A Beginner's Guide to Exporting
Exporting opens your business to a much larger market, but the first sale involves steps that don't come up in domestic trade: pricing under an Incoterm, cross-border payment, and export documentation.
Step 1: Confirm your product is exportable
Some product categories (dual-use goods, certain agricultural products, cultural items) require an export license or face restrictions to specific destinations. Check this before you quote a buyer.
Step 2: Price your quote correctly
State your price alongside an Incoterm — "$5,000 FOB Mersin" tells the buyer exactly what's included and what isn't. Quoting a bare price without an Incoterm is one of the most common sources of disputes in a first export deal.
Step 3: Protect yourself on payment
For a new buyer relationship, a confirmed letter of credit is the standard way to guarantee payment: your bank confirms the buyer's bank will pay once you present the agreed documents. As trust builds, terms can shift toward open account.
Step 4: Prepare your export documents
You'll typically need a proforma invoice first (so the buyer can arrange payment or licensing), then a commercial invoice, packing list, and — if the buyer needs preferential duty treatment — a certificate of origin.
Step 5: Arrange shipping
Depending on the agreed Incoterm, you or the buyer books the freight forwarder. Under EXW or FCA, the buyer typically arranges this; under CIF or DDP, you do.
Step 6: Get paid and reconcile
Once the letter of credit's specified documents are presented (exactly as worded — banks are strict about matching documents), payment is released. For open account terms, track payment against your agreed terms.
Frequently asked questions
How do I calculate a competitive but profitable export price?
Start from your cost, add the margin you need, then check it against what the market pays for comparable goods with our Profit Calculator and ROI Calculator.
What if the buyer wants a different Incoterm than I'm used to?
Understand exactly what it shifts onto you before agreeing — moving from FOB to CIF, for example, means you now arrange and pay for freight and insurance, which changes your true cost and required price.
Do I need an export license for every product?
No — most consumer and industrial goods require no special license. Restrictions typically apply to dual-use technology, defense-related items, certain chemicals, and some agricultural or cultural goods.
Related tools and reading
Conclusion
Your first export sale goes smoothly when the price is quoted with a clear Incoterm, payment is protected appropriately for a new relationship, and your documents are prepared consistently and in the order the buyer actually needs them.
Draft your export quote now: Open the Proforma Invoice Generator →
Last updated: July 25, 2026