Export basics: 12 questions answered.
First questions from businesses that have never sold outside their home country. Every answer stands alone, so jump to the one you need.
Export basics for product brands
First questions from businesses that have never sold outside their home country.
How do I know if my business is ready to export?
A business is ready when its product sells repeatedly at home, supply can grow without hurting domestic customers, and margins can absorb freight, duties and a distributor's share. Management also needs time to answer overseas buyers. A readiness check can show which gaps to close first.
What is the first step to selling a product abroad?
Decide the product range, the target customer and what success means, then choose a small number of markets to test. Avoid launching the whole range everywhere. A one-page expansion brief keeps research, partners and pricing pointed at the same goal.
Should I start with a distributor, retail accounts or direct-to-consumer sales?
The right first route depends on your product and margins. Distributors give local reach and customs knowledge at the cost of margin. Direct retail keeps margin but adds shipping and payment work. DTC can complement or precede distribution when the economics hold.
How many countries should I enter at first?
Start with a small number, such as three priority markets, test the assumptions and expand when the evidence supports it. Entering many countries at once spreads management time, inventory and money thin.
What is landed cost, and why does it matter?
Landed cost is the full cost of getting a product to the buyer's door, including freight, insurance, duties, taxes and local fees. Export price lists should be built from it, so a foreign buyer's retail price still leaves them a margin.
What are Incoterms?
Incoterms are standard trade terms published by the International Chamber of Commerce, such as EXW, FOB, CIF and DDP. They state who pays for freight and insurance and where risk passes to the buyer. Choose the term before you quote, because it changes your price and your liability.
What documents does an export shipment usually need?
Common documents are a commercial invoice, a packing list and a transport document such as a bill of lading or air waybill. Depending on the product and destination, certificates of origin, compliance documents and permits may also apply. A freight forwarder confirms what each shipment needs.
What is an HS code?
An HS code is a standard product classification number used by customs authorities worldwide. It decides the duty rate and the paperwork a shipment needs. A customs broker or freight forwarder can help classify a product, and consistent classification avoids delays at the border.
Do I need an export license?
Most consumer products ship without a specific license, but some products, destinations and buyers are restricted. Check with a qualified specialist or the U.S. Bureau of Industry and Security before the first shipment, and screen buyers against government restricted-party lists.
What is electronic export information?
For many commercial shipments from the United States, an Electronic Export Information filing is made through the Automated Export System, depending on value, destination and product. A forwarder normally files it for you. Confirm the current rules with the U.S. Census Bureau.
How long does it take to land a first export account?
International sales cycles are usually longer than domestic ones, because buyers check regulatory fit, pricing after duties and the supplier itself. No timeline can be promised. Plan for months of conversations before a first purchase order.
What does it cost to start exporting?
Costs vary widely by product and market. Typical items include market research, samples, translation, certifications, freight, insurance, travel and the time of your own team. Build a budget for a pilot in one or two markets before committing to more.
More export answers
Related: Export readiness check
Statements about OutsourcedExport come from this site's solutions, services and industries pages. Everything else is general export guidance. Duties, thresholds and filing rules change, so confirm them with the official agency or a licensed specialist. Nothing here is legal advice.
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