Issues to Consider on Import-Export Business

No country, not even the superpowers can be totally independent and self-sustaining. Every country needs products, raw materials or supplies from other countries. They either use the products directly or produce other products from these raw materials which they eventually can sell to other countries. Every country is involved in import export transactions by buying what it needs and selling what it manufactures.

With the formation of the World Trade Organization or WTO, import export trading has become more professional, fair, free and smooth. Member countries get the privilege of reduced tariff, lesser trade barriers, import quotas and restrictive policies. These are privileges which they in turn can pass on to businessmen who would like to engage in a profitable import export business. Even with new advancement in technology, businessmen still need to take into consideration several factors and issues that would determine whether the business would succeed or fail.

It is highly important to allocate resources of time, effort and money to formulate a marketing plan and come up with marketing strategies in order to bring in buyers for an import export business. Marketing strategies that are properly planned and executed are crucial for a business to be successful. Some people prescribe to the theory that “if you build it, they will come” but this never really works. The purpose of marketing is just simply making people aware of the products in order for them to patronize or buy it. It is improbable for somebody to buy a product that he has never heard of, no matter how good it may be.

Marketing is not selling. It is advertising, promoting, introducing and promoting and products and enticing people to buy them. It means coming up with a corporate identity, promotional materials or specials to make buyers aware of why the products sold by the import export business is different and warrants a purchase.

Finding the right supplier with the right products is crucial for a successful import export company. The product should be able to fill a need, whether it is for cheaper product or for product alternatives. It would be difficult to compete with a local product that offers the same features, benefits and price.

Having the right logistics would mean that the products arrive on time at your site when you expect it to or at the buyer’s site when he expects it to. This is extremely important for perishables and seasonal products. Timing and the right logistics support should both be present for the products to reach you when you want it to. There are several options for logistic services and it is best to choose one that has a reputation for reliability and comes highly recommended. If fast delivery is required, there are shipping options that have short transit times but are more expensive though.

Even with the international trade regulating bodes, an import export business that has transactions with other countries will always be subject to rules of the government that it is either importing from or exporting to. In order to ensure that there are no restrictions or sanctions, it is best to comply with these government regulations which may differ per country.

Succeeding in the import export business requires a thorough knowledge so it is highly advisable to get import export business training courses or an import export coach that could guide you. It may be initially expensive but in the long run, it would save you from making mistakes that are more costly.