Importing or exporting goods is big businesses. You can save a lot of money importing goods as opposed to buying them locally. In fact, most businesses prefer buying stock from abroad because it is cheaper. Similarly, it is also good business to export goods abroad provided there is ready market. The process of researching for import/export business opportunities however has many challenges. Below are some useful tips about international trade that must be considered to increase your chances of successfully importing or exporting goods.
1. Research thoroughly before dealing with an international company: This is by far one of the most important international trade tips you must consider. You should never buy or sell anything to an international company without first doing a thorough check of the company. Thorough checks are important to ensure that you are dealing with a legitimate company. You can carry out a check by doing a reverse phone look-up to get a company’s details and confirm legitimacy. You can also decide to contact your local embassy in that state or country to establish whether a company is registered legitimately. References from other clients can also help you determine the legitimacy of an international company. In summary, you must confirm that a company is legitimate before deciding to conduct any import or export business.
2. Be specific: This is a very important international trade tip. For instance, you have to be very specific about the description of any goods you want to import. You should go as far as sending photographs, sketches or diagrams of exactly what you want otherwise you may risk being sent the wrong goods. You should go as far as insisting for samples even if you will be required to pay extra. Your international supplier has to understand exactly what you want before you decide to import anything otherwise you will risk receiving the wrong goods and wasting your time and money.
3. Consider safe and secure payment only: This is another important international trade tip. There are very many ways of paying for goods internationally. It is however important to note that some of these payment means aren’t safe and secure. You must therefore consider dealing only with those international companies that use safe and secure international payment systems otherwise you risk losing your money through fraudulent payment systems i.e. credit card fraud.
4. Consider cash flow: This is also an important international trade tip for individuals who are planning on entering into export business. In most cases, it takes longer to receive payments if you are exporting goods abroad. To avoid being cash strapped, it is always advisable to plan ahead for delays to cater for cash flow problems that may arise.
5. Budget for taxes and excise payments: This is another important international trade tip that must be considered. When exporting or importing, you will be held responsible for paying any duty, taxes and excise that is applicable. You must therefore budget in advance to avoid unnecessary delays and penalties caused by late duty, tax and excise payments.
John Sterling is a business consultant and a writer. If you need some help with international business and trade, visit www.itradegood.com.