One of the most crucial issues in the world is market research. Both people who desire to receive the service and those who supply it value its importance. Every aspect of a product, from the advertising strategy to the suppliers, is subject to research in addition to its quality. Business owners or start-ups need in-depth market research, particularly when it comes to foreign markets. What exactly is market research, and why is it crucial? What's more, how do you conduct market research?

Market research is the process of determining whether a new good or service is viable through interviews with potential customers. Organizations or corporations can use this technique to research their target markets and come to informed judgments. Companies that embrace this industry can conduct market research for the organization that needs it directly.

Of course, instead of contracting with these companies, you can also choose to do the market research yourself.

The main goal of market research is to comprehend or examine the market for a specific good or service to predict how the target market will respond. The quality of the service or potential product improves as a result of market research.

What Are the Types of Market Research?

As market research includes certain steps, it can be divided into two types according to the stage criteria of the research. A market research study can be primary and secondary, or it can include components of both depending on your company's goals and the industry you intend to research.

Primary Research

Performing primary research entails obtaining first-hand knowledge of the market and its consumers. Surveys are carried out in this kind of study based on the standards established by the company. Primary research has been effective in identifying buyer personalities and segmenting target audiences.

Secondary Research 

All currently available publically accessible data and papers make up secondary research. Industry trend studies, market figures, various kinds of content, and sales information from the company are a few examples of these documents. Secondary research makes it easier to see trends and study competition.

Note: The source of the data is what distinguishes primary research from secondary research. In secondary research, already completed tests and questionnaires are assessed using standards established by the researcher before being used.

Lean Market Research

Lean market research is more concerned with how the complete research process is carried out than the quality of the information used as a source. It is, in a sense, the core research methodology. Examining the findings of earlier research is the goal of lean market research. It directs the fresh, exhaustive market study that will be conducted. However, relying solely on and utilizing lean market research can be dangerous. Because the market is always changing and there are innovations. Therefore, it is important to turn to primary and secondary research by making use of lean market research to see an up-to-date impact reaction.

5 Steps to the Best Market Research

After having a general knowledge of market research, another important issue is the stages. Market research is a comprehensive process. The better you can manage this process, the more efficient your research process will be.

1. Note Your Request 

Always, the opening phase sets your research. To ascertain the desires of the target audience, it is crucial to start by asking the correct questions and planning the questions you will ask. When posing queries, researchers will benefit from having a clearly defined research topic. These queries ought to be problem-solving-based and project-specific. Ensure that the questions are understood by the respondents and are written clearly. Be sure to capture your desires and interests in writing and utilize them to inform your research audience. Having a specific plan, both within the scope of the product and the scope of the service will always make you a professional.

2. Product Development and Identification to Meet Expectations

Once you have determined the essential traits of customers, you should use this knowledge to pinpoint the precise demographic you want to interview. This group ought to comprise a representative sample of the target market if the decision was made correctly. Your criteria are determined by the product you will put on the market or by how people respond to it. Additionally, you will choose which suppliers and customers you like when conducting market research for your product. Your company requires an identity, to put it briefly. You must specify expectations and what you are capable of delivering.

3. Research Your Competitors

Prepare a prospectus that lists and describes each significant rival. Determine each competitor's advantages and disadvantages, financial condition, and level of respect. Investigate the techniques or middlemen they employ in their operation. Improving oneself requires being aware of what your rivals are doing. So why is this step of market research required? 

Because evaluating a product or service follows the same procedures as your rivals. Customers group you into different categories based on your rivals. As a result, classifying oneself in market research also entails classifying your competitors. And you take action after recognizing your flaws.

4. Analyze Results

The goal here is to create a summary document in which you can organize the results of the market research. At this stage, both the surveys of the customers participating in the research and the summary of your other research results gain importance. Because all data is collected. In addition, by getting information from all departments in your business, new markets that you can enter or issues that you need to develop emerge. The best analysis is possible with results where you can see all the details.

5. Combine Results with Technology

Even in the case of market research, data is the most valuable resource. Developing and optimizing this and using this data in subsequent marketing processes will make you stand out. Document management processes make it possible to use information from heterogeneous sources and allow you to turn this information to your advantage in the best way. In this way, your solutions to both your needs and the situations you encounter will increase. If you use technological developments with analysis results, you can easily manage your future market research.

Communication, advertising, and analysis are the most important elements in market research. If you can use them enough, you will easily meet both your own needs and the expectations of your customers. Your product needs, freight services, and foreign market relations are important in the development of your business.

At this stage, you can benefit from Turkish Goods' quality supply network and products. Emphasize quality in your market research while combining knowledge with research.

Turkey and the USA are allied countries with long-standing and extensive relations. Turkey and America relations, especially after World War II, strengthened and expanded both economically and politically. In fact, the bilateral trade volume exceeded 27 billion dollars in 2020. The common aim between the two countries is to increase the trade volume to 100 million dollars. Also, the USA is an important market for Turkey's food industry. According to current data, the USA ranks fourth in the list of countries importing food from Turkey. The USA realizes record levels of food imports from Turkey every year. In this article, we have compiled for you all the details of how you can import food products from Turkey to the USA.

The US Food and Drug Administration

The USA imports food products from many countries of the world. Turkey is an important commercial partner of the USA in the food sector. FDA is a substantial institution to be known when importing food products from Turkey to the USA. The FDA is responsible for any regulation regarding the import process of food products entering the United States.

The most important criterion is to deliver the products safely to the USA. All import processes in the food industry must be carried out under the import regulations set by the FDA. It is possible to access the extensive rules set for each food product on the FDA website. It is possible to import food products to the USA from Turkey following these regulations.

Process of Importing Food Products from Turkey to the USA

Import processes are carried out according to certain rules and regulations. Each country sets its standards and rules. The sending country is obliged to carry out the import process by all the rules of the relevant country. In case of a break of the determined rules, the import process may be delayed or the import may not occur. In order to import food products from Turkey to the USA, it is essential to know the legal regulations of the USA well. Let's examine these rules and learn how to import food products.

Step One: Prior Notice

The most important step after learning the regulations on the FDA website is to file a Prior Notice. Prior Notice is an electronic application filed through the FDA's website. There is important information that should be stated in the application. Examples of these are country of production, estimated arrival details, shipper’s information, carrier and method of transportation, and FDA product code.

The Prior Notice must be completed at least 2 hours before arrival and at the latest 30 days before. If Prior Notice is not reported or there is incorrect information, you may have a problem with the entry of food products. And also, food products may be denied entry into the country. The most important first step in importing food products to the USA from Turkey is to send the Prior Notice promptly. Therefore, this step should not be skipped.

Step Two: FDA Registration

All foreign partners must be registered with the FDA for the smooth processing of food product imports. Registration in the FDA system is required according to the regulations of the FDA’s system specified in the Foreign Supplier Verification Program (FSVP). All foreign manufacturers, suppliers, and distributors must register with the FDA system. The FSVP system enables foreign partners to realize the import process following all FDA requirements.

Step There: Prepare Bill of Lading

A Bill of lading is an important document regarding import processes. This document has multiple purposes. Examples of these aims are determining the title of the goods, the contract of carriage, and the proving receipt of the goods. The bill of lading must be prepared by the sender or the shipping company.

Step Four: Commercial Invoice

One of the most important documents in commercial transactions is undoubtedly the invoice. A commercial invoice must be present during the import process. The commercial invoice contains detailed information about the sale of the shipped food products. All information shown on the commercial invoice is controlled by the US Customs and Border Protection agents. CBP agents check these commercial invoices to calculate and verify import duties. Incorrect information on the commercial invoice will result in a longer inspection period.

Step Five: Packing List

The packing list contains most of the information found on the commercial invoice. A packing list is needed when importing food products from Turkey to the United States. The packaging contains shorter and specific information. In particular, the sizes and quantities of food products sent should be included in this list. The information that should be included in the packing list is as follows:

• Specific dimensions of each package,
• Number of packages in the shipment,
• Quantity and description of goods,
• Total weight of all combined packages,
• Invoice numbers of shipped products. 

All this information should be transmitted electronically to CBP.

Step Six: Customs Bond

In order to import food products to the USA from Turkey, the import must be covered by a customs bond. CBP requires customs bonds for all commercial shipments to the USA. A customs bond is a financial guarantee that all import taxes and fees will be paid to CBP.

Last Step: Entry Summary

The last document required to import food products from Turkey to the USA is the entry summary. The entry summary is officially called CBP Form 7501. This document includes a combination of almost all the information found in the commercial, invoice, bill of lading, and packing list. In addition, it contains additional information such as the type of receipt of goods, type of bond, and estimated tax. This document is a critical document for the import process. Therefore, it should be fully completed.

Import of Packaged Food Products to the USA from Turkey

If you are importing packaged food products from Turkey to the USA, you must comply with the labeling rules. These rules are set by the FDA. Food products such as all types of packaged products, baked goods, and seafood should be labeled with appropriate information. This information includes country of origin, nutritional information, and ingredient information. Depending on the packaging size of the product, the labeling format also varies.

Import Food Products from Turkey to the USA with Turkish Goods’ Quality Service

Each country has its own legal regulations and rules in international trade. The Import must be carried out in accordance with these rules and laws. Therefore, the import process is complex and difficult in many respects. Turkish Goods supports you at every stage of your import process with its expert teams and experience. By working with Turkish goods, you can carry out your import process without any problems. Click here to get support from our expert team for any questions.

If you have a business where you need to use the freight service all the time, subtle nuances shape your choice. Choosing freight providers with the right service and quality business understanding is not a matter that can be decided only by recommendation.

You need to be conscious of everything from the route of your shipments to pricing. So how do you choose the right freight provider? To come to the right conclusion on this matter, you need to consider many details. Here are the tricks you need to consider when deciding on the freight provider:

Detailed Research

You'll be saved from logistics problems by a thorough investigation. Take note of your company's requirements before you start looking for a freight provider. It is crucial to consider the types of services your company will want within the context of shipping, as well as the amounts you intend to send. The course of your business will also be positive with the right orientation.

Care about Real Experience

The most significant element is holding a reputable position in the industry. Experience is, without a doubt, the factor that determines reputation the most.

Verify that a shipper is a WCA-approved member if you are concerned about their reputation and dependability. You have access to the expertise and experience of freight thanks to this logistics partnership network, regardless of how reliable the freight firm is. Moreover, you can find information on this topic using a variety of web tools. You can uncover more business reviews of freight providers you are considering doing business within your country or the global market.

There are a few specifics to be aware of when it comes to the experience of a shipper. You need to know if your partner has the industry expertise to negotiate the laws and regulations in both the country of origin and the country of destination if you're dealing with import and export customs. To prevent future issues or penalties is a huge duty.

A Good Network

Relationships within the shipping sector are essential. Connections in the maritime sector, communications in the aviation sector, and many more are required. These websites assist shippers in negotiating better rates with carriers and more effective local government and paperwork routing. In essence, you get good service from seasoned freight suppliers with a strong communication network.

In addition, the communication networks of freight providers using technology are also strong. It has an extensive supply network in both digital dimensions. It also deals with its resources and you in a versatile way in terms of communication. 

Choosing providers that have been directing their communication on a local and international basis for years and positioned their business in this direction also gives you the advantage of time. Having a strong network is as important as knowing their job. Your work will be done both in high quality and fast.

Risk Management Experience

Transportation is known worldwide as an unstable issue. We can say that transportation is a sea of complexity, especially when it comes to multifaceted and complex freight services. Especially if two or three different transportation methods are to be used, question marks come into play about the transportation of products.

Because of this, you require a transportation firm with the expertise to handle issues as they arise and the ability to mitigate risks, particularly transportation hazards. If your freight supplier can think quickly and present you with solutions, you will be completely taken care of. Cargo insurance is one method of risk minimization. Ask about the available cargo insurance upfront because it could be expensive to expose your business to ordinary carrier liability.

Being solution-oriented also means being open-minded. If you work with a provider who does not take responsibility for even a small problem, communication problems will increase and you will also be psychologically worn out. So make sure you're dealing with people with whom you can communicate openly and who can embrace problems as well as questions.

Comprehensive Service

Do your products need cold storage? Or do you need a multimodal freight service for the transportation of your products? Do you want to see the route of the transported products, moment by moment?

Naturally, you have to have included these inquiries in your list of requirements when conducting the in-depth study. However, you must also decide how important the responses to these queries are to you. The capability of freight providers to offer these services is a crucial stage due to the variety of offerings. If you choose a local business because you want to make sure it's reasonable but your products are late or of poor quality, you'll suffer more financial losses. Would you like this?

The freight supplier needs to be able to give you the required documentation or have knowledge of it. For instance:

• Having invoices notarized on the sender's behalf
• Correction of document errors
• Getting certifications (insurance, inspection, etc.)
• Document preparation and review
• Helping with the clearance of customs
• Services for transport logistics

You should study the benefits these documents can provide you with in addition to learning about them. For instance:

• Negotiation of air, sea, and road freight experience
• The capacity to choose appropriate transport routes
• Planning for loading and packaging.
• Choosing the right freight insurance

Knowledge of the above-mentioned documents and applications are just a few of the important services in terms of organizing. Are these services not important to you as well? That's why; be sure to search for freight providers that offer comprehensive services.

Transparent Pricing Guarantee

You won't experience unexpected pricing while working with freight providers who follow a price-transparent approach. In some cases, you can see that the suggested total freight price isn't clear and that the expenses are combined. You might not even be aware that shipping companies are charging you brokerage fees or fuel surcharges. It will be easier for you to budget if you can find a freight provider with a clear pricing structure.

You can choose the right choice for you. When choosing a freight provider, be sure to review all of the above-mentioned steps. Clear rules are important for happy results. You can upgrade your business life in line with your planning. That's why contacting the right freight providers means you're applying the right strategies to your own business as well.

The People's Republic of China is one of the countries in international relations that is referred to as the global power. Because China has a powerful economy, political force, and army. Located in far East Asia, China has commercial and political partnerships with almost every country around the world. China is known for its investments in foreign countries and fast-growing economy with its export of Chinese-origin products.

China-Turkey relations have been developing rapidly in different aspects since the 1970s. 'Friendship-based' diplomatic and economic relations between the two countries progress. In particular, high-level protocols and strategic partnership agreements between the two countries in recent years strengthen the relations. Strengthening and developing economic relations with global trade partner China is very important for Turkey.  Also, Turkey is aware of this importance and follows policies with a multilateral economic partner model. This policy aimed at enhancing cooperation is the Asia Anew Initiative. The main aim of the Asia Anew Initiative is to develop economic cooperation, increase mutual investments and strengthen trade relations with Asian countries.

Let's examine in more detail which areas the Turkish-Chinese economic relations have developed. In addition, we will look into the importance of trade relations between the two countries.

Trade Relations Between China and Turkey

Turkey-China relations are progressing within the framework of strong relations dating back a long time. The most important pillar of the strong relations between the two countries is undoubtedly economic relations. China is one of the countries with the strongest economy in the world in the Asia Pacific region. Turkey is the country that imports the most from China today. Therefore, Turkey is one of the most important and largest trade partners of China.

According to the data shared by the Ministry of Foreign Affairs, China is Turkey's second-largest trading partner. Also, the trade volume between the two countries in 2021 is 35.9 billion dollars. The main products exported by Turkey are natural borate ores, marble, travertine, iron, chromium, other precious metal ores lead, zinc, copper, boron oxides, and boric acids. 

Among the products Turkey imports from China are tools for receiving,  converting, and transmitting audio-video. Additionally, there are other tools such as compressors, telephones for cellular/other, wireless networks, automatic data processing machines and units, and converters.

In recent years, an increase has been observed in the export rate of agricultural and livestock products to China. China demands cherries, grains, flour, starch, and pistachios the most. According to the data shared in 2022, white meat exports to China increased by 353% in the last 12 months. It reached a value of 61 million dollars. In addition, there is a notable increase in the export of dairy and water products to China.

Commercial Investments Between Turkey and China

The total trade volume between the two countries in the last five years has reached 100 billion dollars. Again in the last five years, the rate of investments from China to Turkey has increased by 120%. China's total investment in Turkey is approximately four billion dollars. Among the sectors of investments made are telecommunication, livestock, finance, energy, infrastructure, and mining. Marmaray, Eurasia Tunnel, Istanbul Airport, Çanakkale 1915 Bridge, and Yavuz Sultan Selim Bridge are investments made by China in Turkey's transportation infrastructure.  

Today, more than 1000 Chinese companies operate in Turkey. The Bank of China and ICBC Turkey are among the leading investors in the banking and finance sector. Also, Chinese smartphone manufacturer companies such as Xiaomi, Oppo, and Vivo are among the important companies that invest in Turkey.

The Importance of Belt and Road Initiative

Turkey supports the Belt and Road Initiative, one of China's most comprehensive global initiatives. One of the reasons why Turkey supports this investment is Turkey's strategic location and its proximity to energy resources. China, on the other hand, being aware of Turkey's strategic importance, sees Turkey as a gateway to the Middle East, and North and Central Africa. Therefore, the Belt and Road Initiative is an important investment that will support the strengthening of bilateral trade relations between Turkey and China. Turkey has been working with China on the Belt and Road project for five years. 

In 2015, bilateral agreements were signed between the two countries in order to harmonize the "Middle Corridor" project put forward by Turkey and the Belt and Road initiative. White goods were exported to China in 2020 from the Baku-Tbilisi-Kars railway, which is of critical importance for the Middle Corridor Project.

Another Important Trade Relations Between Two Countries

In many sector groups, the commercial and economic relations between the two countries continue to strengthen yearly. In 2019, a bilateral currency swap agreement was signed between the CBRT and the Central Bank of the People's Republic of China. The purpose of the swap agreement is to facilitate trade between the two countries in local currencies.

Relations between the two countries continue to progress positively in the tourism sector. The goal is to increase the number of Chinese tourists coming to Turkey from China to one million. Yearly increasing tourism enables the Turkish and Chinese peoples to get to know each other's culture, language, history, and values better. 

2018 was declared Turkey Tourism Year in China. There was a recession in the tourism sector in 2020 and 2021 due to Covid-19. However, serious increases are expected in the number of tourists with the slowdown of the pandemic.  In addition, in the health sector, especially during the Covid-19 period, vaccines and health equipment were provided from China to Turkey.

Finally, Turkey and China are two important trade partners that have maintained their political and economic relations for over 50 years. Trade agreements, economic investments, and cooperation in many sectors between the two countries are very important for the economies of both countries.

There are many alternative transportation options when trading goods, products, or commodities from one country to another. One of the most widely used transportation methods to provide logistics in trade is sea transportation. Short sea shipping (SSS) is a type of transportation preferred by the European Union, especially in recent years. Let's dive into what short sea shipping is and the advantages it provides.

What is Short Sea Shipping?

Short sea shipping is defined as goods that do not cross the ocean while being traded from one country to another. In short sea shipping, there is no specific limit of transit time or nautical miles traveled by ship. This type of transportation has a short transit time compared to other types of sea transportation. Additionally, short sea shipping is generally less costly and is a slower mode of transportation. In this respect, it has similar characteristics to road transport.

Economic and environmental factors are among the most important reasons for preferring short sea shipping. This type of transport is seen as an alternative to rail and road transport. Short sea shipping is the use of coastal and inland waterways to transport goods to ports without crossing oceans or deep waters. In other words, short sea shipping is the movement of goods along the coast without crossing the seas.

Although short sea transportation has become much more preferred in recent years, this type of transportation has been used for centuries. This shipping type began to be used in Europe. Also, short sea shipping is generally preferred by scale economies. Nowadays, short sea shipping accounts for about 40% of world trade. In particular, short sea shipping is often preferred in trade from the Mediterranean, Baltic, and Black Seas.

Advantages of Short Sea Shipping

Today, the reason for the preference and development of short sea transportation, especially by the European Union member states, is undoubtedly the benefits provided by this shipping method. In this section, the benefits of short sea shipping will be examined.

Provides Energy Efficiency

The transportation industry uses significant energy consumption worldwide. Due to environmental concerns, it is important to consume as little energy as possible. Short sea shipping is one of the most energy-efficient types of transport. It is possible to save fuel thanks to SSS.

Eco-Friendly Shipping Way

One of the most important and notable benefits of short sea shipping is that it's eco-friendly. The EU gives priority to short sea shipping. Because the EU attaches importance to climate change and environmental problems. The EU sets targets for the elimination of environmental problems almost every year. One of these targets is to reduce greenhouse gas emissions from transportation by 60% by 2050. In addition, by 2030, 30% of road freight transport will be changed to other modes of transport. At this point, short sea shipping is very important in terms of realizing the targets of EU member states.

In particular, short sea shipping is an important alternative to road transport, as it is an eco-friendly and greener mode of transport. Short sea shipping contains much fewer carbon emissions per tonne. It is important that short-distance transport is widely adopted around the world. Because short sea shipping contributes to the reduction of carbon footprint and the achievement of sustainable development goals determined by the United Nations.

Road Safety Shipping

Short sea shipping allows countries to carry out ocean transport more reliably. Also, short sea shipping is much safer compared to other types of transportation. For example, with SSS, there are no problems such as driver problems, traffic accidents, delays caused by traffic, and capacity problems. Short sea shipping ensures a safe end-to-end logistics process.

Time-Saving

One of the most important advantages of short sea transportation is that it saves time. Thanks to the SSS, the goods or products are delivered to the location in a timely and consistent manner. In this type of transportation, delays are not experienced as much as in road transportation. The SSS provides timely departures and arrivals. In this way, suppliers do not have to deal with inventory problems or keep stock in the warehouse.

Cost Savings

An important factor in preferring short sea shipping is that it is cost-saving. SSS is much less costly than road and air transport. The capital costs required for the infrastructure of the SSS are much lower compared to the infrastructure expenditures of the highway. In addition, with SSS, much more bulky, numerous, and heavy goods can be transported. A ship alone can carry goods with a capacity of about 500 trucks so it is possible to save on costs.

Development of Short Sea Shipping in Turkey

Turkey is a country surrounded by seas on three sides and located at the intersection of Asia and Europe, which is a strategically very important transit point. For these reasons, Turkey has an important position in international sea transport. 

Turkey is surrounded by the Black Sea, the Sea of Marmara, the Aegean Sea, and the Mediterranean, and has the longest coastline at 8,333 kilometers. Recently, work has been carried out to develop international sea trade and especially short sea shipping in Turkey. In this context, it is aimed to make new investments in ports and expand existing port capacities. Thanks to the advantages it provides, short sea shipping can support sustainable economic growth and increase export rates in Turkey.

Turkish Goods Provides Safety Shipping

Turkish Goods' partner brand Trem Chart is with you every moment of your logistics process with quality service. Trem Chart offers multimodal transport services for marine and dry bulk transportation that are suitable for each tonnage volume. It provides high standards and proactive and fast solutions to its customers by prioritizing safety in the transportation services it offers. 

Trem Chart has a wide range of services. It is at your side with its expert team in every matter you need, such as technical assistance, logistics, and financial and legal consultancy. By importing via Turkish Goods, you will benefit from high-quality logistics services.

Importing goods can be a complicated and daunting task for many. After all, the process involves many different steps, risks, laws, and regulations to consider. While choosing the products to import and choosing the right suppliers are quite important, choosing the right payment option is also crucial for a safe and risk-free process. 

There will always be risks since there are many variables to consider. However, it is in your hands to minimize these risks as much as possible. One of the important ways of minimizing risks is choosing a safe payment method. Importing a product from a different country requires you to be more thoughtful about the payment. It is not as simple as buying a product online. You need to consider the loading of the goods, the shipment process, possible damages that can occur and other problems that may arise during the process. 

Choosing the right payment option allows you to be safe in the face of possible problems. Certain payment options will protect you from financial losses. Therefore, you need to take the time to choose the perfect payment option for your situation. We have prepared this guide to help you make safe international payments for your imports. Let us take a deeper look into the payment options you can consider.

Risks to Consider Before Deciding on the Payment Method

There are certain risks involved that you need to be aware of and consider before making a final decision as to the payment method. The risks involved in the process will allow you to understand the losses you might experience and take precautions accordingly. We can examine the risks under three main headings: financial, commercial and political risks. 

• Financial risks: During the transfer of money, you may come across problems. Since most transactions are done in foreign currencies, there is always a possibility of the bank not having enough foreign currency to make the payment. This problem might occur in third-world countries. The payment can only be done once they have enough foreign currency which means the payment might be delayed. 
• Commercial risks: Trade is a mutual transaction. Therefore, importers run the risk of not receiving the products despite making the payment. On the other hand, they might receive faulty or damaged products. Similarly, the exporters run the risk of not being paid despite shipping the products to the buyer. 
• Political risks: The political stability of the country you will be importing from is quite important. Any uprising, instability, or -the worst case scenario- war can make any trade relations impossible. Due to such political events, you might suffer financial losses.

Choosing the Safest Payment Options

After acknowledging the risks that are involved in the import process, you can start thinking about payment options. While each payment method has its advantages and disadvantages, it is better to choose one based on your situation. To help you choose the safest international payment option, we have listed the most frequently used methods in international trade. These payment methods are considered to be the safest for an importer. Read on to decide which one fits you the best. 

Letter of Credit

Letter of Credit, also known as LC, is considered to be the safest payment option. This is because the Letter of Credit is designed to protect both the buyer and the seller during the process. The Letter of Credit is a document issued by a bank that guarantees the exporter will be paid once the products arrive as intended. 

In this type of agreement, the bank is responsible for the payment on behalf of the importer. Once the exporter fulfills their requirements as it was stated in the agreement, the bank verifies it and makes the payment. Therefore, the Letter of Credit protects the buyer. If the buyer doesn’t receive the goods as agreed, the payment is not made to the exporter. If you want to learn more about the Letter of Credit, you can read a detailed article by clicking here.

Documentary Collections

Documentary collection is another international payment method that creates a balance between importers and exporters. The payment process takes place between the banks of both parties. In the process, the exporter starts the shipping process and sends out all the necessary documents to the importer. On the other hand, the importer gives authority to the bank to make the payment once the documents are confirmed. Confirmed documents are sent to the importer to claim. 

This type of payment exposes both parties to less risk. The exporter sends the goods knowing that the payment is secured and the importer pays after confirming the documents. Documentary Collections is known to take less time to set up and cost less than Letter of Credit. However, it should be noted that this payment method is focused on the documents and not goods directly. 

Open Account

Open Account is a payment method that is favorable for the importer. Because according to this method, the seller delivers the goods to the buyer without being paid. The payment is done after a certain time on an agreed date. The agreed date can be anywhere from 30 days to 90 days after delivery. 

This can be beneficial for the importer in many ways. For example, before the payment date, the buyer can start selling the goods. On a different note, the buyer doesn’t need working capital as they don’t have to make the payment as soon as the goods arrive. Thus, an open account is quite liked among importers due to its flexibility. While this method is not exactly favorable for exporters, the sellers who want to build a network of trust and attract more customers might prefer open account payment. 

Consignment

Consignment is another payment method that favors importers. According to this payment method, the exporter delivers the products to the importer. However, the importer doesn’t make a payment until they sell all the goods. This allows the importer to make the payment for imported goods much easier. 

However, it should be noted that this type of payment is extremely risky for exporters. After the shipment, the exporter remains to be the owner of the products. This means that if any damage occurs, it is a loss of the exporter and not the importer. Therefore, this method is rarely used and it is usually preferred by exporters with third-party agents or distributors in other countries.

Safe Import Process with Turkish Goods

Part of making a safe payment in international trade is working with professionals. Turkish Goods has a professional team that takes care of the entire import process once you choose the products you wish to import from Turkey. Turkish Goods also offers the safest payment methods such as the Letter of Credit to make the buyers feel secure every step of the way. No matter where you are in the world, you can safely import products from Turkey via Turkish Goods.