The International Trade business will always help in taking you all over the world along with multiple product niches from exporting light fixtures to importing exotic fashion. International trade can be considered to be one of the hottest industries of the new millennium. However, this cannot be considered as new as it has already started from the time of Marco Polo. Previously people use to deal with only silk and spices but this business has now expanded and there has been the inclusion of many products which are being imported and exported on a daily basis.
The existence of trade is because of the supply of one product that is present in one country but is demanded by other countries. International Trade is becoming more and more rewarding with the advancement of technology including the import business.
Basic knowledge to Start your Import Business
Lone footloose adventurer types are not the only ones for whom the importing is becoming renowned day by day. This business has grown a lot and the price amounts to around $ 1.2 trillion in a single year. This amount has been statistically proven by the U.S Department of Commerce. However, exporting is also considered to be as big as importing. According to various data, American companies were responsible for exporting around $ 772 billion to around 150 foreign countries.
The most important of all is to take a proper look at the players. Main variations are there on the main theme although you are having your importers and exporters.
EMC or the Export Management Company- The export operations of domestic companies that are wishing to sell their goods overseas are normally handled by the Export Management Company. The EMC plays a very beneficial role by hiring all the dealers, and distributors, invoicing customers, handling promotions, marketing, and advertising, and sometimes also arranging to ship. They also play a major role by arranging finance as well as contracting out that will help in developing a credit card app. EMC also sometimes become its own distributors by taking the title of the goods.
ETC or the Export Trading Company- ETC is responsible for attacking the other side of the coin of the market which is different from that of the EMC. It is responsible for identifying what the foreign traders are interested in and what they want to buy and then they make a selection for the domestic sources that are willing for exporting. An ETC also plays a role in taking title to the goods and sometimes also works on a commission basis.
Export-Import Merchant- The international entrepreneur is also known as the free agent. There is no specific client base for him and there is also no specialization for him in any individual product or market line. He plays a major role in purchasing the goods in a direct manner from the foreign or domestic manufacturer and then they pack, ship, and finally resell the goods on their own. So it can be said dissimilar from EMC he is responsible for assuming all the risk as well as all the profits.
Things needed to start an Import business
There are various things that are very much essential for any business but the main things must be noted for each business. The same is the case for this Import Business. One must have a proper idea about the important stuff that is essential for the import business in order to earn a considerable amount of profit and have fun in this business field. People from different countries are getting involved in the import business and so there is nothing to be scared off. One must know the advantages as well as barriers to overcome them. Some of the important things that must be known are given below-
Target Market
Consumers are very much essential for each and every kind of business for their services and products. As you are now having the basic knowledge you must understand the business entails which must be planned by you along with targeting your market. It is very essential that you understand your potential clients. Moreover, you must also understand which geographical area you will be drawing from along with the specific product or services you will be offering to draw them in. If the market research is done in a proper way then it will help in building your project.
Startup cost
It is very essential that in order to make money, money is needed. In simpler words, it can be said that startup funds are very much essential. In the case of the Export-Import Business, the amount ranges from $ 5000 to even more than $25000. A Homebased business can also be started that will help you in saving a little bit of cost as you are not leasing any office or purchasing a lot of inventory for your office.
Marketing
Marketing is basically an art that cannot be performed by everyone. It is very much difficult to sell yourself and your company to the clients as a manager for Export-Import the products. Selling the products to the representatives by themselves is also very important. However, if one of them is achieved then the other can be achieved soon. A track record is very much essential. With each success, confidence will be gained and strategies for marketing will increase.
These were the main things that one must know is essential for starting an import business. However, three other things are also needed and they are given below-
- Operations- people must know how their operations will be and must consult experts in this field.
- Resources- Resources that they are having and what they will be needing are also important.
- Income and billing- this factor must be taken care of in a proper way with proper expertise in this field.
Conclusion
Coming into business is not very difficult but to maintain the Import Business and take it to the limelight is very difficult. The import business is growing at a large rate and the above knowledge will help in guide you to understand what things are needed for import business.
