Trade data refers to importing and exporting statistical data on global trade, sorted by time period, country and commodity using HS codes. Trade data solutions typically mean methods used to analyze and sort large databases. For example, the US government maintains large databases containing information on the trade flow of the United States.
These databases include import and export details, shipments, and related metrics that are sorted both annually and monthly. They also process the information on duties and taxes, customs and import charges, value and volume of commodities, etc.
Why Are Trade Data Solutions Important For US Buyers?
Assume a person trades on the stock market. In order to maintain a healthy investment portfolio, they have to regularly keep checking the market value and track its ups and downs. They’ll even have to analyze the flow of the share market based on other external factors and news.
The case is almost the same for US traders and buyers. In order to regulate the operations of their business and ensure its smooth functioning, they must regularly track the developments in trade flows and gain trade insights. According to that, they can even restructure their operations and form a potentially profitable import-export strategy.
By studying trade intelligence and solutions, the buyers can gain a sound knowledge of the foreign markets. There’s even a chance to understand barriers that arise due to tariffs or other issues when it comes to imports and exports.
On the other hand, exporters can earn a piece of significant knowledge about the increasing demand for their commodities in foreign markets. This applies to the markets where their competitors are active.
Some of the most reliable and well-researched trade data solution providers that the US buyers can reach out to are listed below:
- Seair Exim Solutions
- WITS (World Integrated Trade Solution)
- Import Genius
- Trade Data Monitor
- Global Trade Tracker
How To Leverage The US Trade Database?
For a beginner, the most optimum place to start research on trade flows is on the Data web maintained by the US government for the public to have free access to US trade flows. You have to register an account to access it. Needless to say, there are certain limitations to it, and it contains only that information that is not too sensitive or detailed.
In order to have a piece of more detailed information, you need to take another route. The product classification system used globally for international trade is called the Harmonized Tariff Schedule (HTS). To track your or your competitors’ product, you must first determine the HTS code.
The better you are at following the exact HTS code, the greater are the chances of success. It is important to know that different countries have different methods of maintaining databases. As a result of this, the statistical and other details of global trade data may vary.
For example, the total exports from the US to India on the US database may not be equal to the total imports from the US by India on the Indian database. All the countries report their trade data to a UN database known as ‘Comtrade.’ But even in Comtrade, the datasets received from different countries may vary.
Other Trade Data Solutions To Consider For US Buyers
1. Seasonal Impact
Global trade flows may vary as a result of seasonal changes and rise and fall in demand accordingly. For example, trade-in toys may increase during the holiday season, and the sale of winter clothes like mufflers may increase during winter.
So, the trade data for that month must be compared not with the previous month but with the same month during the last year. Similarly, the estimates must be made for the following year.
Trade does not happen just in goods; it also occurs in services. But there is barely any trade data or trade data solutions for services. Even government data on trade in services is very limited.
3. Importance Of Volume
The statistical details will always highlight the numbers. However, if you want complete trade insights, you must also consider the volume of trade and just the value. The volume, in many cases, is vital in studying trade flows and analyzing trade data.
4. Avoid Re-exports
There are many intermediate goods that cross borders several times, and thus, the shipments are counted each time even when the data is completely redundant. Therefore, you can avoid this data, also known as re-exports.
How Can You Grow Your Business As A US Trader?
After carefully studying trade logistics on global trade data, you can always think of growing further by choosing the right mode of transportation and shipping methods. Also, file AES along with other necessary shipping documentation to avoid any roadblocks at the time of shipping.
Remember to consider all tariff issues and use the tariff tool to find the exact rate of your product. Moreover, risk minimization is crucial for all kinds of traders, and knowledge of trade data can help in doing so. It also helps the traders profit maximization, cost reduction, and comparative analysis between nations to get the best competitive price possible.