Step-by-Step Process of Exporting Goods Successfully

Exporting goods can open the door to new opportunities, larger markets, and increased profits. By expanding the company’s turnover, it enables its expansion and growth, with a variety of markets with different types of customers. However, for many businesses, the process may seem complicated and overwhelming.

This guide provides a clear, step-by-step process to help you understand how exporting works from start to finish.  Whether you are a small business exporting for the first time or a growing company looking to expand internationally, this guide will help you manage the export process with confidence and set your business up for global success.

The Benefits of Exporting

As global trade expands, more companies are entering international markets. Exporting has several key advantages.

• Increased sales: If your domestic sales are good, exporting is a way to expand your market, find foreign niche markets and take advantage of demand around the world.
• Higher profits: If you are able to provide fixed costs through domestic operations or other types of financing, your export profits can grow very fast.
• Economies of Scale: Expanding into larger markets enables you to increase production, optimize resource use, and lower overall costs per unit.
• Decrease vulnerability: If your business expands in international markets, you prevent depending on a single marketplace and suffering from a domestic recession
• New knowledge and experience: The global marketplace is full of new ideas, approaches and marketing techniques that could also prove successful in your own country.
• Global competitiveness: The experience your company gets internationally will help keep you competitive in both the domestic and the global marketplace.
• Domestic competitiveness: If your company succeeds in the global marketplace, it will ensure your persistence to potential foreign competition in the domestic market.

Exporting goods versus exporting services

Exporting goods and exporting services are both vital drivers of international trade, but they function in different ways. Exporting goods involves the physical shipment of products such as machinery, food, or raw materials across borders. It often requires logistics, packaging, and compliance with customs regulations. In contrast, exporting services, such as IT solutions, consulting, tourism, or education, focuses on delivering value without the need for physical transport. Additionally, goods exports depend heavily on supply chains and inventory, service exports rely more on expertise, technology, and communication.

How to Start Exporting

If you want to export goods to other countries, you need to know the step-by-step process to do it successfully and expand your business.

Evaluate your readiness for exporting

An export-ready business is one that has the capacity, resources and management to deliver a marketable product or service on a global scale at a competitive price. Is this true of your company, and if it isn’t, how to make it happen.

Evaluating your export potential

your product or service must find a valuable market outside of your country. If there is no demand for your product, it would be unwise to continue. When analyzing the export potential of your products/goods or services, it’s better to account for the following considerations:

Customer Profiles

• Who currently uses your product or service?
• Is it for general use or a specific group?
• Does it appeal more to certain age groups?
• Are there notable demographic patterns?
• Do climate or geographic factors affect its use?

Product Modifications

• whether your product needs adjustments for foreign markets:
• Does it need changes to appeal to international customers?
• What is its shelf life, and will transit time affect it?
• Can packaging be adapted to meet foreign preferences?
• Are special documents or certifications required, such as technical or regulatory compliance?

Transportation

• Can it be shipped easily and safely?
• Will transportation costs affect your pricing competitiveness?
• How efficiently does the target market handle incoming shipments?
• Are special containers or packaging materials needed?

Local Representation

• Do you need a local salesperson, marketer, or representative?
• Does your product require professional assembly or technical expertise?
• Is after-sales service necessary, and can it be provided locally or must you handle it?
• Do you have the resources to manage these local requirements?

Exporting services

• What is unique or special about your services?
• Are your services considered to be world-class?
• Do you need to modify your services to allow for differences in language, culture and business environment?
• How do you plan to deliver your services: in person, with a local partner or by electronic means such as the Internet?

Capacity

• Will you be able to serve both your existing domestic customers and new foreign clients?
• If your domestic demand increases, will you still be able to look after your export customers and vice versa?

Linking to Global Value Chains

Connecting your business to global value chains (GVCs) is a key step in the export process. GVCs are networks of production, distribution, and services that span multiple countries. By linking to these chains, companies can access international suppliers, partners, and customers more efficiently.

For exporters, understanding how to position their products or services within these networks is crucial for competitiveness. Participation in GVCs allows businesses to specialize in certain stages of production, reduce costs, and benefit from shared expertise and technologies. It also opens opportunities for collaboration, faster market entry, and integration into established international markets.

Developing an export plan

An export plan is a business plan tailored to international markets. It outlines your target markets, export goals, required resources, and expected outcomes, helping guide your company toward successful global expansion.

Careful planning is essential for export success. Financial institutions and lenders typically support businesses that have a well-prepared export plan. Moreover, potential partners and investors want to see how you plan to get your goals.

Your export plan should contain the following:

1. Introduction

• business history
• vision and mission statements
• purpose of the export plan
• organizational goals and objectives
• international market goals
• short- and medium-term objectives for exporting
• location and facilities
• short- and medium-term objectives for exporting
• location and facilities

2. Organization

• ownership
• management
• staffing
• level of commitment by senior management
• relationship between exporting and domestic operations
• corporate experience and expertise in exporting
• strategic alliances
• labor market issues abroad

3. Products and services

• description of products and services
• key and/or unique features that distinguish your product/services from those in the target market adaptation and redesign required for exporting
• production of products and services
• future products/services pipeline
• comparative advantage in production

4. Market overview

• political environment
• economic environment
• size of market
• key market segments
• purchasing process and buying criteria
• description of industry participants
• market share held by imports
• tariff and non-tariff barriers
• industry trends and other market factors
• market outlook

5. Market-entry strategy

• target market(s)
• description of key competitors
• analysis of competitive position
• product positioning
• pricing strategy
• terms of sale
• distribution strategy
• promotion strategy / development of sales leads
• description of intermediaries and partners

6. Regulatory and logistical issues

• intellectual property protection
• other regulatory issues
• modes of transportation and cargo insurance
• trade documentation
• use of trade service providers

7. Risk factors

• market risks
• credit and currency risks
• political and other risks

8. Implementation plan

• key activities
• evaluation criteria and process

9. Financial plan

• revenues or sources of funding
• operating budget
• cost of sales
• marketing and promotion costs
• other expenses or expenditures

Identifying your target market

Market research is the most important contributor to your international success and the key to understanding your opportunities. More than 190 countries are in the world and you want to target the right one(s) for your product or service.

Market research offers you insight into how a new market can be developed. It also helps you discover what’s important to your potential customers. There are three basic stages of international market research:

Stage 1. Screen potential markets

Identify five to 10 large and fast-growing markets for your product or service. Analyze their performance over the past three to five years. Then, target three to five of the most promising markets for further study.

Stage 2: Assess Target Markets

Start by analyzing trends that could affect demand for your product or service. Estimate overall consumption of similar products and determine how much is imported.

Examine both domestic and international competitors, including their market shares at home and abroad. Understand distribution channels, cultural differences, and business practices to support your marketing strategy.

Identify any trade barriers in the target country, such as tariffs or non-tariff restrictions, as well as domestic regulations like export controls that may impact your exports. Finally, study government incentives (federal, provincial, or foreign) that could help promote your product or service in international markets.

Stage 3: Draw Conclusions

Based on your market analysis, you may decide to focus your marketing efforts on just a few markets. Typically, starting with one or two countries is sufficient for a successful export launch.

developing your export marketing strategy

An export marketing plan differs with advertising, sales or promotion. Marketing is strategy. Advertising, sales, and promotion are the tools of your strategy. A good marketing plan should be built around your research and should contain the following section:

• Goals: This section explains how you plan to achieve your objectives, including targets for market share, brand positioning, revenue, and profit.
• Competitive Analysis: This section examines competitors to determine the best pricing and marketing strategies for your product or service.
• Executive Summary: This section outlines the purpose of your marketing plan and explains how marketing activities will support your overall export strategy.
• Product or Service Analysis: This section provides a detailed description of your export product or service, highlights its unique selling points, and evaluates its potential marketability in the target market.
• Market Analysis: This section outlines the vital economic, social, political, and cultural features of your target market. It also profiles your ideal customers, highlighting their buying patterns and the factors that influence their purchasing decisions.
• Marketing Strategy: This explains pricing recommendations, delivery ways, and suggested promotional activities to effectively reach your target market.
• Implementation: It lists the certain activities, target dates, and detailed marketing budget. They are needed to execute your marketing plan successfully.
• Evaluation: This part explains how you will assess your marketing plan at different stages to check if your goals are being achieved and what adjustments are needed.
• Summary: This section briefly explains how the goals of your marketing plan align with and support your overall export strategy.

Remember that you need to modify your marketing plan continuously based on your target customers, their locations, your marketing strategy, your products or services, etc.

Entering Your Target Market

Developing a market-entry strategy simply means finding the best methods of delivering and distributing your goods. Generally, market entry is done through one of the following methods.

1. Direct Exporting: The company sells its products directly to foreign customers or distributors. 
2. Indirect Exporting: The company uses intermediaries such as agents, export companies, or international representatives.
3. Licensing and Franchising: You grant foreign companies the right to use your brand, technology, or business model. 
4. Joint Ventures and Partnerships: The company works with local companies to enter foreign markets. 
5. Selling to Multinational Corporations: In this method, you sell products/ services to large multinational companies operating in multiple countries. 
6. Selling to Foreign Governments: You sell your products/ services through tenders and official contracts to foreign government agencies. 

Shipping the Goods

Exporters can deliver their products through four main transportation options, truck, rail, air, or ocean. Selecting the most suitable method, or a combination of them, is important for successful exporting. A good delivery method should get your products there on time and at the lowest cost.

To ensure consistency in international shipping and reduce the risk of misunderstandings, the International Chamber of Commerce created a standardized set of trade terms called Incoterms. Understanding these terms help you communicate effectively with buyers or intermediaries and ensure both parties are aligned on responsibilities and obligations.

When exporting products, you’ll encounter a significant amount of documentation. Working with freight forwarders and customs brokers is recommended, as they can simplify the process and ease your workload overseas.

Freight forwarders can enhance both your delivery speed and the overall quality of customer service. These agencies will negotiate rates for you with shipping lines, airlines, trucking companies, customs brokers and insurance firms. They can handle all of your logistical requirements, or just negotiate your shipping rate; it’s up to you.

Export permits

You’ll need an export permit if:

1. If the destination country appears on the Area Control List, then an export permit is required for all shipments, with the exception of humanitarian goods.
2. The goods fall under the Export Control List, which includes items and technologies that require an export permit under the Export and Import Permits Act.

Export documentations

There are two kinds of documents thar are required for exporting goods.

Shipping Documents

Shipping documents are prepared by you or your freight forwarder. They allow the shipment to pass through customs, be loaded onto a carrier and be transported to the destination. Key shipping documents include:

• commercial invoice
• special packing or marking list
• certificate of origin
• certificate of insurance
• bill of lading/air waybill

Collection documents

Commercial invoice is the important collection document that describes the goods in detail. It is also used for customs records and must include:

• the date of issue
• the names and addresses of the buyer and seller
• the contract or invoice number
• a description of the goods and the unit price including the total weight and number of packages
• shipping marks and numbers
• the terms of delivery and payment

Certificates of origin and certificates of inspection are the other collection document.

Export financing

Export financing plays a crucial role in managing the financial challenges of selling goods or services abroad. International trade often involves higher risks and longer payment cycles, compared to domestic sales. Therefore, exporters need access to reliable financial tools to remain competitive.

Export financing provides the working capital required to produce, package, and ship goods before payment is received from foreign buyers. It also ensures that companies can cover transportation, insurance, and customs-related costs.

Methods of Export Financing

The key export financing methods include:

• Advance Payment: The buyer pays in full or in part before the goods are shipped.
• Open Account: The exporter ships the goods first, and the buyer makes payment after delivery within an agreed period.
• Letter of Credit (L/C): A bank guarantees payment to the exporter once the required shipping documents are presented correctly.
• Documentary Collection: The exporter’s bank forwards shipping documents to the buyer’s bank, and payment is made once the buyer accepts or honors the terms.
• Export Credit Insurance: The exporter uses insurance to protect against non-payment by the buyer or risks caused by political or commercial issues.
• Forfaiting and Factoring: The exporter sells receivables to a financial institution and receives immediate cash, while the institution takes on the collection risk.

In the following chart, you’ll see the advantages and disadvantages of these methods.

Method	Advantage	Disadvantage
Advance Payment	Low risk for exporter, quick cash flow	High risk for buyer, less attractive for customers
Open Account	Attractive for buyers, increases exporter competitiveness	High risk of non-payment for exporter, cash flow pressure
Letter of Credit (L/C)	Reduces risk for both parties, backed by bank guarantee	High cost, complex paperwork and procedures
Documentary Collection	Lower cost than L/C, some control over documents	Weaker payment guarantee, risk remains for exporter
Export Credit Insurance	Protects against political/commercial risks, safer sales	Insurance cost, limited coverage in some cases
Forfaiting/Factoring	Improves cash flow, reduces risk of bad debt	High fees/interest rates, best for specific contracts

Legal Considerations

Understanding legal side of international trade is crucial for risk management. International trade law covers multiple areas, including contracts, intellectual property, customs, export controls, trade sanctions, and dispute resolution. Understanding these laws helps exporters operate confidently and protect their assets.

Key Legal Considerations

Contracts

You should clearly outline the responsibilities, rights, and obligations of all parties. Use standardized international trade terms, like Incoterms, to reduce ambiguity.

Intellectual Property (IP)

 IP protects your patents, trademarks, and designs abroad to avoid counterfeiting and infringement.

Customs and Export Controls

Comply both domestic and foreign customs regulations. Certain goods may require permits or fall under restricted categories.

Sanctions and Embargoes

Be sure that your trade partners and target countries are not subject to trade restrictions. Violations can result in severe penalties.

Dispute Resolution

Decide in advance whether disputes will be handled via arbitration, mediation, or courts, and under which jurisdiction’s law.

International Standards

Be sure that the standards you use in your export product or service comply with those of your intended target market.

E- Exporting

E-Exporting refers to the process of selling products or services to international markets using online platforms and digital tools. Unlike traditional exporting, which relies heavily on physical distribution channels and intermediaries, e-exporting allows businesses to reach global customers directly through e-commerce websites, marketplaces, and digital marketing channels.

Benefits of E-Exporting

E-Exporting has several advantages.

• Wider Market Reach: Small and medium-sized enterprises (SMEs) can access customers worldwide without establishing physical offices abroad.
• Lower Costs: Digital sales reduce expenses related to intermediaries, travel, and international trade logistics.
• Faster Market Entry: Businesses can launch products in foreign markets quickly using online channels.
• Data-Driven Insights: Online platforms provide analytics on customer behavior, sales trends, and market demand, helping exporters make informed decisions.

Key Steps of E-Exporting

To be successful in E-Exporting, it’s better to consider following items.

Evaluate Your E-Export Potential

Before entering foreign e-markets, assess whether your business is ready. Review your current operations, production capacity, and financial resources. Consider if your products are suitable for online sales abroad and whether your team has the skills to manage digital marketing, logistics, and customer support for international clients. Identifying shortcomings early helps ensure you are prepared for global expansion.

Develop an E-Export Plan

a strategic e-export plan should include your target countries, pricing strategy, digital marketing approach, and sales channels, for example marketplaces or your website. Consider operational needs, such as payment processing, shipping, and customer service.

Modify Products for Foreign Markets

Adapt your products to meet foreign customer preferences, cultural expectations, and regulatory requirements. This may involve changes in packaging, labeling, product features, or instructions. Tailoring your product increases appeal, reduces legal risks, and enhances your competitive advantage.

Research Legal Issues Related to E-Exporting

Understand the legal environment in both your home country and target markets. Check requirements for taxes, customs duties, import/export permits, intellectual property protections, and e-commerce regulations.

Leverage Your Website to Sell Abroad

Develop a multilingual, user-friendly website to cater to international customers. Ensure product descriptions, pricing, and payment methods are clear. Integrate secure payment systems and provide accessible customer support. Digital marketing campaigns, such as social media and search engine optimization (SEO), help attract foreign buyers and build brand awareness globally.

Ship Your Products

Plan logistics carefully for timely and cost-effective delivery. Choose the best combination of shipping methods (air, ocean, rail, or road) based on product type, volume, and destination. Work with reliable freight forwarders and customs brokers to streamline processes.

Conclusion

Doing business outside your country can be a complex undertaking. The guide of process of exporting was intended to help get your business export-ready and well positioned for commercial success abroad.

Now, you already have a very good understanding of what it takes to become successful. Use everything that you have learnt and apply that to another new market.

Parsian International Trade helps companies navigate the complexities of international markets. If you want your business to grow internationally, tap into our expertise.

Located in Iran the Middle East, China, and Canada, we provide key business insight and access to an unbeatable network of international contacts. We gather market intelligence, uncover commercial opportunities and help reduce the costs and risks of doing business abroad.