Gallus
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- Jul 9, 2015
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Hi Gallus,
What you describe is the activity of an export broker.
Your biggest hurdle will be your first one, and that is to learn the basics of both importing and exporting. You need to learn to talk the language of the industry, and that is very important. It is not only the exporting industry for which you need to learn the language. The same applies to the industry you are offering to represent as their export broker.
If for example you want to be a broker handing wallpaper, it is essential that you know all there is to know about wallpaper. Both the sellers you want to broker for, and the buyers you want to sell to will expect that you know what you are talking about.
Any very slight mistake in the description on a Bill of Lading could make it difficult or impossible for money to be collected on the Letter of Credit. There you are - I have used two import/export industry jargon terms that you need to understand, but there are heaps more.
I know it looks tempting, but I advise against rushing in. Educate yourself first.
My book is probably not suitable for you because although it deals with those terms you need to know, as well as things such as container shipping, freight forwarders etc, and the basics of importing, it is not an exporter's book. It deals primarily with safely sourcing products overseas and importing them the easy way.
I have some experience as an indent broker, which is the opposite of an export broker, and I know how hard it can be. Selling on indent means acting as an import broker, selling product on behalf of an overseas supplier and obtaining a commission on the sale. It can be a long time between meals.
The same principles apply when acting as either an import or an export broker. There are many small manufacturing businesses that produce items that could sell competitively in another country, but the owners are ignorant of the fact that it is even possible. Your task would be to find those manufacturers, identify their strengths, locate potential markets overseas, and convince the business owner that you could give them a trouble-free boost to their turnover.
There is a short cut for you in finding those potential markets overseas, and that is Alibaba. You could register as a vendor, and advertise your client's products there. You might even be able to make some sales, but I can assure you that in the process you will be swamped with opportunist, wannabee importers who will waste a huge amount of your time.
If I seem negative, it is only because I have seen the process first hand and I want you to understand that it is not easy.
Thank you for your honest response Walter. I did not find the answer negative, only realistic as to what should be expected from starting as either an import or export broker.
One thing I have noticed is that there is not that much information online on how does one get into this area of the exporting industry, which could be a good thing as it could mean it receives relatively little attention and thus it wont be as swamped with competitors, but it could also mean that there is not much interest because the barrier of entry is high enough to make it almost impossible for people without as many resources or experience to even start. From your answer I see it’s a mix of both, in the sense that you do need to be able to speak at a high technical level on the different issues but also because of that people may not find it is the easiest path to success.
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