There are several ways to make money from export business in Nigeria. However, most people find it difficult to identify the right way. These days, more and more Nigerians are venturing into the exportation business; simply because of the lucrative return on investment that it offers.
In this writing on different ways to make money from export businesses in Nigeria, I intend to highlight three (3) ways that can be adopted by beginners and professionals.
As a beginner in the exportation business, you want to seek proper guidance on how to run your exportation business. You want to avoid costly errors capable of ruining your exportation business from the beginning.
Ways to Make Money from Export Business
Ok, now, you’ve done it!
You’ve identified a profitable export product you want to sell in Nigeria, and you’re off to start an export business.
Now, you might be wondering how to make money from selling your product in the international market. Well, like any other business, there are various ways of doing it. Shall we check them out?
1. Through Direct Goods Export
Direct good export, also known as direct export, is simply an export business model in which you export things that you make locally.
It refers to sales made directly to a foreign consumer.
Your invoice is sent straight to the customer. For example, suppose you package edible fruit and mail it to consumers in Germany and Belgium. You keep in touch with your consumers, cultivate solid business relationships, and manage your own marketing and sales.
This strategy entails locating worldwide consumers for your company and exporting items to them upon request or purchase.
This strategy is typically capital demanding since you must either make the things yourself, which is costly or acquire them outrightly from the producers to export with your own margins.
Really, if you want to make money through this process, you will have to take seriously the process of finding the ideal product for the ideal customer. You can sell any good that appeals to your international customers.
The best option would be for you as an individual or group of individuals who want to make money from exporting goods from Nigeria to find out how other exporters in your category are already doing.
Read About: Important Shipping Mistakes you must Avoid When Importing to Nigeria
Using Export Management Company
With this option, there is a sure way to make money from export business. An export management firm is a private company that helps non-competing suppliers and manufacturers distribute their products to international markets.
Export management is a business discipline that focuses on the management of export operations. These operations include the actual exporting of goods from their country of origin to other countries, where they are sold.
The export manager is responsible for coordinating the exporting process for your business. They ensure that all necessary steps are taken at each phase of an export transaction, from identifying potential markets abroad, finding suppliers who can meet customer demand and managing orders to completion status.
As a supplier, you would be given a fixed amount to pay the Export Management Company every month, and sometimes (yes), they request a commission for every successful sale.
The supplier would usually have a fixed amount they pay the Export Management Company monthly, and also a commission they’d earn on every successful sale.
The export management companies shoulder the responsibilities of identifying potential markets out there, sourcing for suppliers and even distributing the goods to the international market on your behalf.
Using Export Brokers
This option gives you an opportunity to not worry about how to connect with buyers for your goods. The export broker come to your rescue on that.
So, who is an export broker? An export broker is a person or company that connects buyers and sellers for a fee but does not participate in real sales transactions.
Their role is to function as a middleman for the exporter. And in other cases, they also stand in for importers as well.
This leaves you with only a few other things to worry about.
And that is the sales transactions. You may export diverse items from different businesses and yet make significantly more money than the individuals you’re brokering for.
Conclusion
To succeed in exporting goods and services, you have to first undertake a systematic investigation of all your business options.
And when you do, you’ll discover one of the three ways that you can use to make money from your export business in Nigeria. It’s really up to you on how inventive and innovative you can be in identifying these options. But the more creative solutions you come up with, the more likely life will be easier for your business.
Certainly, even if you do not have any products to export initially, you can still start small and progress gradually.
One more thing…
The only way you can be sure that your business is on the right track is if you have a fair idea of how to measure its performance. And so it makes sense to set specific targets and work towards them, whether they are financial or non financial in nature.
In case you really need a coach to take you by the hands to start making money rightly from importation, take a look at this.
However, it’s important to remember that everything you do has to have a clear purpose beyond the objective of making money. This doesn’t mean that you shouldn’t have goals in mind. It just means that they should be balanced with quality products and services for your customers, a respectable brand image and professional relationships with your suppliers, partners and employees.
If you can achieve this, then you’re already well on your way to growing a thriving export business in Nigeria.
