The fundamental principle in the export and import business is that if a country produces a certain product better than your country, then you should import that product. But if you have better products than other countries, then you should export yours. Success in business depends on how you take advantage of differences in demands, prices and quality. Entering the import and export business opens up a world full of vast differences, giving you numerous opportunities to become successful.
Importers and exporters have the advantage of introducing certain products into a foreign market ahead of others. This gives them a significant financial benefit. If you will be able to identify and efficiently produce a product that other countries lack, the demand for that product will be high. Exporting to that country before they start producing it themselves is a good business opportunity.
Here are a couple of tips to help you start your own import and export business.
1. Establish a Corporate International Image
You need to build your credibility to gain global success. Presenting yourself internationally as a reliable businessperson is important even if you only run a small company. To do this, you need to have your own company logo and a good website. Having a business website is important in international trade. Your potential clients will surely try to know about your products. Chances are high that if they can't find you online, they will go your competitors.
Furthermore, every out-coming correspondence you sign should indicate your company name, job title and contact details.
2. Understand export and import regulations
Ask relevant export authorities such as Austrade or the Consulate of the country that you want to export your products to for special exporting requirements. Try to learn about various terms of trade, delivery and international payments as well as International Trade Etiquette.
3. Know your trade partner
It is crucial to conduct a background check on potential partners before doing business with them. You should also verify the contact information given to you by your potential partners. You need to confirm if the phone number, email address and physical address really belong to them. Contact them through phone before exchanging goods, money or contracts. Be suspicious of any company or trader who only gives an e-mail address and a cellphone number but hesitant to provide a telephone number and a physical address.
4. Avoid Shipping risks
If you are an importer, demand a pre-shipment inspection to ensure the quality of the products that you are buying. You can include this to your trade contract or condition to payment.
5. Prepare a clear contract
Prepare a legally binding contract in relation to the terms of the trade. It should include the conditions for the sale, product specification, payment method, quality inspection, an arbitration clause, etc.
6. Be suspicious of extremely generous offers
If an offer is too good to be true, it probably is. If a potential partner offers an exceptionally high or low price than the regular rates, they might be attempts to defraud. Make sure to check the identification, contact information and any claims made by a suspicious trade partner.
