Learn the most common mistakes that cost businesses thousands — and how to sidestep them.
Importing goods and breaking into international markets can become a very profitable export business. But while the rewards are big, so are the risks — especially if you’re not prepared.
Over the years at ABTS®, we’ve worked with plenty of businesses, and we’ve seen how companies face unique challenges internationally, mainly with export documentation and customs procedure. We’ve seen firsthand the classic mistakes that trip exporters and importers up. However, these common mistakes are avoidable if you know what to look out for.
Here are the biggest blunders — and how to avoid them.
1. No Market Research – Flying Blind
One of the biggest mistakes I’ve seen people make is to dive straight in when they think they’ve found a great product, they get super excited and want to immediately start importing and selling. But failing to do proper market research is like setting sail without checking the weather – don’t do it!
You need to know:
- Is there real demand for your product in your country?
- Who is your target market, and what are their preferences and expectations?
- What do customers expect in that market?
- Who are your competitors, and what are they doing right (or wrong)?
Tip: Use tools like Google Trends, Amazon bestsellers, or even local social media to understand what’s hot in your target region.
2. Not Targeting a Niche
Many exporters make the mistake of trying to sell to everyone, which leads to wasted resources and missed opportunities.
“Everyone” is not your market and even “everyone” will buy your product, how will you reach “everyone” without a multi-million dollar budget? One of the biggest export mistakes is trying to sell to too broad an audience.
Focus on a niche. It’s easier to tailor your branding, marketing, and product offering to a specific group, and you’ll spend less on advertising while standing out more.
Example: Instead of selling generic sportswear, target fitness-conscious women aged 25–35 looking for high-end yoga clothing.
3. Not Understanding Your Competitors
Don’t assume your product will dominate a new market just because you like it’s popular in another country. Success in one country doesn’t me success in your domestic market , as customer expectations and competition can be very different in international markets.
Look closely at:
- Local pricing
- Branding styles
- Customer reviews
- Distribution methods
You might find your competitors offer faster delivery, better customer service, or even a product tweak that resonates better with local buyers.
4. Not Checking Suppliers Properly
A cheap supplier on Alibaba might look like a win — until they miss deadlines, ship defective products, or vanish after you pay.
Before placing a large order:
- Verify references and certifications
- Get samples and test for quality
- Use a third-party inspection company
- Consider starting with a small trial order and selling on a platform like eBay or Amazon
If you’re building your own brand, poor-quality suppliers will damage your reputation before you even get going.
5. Not Understanding Incoterms
Incoterms define the responsibilities of buyers, sellers, and shippers at each point in the international trade process: costs, risk, insurance, delivery location, and more. Misunderstanding these responsibilities is one of the most expensive mistakes you can make, often leading to additional costs that you’ll have to cover, due to delays, mispriced contracts, or other charges. This eats away at any profit you were going to make so take the time to understand Incoterms.
For example:
- EXW (Ex Works) means the seller makes the goods available at their premises, and the buyer assumes all responsibility, risk, and costs from that point onward. If the responsibilities are not clearly understood, the buyer may face extra cost for transportation, export clearance, or unexpected fees.
- FOB (Free On Board) means the seller pays to get the goods on the ship — after that, it’s your responsibility.
- DAP (Delivered at Place) means the seller delivers the goods to your door, but you might still be responsible for customs duties and VAT at the destination point.
Solution: Learn the main Incoterms — it could save you a small fortune and a lot of stress. We cover this in detail in our “Understanding Export Documentation and Procedure” course.
6. Not Complying with International Standards
Different markets have different rules — and not following them could get your goods stuck at customs or banned from sale. Having in-depth knowledge of international standards and compliance requirements is essential to avoid costly mistakes, especially in the case of food and drink.
You must understand:
- Product safety requirements
- Labelling and packaging rules
- Testing and certification (e.g., CE, FDA, FCC)
- Documentation needed for customs clearance
Real-world example: We’ve seen UK exporters ship electronics to the U.S. without FCC certification — only to have the entire shipment rejected and returned.
7. Ignoring Local Taxes and Import Duties
Every country has its own tax system. If you don’t understand how import duty, VAT, import VAT, customs charges, or sales tax works in your target country, you could:
- Overcharge your customer
- Lose profits
- Lose money due to incorrect calculation or declaration of import VAT and customs charges, which can result in penalties or unplanned costs
- Or worse — under-declare and face fines
Import VAT and customs charges can significantly impact the total cost of imported goods, as they are calculated based on the value, origin, and type of cargo being imported.
Always check the tariff code (harmonised system) for your product and understand the duties that apply. All imported goods must be accurately declared to avoid penalties.
8. Not Registering Your Brand or Protecting IP
We’ve worked with clients who launched their brand overseas only to find someone else had already registered their trademark — or copied their product and packaging.
Before you go global:
- Register your trademark in your key markets (UK, EU, USA)
- Protect designs where relevant
- Use NDAs when speaking with suppliers or agencies
- Prove copyright of your logos, packaging, and content with ProtectMyWork.com
9. Relying Too Heavily on One Shipping Method
It’s easy to fall into the trap of using the same method every time — but air and sea freight, as well as courier services all have pros and cons.
If you’re only using air courier (like DHL or FedEx), you might be paying 10x more than necessary for larger shipments.
Solution: Understand when to use:
- Air freight (faster but expensive)
- Sea freight (slower but cheaper)
- Courier (great for small, urgent samples)
Working with experienced freight forwarders who understand the processes involved in international trading can help you select the best shipping method, avoid declaration errors, and optimize costs.
Knowing the difference can help you plan better and protect your margins.
10. Overlooking Customs Regulations
Customs are one of the most critical — and often misunderstood — aspects of the import process. Failing to comply with the rules can lead to costly delays, unexpected customs duties, or even having your goods seized at the border. Every country has its own set of regulations, and what works in one country may not be the same in another.
To avoid these headaches, importers must pay close attention to customs clearance requirements. This means understanding the correct harmonised system (HS) code for your products and cargo, as using the wrong code can result in higher duties or fines. It’s also essential to check if your goods qualify for any free trade agreements, which could reduce or eliminate customs duties and save you money.
Proper documentation is non-negotiable. Make sure you have a complete list of all the paperwork required, including commercial invoices, bills of lading, and certificates of origin. Missing or incorrect documents can lead to delays, extra shipping costs, and even demurrage charges if your cargo is held up at port.
Working with a reputable freight forwarder or customs broker is highly recommended. They can help you navigate the complex customs regulations, ensure compliance, and avoid surprises that could derail your shipment. Remember, customs regulations are not one-size-fits-all — thorough research and expert guidance are your best defense against costly mistakes in international trade.
Using an incompetent customs broker could cost you dearly, both financially and your stress level.
11. Ignoring Insurance and Risk Management
Many businesses underestimate the importance of insurance and risk management in the import process — until something goes wrong. Shipping goods internationally exposes your business to a range of things that can go wrong, from damage and theft to delays and payment issues. Ignoring these things can lead to significant financial losses and disrupt your entire supply chain.
To protect your business, it’s crucial to secure adequate insurance coverage for your shipments. Work with a reputable broker or freight forwarder to cover risks such as loss, damage, or theft during transportation. Don’t forget to consider risks related to customs clearance, as delays or non compliance can also result in unplanned increased costs.
Risk management has many angles. It means identifying potential issues at every stage of the shipping process — from exchange rate fluctuations to shipping mishaps — and putting strategies in place to mitigate them. For example, using forward contracts can help you manage the risk of volatile exchange rates, ensuring you don’t lose money on international bank transfers.
Partnering with an experienced freight forwarder or logistics provider can give you a comprehensive understanding of the shipping process and help you anticipate and avoid common pitfalls. By taking a proactive approach to both insurance and risk management, you’ll avoid surprises, protect your profits, and set your import business up for long-term success.
12. Neglecting Proper Valuation of Goods
Getting the valuation of your goods right is essential for smooth customs clearance and accurate calculation of customs duties and taxes. If you neglect this step or use the wrong valuation method, you could face additional costs, fines, or even have your goods delayed at the border.
The most common method is the transaction value — the price actually paid or payable for the goods. However, customs authorities may require different valuation methods depending on the circumstances, especially if there are related-party transactions or special pricing arrangements. This is where working with a knowledgeable customs broker or freight forwarder can make all the difference.
Improper valuation can lead to underpaying or overpaying customs duties, triggering audits, penalties, or accusations of non compliance and of course an increase in your blood pressure! It’s also important to be aware of regulations related to transfer pricing and customs valuation, as these can impact the declared value of your imports.
The World Customs Organization (WCO) provides guidelines on how to value goods for customs purposes, and staying informed about these regulations is key to avoiding common pitfalls. By ensuring your goods are valued correctly and all documentation is in order, you’ll minimize risks, control costs, and keep your international business running smoothly.
Avoid the Blunders — Start With the Basics
Every successful exporter or importer started out as a beginner. What sets the winners apart is their willingness to learn the fundamentals, build good supplier relationships, and prepare properly.
At ABTS®, we teach you what actually works — based on 40+ years of industry experience, not theory.
Want to avoid the blunders?
Start with our “Understanding Export Documentation and Procedure” course. A course designed to give you the practical knowledge you need, step-by-step, and get you trade-ready in the real-world.