Shipping your goods
Shipping products yourself
You could ship physical goods yourself. You’ll need to organise things like transport, insurance, duties, packing lists, invoices and airway bills. Make sure you track your goods and know who’s responsible for them at different stages.
Custom brokers
You could also use a customs broker. Custom brokers work with customs on your behalf, like clearing goods through customs for you. They may work in specific areas, so you may need a broker in New Zealand and another one in your destination country.
Work with international partners - New Zealand Trade and Enterprise
Environmentally friendly shipping options
Shipping and transport often have environmental costs. Plan ahead to reduce these costs if possible.
Benefits of sustainable business - Sustainable Business Network
Shipping your services
Services are usually shipped electronically. For example, you might:
- provide software to international clients
- email consulting reports or designs to the other side of the world
- offer online lessons via video conferencing.
But you could also offer a service that requires goods to be shipped. For example, you could repair a damaged violin for someone abroad.
Online selling of products overseas - Ministry for Primary Industries
Distributing your goods or services
Distribution means getting your goods or services to customers. It includes:
- shipping and tracking
- choosing your sales channels
- deciding whether you use an agent or a distributor
- recalling your goods – this is usually only needed if there’s a problem with the goods, like a food poisoning risk or a defect that can be dangerous.
Good distribution means better sales and profits. The best method of distribution depends on things like:
- your goods or services – how you sell luxury goods or services will be different to how you sell everyday ones
- your customers – where and how your customers shop
- market size – how many customers you’re likely to have and if they’re a big proportion of the population
- logistics – how much of your goods you store, where you store them and what shipping options you have.
You could distribute your goods or services yourself or use an agent.
Choose from different sales channels
You could sell through different channels, including:
- websites, social media or online ad placement
- retail outlets
- catalogues and ads
- word of mouth
- trade shows
- chance meetings.
Think about distribution options
When you start, working with an agent or a distributor may be easiest.
- An agent is someone you employ or contract to work for you. You’ll have more control and know who your customers are.
- A distributor buys your products and sells them on. You’ll have less control than when you work with an agent.
Some businesses set up an overseas office once they have exporting experience. An overseas office is more efficient and gives you more control. But setting up in another country can be expensive, and it creates financial and legal compliance obligations. You may even need a different business structure. An overseas set-up is best left until you’re experienced, but it’s good to think about it early.
Other distribution options
Contract manufacturing
You could get someone to make your goods, or parts of them, and you sell the finished goods.
The arrangement could:
- save you significant cost
- offer tax incentives, as many countries give tax breaks to overseas businesses that support the local economy.
Franchising
You could get someone to sell your goods or services as if they were you. You’d have a lot of control because you specify signage, branding, packaging, training and so on. Your franchisee (the person selling on your behalf) pays you for the right to use your systems, processes and intellectual property.
Franchising lets you expand your business at little cost because the franchisee pays most of the costs, but you’ll need:
- well-developed systems
- a proven track record
- to give ongoing support and training to your franchisees if you want them to do well – this commitment is often greater than people realise.
Joint venture
You could work with another company in your target market in a joint venture arrangement. You’d share finances and other resources, governance, ownership, profits and so on.
This type of arrangement can be a good way of overcoming export barriers. However, an arrangement that benefits both parties equally is very hard to set up.
Licensing and royalties
You could grow your business in these two ways:
- You could license your patents, trademarks, copyrights, designs and other intellectual property to others. This means you give someone the right to make and sell your goods or services. Licensing can be a fast way to grow your business, but you don’t get profits on the sales. If sales are good, you could miss out on a lot of money.
- You could pay someone a royalty (a fee) when they sell your goods or services. This could be another way to grow quickly.
In both cases, you need good advice from specialist lawyers or consultants, including about protecting your intellectual property.
Strategic alliance
Strategic alliances are similar to joint ventures, but are less formal and don’t last as long. They often focus on a small part of the market.
Discover other sales channels - New Zealand Trade Enterprise
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