Distributing goods and services overseas can happen in many ways. You might put parcels on planes or set up your own online page or physical shop overseas. Or you might ship electronically or distribute through an agent or distributor.
When we think of exporting, we often think of putting goods on a plane or ship. That’s certainly part of exporting, but what exactly happens after your goods leave your factory? And how do your goods get to your customers from the airport or seaport? What if you sell services, not physical goods?
This page discusses shipping and distributing, both vital parts of exporting. Remember as soon as you sell to someone overseas, you’re exporting. That includes providing services to someone overseas.
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.
Information, guidance and documentation for export(external link) — New Zealand Customs Service
How to choose your international partners(external link) — New Zealand Trade and Enterprise
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.
Customs brokers and freight forwarders(external link) — Customs Brokers and Freight Forwarders Federation of New Zealand
Shipping and transport often have environmental costs. Look for ways to reduce those costs by planning ahead.
Explore our Climate Action Toolbox(external link)
Benefits of sustainability for your business and supply chains(external link) — Sustainable Business Network
Services are usually shipped electronically. For example, you might provide software to international clients. You might email consulting reports or designs to the other side of the world. Or you might 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.
E-commerce: online selling of products overseas(external link) — Ministry for Primary Industries
Distribution means getting your goods or services to customers. As well as shipping and tracking, it includes:
Recall is usually only needed if goods pose a problem, like a food poisoning risk or a defect that can be hazardous.
Product recalls explained(external link) — Product Safety
Good distribution means better sales and profits. The best method of distribution depends on things like:
You could distribute your goods or services yourself, or use an agent.
Use insights to sell the right thing in the best place
You could sell through different channels, including some or all of these:
When you start, working with an agent or a distributor may be easiest:
Find out more about orders and deliveries, including outsourcing.
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 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 early.
Exporters often distribute through agents and distributors, but another option may suit you better.
Which sales channel is right for your export business? — New Zealand Trade and Enterprise
For example, who owns intellectual property? How will you pay your agent or distributor? Get legal advice before you sign any agreement.
Distribution agreement template(external link) — New Zealand Trade and Enterprise