You Just Got an Overseas Inquiry: Don't Rush.
Getting an email from a buyer in Dubai or Singapore is exciting. But this is exactly the moment when many new exporters make costly mistakes. Let's go through the most common ones so you can avoid them.
Mistake #1: Underpricing Because You Forgot Hidden Costs
This is the #1 mistake. You quote a price based on your production cost alone, forgetting to include:
- Inland trucking to the port
- Export documentation and port handling fees
- Ocean freight
- Cargo insurance premium
- Bank charges if using L/C
- Certification or labeling requirements for the destination country
The result: You land a big order, but after all costs are tallied, you barely break even or lose money.
The fix: Calculate every cost before sending your quotation. If you're unsure about freight costs, get a quote from a freight forwarder first.
Mistake #2: Agreeing to "Pay After Delivery" for a New Buyer
If a buyer asks to pay after goods arrive, be careful. It means you've already shipped and spent your capital, but the money isn't in your hands yet.
If the buyer disappears or disputes the goods, your product is already in their country and hard to recover.
Safer options for new buyers:
- 30% deposit before production + 70% before shipment
- Or use L/C (Letter of Credit) where the buyer's bank guarantees the payment
Mistake #3: Not Checking the Buyer's Credibility
A legitimate buyer will usually have no problem sharing:
- Full company name and registered business address
- Business registration number
- References from other suppliers they've worked with
If a buyer avoids these questions, treat that as a red flag.
Mistake #4: Incomplete Export Documents
Every destination country has different document requirements. The common ones include:
- Commercial Invoice
- Packing List
- Bill of Lading or Airway Bill
- Certificate of Origin (to benefit from ASEAN or bilateral trade tariffs)
- Phytosanitary Certificate if you're exporting agricultural products
Missing documents mean goods are held at customs. You pay demurrage fees (port storage penalties) while everything gets sorted.
Mistake #5: Not Checking Destination Country Regulations
Your product may be freely sold in Indonesia, but in the destination country there could be:
- Import restrictions or bans
- Mandatory local-language labeling
- Specific packaging size or material requirements
- Maximum limits on certain ingredients (for food, cosmetics, etc.)
Real example: You export chili sauce to Australia. Australia has strict rules on preservative content and requires a specific nutrition label format. Without this, your product can be seized at the border.
Mistake #6: Agreeing to an Incoterm You Don't Understand
Never agree to a trade term you're not familiar with. If the buyer wants "CIF Rotterdam" but you quoted "FOB Surabaya," the cost difference can reach millions of rupiah coming straight out of your pocket.
Mistake #7: No Written Contract
Email threads are not contracts. Make sure you have a signed Sales Contract that covers:
- Product quantity and specifications
- Agreed price and Incoterm
- Delivery schedule
- Payment terms
- What happens if there's a dispute
Without a contract, you have no legal ground to stand on if the buyer complains or refuses to pay.
