Common Mistakes Made by Exporters and How to Avoid Them

E-commerce exports is India’s new sunrise sector. The Government of India has recognized its potential through a chapter on e-commerce exports and enabling provisions in the new Foreign Trade Policy 2023. Given these positive policy changes and increased awareness about the potential of the sector, we at Amazon Global Selling are seeing a significant increase in the number of exporters looking to build global brands through e-commerce exports.

Such exponential adoption also means that new entrants face heightened competition in international marketplaces and need to adopt enabling tools and strategies to get their product mix right, choose the appropriate markets, and figure out payments, logistics, compliance, and other aspects of the business.

So, how does one compete and stay profitable in such a dynamic industry? 

There are many things an exporter can do to stay profitable while conducting their business through e-commerce exports. The easiest and most obvious place to start would be to avoid making common mistakes made by some exporters. 

While exporting can indeed be complex and challenging, being aware of these mistakes and avoiding them can ensure a smoother path to success. Here are some common mistakes made by exporters and tips on how to avoid them:

Incomplete Market Research

Failing to conduct thorough market research is a significant mistake. It's crucial to understand the target market, including cultural nuances, local regulations, competition, and customer preferences. Conducting market research will help you tailor your products or services to meet the specific needs of the target market.

How to avoid it: Invest time and resources in comprehensive market research. Understand the demand for your products or services, analyze the competition, and assess the market potential. Seek assistance from local experts or trade organizations to gain insights into the target markets

Inefficient Logistics Setup

Logistics plays a crucial role in the success of an exporting business. It involves the management and coordination of various activities, such as transportation, warehousing, inventory management, customs clearance, and documentation, to ensure the products reach the destination on time and in good condition.

The consequences of not securing a reliable logistics partner can be severe for exporters. Potential customers may be lost, and existing customers who depend on exporters to deliver their products safely may lose trust. As a result, substantial financial losses can occur. 

How to avoid it: Partner with reliable logistics providers who have expertise in international shipping. Choose providers who offer competitive rates, efficient delivery services, and robust tracking systems. Clear communication and transparency regarding shipping times and costs are crucial for customer satisfaction.

Not Complying with International Standards

Exporters are obligated to comply with the export rules and regulations of the destination countries. For example, when exporting to the US, adherence to a specific regulatory framework set by the US government is necessary. Neglecting compliance with export regulations and properly document shipments can lead to shipment delays, rejections, and potential legal consequences. 

How to avoid it: Exporters should stay updated on the laws of the destination country, obtain necessary licenses or permits, ensure accurate, complete documentation for customs clearance, and adhere to labelling, packaging, and quality standards. Consulting with legal experts or customs brokers can help navigate complex compliance requirements.

Choosing the Wrong Platform for Exporting

Choosing the appropriate cross-border ecommerce program or platform is critical to tap into overseas demand, reach the maximum customer base in the right marketplaces, and facilitate effective transactions between your business and customers. It not only impacts the visibility and reputation of your brand, but also determines the level of trust and quality of services provided. 

Unfortunately, many exporters make the mistake of prioritising platforms with lower commissions, disregarding essential factors such as exposure, trust, and quality of services. 

How to avoid it: To ensure a thriving export business, it is essential to approach platform or program selection with careful consideration. Take into account the geographical, language, and cultural barriers that may arise in the exporting process. Look for platforms that facilitate effective communication, offer robust support, and have a strong track record in international trade.

Amazon Global Selling is a program designed to empower and enable Indian exporters in expanding their businesses globally by giving them access to 18+ Amazon global marketplaces across 200+ countries and territories worldwide. 

Amazon Global Selling is making e-commerce exports easy by handholding businesses in their global expansion by providing them with the necessary tools to figure out advertising, marketing, etc., and Amazon products to ease friction points such as shipping, payments and logistics. In this way, Amazon Global Selling is helping Indian businesses showcase their “Made in India” products to a global customer base.

Now that you are aware of the common mistakes exporters often make and how to avoid them, it;s  the perfect time to take proactive steps and embark on your own exporting business journey. Be sure to avoid the mistakes we listed, and watch your business scale from India to countries all across the globe!

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