Originally Posted on WiseGeek.com
The advantages of exporting are plentiful, though many of them boil down to extra profits that bring additional benefits of their own. The selling seasons in other countries and regions may be different from a company’s domestic selling seasons, and this can balance out sales. If the domestic company makes too many items and cannot sell them domestically, then they may sell well internationally. Another one of the advantages of exporting is diversification, meaning the company may not have to depend on domestic sales alone to be profitable. The product may be new in an international area, which can renew the product’s life cycle.
Most countries and regions have seasons during which selling is at its highest, and then there are seasons when the selling is low. For example, holidays are very high selling times, but a company may have trouble selling its merchandise during the other months. One of the advantages of exporting is that the company can benefit from the high selling times in other areas, enabling the company to balance out sales for better figures.
A company sometimes makes too many of its products, anticipating higher sales in the domestic market. If the sales turn out to be low, then the company may be stuck with a lot of spare items that must be stored, destroyed or otherwise left unused. By exporting these items, the company has a chance of selling them in the international market, where the item may be more popular.
When a company only sells domestically, it is entirely dependent on the domestic market. If the domestic market slumps, then the company may lose its market traction and may have to downsize. One of the advantages of exporting is that this can enable the company to gain sizeable sales in different areas. This way, if the domestic market begins to slump, the company may lose sales but it still can profit from the international market.
A domestic company often will make items that are not as common in the international market, or the international market may be unaware of the company’s specific angle on a product. This makes the ability to restart the product’s life cycle one of the advantages of exporting. This gives the product a chance to flourish again, especially during a time when it is new and fresh. While this also means the product may fail if it does not catch on, proper marketing should be able to overcome this challenge.