We know how the physical distances in trade between companies residing in different countries, especially if the geographical (and cultural) distance is significant, inherently generate distrust and a substantial hindering factor in the evaluation of a product or material from a distant market.

To help the valuation of traded goods, the practice of sending product samples which greatly facilitate the review from buyers and reduces barriers to adopting new products is well established. This operation, which often represents a key step in international trade action, is often faced by the exporting company without the necessary preparation.

The shipment of samples occurs at an advanced stage of the commercial negotiation, and it represents a very positive sign having the proposal picked up an explicit interest by the buyer. It is, therefore, a delicate passage, and if it does not run in the best way you are likely to frustrate all the effort and resources invested up until that point.

The experience gained over many years in international trade allows us to summarize some useful guidelines on how to plan the preparation of the samples properly in order to be effective in approaching this stage of the international sales development of a company.

• Identification of the Good / Category: to get as full and thorough details of the product desired by the buyer to minimize the risk of sending samples not fully matching the real interest of the buyer. Many times the company is tempted to add extra samples of products not discussed or requested. This generally not a sound strategy, because it is better to keep the focus on (a few) specific goods subject of the ongoing sales action (it is indeed by far easier to follow the promotion of incremental products once the business relationship has been established).
• Format: the shipment of small quantity of samples is always expensive and, in cases where the potential customer does not have to assess the product exactly as it is, it can be convenient to create a smaller scale of the product (bearing in mind that the amount of product must be sufficient for a comprehensive assessment, which is often performed by more than one person in the buyer’s organization). This step is interesting mostly in cases where it is interesting to recreate the scale packaging of the original product, or, at least, when the specific packaging has a high impact design.
• Packaging and accessory material: the management of an effective sampling requires attention to many details. In addition to the care in the creation of the sample (and in its full protective packaging), the company must put forward its best effort in adopting high-quality packaging and product accessories. For example, by attaching also brochures, tech-sheets, catalogs, video, a hand-signed letter, whenever possible consistent with the scale of the sample, in short through the creation of a coordinated set of presentation elements.
• Free or paid: The sample assumes the concept to be a free product, but this also depends on not only the value of the product but on the same circumstances. It is obvious that a distribution of free samples can be an expensive policy, but it should as much as possible preserved, rather by setting up rules and putting filters on its deployment. For example, delaying the delivery until all contractual terms of the possible trade have been cleared, to strengthen the real intentions of the other party and the acceptance of the major sales terms.

It is altogether true that, where the value of the asset is significant, the sample is going to be given temporarily to the buyer, who then might be asked for a contribution to the planned expenditure (requesting the payment of logistics or packaging costs, the customs duties, etc.). However, even in this case, the plan of delivery must be studied by possible subsequent scenarios (such as purchasing, or maintaining a permanent sample, see the next point “Managing the return”).

In cases where the single value of the product is reasonable, but the creation of a representative set of samples might eventually make full sampling difficult, it is possible to request a contribution or, even better, to foresee the creation of different kits of products. For example, there could be a free kit, consisting of 7 items, and a kit priced at its direct manufacturing cost, consisting of 20 items, leaving the choice to the buyers to choose from the two options.

It must be clear that any contribution to costs is a reasonable request, establishing a sound business relationship from the beginning: in this scenario, an effective rule is to communicate that the requested contribution will be discounted on the first order.

• Managing the return: in the mentioned case of a product with high added value, the management of the re-acquisition of the property has to be studied in detail before the delivery of the asset. This practice is not only recommended to preserve the value of the sampling but also because the export procedure eventually chosen might foreclose alternative roads in managing the sample once present in the foreign market.

A definitive export of the product is undoubtedly preferable for two reasons in particular: first, the returned goods lose value for their “use” (even if not even used), and second, because of the transportation and insurance costs in the delivery are followed by similar costs for the return of the good. The best solution would be in this case to simulate an export sale directly or through a third party (an importing company, often provided by the same logistics provider). Alternatively, to inquire about the possibility, in a later stage, to transform the status of the property from “sample product” to “for-sale product” settling the customs duties and the registration process. This would allow the sale, even at lower values, of the tested product, with twice the benefits to the exporter to offset the costs incurred in the manufacturing and delivery of the product, and to the importer, who has the first good at competitive prices.

• Optimize the logistics: the shipment of individual samples is often burdensome and involves the use of more expensive express couriers than regular logistics operators. During the sales campaign, on the basis of a forecasted likely number of necessary samples, the company might adopt the solution to ship a higher amount (for example, one pallet or fraction) to the warehouse of a vector in the foreign market, and then manage the dispatch of individual lots to the various potential buyers on site upon request.
• Other documents: the fiscal and customs treatment of samples changes from country to country and it is recommended to verify the necessary documents for the export of the good well ahead of the request of a sample (submitting the inquiry to the logistics partner and customs broker). The request of samples occurs frequently during a business negotiation, and it is important to be punctual in submitting the sample when the attention of the buyers is vivid (and the buying conditions remain unchanged).

An example is given by the invoice accompanying the good: some countries accept a nominal value, others do not (with a direct impact on related customs charges), and still others accept only under certain conditions (such as marking the product “not for sale”, or with the alteration of the good to make it non-marketable, etc.).