Exporting Goods vs Services: 10 Key Differences and Considerations


In the current trend, things are exchanged from one country to another and vice versa because every country has a good resource which will be more to all over the world. This is why export and import of goods as well as services are one of the crucial criteria all over the world.

Exporting comes under two categories. One is Exporting goods, another one is Exporting services. Let’s know about these two categories, which will benefit trading goods and services.

Difference between exporting goods and services

Exporting goods

Exporting goods means sending products such as food, crops, automobiles, water, crude oil, essential things, etc., from one country to another, which comes under the process of sending materialistic things.

Exporting services

A service export is a service provided by a resident in one country to the people or companies from another.

Exporting services are easier to process as they do not have to pass through as many procedures as customs, transportation, regulation, labelling, etc. At the same time, a refined understanding of the client’s culture is essential for service exports.

Exporting and importing are playing a vital role in the industry, which are beneficial for trading markets in countries worldwide. The goods are being sold in local markets on behalf of these trades. There are advantages and disadvantages involved in this business. To know more about this article, read Export vs. Local Sales: 3 Pros and Cons for Your Business.

Differences between goods exports and service exports

Tangible vs Experience

Exported goods are tangible. They can be seen, touched and felt. Examples are eatables, matchsticks, matchbooks etc.,
On the other hand, exported services are experiences which can be deserved at a particular time. Such as phone calls, information and data exchange. The things that are intangible and transferred worldwide are exporting the services. Read more about Step-by-Step Guidelines on Exporting Safety Matches

Taxes are the barriers to the export of the goods

The company should pay taxes for goods according to the currency and taxation laws across various countries. The goods are valuable and can be bought according to the currencies of other countries.

In the meantime, taxes do not need to be paid for the services as they are intangible, and these are through communication mediums. Moreover, it is only considerably exported in GST once payment is received in freely convertible foreign exchange

Some faults in production

Goods export may cause delivery of defective products, which will be notified after the delivery. This will result in significant losses or raising big complaints, such as general products, that will lead to heavier expenses.
The services will be easily rectified compared to the former, as this is information. The advantage of service export is the information or the data can be changed if they are quickly notified. The time consumption will be less.

Cost efficient

Exporting goods will cost more, as these goods will take a few weeks or even a month as they are transferred through any medium. Henceforth, this process, until delivery to the other countries, will take more time and cost more.

Exchanging the goods through the services will be less costly than direct exporting as this process will have certain norms that will follow specific rules so that the benefits will be borne from their side, and the cost will be lesser for the customers.

Easily accessible

Exporting goods and services is the same. When the goods are being shipped, they can be transported everywhere, and there won’t be any contacts from receiving countries, and there will not be any certain countries with more extensive references.

If any goods are exported through the services, they have specific contacts so that it will be easier for trading, and thus, there will be huge profits for the company. Henceforth, this will be easier if the products are exported via services

Considerations for Exporting Goods and Services

Some considerations should be followed according to the receiving countries so that goods will be exported efficiently.

Understand the challenges

If you are planning to export matchstick things, you should understand the challenges of shipping and have precise knowledge of the potential markets from your side. You also need to ensure your products are suitable for each target market if you have the necessary resources to start exporting the products.

Evaluate the potential of export

Before exporting, you must evaluate your export potential in preparing your business, product, or service.

Market research is to be carried out to identify and research the market plan, and the target market should be adequately examined.

  • Industry structure
  • The demand for the product and service
  • Rival and how your company fit into the marketplace.
  • What are the changes to make the product saleable?

Hence, these are the primary criteria that should be considered before you export the products.

Export plan


There should be a proper export plan for exporting the products from one place to another. This will define how you are going to enter into the new market. The export plan should have proper criteria that should be considered.

  • The marketing strategy for internal and international trade development
  • The proper financial resources
  • Trustworthy people to create and develop new markets
  • Understanding the ways of payments and financial services.

Preparation of Documents

The documents should be cleared and sent along with the products to the recipient country. So that everything will be dealt with legally.

An export declaration provides the necessary information about the goods to be transported.
-The goods’ origin
-The goods’ destination to be travelled
-Codes for customs procedure
-Value of the goods

The documents we need to prepare must be included with the exporting products.
-Invoice and transport documents
-Records of Value Added Tax and Exporting documents
-Certificates and Licenses
-Warranty for that product.

These documents need to be included along with the products. Hence, those can be dealt with legally.

Transport facilities

The perfect mode of transporting your goods will be based on the type of goods and how they need to be delivered as soon as possible. You may need more than one mode, for example, sending goods by truck to a harbour and then by ship overseas.

The goods will require proper packaging and labelling for transporting. It will be possible for your goods to be sent through post.

End thoughts

Hopefully, this article opens the eyes to how the goods and services are being exported, through which mediums are transported, and the taxes to be paid. The goods and services are exported based on the requirements and the type of things to be shipped.

Epoch Exports is the leading wax matches exporter in India and is the perfect solution for your needs. As our products meet international standards, we ensure that the quality of our products will be impeccable without compromising. So, You can present valuable products to your friends abroad through us.



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