A U.S. firm that manufactures automated mailboxes has found a client in Chile. The buyer in...

A U.S. firm that manufactures automated mailboxes has found a client in Chile. The buyer in Chile cannot pay cash and the credit market there makes it impossible to secure financing to buy the product. However, the buyer in Chile knows that he/she can sell the shipped mailboxes swiftly in an all in one profitable transaction. List an option and the process/procedures that the exporter could take in order to make this transaction and sale happen. Your selection should reduce Risk to the exporter of the mailboxes while making the transaction happen. (Countertrade , time draft, extending credit terms are not options-only an answer related to text financing)

Expert Solution

Before you even start an eCommerce business, it is important that you consider the shipping process for your products. Depending on the cost and weight of your products, you will have to decide one of the many options available to make your goods available to the customer. In India, many logistics firms provide shipping services for online businesses all over the country at varying rates and charges. While you can choose one of these options anytime, you can also explore options for contract shipping and bulk shipping.

How to ship the product:

1.It matters a lot how do you pack a box for shipping. With different variety of products, you would be forced to choose a different form of packaging. For example, items that can suffer breakage easily, need to be packed with ample stuffing and bubble wraps, to avoid the incidence of breakage. But this product is not that delicate then also we need to take basic care of products.

2.Choose a convenient and friendly shipping carrier that meets your budget and cost targets. You can opt for contract shipping or local shipping carriers, depending on the items to be shipped and their costs.

3. Calculate shipping rates in advance for your ready reference, which would be based on packing size, package weight, departing country and insurance.

4. Define the shipping constraints that you wish to impose on your customers. This could include free shipping or chargeable shipping. Policies in this regard would have to be framed separately.

The cheapest way is to transport through water ways.Once you have set every thing for your goods to reach your customer, make sure that you follow up with the shipping carrier at regular intervals, to ensure that your goods are on time and will reach the intended customer within the time frame, as promised by you. By taking care of each step, you can satisfy your customers.

Rahul Sunny answered 2 years ago

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