Key points for new foreign trade professionals when using customs data: Don’t fall into traps!

For newcomers to the foreign trade industry, customs data is a valuable tool that can significantly help expand overseas markets. However, effective use of this data requires attention to several key points to avoid common pitfalls. The following are the core aspects that newcomers to foreign trade should pay attention to when using customs data:

1. Data timeliness

The timeliness of customs data is crucial. Newcomers should choose platforms with a higher frequency of data updates, such as weekly or daily. It is recommended to prioritize data from the past three years. These recent data can reflect the latest market trends and demand patterns. For example, there is a well-known seasonal pattern in Western markets. The Christmas shopping season in Europe and the United States is the peak import period. By analyzing the data during this period, you can better understand the demand for related products. In contrast, data before 2020 may be outdated and cannot accurately reflect current market conditions, so it should be avoided.

2. Data accuracy verification

Verifying the accuracy of customs data is essential. One way to do this is to cross-check data from multiple sources. For example, you can compare data from different official trade statistics websites or industry research institutes. Check that the company names in the data are properly cleaned and that product names are standardized. Analyze the historical trends of the data. If there are sudden and unexplained surges or drops in imports and exports, it may be a sign that the data is inaccurate. Also, compare the data with industry reports. Sometimes, the data can be influenced by proxy importers. These importers may misrepresent the actual demand of end users. By carefully analyzing the data, you can identify such anomalies and make more informed decisions.

3. Customer screening

HS codes are very useful when screening customers. These codes can help you pinpoint the product categories you are interested in. To assess the market potential of a region, you can take a comprehensive approach, considering three factors: the growth rate of import volume, the proportion of Chinese suppliers, and the policy friendliness of the market. For example, if a market has a high growth rate of import volume, a relatively low proportion of Chinese suppliers, and a policy environment that is conducive to the development of foreign trade, it may be a market with great potential.

The "market distribution analysis" feature can be used to distinguish between concentrated markets and fragmented markets. In concentrated markets, a few large buyers dominate import volumes, while in fragmented markets, there are many small and medium-sized buyers. In addition, some platforms offer AI recommendation features to help you identify high-potential countries. For example, in recent years, Mexico's new energy market has shown great potential, and AI analysis can point you in the direction of such emerging markets.

4. Compliance

Compliance is critical when using customs data. New foreign trade practitioners must obtain data from authorized third-party platforms. Using data from unauthorized sources may lead to legal issues. In addition, data should not be used for illegal purposes. When it comes to customs declarations, it is crucial to ensure that all information is accurate and true. Common risks include incorrect product classification and false price declarations. Any non-compliance may result in fines, customs clearance delays, and damage to business reputation.

5. Avoid over-reliance on a single piece of data

Customs data is a powerful tool, but it should not be the only source of customer development. You should combine it with other channels, such as social media, B2B platforms, and trade shows. For example, LinkedIn is a great platform for finding purchasing managers. You can search for relevant professionals in your target market, connect with them, and introduce your products or services. TikTok can also be used for product promotion. Through creative videos, you can show your products to a wider audience and stimulate their interest. By diversifying customer development channels, you can improve your chances of success in the foreign trade market.

6. Establish a data tracking mechanism

The foreign trade market is changing rapidly, so it is essential to establish a data tracking mechanism. Regularly update target market information, including demand changes, policy adjustments, and competitor activities. Based on this information, you can adjust your marketing strategies and business plans in a timely manner. This flexibility will help you adapt to the ever-changing market environment and improve business performance.

In summary, by paying attention to these key points when using customs data, foreign trade novices can expand overseas markets more effectively, avoid common mistakes, and achieve better business results. If you want to start using the power of customs data to develop your foreign trade business, take action now and incorporate these strategies into your daily operations!