E-Commerce for Exporters

In our technology-driven economy, global business has taken on a look that would not have been recognized only a decade earlier. Much of this change can be attributed to the phenomenon known as electronic commerce, or e-commerce. It has redefined the rules of international business and exporting, effectively opening up the global marketplace to entrepreneurs that may not have viewed traditional export routes as viable strategies to grow their business.

While the novelty of e-commerce has passed and its successes and failures as a business strategy have been well documented, it remains a highly attractive option for potential exporters in Canada. It can help a business create an international demand for a product or service and, at the same time, help the business fulfill that demand.

There are many definitions of e-commerce. Businesses that conduct transactions by telephone or fax are often said to be involved in e-commerce. So too are businesses that use electronic data interchange (EDI). However, e-commerce has become synonymous with business conducted over the Internet using Web-based technologies. Many exporters have found success primarily as technology-based businesses.

E-commerce is not quite as simple as designing a Web site and waiting for the e-mail to pour in. However, it does not have to be expensive or complex. It does need to make sense and it does need to fulfill an objective: contribute to business growth and profitability without jeopardizing current business operations. Additionally, e-commerce solutions should ultimately contribute to lower costs and more efficient customer relations.

An exporter can implement an e-commerce solution to perform a number of functions. These include such things as providing information on products and services to clients without the presence of a sales person; verifying availability of products or product alternatives; taking orders for goods or services; confirming purchase prices and payment options; identifying shipping options; confirming the status of orders that have been placed; and following up on customer satisfaction. While an e-commerce solution can have any or all of the functions relating to the selling of goods or services and managing successful customer relations, it must provide a safe and secure environment in which to conduct financial transactions.

Exporters seeking to build business-to-business relationships with foreign firms have found e-commerce to be a blessing. It simplifies the transactions using electronic purchase orders and, more importantly, increases the speed with which these purchase orders are filled - important criteria when time is money. Business-to-consumer e-commerce solutions have different goals, such as easy browsing, access to graphical and/or text information about available inventory and credit card security. The exporter needs to know his or her goals for foreign customers prior to designing and implementing an e-commerce solution.

There are few resources available to exporters that provide an opportunity to reach a world of consumers around the clock. E-commerce has that potential. When approached with forethought, a manageable budget and flexibility to make changes for growth, e-commerce can bring the global market to the exporter's desktop.

Do you want to learn more about exporting your products and services? Pick up the phone and call Team Canada Inc's Export Information Service at 1 888 811-1119 to speak with an export specialist in your province or territory. Ask for your free copy of the Step-by-Step Guide to Exporting or order it online at exportsource.ca/stepbystep.

Curtis Cook is a Certified International Trade Professional (CITP) and a Partner with Global Trade Solutions. He is the author of Patents, Profits & Power, co-author of Competitive Intelligence and writes extensively on international trade.