Understanding the 5 Main Steps of Exporting Goods

Exporting goods is a systematic process that requires special knowledge and experience at the international level. If the steps of exporting goods are not properly known and understood, there will be challenges in this path with a high probability, which will either be very difficult or impossible to solve.

For this reason, in this article, we decided to discuss the steps of exporting goods in detail and as much as possible in simple language. With a simple Google search, you will get to know the general steps of exporting goods. But what comes in this article from Hermes blog is the details that you won’t find in other materials. For example, it is important to know what preparations need to be prepared and checked from different aspects so that you can proceed more safely step by step and be more prepared for the challenges of the path.

5 main steps of exporting goods

1. Product selection and feasibility
2. Supply feasibility and supply chain studies
3. Find a customer
4. Evaluation and review of legal and operational issues
5. Conclusion and review of the result at each stage

First step: What is the role of product selection and feasibility in the stages of exporting goods?

The first step in exporting a product is to conduct market research. It involves identifying potential markets where there is demand for a product. Factors to consider include cultural preferences, economic conditions, market size, and competition. Understanding these aspects will help you select promising markets for your product and further your product selection.

Second step: supply feasibility and product export chain study

This stage includes several steps as follows:

2-1) The possibility of supplying goods inside the country

2-2) Studying export challenges and customs restrictions and prohibitions

2-3) Inspection and engineering of the goods transportation route

2-4) Examining the status of goods clearance in the destination country and controlling operational challenges

2-5) Economic study of product supply chain and examination of opportunities to increase the profitability of this chain

The third step: finding a customer

3-1) Studying the target market

3-2) consultation and negotiation

3-3) Contract conclusion

3-4) Choosing the optimal route

This part of the product export process is carried out in such a way that the supplier or the exporting company must send the product sample to the customer and go through the product clearance process as a test. Also, the samples should be delivered to the customer and the terms of settlement and transportation and control of commercial terms should be examined.

Finally, based on the samples and products presented, we have a number of proposals on the table from which we can choose the best. By examining all the conditions and items mentioned above and by studying and considering the economic conditions and the profitability of each choice, we choose the most optimal route to export.

Fourth step: Examining the legal and operational issues of the chosen path

4-1) The best mode of contracting

4-2) Liquidity control

4-3) Capital protection

4-4) return on capital

4-5) concluding legal contracts

4-6) Carrying out operational coordination such as: coordinating with experts in supply, transportation, chain management, clearance operations, etc. and in general team up (formation of an expert group to handle the affairs of the desired project) to advance the project.

Note: Keep in mind that for the implementation of an export project, two legal dimensions and team up must proceed simultaneously.

An important recommendation: it is better to step up contracts, volumes and liquidity in circulation.

This means that if your goal is 100, it is better to plan to reach 1 to 5 first. Then 5 to 20… then 20 to 50 and 50 to 100.

The reason for this recommendation is that you can control the risks that exist in the path of this process and not be surprised at once.

Fifth step: Conclusion and checking the result of each step and acting accordingly

At the end of each operational step, we can include a conclusion. In this way, to see how much our predictions based on the collected information were consistent with what happened in practice. 3 different situations may occur at this stage of the export of goods:

First case) If at the end of the first step of exporting goods, you notice that there are challenges that cannot be solved and it is not possible to solve them in any way, it is better to stop the export work at this stage.

The second case) If there are challenges in the first step, but you know that there is a solution for them, you should solve the challenge first and then enter the second step of exporting goods.

Third case) If there is no challenge in the first step, we enter the second step without delay after the first step.

Note: Be careful that if there is a challenge in the first step, the challenge must be resolved first and then enter the second step, but this does not apply to the second step. That is, in the second step, if there is a challenge, you are obliged to solve the challenge and advance the operational process at the same time.

Hermes Trade Development and Development Company is a trading company that helps suppliers and manufacturers inside Iran to export their products to Russia, Dubai, Kyrgyzstan and Turkey, and as an export management company (EMC=Export Management Company) can be in all or to provide its services to suppliers as part of the product export process outside of Iran. In this blog, the points that are considered for this business group in the stages of exporting goods were reviewed. In the next part, the steps of exporting goods are given in a more general way. It should be noted that these steps may be slightly different in operation details by each business group.