5 Risks of Exporting Manufactured Goods and How to Counter Them?

5 Risks of Exporting Manufactured Goods and How to Counter Them

Regardless of which nation you live in, the standard of living is improving. Multinational companies are spreading their wings and have more buying power than ever. In addition, due to the significant increase in global population, it is becoming challenging for local manufacturers to satisfy domestic demand with their limited supply. In order to meet those demands, the nation has to import several consumer goods. On the other hand, to ensure the balance of payment and economic conditions are stable, these nations also export commodities. However, US exporters have to realize all the export risks with manufactured goods.

From dispatching it from the port to having it enter a new market, companies face both logistical and abstract challenges throughout the process. In order to counter these risks, you’ll need all the information, or hire a professional B2B service provider to deal with the export risks for you.

Take a look at five common risks of exporting manufactured goods B2B exporters face and their solutions.

Five Common Export Risks Exporters Face

1.      Lack of Experience with Distribution Laws and Border Control

Tariffs, customs clearance, knowledge of local rules and regulations are just a few problems you may face before your products enter a nation.

To ensure that your products cross the border without any complications, you should consider hiring a local and experienced customs law consultant or a trade compliance service provider. Such organizations can save you from the loss of getting your exports held up at the customs.

Lack of Experience with Distribution Laws and Border Control

The three primary distribution methods you’ll see while exporting to a specific country are partnerships/joint ventures, licensing, and direct shipping. It will depend on the country you are exporting to. For e.g. there are many nations that strongly recommend traders to buy local product. Therefore, in such circumstances you may have to partner up with a local entity or manufacture locally to sell your products in their market.

Be careful with who you choose to collaborate with. Many countries across the globe have adopted a culture of bribery and corruption. You can consider the cost of running a business there. You have to assure that your partners respect and understand all the laws of your home country.

2.      Uncertain Logistical Business Planning

If you are a Chinese supplier planning on exporting your products to Brazil, there are many things that you’ll have to be careful about. From making sure your shipment departs and arrives without any delays to having handlers ready in Brazilian soil to hold the responsibility of receiving the shipment, all have to be arranged. In addition, you have to take in to account any possibility of loss, damage and theft.

Therefore, solid logistical planning is crucial to make sure all things start as planned. You’ll also need to connect with a local logistical partner who is familiar with all Brazilian laws and regulations.

3.      Not Having Regional Experts and Consultants

Exporting your products from one country to another isn’t the real challenge. Once your products reach foreign soil, that’s when the real export risks begin to arise. If you’ve chosen to export via sea, then there are chances that some of your products may end up faulty. On the other hand, your product can also get caught up with local copyright laws. To evade such complications, you need a local consultant and regional expert beforehand to guide you with every rule and complication that may arise in advance. That way, you’ll be prepared for the worst and also try your best to counter all problems. 

Not Having Regional Experts and Consultants

It’s always easier to enter a market with someone familiar with the local culture. Also, local experts are familiar with the native language, which plays a significant role in building trust between domestic and foreign businesses. In order to be effective in exporting manufactured goods, make sure your team is prepared to deal with every economic aspect. If you feel that you can’t arrange a team, then consult a local logistics provider to help you become familiar with the native trading culture.

4.      Having Clear Knowledge of Each Market

Once your shipment lands on foreign land, the last thing you could wish for a conflict with the buyer. Also, if they refuse to make the payment, you’ve landed yourself in a big mess. To get away with such situations without making a loss, you should have complete knowledge of the market you’re about to enter.

That means, before closing a deal and shipping the order, ensure all legal matters are dealt with, and proper documents have been made for the deal. A contract that states all conditions according to the local market will help you stay on the safe side in case any conflict does occur.

5.     Not Knowing the Current Demand of your Product

You can’t expect to sell your products in every country around the world. Just because your product line is a hit in your home country, and neighbor nations, it doesn’t mean that you’ll get the same response from other continents.

Not Knowing the Current Demand of your Product

Before actually spending thousands of dollars on shipping your goods, you should study the market you plan on entering. Visit the country and see if similar products are available or not. If not, then you’re probably in luck. However, if similar goods exist, you can check the quality and flaws to make your product better than the local editions.

Also, take a few samples with you and show them to leading importers of your respective industry. If you feel it isn’t suitable to enter the market on your own, you can partner up with a local supplier and enter the market through a channel. Analyze the business’s performance and market conditions. You wouldn’t want to end up sending your products to a place where it won’t sell. In addition, a proper study of the local market can also help you plan which aspect you can compete in based on uniqueness, quality, value or even price.


Exporting manufactured goods is an excellent way of growing your business. Once you start earning foreign income, not only do you benefit your company, but it also improves the BOP of your home country. However, as lovely as it sounds, there are many export risks. The ones mentioned above are the most common so you should start working on them to avoid making any loss from day one.