6 Advantages of Exporting for Businesses and Companies

advantages of exporting

Entering international markets is a long and complex process that requires companies to allocate numerous resources in terms of time and money.

However, it is a rewarding effort because exporting is also the fastest way to internationalise a company—a strategy that facilitates long-term survival.

Exporting is an investment that can be very profitable if carried out right. Next, we explain the main advantages that exporting offers to any business or company.

Benefits of Exporting Products or Services to Grow Your Business

1. Operating in Markets with Less Competition

Before starting to export, it is essential to choose the country in which we want to sell our products and services.

A good market research should take into account the export costs derived from transport, the customs tariffs and the competition that exists in each market.

One of our priorities must be to export to countries where our products and services have less competition.


2. Increasing Profit Margins

Exporting products manufactured in countries with low production costs to markets where the retail price may be higher is a way to achieve higher profit margins.

Moreover, exporting is a way to reduce costs and increase revenues—two variables that lead to profit growth.


3. Taking Advantage of Production Surpluses

If the domestic market is too small or the market share can no longer be increased, and the company has production overcapacity, exporting is the best way to exploit this potential.


4. Reducing Production Cost per Unit

It is usually necessary to increase production to enter new markets. This is a gateway to achieve economies of scale, generate large business volumes and reduce production costs per unit.

For example, the more raw materials you buy, the better the price you get. This benefit has an impact on both the international and the local market.


5. Improving Liquidity

Payment terms with low financial risk—such as full or partial advance payment, letter of credit or documentary collection—are common in exports. Thanks to them, the exporting company reduces the risk of the operation, increases cash flow and has more liquidity at its disposal.


6. Enhancing Competitiveness

The mere fact of competing in new markets against new companies is a test for the exporter and its products or services.

Continuous adaptation becomes essential, generating a constant evolution that leads to a permanent improvement of processes, strategies, equipment, etc. In short, the exporting company becomes increasingly competitive.


How can Noatum Logistics help you export?


From a logistical and bureaucratic point of view, exporting can be a very cumbersome task. In today’s increasingly dynamic and complex global trade, interpreting and complying with import and export regulations is not easy.

If you are considering starting your company’s export adventure, Noatum Logistics’ Export Consulting Services help you achieve your growth objectives while complying with customs regulations and all the legal requirements for exporting.

The Noatum Logistics Global Trade Management Team will assist you in creating an export compliance programme—adapting to the particularities of the sector in which you operate and the market to which you are going to export.

This programme includes all the processes and procedures necessary to comply with export and import formalities—including tariff classification review and determination, incoterms utilization, export control classification, export licence review and determination, export procedures manual development, training programs, export audit, etc.