Indirect exporting refers to selling products to a domestic company that resells those products in foreign markets. This approach involves working with a domestic intermediary, such as a distributor or trading company, to reach international markets. Indirect exports is often a good option for businesses that is just starting to enter the international market, as it allows them to develop expertise and establish a network. This method is similar to a dropshipping business.
Indirect exporting examples include:
- A small clothing business in India sells its products to a domestic distributor, reselling them to a retailer in Japan.
- A software company in India sells its products to a domestic trading company, then exports them to customers in the United States of America and Europe.
