What any new importer needs to know

So many clients I talk to have the problem of if they are ready outsource. Importing is big business, so you need to know exactly how much money you’ll spend. If they are ready, then a variety of reasons to consider when taking your business to the next level. The most obvious place to start is where to outsource from. They place where you outsource may be more important than price. Why? Well, the risk associated with the country reduces price savings. Check the ease of doing business rankings. This often gives a glimpse of the country’s ability to cater to your firm.

Likewise, the distance of the supplier from both the coast and your country may influence pricing. In addition, customs clearance fees, duties and brokerage fees may also influence pricing. Customs fees relate directly to the trade agreements between the importing and exporting countries. Free trade agreements (FTAs) improve foreign market access and reduce your bottom line. To really save from exporting, go big or go home. As an importer, you should always compare per unit costs between domestic and foreign suppliers.

Sometimes, the price reduction may not be worth it as communication may bog down production. I recently had a client who looked to purchase furniture, but could not provide samples. This led to delays in production. The further the supplier, the longer the transport time. Customs will influence your timing. If you do not properly adjust for customs clearance, then your timing will be off.

So when starting to import from abroad, I always suggest the following steps:

  1. Start small

Going small allows you to streamline the processes immediately before the larger sales. This will give you a good feel for the importation. These steps will allow you avoid getting a warehouse or over purchasing in the even the product fails.

  1. Market, market, market

Your product is new and entering the market. NOBODY knows your product—especially, if you are a new company. This means that you have to work on getting your name and your product respected.

  1. Go direct to consumer

Skipping sites like Amazon will add an air of authenticity to your company. Make a website and make sure your consumer can purchase directly from you.

  1. Properly label the items

People mess this up all the time. So much that I’m going to go over it in detail below.

[space height = “20”]

Labeling

Firstly, labeling is a law in most countries—particularly when you are importing items for consumption. Failing to list the proper ingredients in line with FDA (or your importing country’s) standards can lead to a recall or bar the product from entering the country all together. Each order must have a test for quality; this includes a list of materials used.

The Food and Drug Administration contendgs, “Labeling mistakes are the biggest cause for food recalls, with the administration sometimes listing two or three recalls a day. Much of this is due to overseas distributors, as there aren’t specific rules in place for monitoring labels that are imported from overseas,”

Check the following steps to ensure you will not encounter labeling blunders:

  1. Check online with a keyword search
  2. Talk to your consumers or distributors
  3. Talk to your local regulator. In America, the Federal Trade Commission (FTC) protects consumers.
  4. Use third-party agents to check labels prior to leaving the exporting country.
  5. Talk to a customs broker to make sure the documents are filed appropriately.
Loading
About the author

David writes about economic activity throughout Southeast Asia and specializes on international trade relating to China. In addition, he holds a Masters Degree in Economics from Peking University.
We are using cookies to give you the best experience. You can find out more about which cookies we are using or switch them off in privacy settings.
AcceptPrivacy Settings

GDPR

  • We use cookies

We use cookies

What Are Cookies

As is common practice with almost all professional websites this site uses cookies, which are tiny files that are downloaded to your computer, to improve your experience. This page describes what information they gather, how we use it and why we sometimes need to store these cookies. We will also share how you can prevent these cookies from being stored however this may downgrade or ‘break’ certain elements of the sites functionality.

For more general information on cookies see the Wikipedia article on HTTP Cookies.

How We Use Cookies

We use cookies for a variety of reasons detailed below. Unfortunately in most cases there are no industry standard options for disabling cookies without completely disabling the functionality and features they add to this site. It is recommended that you leave on all cookies if you are not sure whether you need them or not in case they are used to provide a service that you use.

Disabling Cookies

You can prevent the setting of cookies by adjusting the settings on your browser (see your browser Help for how to do this). Be aware that disabling cookies will affect the functionality of this and many other websites that you visit. Disabling cookies will usually result in also disabling certain functionality and features of the this site. Therefore it is recommended that you do not disable cookies.

The Cookies We Set

If you create an account with us then we will use cookies for the management of the signup process and general administration. These cookies will usually be deleted when you log out however in some cases they may remain afterwards to remember your site preferences when logged out.

We use cookies when you are logged in so that we can remember this fact. This prevents you from having to log in every single time you visit a new page. These cookies are typically removed or cleared when you log out to ensure that you can only access restricted features and areas when logged in.

This site offers newsletter or email subscription services and cookies may be used to remember if you are already registered and whether to show certain notifications which might only be valid to subscribed/unsubscribed users.

This site offers e-commerce or payment facilities and some cookies are essential to ensure that your order is remembered between pages so that we can process it properly.

From time to time we offer user surveys and questionnaires to provide you with interesting insights, helpful tools, or to understand our user base more accurately. These surveys may use cookies to remember who has already taken part in a survey or to provide you with accurate results after you change pages.

When you submit data to through a form such as those found on contact pages or comment forms cookies may be set to remember your user details for future correspondence.

Third Party Cookies

In some special cases we also use cookies provided by trusted third parties. The following section details which third party cookies you might encounter through this site.

This site uses Google Analytics which is one of the most widespread and trusted analytics solution on the web for helping us to understand how you use the site and ways that we can improve your experience. These cookies may track things such as how long you spend on the site and the pages that you visit so we can continue to produce engaging content.

For more information on Google Analytics cookies, see the official Google Analytics page.

Third party analytics are used to track and measure usage of this site so that we can continue to produce engaging content. These cookies may track things such as how long you spend on the site or pages you visit which helps us to understand how we can improve the site for you.

From time to time we test new features and make subtle changes to the way that the site is delivered. When we are still testing new features these cookies may be used to ensure that you receive a consistent experience whilst on the site whilst ensuring we understand which optimisations our users appreciate the most.

As we sell products it’s important for us to understand statistics about how many of the visitors to our site actually make a purchase and as such this is the kind of data that these cookies will track. This is important to you as it means that we can accurately make business predictions that allow us to monitor our advertising and product costs to ensure the best possible price.

The Google AdSense service we use to serve advertising uses a DoubleClick cookie to serve more relevant ads across the web and limit the number of times that a given ad is shown to you.

For more information on Google AdSense see the official Google AdSense privacy FAQ.

More Information

Hopefully that has clarified things for you and as was previously mentioned if there is something that you aren’t sure whether you need or not it’s usually safer to leave cookies enabled in case it does interact with one of the features you use on our site.

However if you are still looking for more information then you can contact us through one of our preferred contact methods. This Cookies Policy was created with the help of the CookiePolicyGenerator.com

Email: info@intrepidsourcing.com