Avoid this! 3 Common Mistakes When Starting an Export

Consumer preferences refer to consumers' tendencies in choosing the products they want to get. Every person in a country has different preferences, even for the same product. These differences in preferences can occur because people in each country have different social and cultural backgrounds. For example, people in the United States tend to want to explore the taste of coffee, so they don't want to enjoy coffee that is just bitter, while Egyptian people, who have a tradition of drinking strong black coffee, prefer Robusta coffee. 

1.2) Market Trends

Apart from that, analyzing market trendsis also very important. Market Trends determine where the products we want to sell will be most optimally absorbed. We can analyze trends in need or interest in a product in the country we want to target at a certain time. 

For example, Saudi Arabia is very fond of importing wood charcoal and coconut briquettes from Indonesia. This is because the people have a tradition of cooking outdoors plus the high use of Shisha, or the United States imports wooden furniture because of the high interest in home furnishings made from natural materials. 

1.3) Competitors

We also need to pay attention to competition with competitors. Exporters need to look at the number and quality of existing competitors and compare them realistically with our products. It is necessary to question whether the products we have can compete or not, if not, look for a market that is more realistic in terms of the number of requests and also the number of competitors.

The Impact of Lack of Market Research

Market research is mandatory when starting exports, either direct analysis or from the internet.Choosing the right destination country will provide a higher opportunity for buyers to place orders, and even have the potential for repeat orders and long-term cooperation. However, if your standard or type of commodity is wrong, then your product is at risk of being rejected at the port because it does not meet the standards of the destination country. You can use data from ITC Trade Map, UN Comtrade, or Indonesia Eximbank to analyze import trends in the destination country, or you can carry out market tests on a small scale first (trial shipment). With strong research, the percentage of losses you will experience will be smaller.

2. Not Understanding Export Regulations and Documents

Apart from market research, conducting research on regulations and export documents is also no less important. Each country has its own regulations and forms of documents related to exports, but at least what you need to understand can start from several things such as:

• HS Code (Harmonized System)
• Certificate of Origin (COO)
• Invoice
• Packing list
• to export permits from relevant agencies. 

LPEI (Indonesia Eximbank) states that 80% of new exporters experience administrative obstacles, especially in processing export documents and understanding customs procedures. 

Risks If You Don't Understand Export Rules

There are several things that will happen if you misunderstand export regulations or documents, such as:

2.1) Goods are held up at customs

This usually happens because there is an error in the HS code, it does not comply with the COO, or there is no technical permission.

2.2) Fines or Penalties

Apart from that, another impact that can occur is the imposition of fines or penalties due to administrative errors. Errors such as invoices not matching the actual value, documents not being in sync, or packing lists not being detailed can result in administrative sanctions, fines, or a decrease in reputation in the customs system.

2.3) Loss of Buyer Trust

Administrative errors can also result in a loss of trust from buyers. Overseas buyers rely on timeliness and clarity of documents in exports. If the goods arrive late or do not comply with the provisions of their country's documents, the buyer can cancel the transaction, not make a repeat order, or even give a bad review or terminate the cooperation. For example, an exporter from Indonesia lost a buyer from Europe because he did not attach fumigation documents according to EU standards for rattan exports. As a result, the goods are returned and the buyer chooses another supplier.

To increase your knowledge regarding export regulations and documents, you can take part in training usually held by the Ministry of Trade, Customs, or training usually held by other agencies regarding export regulations and documents. Apart from that, having a professional mentor in the export sector can be one of the most appropriate solutions to minimize errors in administration.

3. Inappropriate Pricing (Underpricing or Overpricing)

New exporters often set prices based on personal estimates or local prices, not based on calculations of export costs and the purchasing power of the destination market. According to the Indonesian SME survey (2023), more than 55% of novice exporters do not understand how to create an export costing sheet which includes FOB, CIF, and landed costs. If you do this, there is the potential for several things to happen, such as:

3.1) Financial Loss (Loss Margin)

Having a low price will not always be the right choice. Setting low prices without the right strategy will only result in losses to yourself. For example, you sell a product for $5, even though the total costs (including freight, documents, and margin) reach $6. So each delivery is actually minus $1 per unit.

3.2) Uncompetitive Prices

Setting prices too high without conducting market research has the potential to make buyers refuse to buy your product, buyers have the potential to look for other competitors who have more competitive prices than your product.

3.3) Buyer Does Not Repeat Order

Unstable prices will prevent buyers from having trust issues with your product. Exporters' trust in buyers is very important, you have to ensure that your product will not experience significant price changes, so that it will provide a sense of security for buyers with repeat orders or long-term contracts with you.

To overcome this, you can make detailed calculations of export costs starting from production, packaging, logistics, to margins, then use price references from foreign buyers or trade data from ITC. 

The points above are three of several things that should be anticipated to minimize losses when starting exports, but this does not mean that they will dampen enthusiasm for starting exports. Does the above mean that starting exports must be smart first before you can start? The answer is no, but by continuing to learn you will minimize losses from export activities. 

If you want to start exporting, repack.id can help send samples in small quantities, or products in large quantities quickly and safely. With free pick up service, you can send your products from just home. Just contact the contact person listed on the website and social media repack.id for further consultation.

Reference:

• Central Statistics Agency (BPS). (2025). Indonesia's non-oil and gas export value March 2025. Jakarta: BPS.
• Ministry of Trade of the Republic of Indonesia. (n.d.). National export data and exporter sustainability survey. Jakarta: Republic of Indonesia Ministry of Trade.
• Indonesian Export Financing Institute (LPEI). (2024). Report on administrative barriers for novice exporters. Jakarta: LPEI.
• Indonesian SMEs. (2023). Survey of SMEs' understanding of export price calculations. Jakarta: Indonesian SMEs.
• International Trade Center (ITC). (n.d.). Trade Map: International trade statistics for international business development. Geneva: ITC.
• United Nations. (n.d.). UN Comtrade: Global trade database. New York: United Nations Statistics Division.