Entering overseas markets

Choose how to enter overseas markets

When selling overseas, you can sell your product or service directly to customers or use an intermediary. You may decide a mix of these approaches is best for your business. There is no 'one size fits all' solution.

You should consider the implications of each method in terms of:

• the direct and indirect costs, such as investment in an overseas operation, or the heavy discounts often demanded by distributors
• how much control you'll retain over how your product is sold, and how much you'll need to delegate to partners or intermediaries
• which export-related risks you'll have to bear, such as exchange-rate movements, non-payment risks, longer trading cycles and delays due to documentation problems

An intermediary may be able to handle issues such as paperwork, shipping and warehousing. However, you will have less direct control. Selling directly may give you more control, but you will have to bear higher costs. See our guide on outsourcing.

Making the right decision

Investigate your new market and how your product will fit into it. Consider the following questions:

• What's your priority - minimising potential costs or controlling the process?
• Do you have the market knowledge (and language skills) to make contacts and generate sales?
• Do you have the time and money to invest in setting up a local branch or subsidiary?
• Are there restrictions on the way you can enter the market? For example some countries may insist you form a joint venture with a local business.
• What is appropriate for your product? If it requires specialist after-sales support, selling through an intermediary may not be suitable.
• What are the usual distribution channels for products like yours in the target market?

Answering these questions will help you with the strategic planning for exporting your product.

To help you decide on the best option, see our guide on researching overseas markets.

Subjects covered in this guide

• Introduction
• The different ways to enter overseas markets
• Choose how to enter overseas markets
• Selling direct from the UK
• Opening operations in overseas markets
• Using an overseas agent
• Using an overseas distributor
• Finding and choosing overseas agents and distributors
• Contracting with overseas agents and distributors
• Here's how an export agent helped me sell my products abroad

Print options - What are my print options - Opens in a new window

• Add guide to my print portfolio (print later as PDF)

Email options - What are my email options - Opens in a new window

• Tell a friend about this page
• Send me an email alert when this guide changes