So you want to start an import export business, heres how to get started

Click here to find out how to start an import export business

Export products are commodities that are manufactured or produced domestically and sold outside the country. Because local sourcing of products for export is more intuitive and initially less cost intensive than international sourcing for import products, you will probably deal with product export before you deal with product import.

To get started, you will identify a product or resource that is available in your immediate area and then to consider foreign markets - anywhere in the world - which would be receptive to this type of product. Once imported, these products have to be marketed and sold to a broker, buyer, distributor or retailer.

Ideally the products you choose to import are products that aren't readily available, or that aren't produced in your country. These products are produced and often packaged in a foreign country. Imported products can be sourced from any country in the world to bring them to markets in your area.

Find a product, find a market, find a buyer...that's it?

Really, that is as simple a concept as this is. Clearly, the devil is in the details though, and you'll need a solid understanding of the nuts and bolts of this business to make it work. The objective of this book is to provide you with the information you need to get started. We'll discuss setting up you home office, sourcing and marketing products, shipping and customs, and many other topics that you need to understand in order to build a successful import / export business.

To find out more about Importing and Exporting click here

Finding a Product

It could be something as simple as the little umbrella swizzle sticks for the local pubs, or the latest fad toy for kids... whatever it is, it's going to take some footwork on your part to find it and determine if it's the right product for your market.

Don't take your mission lightly; taking the time to identify the right product is absolutely crucial if you want your business to succeed. Thorough research and an understanding of the market will yield a successful product. Use foresight and intuition to your advantage in this mission.

Consider the following strategies:

• Read business and trade magazines, the newspaper business section and other periodicals to keep on top news which may influence your decision.
• Keep an eye on what the kids in your neighborhood are doing and wearing. Many trends start here... and if you can identify the trend before it becomes really hot, a lucrative opportunity may await.
• Consider items which, rather than trendy and "hot", have the potential to be slower, but steady sellers.
• When assessing a product for import potential, do the numbers. Take into consideration your cost and you selling cost it for. Clearly a higher profit margin is a point in favor of a potential import product.
• Look for products of which you can maintain a steady supply. Avoid one-shot products unless you advertise it that way when you are marketing. Avoid disappointing customers by creating an expectation that you can provide them with a product which you may not be able to deliver.
• Find matches. Identify sources that have a product they want to market, and find the market for them. These kinds of contacts can be found in trade newspapers or on the Internet. Don't be afraid to approach a local business that has a product which you feel would do well as an exported product.

There are other ways to find a product for import. Think outside the box and exhaust all options and all opportunities to enhance your chances of success. The opportunities are out there, they just need to be found. Many import / export professionals enjoy this process more than any other related to their business.

Finding a Market

A potential market for your products may be found anywhere in the world. In an ideal market, the demand for your commodity is high because the product is not readily available locally.

There may be many market matches for your export product, but expect to spend time and efforts researching and "qualifying" potential markets. Consider the following qualifying factors:

• Can you provide a product that the market desires, in quantities to meet the potential demand?
• Does the local economy indicate that your product is affordable locally? If the item is not a basic necessity, is local disposable income high enough that locals can purchase the product?
• What cultural factors might influence local buying decisions? Be respectful of local traditions, holidays, customs and language nuances that can affect local perception of your product.

Some strategies for finding markets:

• Look in your own neighborhood to assess potential demand for a product which has not been met, then consider if you can meet that demand by importing a product.
• Use the same strategies you used to research products, but work backwards and research markets instead.
• Use the Internet to research markets. Cyberspace has a wealth of websites that can help connect you with qualified markets if you can provide a product.

Once you've qualified a market that fits yours product, you'll want ot identify customers for your product. You have several avenues you can pursue:

• Sell direct to retailers
• Sell to product distributors, who act as middlemen and resell to retailers
• Sell to trading companies who specialize in the buying and selling of import and export goods

When making decisions to pursue specific customers, consider the customer's potential volume. Selling to multiple one-store retail accounts is overhead-intensive and does not generate the type of volume that results in significant profits.

Building relationships with distribution companies or trading companies is likely your best bet. These type of accounts buy bulk orders of large quantities for distribution to smaller retail outlets. Individuals who are willing to work as distributor/agents for your product are also a good target.