Starting an import-export business is exciting, but it’s not as simple as just finding a buyer and shipping goods.
Step 1: Setting Up the Business
Before anything, you need a legally registered business. Buyers won’t trust individuals—they trust companies with proper documentation.
* Business Registration – Get your company registered under the appropriate legal structure (Proprietorship, LLP, Pvt Ltd, etc.).
* Licenses & Certifications – Apply for Import-Export Code (IEC), GST registration, RCMC, FSSAI (for food items), APEDA (for agricultural goods), or other required certifications.
* Branding & Presence – A professional business needs:
* A well-designed brochure showcasing your products.
* A website that looks credible and professional.
* A business email (avoid Gmail, use your domain).
* A Skype or Zoom account for international meetings.
Many beginners skip these and try approaching buyers informally, which makes them look unprofessional. First impressions matter.
Step 2: Research & Finding Buyers
Your first goal is to understand the market and your potential buyers.
* Identify who is buying your product. (Wholesalers, retailers, distributors, manufacturers.)
* Study your competitors-what makes them successful.
* Find potential customers through trade directories, LinkedIn, B2B platforms, and exhibitions.
The biggest mistake new exporters make is approaching buyers without knowing their own rates, quality standards, or freight costs. A serious buyer will ask upfront, "What’s your price for CIF or CNF?" If you hesitate or say, “I’ll check and get back,” they’ll move to another supplier.
Step 3: Quoting the Buyer & Negotiation
Once you find a buyer, the next step is sending a professional quotation, also called a Proforma Invoice.
Using Shipzy software to send quotes ensures professionalism and allows tracking of buyer responses.
A proper quote includes:
* Product details, including specifications, quality, and grade
* Pricing based on the agreed incoterm (FOB, CIF, CNF, etc.)
* Freight cost, if applicable
* Payment terms such as Advance, LC, DA, or DP
* Delivery timeline
After negotiation, finalize terms and send a Sales Contract to confirm all details in writing.
Step 4: Purchase Order & Payment
Once the buyer agrees, they will send a Purchase Order (PO).
Never start purchasing goods from your supplier until you receive actual bank credit of advance payment. A SWIFT copy is not enough—always check your bank statement.
Many beginners trust buyers too quickly and start production based on an email confirmation or SWIFT copy. This can lead to major losses if the payment never arrives.
Step 5: Booking Shipment & Quality Check
After receiving the advance payment, start purchasing raw materials or finished goods from your local supplier.
1. Book a container with a freight forwarder. Choose the right shipping line based on cost and transit time.
2. Place a purchase order to your supplier and conduct quality checks. Never trust suppliers blindly—always inspect the goods.
3. Arrange lab tests if required, especially for food, pharma, or chemical exports.
Step 6: Preparing Export Documents
Once goods are ready, prepare the required export documents. Some key ones include:
* Shipping Instruction – Sent to the freight forwarder to book the shipment.
* Tax Invoice – Required for customs clearance.
* E-way Bill – For transporting goods to the port.
* Annexure-C – Required for certain regulatory compliances.
Shipzy helps in auto-generating all these documents, avoiding errors and saving time.
Step 7: Shipping & Final Payment
After shipping, collect the Bill of Lading (BL) from the shipping carrier.
* If the payment is based on a Letter of Credit (LC), submit documents to the bank for processing.
* If the payment is DP or DA, send scanned BL copies to the buyer.
* If it’s a 100 percent advance payment, send the original BL directly to the buyer.
Once the balance payment is received, close the Bank Realization Certificate (BRC) in the bank to complete the transaction.
Step 8: Don’t Forget Government Incentives
Indian exporters get various incentives like RoDTEP, MEIS, and duty drawback. Always apply for them to increase your margins.
