What should a novice do when importing for the first time?

Monday, 07 September 2020 15:29 Trade
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A friend came to China on a business trip last week and saw that Chinese gadgets and clothing prices are much cheaper. So he came up with the idea of buying in China and shipping it back to Australia and asked me how I could start my own import business.

What should a novice do when importing for the first time?

When you plan to import business, the first problem you should solve is not how you choose the goods, how to purchase the goods, how to transport them, and how to price them, but who should you sell your plays to when you import them? In other words, where is your ultimate midmarket? It determines the volume of your first purchase and the risk factor behind it.

If you already have relevant experience and are familiar with the entire sales channel, know who you are selling to and at what price if you are at this time. Start-ups that start their imports have the highest success rate.

But most people do not have such resources, are crossing the river by feeling the stones, half understand half do not know the four-sided learning, then most people should seriously consider the goods to be purchased how to sell?

If you start from scratch, I would suggest that you take a few days to think about the connections you have around you and your work and whether you have any friends in the import business. You can consult them with an open mind. Listen to your friends' impressions and, with your observations, pick 1 or 2 products that you think you can do.


My friends who are in the import business for the first time don't advise them to do frozen products or seasonal products, such as Christmas products, fruits, flowers, etc. Without any experience.

These goods will take longer to arrive than you expect because there is no way to control 100% of the production, shipping, and customs clearance in many ways. Then the product is worthless once it passes the point in time.

When you find a potentially lucrative category 1 or 2, you can try to import it. Early you can use express companies, such as DHL, UPS, TNT, SF express, etc. Import some samples to the local research, check the quality of the goods.

Generally speaking, every country's citizen he has a certain import duty-free quota every year. It also allows citizens to import it as a poet, but only if you express it.

In my experience, if you import goods within 50 kilograms, you use the express case, it is more common than you use air freight or. It's cheaper and easier to ship by sea. The courier company will declare your imported products to the local customs. After that, the courier company will deliver the package to your address.


Starting an import business without having to rush to set up a company, Rent Space, and hire people will only increase your trial and error costs.
Only after you have gone through the market research and quality control feel that the hand's product has a specific market. Then we can move on to the next phase, pre-preparation and cost review.


Because no importer is always using express to import, its procurement of goods only a greater procurement volume to obtain lower procurement costs and logistics costs.

First, check with your local customs office about the requirements for becoming an importer. For example, is it necessary to register a company? Are Your goods allowed to be imported? Are there any control conditions? Do I need a permit? What is the import duty? Wait a minute


If you do not have any clue about the above information, please find a reliable customs clearance or freight forwarder and ask for their help.


Once you have confirmed that your goods are ready to be imported, check the credibility and reliability of your suppliers. In general, if your supplier is new, the risk factor is more significant than that of a long-established company.

You can ask your supplier to provide his business license, relevant business, and product certificates. Also, ask the supplier some questions, such as whether they have exported goods to your country. Have they ever been to a fair? For example, the Canton Fair, Hong Kong Electronics Show, and so on these all reflect the strength and credibility.

When you confirm that the supplier is a trustworthy company, send them your writing requirements and intentions, including explicit content, product type, material, size, purchase terms of trade, etc. Let the supplier make the quotation and reconfirm that both parties understand the details of the terms of trade, expiry date, payment terms, etc.


When you have the product quotation, you should find a reliable customs broker or freight forwarder to consult the import logistics costs of customs clearance charges.

It also includes the cost of customs clearance and import duties and the need to provide the corresponding import certificate and shipment time; customs clearance will take about how many days?


To get a more accurate quotation, you can usually send your packing list and invoice to your customs broker or forwarder. You can also find one or two freight forwarders in the market to compare prices and see if they are professional. The cost and professional should prioritize your customs clearance line or freight forwarder after the professional should consider their merit.


When you know the product's price, logistics costs, import tariffs, the three largest factors, you have the full product cost control. The profit on imported goods can be calculated from the market price of the previous survey.


After all the above steps are completed, you can confirm the order to your supplier. Remember never to pay full price to your supplier before your goods are ready. The general rule is to pay 30 percent upfront and the remaining 70 percent after delivery to the warehouse or receipt of the ship's lading bill.

It is not recommended for individual bank accounts. Keep the company's name on the business license, the name of the company on the quotation, the signature of the email, and the company's Bank account's name consistent if one of them is inconsistent. You have the right to demand an explanation from your supplier.

 

Because in the production, transportation, and customs clearance, many links may cause the delay of goods, so you should be prepared for the worst when purchasing. Expect at least a 10-day or even 20-day delay in getting the goods.


Finally, you can get your forwarder to purchase cargo insurance. In the event of an accident, your cargo and the money bag will not return to zero simultaneously.

 
52 Monday, 07 September 2020 15:37
Lausm

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