Start doing International Trade, Import and Export Profitable Items
Importing and exporting business can be very lucrative, especially if you deal with products of high profit margin. Before you would embark on this kind of business, doing in depth research is critical so that you can get it right from the the start. In your research, the homework you will need to do is to:
- Find ready market for your products
- Source the products cheaply
- Ensure your business is in compliance with all legal requirements of the state you are in.
Finding Ready Market For Your Imports or Export
Just like any other business out there, finding ready market for the products you intend to import or export is key to your success. If you would like to start either exporting or importing, the most important step is to do research and identify your market. Have a clear picture of how you will distribute and sell your imports or export. A business plan will assist you ensure that the business is properly planned and executed.
Most start ups may not be owning large wholesalers or business malls where they can bring their imports and stock them in bulk at once, this however should not be an issue in this digital age.
If you do not own one such wholesalers or large business mall, take advantage of online market platforms and use them to sell your products. Most online retail sites like Amazon, Jumia and others allow individual sellers to sell on their platforms. You can start by registering as a seller in those platforms and sell a few test products on the platform then if the business picks, you can then plan to import more and scale your business.
Sourcing Your Products Cheaply
Use Alibaba online platform to find and source products directly from manufacturers. It is cheaper to buy in bulk since you enjoy bulk discount and other benefits of scale.
All you need to check out for while sourcing your items, is the product quality and price. Ensure to check out for quality by ordering a free sample most manufacturers on Alibaba do offer free samples. Check also on pricing, compare it with your local market price where you intend to sell your products. The profit margin must be large enough to accommodate the other expenses associated with export and import business like cost of insurance, freight, customs taxes and distribution costs.
Compliance and international Standards
Before you embark on importing or exporting, ensure you are conversant with applicable laws of importing and exporting whatever you need to trade in. At minimum, you will need to register your business, you can have your business as a sole proprietor, partnership or as a limited liability company
The second thing is to acquire relevant licenses and trade permits. You will need to consult your lawyer and customs office in your area to get every detail that apply to you.