Why 80% of New Exporters Fail in Just 2 Years

Starting an export business sounds exciting. You dream of shipping products worldwide, making good money, and growing fast. But here’s the hard truth: about 80% of new exporters shut down within two years. Why does this happen? It’s not bad luck or poor products. Most times, it’s simple mistakes that anyone can avoid if they know better, like skipping an import export course to learn the ropes.

This blog breaks it down step by step. We’ll look at the main reasons and share easy fixes. By the end, you’ll have a clear plan to beat the odds, including why an import export course can be your game-changer.

Common Pitfalls New Exporters Face

New exporters jump in with big hopes but trip over basic stuff. They think selling abroad is like local sales, just with shipping. Wrong. Exporting needs planning, rules, and patience. That’s where many miss out on a solid import export course that covers the basics upfront.

Poor Market Research Leads to Wrong Choices

Many start by picking markets they like, not ones that need their goods. Say you’re selling spices from India. You target the US because it’s rich. But what if locals there prefer milder flavors? Your spicy mix sits in warehouses.

Do quick checks first. Use free tools like Google Trends or trade sites to see demand. Talk to chambers of commerce. One exporter I know wasted lakhs on Brazil because he skipped this. Research saves cash, and an import export course teaches you how to do it right without guesswork.

Ignoring Rules and Regulations

Every country has import rules. Tariffs, certifications, labeling, it’s a maze. Newbies overlook this. They ship goods, then face blockages at ports. Fines or returns eat profits.

For example, the EU has strict food safety rules. One veggie exporter from Gujarat sent crates without proper pesticide tests. All rejected. Cost him everything. Solution? Hire a freight forwarder early. They know the paperwork. Better yet, join an import export course to master these from day one.

Financial Mistakes That Drain Your Pocket

Money runs out fast in exports. Upfront costs for samples, shipping, and customs hit hard. Most new exporters under-budget by half. An import export course often includes budgeting templates to avoid this trap.

High Costs Without Steady Cash Flow

You pay suppliers, pack, and ship before getting paid. Buyers delay 60-90 days. If sales slow, you’re broke.

A common trap: chasing one big order. It fails, and you’re stuck. Diversify buyers from day one. Use letters of credit for safe payments. Build a buffer of 6 months’ expenses. Courses on import export drill this into you with real examples.

Wrong Pricing Kills Margins

The price is too low to win bids, and you lose on every deal. Too high, no orders. Factor in duties, freight, and insurance, FOB isn’t enough.

Tools like Incoterms help. One exporter priced T-shirts at $5 FOB. Forgot 20% US duty. Buyer backed out. Calculate the landed cost for the buyer. It builds trust. Import export courses break down Incoterms simply, so you price like a pro.

Weak Systems and Scaling Too Fast

Excitement makes you scale quickly. But without systems, chaos hits by year one. Newbies who skip training, like an import export course, pay the price here.

No Reliable Supply Chain

Local suppliers flake on quality or deadlines for exports. One delay, and your reputation dies.

Vet suppliers hard. Visit factories, test batches. Use contracts with penalties. A fruits exporter lost a UK deal because mangoes arrived bruised. Now he uses cold chain pros. Learn supply chain basics in an import export course.

Depending on One Market or Buyer

Put all eggs in one basket? Disaster. One buyer quits, you’re done.

Spread risk. Start with 3-5 markets. India exports textiles to the US, Europe, Middle East. If the US slows, others pick up. Build backups. Diversification strategies are a key module in most import export courses.

Marketing and Buyer Hunt Gone Wrong

Finding buyers is tough. Cold emails rarely work. Without proper guidance, you’re shooting in the dark.

Rushing Without Data

Exporters spam “buy my goods” messages. Buyers ignore.

Use trade data. Sites like Zauba or Export Genius show who’s importing what. Target them. One guy found US importers of Indian rugs this way. Landed deals in weeks. Data tools are covered in import export courses.

Skipping Online Presence

No website? No Alibaba profile? You’re invisible.

Buyers Google first. Build a simple site with product pics, specs, and certifications. List on B2B sites. Share stories on LinkedIn. A startup in Rajkot got herb orders from Germany via Instagram reels. Digital marketing for exports? Straight from an import export course.

People and Team Issues

Solo heroes burn out. Exports need teams. Training everyone with an import export course levels the playing field.

Lack of Export Knowledge

Family business owners know domestic sales. Exports? New world.

Train up. Join FIEO courses or DGFT webinars. Hire an export manager if possible. Knowledge gaps cause 30% failures. A full import export course fills those gaps fast.

Bad Partners or Agents

Shady agents promise deals, take fees, vanish.

Check credentials. Use ECGC insurance for the risk network at trade fairs like IHGF Delhi. Vetting partners is lesson one in any good import export course.

How to Dodge These Traps and Succeed

Avoiding failure is simple: plan. Enroll in an import export course today, it’s your shortcut to the 20% who make it.

Build a Strong Foundation

Research markets deeply. Use stats from APEDA or DGFT.
Set up finances right. Get an export license, bank account.
Learn basics via YouTube or books like “Export Import Bible.” Or better, a structured import export course.

Grow Smart, Not Fast

Start small. One container to test. Scale after three good shipments.
Track metrics: order value, repeat rate, payment time. Courses teach you these KPIs.

Network Relentlessly

Join exporter groups on Facebook or WhatsApp. Attend APEDA meets in Rajkot.
Success stories: VM RankUp types started with handicrafts, now multi-market. Many credit an early import export course.

Real-Life Lessons from Failures

Talk to failed exporters. One in Mumbai chased fashion to Australia. Ignored seasons, shipped summer clothes in winter. Bankrupt.

Another in fruits: no quality control. US rejected thrice. Switched to processed jams, now thriving.

Stats back this. Studies show 80% fail from ops issues, not products. An import export course could have saved them.

Conclusion: 80% Exporter Fails in Just 2 Years

Yes, 80% of new exporters fail in just 2 years. But it doesn’t have to be you. Poor planning, cash crunch, and weak systems kill dreams. Fix them with deep market research, smart money moves, steady growth, and yes, a solid import export course from a trusted import export Institute. Start small, learn the rules, build strong networks, and stay consistent. In two years, you’ll be in the 20% succeeding big. Take action today, your global business waits.