together, they can cheer each other up, especially when they only input but not output in the early stage, they need to cheer each other up. In terms of salary, it is recommended that you give 20% to 35% higher than your peers. In the past, you will pay 10000 yuan for 50008000 yuan as the base salary of others is 4000 yuan. In terms of commission, if the peer gives 1%, you will get 1.2% or even 1.5%. Managers and salesmen are the same, 20% - 35% higher than the average level of peers. After all, you need to do long-term business. Don't be reluctant to increase this amount. Next, you need to "treat two people as three people". You only paid 2.4 to 2.6 salaries and saved 0.4 people's labor.

Advantages: take orders, have the right to determine the product flow and price control, can grasp the market information and changes in real time, and can directly obtain the experience of foreign trade marketing.

Disadvantages: large cost investment and long return period in the initial stage

Xiaozhijun believes that small factories should choose a low-cost development method to develop overseas markets when their budgets and experience are limited at the beginning. After accumulating a certain amount of funds and experience, they should choose more ways to do foreign trade, which is more cost-effective in terms of comprehensive costs and benefits.