Exploring routes to market

Guidance on great.gov.uk

Explore ways to get goods or services to market

From direct sales to using a distributor and from e-commerce to setting up a business overseas, there are many ways you can get your products or services into a target export market.

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The most successful route into a market is the one which best suits your product, the country you’re selling to, and most importantly, the customers in that market. But your appetite for growth and the stage your business is at may also be a factor.

Guidance on great.gov.uk

Understand how to work with a partner in market

For many goods and services, the best way to enter a new market is through a partnership. This can be an agent or distributor, wholesaler, retailer or franchisee.

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The type of partner you choose depends on the goods or services you’re selling, and the business culture of your target market. In-market partners will have a good understanding of the local market conditions and trends, and how best to position your brand against the competition.

Guidance on great.gov.uk

Understand how to find a distributor in a market

Distributors buy your products from you, usually at a discounted price, and sell them on in the marketplace. They’ll hold stock locally and handle all logistics.

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Working with a distributor is one of the most common ways to enter a market for goods exporters. They are a good option if you’re looking to reduce the risk of entering a new market, but you will also lose some control over how your products are sold.

Guidance on great.gov.uk

Understand how to find an agent when exporting

Agents sell your products on your behalf. They don’t hold any of your stock and transactions are made between your business and the end user.

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The main role of an agent is to generate sales, earning a commission as they do. They generally have good local knowledge and can be a simple and low-cost introduction to a new market. However, they are not suitable for all products or services.

Guidance on great.gov.uk

Understand how to use ecommerce to expand overseas

Selling online is one of the easier routes to market for new exporters, with less investment than some more traditional methods. Most businesses usually use a combination of digital channels to achieve the furthest reach.

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As well as business-to-consumer websites and online marketplaces, business-to-business ecommerce is also increasingly popular. Major companies, governments, schools and hospitals often procure their goods and services online. But there can be costs involved in selling online overseas, including translation, currency conversion and hiring digital experts to help run the operation

Guidance on great.gov.uk

Understand how to sell direct to your customer

Direct export sales involve contacting and selling to an overseas customer without using an intermediary, like a distributor. It can be lower-risk, but also requires time and effort to develop.

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A good website and social media presence may get potential customers contacting you, but often you will need to reach out into the market to find them. You should know or be able to easily identify your potential customers, their problems or needs and be able to influence them to buy your product.

Guidance on great.gov.uk

Understand how to use licencing to sell overseas

Licensing means giving a third party the right to make and sell your product, service, or intellectual property (IP) in a particular market, in return for a payment.

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If you’re a new business, it is usually not recommended to start selling with a licensing model. If you rely on your brand story to sell, you may not want to give up control before you’re well established. But in some instances, licensing can be a cost-effective way to expand into a new market quickly without having to sell to customers directly.