What types of Exports are there?


Export and import are two terms that almost everyone might be familiar with. These are two important elements that increase the economy of the country and help two countries to build strong relationships with each other.

A clear definition of import and export explains that, it is the process of buying and selling goods and services and performing various tasks in order to provide them to the customers. Out of these governments have to ensure that the imports are reduced but the exports are increased. Hence, we will be talking about exports in this article. You will be learning the different export types and the way each of them functions. So put on your glasses or get a cup of coffee and explore the world of trading.

Types of export

Direct export

Direct export is the process of exporting directly to an importer located in another country or region, without using any other person or organization to make arrangements for them. The exporter is responsible for handling all the sales process, foreign distribution, logistics of shipment, and collecting payment. It works for companies that either have a service that you can provide from abroad or if you have products that don’t need installation and that have low shipping costs compared to the product value.

The advantage of having direct exporting is that one does not have to pay any middlemen like importers, distributors, or agents for their services.

Indirect export

The next type is indirect exporting which refers to the process of selling goods to an intermediary who later sells them either directly to importing wholesalers or to customers. It can also be a sale to the exporter by the buyer through a locally situated intermediary such as an export trading company or an export management company.

It also involves selling to an intermediary in their own country who then arranges the export of goods. Selling through this method does not involve collecting payment from the foreign customer or for coordinating the shipping logistics. This saves you the process of setting up an organization and the various processes.

For small and medium sized companies, indirect export is often the best way to enter new markets, where there may be different cultures, languages, and time differences. The local marketer also plays an important role in marketing your goods and services and in aftersales.

Merchant export

Merchant export also known as foreign trade is the method of trading export but is equally important as a manufacturing exporter. This exporting does not have a manufacturing unit and they buy goods from a manufacturer-exporter. They then ships it to foreign countries. The one who is involved in merchant exporting is known as the merchant exporter who conducts all these tasks smoothly.

Penultimate sale

Penultimate sale refers to the last sale of any goods preceding the sale occasioning the export of goods.

How to start an export business?

After understanding the types, let us now get into the details of how to start your own export business.

Establish an organization

The first step is to establish an organization. For this an in-depth research is of utmost importance. Hence, the logo and name of the company needs to be decided and all the various procedures that are involved while selecting a logo or name should be conducted.

Open a bank account

A current account needs to be formed in an authorized bank so that all the money and cheques are deposited time to time in a correct manner to avoid future problems.

Get all the necessary licenses

Working according to the rules and regulations of the Government is mandatory. So, one has to acquire the necessary licenses in order to start the business in a legal manner. This process may take a lot of time, so start with the process early and complete it a per the scheduled time.

Select the product

The next process is to select the product that you might want to export. For this, a thorough research needs to be done and the demand of the customers should be taken into consideration.

Select the market

After selecting the right product, the next step is to select the market where you might want to sell or export the products. During this process, you will also have to understand the strategies and products that your competitors work in and accordingly select the right market and the right strategy.

Find the buyers

The main element in exporting or any other business is the customer. So as the owner of the company, you will have to find the right buyers and attract them towards your company. This can be done by building your own website and adding all the necessary information in it which will be liked by the customers.


The last step is to decide the price and cost of each product and mention it on the website so that the customers are aware of it.

Processing an export order

  •   Confirmation of order
  •   Procurement of goods
  •   Quality of goods
  •   Finance
  •   Labelling, packaging, packing, and marking
  •   Insurance
  •   Delivery
  •   Customs procedure
  •   Customs house agents
  •   Documentation
  •   Submission of documents to bank
  •   Realization of export proceeds

The bottom line

Increasing exports can be extremely tough especially if your services are not up to the mark. So if you are directly exporting goods or exporting them through an intermediary, make sure that the goods are of high quality and it reaches the customers in its original form and shape. Apart from that follow the above-mentioned steps and understand the various types of exports to start your own export business and work hard to let it function smoothly and efficiently.

A company that is conducting these tasks and taking up responsibilities is PL Global, which is a leading export import firm working with more than 80 years of experience and have established a prominent presence in Indian and Southeast Asian markets. The team at PL Global works hard every single day to provide the best services to its customers and keeping customer satisfaction as its top priority.

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