Is anyone in the import/export field?

[AshanD]

I'm thinking about getting into the import/export business. Just brainstorming ideas now but I'm thinking along the lines of generic items that could be used in place of expensive brand items (ex. printer cartridges) or imported items with high perceived value (clothes, watches, car parts)

I know this business is not as simple as bringing some stuff in from china and then picking up checks. So I wanted to ask you guys who are in this business what are the biggest hurdles in import/export, what to watch out for, what a new guy should think about that he probably isn't considering.

My game plan is to take a trip to china after i graduate and see what I can find that could pssibly bring high margins. Set up some prototype auctions on ebay to see what the perceived value is, then decide if there is enough demand to set up a website devoted to this type of product.

Thanks for any advice

 

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[WestCoast]

I bring in product from Taiwan (full containers), Hong Kong (sea freight) & Australia (air/sea freight). It's not the main part of my business, but it's a growing part and something I put more and more effort into.

This info is not for someone just doing a few cases loose packed in a container, it's the middle of the road before you are bringing in multiple 40'ers.


There are a lot of things to consider.

If you are bringing in full cans, you are going to need a pretty significant distribution network to sell whatever is in there. You're not going to be able to sell a 20' can worth of stuff on ebay.

To get the best prices, you have to order in bulk. lots of bulk. So this is a pretty massive capital investment. I am always amazing how much money vanishes for a few months, and then arrives in the form of a lot of work (to sell).

Preselling is nice, but it never works that way, you end up with inventory because of the lag time, it just happens.

Customs and all that, I leave to an expert. Not worth trying to learning it all (IMO).
Get it done right, understand the codes and get the lowest (fair and legal) duty you can.

Quality: this is the big rub. You really have to test, prototype, different vendors, manufacturers, whatever.

If you are just importing, not sourcing (meaning you aren't getting the product made to your spec, just arranging it to be sold somewhere else) this is a bit less to worry about, but you MUST have quality under control.

You buy 50,000 little toys, and the things don't work, you better know who to talk to to make it right.

Cultures. I am learning this now. Different countries and cultures have wildly different ways of explaining things, revealing problems, or doing as asked. Be very very up front, ask many questions, and don't take 'No Worries' as an answer!!


----
There is lots to do, and you are doing it because you are exploiting the labor cost of other workers. If you are ok with that, and find a product that you think the market will want, test it in small amounts before hand.

Lots of other bits, but that's a start. It's fun, it's cool to be sourcing stuff from all over the world.
Just be diligant and careful so you don't get burned.

 

[MJ DeMarco]

Isn't ART VANDALAY in the import/export business?

 

[fanocks2003]

Don't agree totally with WestCoast. Today there are increasing numbers of dropshippers who offer sale of one item per order. Delivered directly to the customers door, worldwide and with your company name on the "from" shipping adress.

The challenge is to find those who will not run with your money.

 

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[LightHouse]

Don't agree totally with WestCoast. Today there are increasing numbers of dropshippers who offer sale of one item per order. Delivered directly to the customers door, worldwide and with your company name on the "from" shipping adress.

The challenge is to find those who will not run with your money.

That is a completely different business model....

 

[WestCoast]

I just bumped the other import/export thread.

fanocks- we do lots of drop shipping, but that is a separate business model for us.
Maybe some people can combine them (I'm not sure how unless it's a super high dollar value where the drop ship and international airfreight are't important to the end customer at all), but it's probably possible.


I think the big thing with the import, is the subsequent distribution.
Now, in a slowlane type way, I think you would bring in a can of stuff, and sell it from a website or from a store.

I think the fastlane thing here is 1) brokering the deals. So matching up products from overseas with distribution companies. You just get a cut of their sales.
2) is setting up full wholesale, and then automating the process.

So, you have 1000 stores in the us that are selling your product (take lots of hard work to get there), and you can track their inventory, as they get low, put a Purchase in overseas, and have the goods delivered right to them via a full container.

Saves them freight, you have no inventory costs, and they appreciate you proactively heping with inventory.


Course, not THAT simple, but that is how I think you really 'leverage' your ideas and products. Otherwise, as we have found getting started and buying so much inventory, it's a real money sink until the product is really flowing.

Buying a container, cutting it up, reshipping it/packing it, I don't know if that is fastlane anymore, just a lot of work and $$$$.

There is still plenty of potential in the field, no doubt. And you get to travel internationally on the company dime (within reason) to visit factories and suppliers and all that. Fun fun

 

[rscully5]

Help with Shipping.

I am paying for some products to come in via sea and I am using CIF costing. Meaning I am paying for cost, insurance and freight.

Does anyone know what do I need to do to makes sure I get the product once it comes to the port in New York?

Do I need to contact a freight company to get these products?

 

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[Darkside]

I am paying for some products to come in via sea and I am using CIF costing. Meaning I am paying for cost, insurance and freight.

Does anyone know what do I need to do to makes sure I get the product once it comes to the port in New York?

Do I need to contact a freight company to get these products?

You can either arrange to have a truck pick up the product for you or you have to go and get it yourself. I believe you get charged a fee for every day that your products are left at the port, so it makes sense to pick them up quickly. There's also less of a chance that your stuff will get stolen either by the dock workers or by other people since it won't be sitting around in those containers for a long time.

 

[biophase]

I am paying for some products to come in via sea and I am using CIF costing. Meaning I am paying for cost, insurance and freight.

Does anyone know what do I need to do to makes sure I get the product once it comes to the port in New York?

Do I need to contact a freight company to get these products?

You probably should call a customs company to handle your paperwork. They will usually work with a freight forwarder to get your goods from the warehouse to your home. You may be able to go pick it up also.

 

[Sabbir Rahman]

Starting an import-export business can be a tricky task, so you should take care of some points:

- You must be aware of the exchange rules of the particular country, i.e. China so that currency fluctuations do not affect your profits.
- Choose the payment mode which suits you best. It can be on arrival or prior to arrival as per your convenience.
- You must go for the insurance of goods.
- The description of every good should be accurate in case of international clients.
- Keep records of the international transaction.

 

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[WestCoast]

wow, someone bumped a very old thread..... (don't blame me on this one).

That said, since I posted this advice 8 years ago, we're now importing probably $1-2Million dollars a year of stuff. U.K. is up to 10x 40' containers a year. Indonesia is 1 or 2. China is 2-3, and some other stuff as well.


You know what has made the difference for us, and growing this business 10x or more?
Personal relationships.

I've been to China twice this year to inspect products.
Go to the UK to visit three factories.
Australia and Indonesia to do same.

It's not glamorous. At all.
But it's the difference between getting good service and bad.
Basically, the personal time gets us a manufacturing partner, instead of just a manufacturer we buy from.

Strangely, my advice from 2009 still holds true.
The numbers are just a lot bigger since we started importing 9-10 years ago

 

[Walter Hay]

The subject of this old thread might have been prompted by someone reading about a Bro Marketer who some years back made a lot of money selling a course on how to start an export/import business, with almost 100% of the course dealing with exporting.

He made it seem so simple and incredibly profitable, but the profit was mainly his from selling his course.

Having been in the shipping, export, and import industry since dropping out of college, I know that exporting is not any easy road.

Importing has been simplified since the advent of the internet, and I like to think that my book on sourcing and importing has helped in that regard, but exporting is another matter.

Over the last few years that old Bro Marketer course seems to have surfaced again from time to time, and as a result I have received numerous requests for help on how to set up an export business. I won't write a guide because it would take me far too much time and I think its availability might lead many people to disappointment with failed exporting ventures.

The BARRIER TO ENTRY is very high, and although this might appeal to some. I counsel anyone thinking of exporting as a prospective fastlane business to do some thorough research before making a decision.

Those who understand importing procedures as taught in my book will by default know the basics of exporting, but they will have much, much, more to learn specifically related to exporting. To learn what is necessary a good starting point would be to work for an exporter.

The difficulty with that suggestion is that to gain such employment you will almost certainly need suitable qualifications. To get an idea of what you might need to learn, see the UK's Institute of Export and International Trade's site here: http://www.export.org.uk/page/qualifications The Institute was founded in 1936. The patron is HRH The Duke of Kent.

They offer a one day introductory course The Institute of Export and International Trade but you will have to be quick because it is to be held in London on Jan 24.

In passing I note that the curriculum precis doesn't include a subject that I consider vital if exporting: Export Finance Insurance. If any members choose to attend I suggest it would be worth asking a question such as: Do you consider Export Finance Insurance important?

Walter

 

[Walter Hay]

wow, someone bumped a very old thread..... (don't blame me on this one).

That said, since I posted this advice 8 years ago, we're now importing probably $1-2Million dollars a year of stuff. U.K. is up to 10x 40' containers a year. Indonesia is 1 or 2. China is 2-3, and some other stuff as well.


You know what has made the difference for us, and growing this business 10x or more?
Personal relationships.

I've been to China twice this year to inspect products.
Go to the UK to visit three factories.
Australia and Indonesia to do same.

It's not glamorous. At all.
But it's the difference between getting good service and bad.
Basically, the personal time gets us a manufacturing partner, instead of just a manufacturer we buy from.

Strangely, my advice from 2009 still holds true.
The numbers are just a lot bigger since we started importing 9-10 years ago

Thanks @WestCoast. You have highlighted some very important factors for getting best results when sourcing overseas and importing.

The personal relationships that you can establish by visiting the manufacturers can hardly be measured simply in dollar value, but those benefits are huge.

I particularly like: "the personal time gets us a manufacturing partner, instead of just a manufacturer we buy from."

I would be delighted if all those who learn from me the principles of safe sourcing and importing were able to visit China, Thailand, Taiwan etc., but unfortunately for many just starting out on a shoestring budget that is just a dream.

I do my best to help those newbies benefit from my long experience in visiting China and a host of other countries since I started exporting in 1978, and importing in 1987. Face to face contact is impossible to beat just using email, Skype etc., but for those who are serious about getting started rather than just wishing, remote contact is better than none.

Walter

 

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