Definition, advantages and disadvantages

1. Direct exporting means you export
directly to a customer interested
in buying your product.
You are responsible for handling the
market research, foreign
distribution, shipment and for
collecting payment.

2. *Your potential profits are greater ;
*You have a greater degree of control over all aspects of the
transaction.
*You know who your customers are.
*Your customers know who you are. They feel more secure in
doing business directly with you.
*You develop a better understanding of the marketplace.
*As your business develops in the foreign market, you have
greater flexibility to improve or redirect your marketing
efforts.

3. *It takes more time, energy and money than you may be able to
afford.
*Servicing the business will demand more responsibility from every
level of your organization.
*You may not be able to respond to customer communications as
quickly as a local agent can.
*You have to handle all the logistics of the transaction.
*If you have a technological product, you must be prepared to
respond to technical questions, and to provide on-site start-up
training and ongoing support services.