Exporting mistakes to avoid

Choosing overseas partners too quickly – Many times a company is so focused on the goal of getting their products overseas, that they form partnerships too quickly and rush into business relationships with people/companies they probably shouldn’t. Whether it’s a warehouse, distributors, or marketing companies, it’s imperative that you thoroughly check the background of each and talk with past clients, if possible. Just like in the U.S., there are plenty of people overseas who are in business to scam small business owners.

Failing to adapt product, packaging, or literature to foreign market – It seems like an obvious mistake to avoid, but thousands of companies (including big-name companies) have fallen into this trap. Perhaps they didn’t change the electrical adapter to fit a particular country’s outlet, or the packaging and instructions aren’t in the local language, or the wording was poorly translated , or packaging pictures, language or even the product name is considered offensive. There are plenty of things that can go wrong, so double check everything and have the finished product inspected by several people who are from the country you are exporting to.

Putting domestic customers before foreign customers – This is probably one of the easiest and most common exporting traps to fall into. If your product is a successful seller in the U.S., perhaps a good part of the reason is because of great customer service. While it may be more difficult to communicate with customers from a non-English-speaking country, it’s certainly not impossible. You could hire someone who speaks that language to answer e-mails and serve as the customer service contact, or you could outsource that job to an overseas company. It’s important to treat your foreign customers the same way as you treat your domestic customers, even if it means extra effort or expense on your part.

Failing to have a marketing plan in place – It’s funny, but some business owners think their products will magically sell in a foreign marketplace once they arrive at the port. It will take plenty of time and research to devise a marketing plan that details how your products will get into the hands of customers. It’s best to have this plan in place well before your goods are loaded onto the container ship, or else your products could end up sitting at the overseas port for months and months. If you’re unsure about marketing in a certain country, then it would be a good idea to hire someone in that country to help you with or oversee your marketing efforts there.

Taking these common mistakes into consideration could very well save you from future expenses and headaches. If you are new to exporting, then it is important that you are aware of all the risks involved and what you can do to avoid them. Exporting products can, no doubt, be a very lucrative business if done properly. Good luck!

Exporting can seem a bit intimidating to those who have never done it, but if you have all the information and take the time to thoroughly understand the process, you’ll find that exporting can be a fairly simple process.

Here are some basic steps to help you understand the exporting process:

Finding your overseas market - Once you’ve decided that you would like to export your products, you will need to find buyers for your products. Many exporters find that working with a foreign partner makes the most sense, since they have the buying contacts. Finding the right overseas retailers or distributors for your products may be time consuming but it’s definitely not impossible. A good place to start is on two websites that are sponsored by the U.S. Commerce Department: www.export.gov and www.buyusa.gov. Both sites contain directories of foreign buyers.

Making your product ready for a foreign market - This isn’t always simple. If you are selling an electrical product, you may need to make modifications to both the voltage and adapter. Another thing to consider is whether or not your product needs to be in metric standards in order to integrate with other foreign products. Also, your instructions, warranties, product packaging and labels will need to be in that country’s language, with an easy way for foreign customers to submit warranty information.

Shipping Your Products - There is a lot of documentation involved in exporting products and many companies choose to hire a freight forwarder to take care of the shipping and prepare the paperwork. The money that you spend on a freight forwarder will many times be saved by their shipper connections and discounts. For more about freight forwarding, read our article Choosing and Using a Freight Forwarder.

Here are the documents you may need in order to ship your products overseas:

Export license - Normally, exports don’t require this license, however, there are certain categories of products which do need an export license in order to leave the U.S. They are:
* Foodstuffs and chemicals
* Agricultural products

Certificate of origin - In order to qualify for a country’s preferential tariff treatment, you will need to have this form. Many countries allow products a duty-free entrance into their country as long as you comply with their rule of origin.

Insurance certificate - This is usually required in order for your goods to be in transit. Usually the exporter pays for insurance up to the arriving port and then the shipping company provides insurance to the final delivery destination.

Bill of Lading - This is the contract between the exporter and your carrier. The carrier is typically the issuer of this document; however the terms are usually negotiable.

Airway bill - This is only needed for freight shipping via air. Again, the carrier issues it; however, this bill is typically non negotiable.

Invoice - If your goods are being shipped to a particular buyer, and not to a warehouse, then your shipment should include an invoice. This will contain exporter information, payment terms, pricing information, total quantities and the shipment’s weight.

Packing list - The packing list needs to clearly state exactly what is in the containers, the value of the products, and the weight of the products. If there is a mistake on your packing list, it may result in your shipment being delayed in customs.

If you’re a first-time exporter, it may be wise to enlist the help of a freight forwarder to help you with all the details and to make exporting even easier to you. You’ll find that once you understand the process, exporting isn’t as mystifying as you once thought.