In a very basic sense, we can define import or export as creating availability of resources across various parts of the globe by buying and selling products. To elaborate a little, petrol is one of the major imported products and its reach is also vast. Products like cereals are exported at a high rate because India has an abundance of it.
But it is not as simple as it seems, even after having an understanding of the business still there is a huge difference in execution. “Focused vision, honesty, communications, timely delivery and advertising on B2B portals such as this one are the keys to growth,” explains Chandra Sahu, director of Suzana Exim Pvt limited. Even Mr. Sahu faced a lot of difficulties in the beginning but slowly his business expanded when he got connected to the right buyers and sellers.
Trying to get to know every aspect of business will help in giving an insight to what needs to be done next like the selection to production, production to manufacturing, manufacturing to delivering and selling and keeping a track of all of it. Here are six steps which will help to start an import/export business.
1. Thorough knowledge of the basics.
Creating an identity in the market by legally registering the name of the company in the state and having an authentic headquarters to operate with the world. Having a proper license for the business so that no one can object.
Existence needs to prominent. In the 21st century, if you need to show that your company exists, you need to have the support of people which means being on social media sites like Facebook, Twitter, Instagram, etc. and more the followers more the popularity and reach.
Most importantly having a business plan and huge capital in order to start an import/export business. In order to make money certainly, money is needed. In order to earn one million, you need to spend more than one million, and the cost invested and profit made varies from different products to different companies.
2. Choosing the right product to Import or Export
Which product is the best for your company? The answer to this question will help in giving clarity about where you can start.
Always start with a product that you are certain will sell. Products like the iPhone, Xiomi are such products which have given good quality and service to the customers. Also, the way they have been presented in the market has attracted the buyer. Once the product becomes famous it’s sale increases gradually.
Another option is to choose a product that you like, like watches, chocolates, clothes anything. then do thorough research whether that particular product is in demand or not in the market. For instance, if you want to sell clothes in the US, then you need to make sure that your product has something unique in it which the US doesn’t have.
3. Finding the right supplier
Once you have decided your product, now you need to find another manufacturer or product maker of your product and build a strong relationship with them. This relationship will help in the smooth running of your import/export business.
Normally, nowadays there are certain websites like Alibaba, Global sources and Thomas register where you can easily find a supplier of your product and convince him the advantages of importing or exporting a particular product.
Also, showing yourself will help you find the right supplier. Using your social networking sites will help in connecting you to the supplier. Facebook, Twitter, Instagram, etc. can be really useful. You need to give them an idea of your product and in this way, you can get to know the audience choice.
4. Right price right choice.
There are two crucial elements in the pricing of a product in an import/export business which are:
Volume (number of units sold)
Commission on that volume.
The pricing should be done in a way that commission earned (markup on the product to customers) should not exceed the customer’s budget and is also not affecting the profits of the company. Typically, importers and exporters take a 10% to 15% markup over cost, which is the price a manufacturer charges you when you buy a product from them.
It is important to have balanced pricing of the product so that you don’t exceed the limit on which customer is willing to pay and a price where you don’t go into losses.
5. Finding the right customer
Now when you are prepared with the whole business, you just need a customer to sell your product. It is not as easy as it seems, as you just cannot go out and start selling a product to the first person you see.
There are many trade organizations which are well aware of what’s going on in the international marketplace. Such organizations can help in offering contacts in your industry and help you connect with your customers at a faster rate.
The second option is customers can find you by there own if you have a visibility on social networking platforms. You can directly show customers your product and also ask their opinion in order to improve on the quality.
6. The final implementation
Importing/Exporting can be really fascinating at times. Like wheat from the Philippines gets landed on the plate of an American.
“When you are operating within a supply chain where your customer is different from your client, which is different from your consumer, it requires an extraordinary amount of coordination,” says Cuffe founder of Heritage Link Brands.
In order to transport your product to different parts of the globe, hiring an agency is a good idea, as it reduces a lot of human effort and headache. You don’t have to keep track of where the product has reached when it has reached and so on.
Click here Free Consultation-: https://www.expostall.com/register