Export import business is a niche that has huge potential and international trade becomes more and more rewarding in terms of profit. As long as there’s been people, there’s been trade.
If you want to start work on it read my article where I share with you all basic knowledge!
Types of Import/Export Businesses
Before you start you need to know major players in export business apart from manufacturers and identify your position
Export management company (EMC)
An EMC basically works for local company if they don´t want how to sell their products. Thus, EMC representing local manufacturer selling its products abroad. EMC can hire dealers, send invoices, do publicity, marketing and promotions; arranging shipping;
EMC usually works for commission, salary or retainer plus commission.
Export trading company (ETC)
On the contrary of EMC, ETC usually knows many foreign buyers. Having the demand on had they search for local company that have products. They identify the best supplier, bargain for price, visit factories and check the quality. An ETC sometimes takes title to the goods and sometimes works on a commission basis.
A merchant is an agent that purchases goods directly from a local or foreign manufacturer and then packs, ships and resells the goods on his own. In this case a merchant assumes all the risks (as well as all the profits).
Trade channel is the following
Manufacturer middleman and end user
The key of your success is to conduct a proper market research before you start your business.
How to conduct a market research? Make sure you identify
- The product or service you’ll sell
- The end user you’ll aim for (mass-market consumer, heavy industry, light industry, medical or hospital use, government, business or professional)
- The country or countries you’ll export to or import from
- The trade channel you’ll use (direct sales, representative, distributor or commission representative)
The good part of export import business is that you can create it from the comfort of your home. It implies very little investment and not a lot of resources which works in the benefit of every beginner.
Commissions and fees
You can work or by fees or charging the commissions. Import/export management companies usually operate on a commission basis of about 10 percent.
How to find suppliers?
- Attend trade shows (the most effective way as you have opportunity to meet them in person, ask price, bargain, make agreements on fair)
- Contact embassies’ trade development offices. They usually provide list of suppliers by particular field
- Contact chambers of commerce and commerce’s International Trade Association. They also can provide list of suppliers by particular field
- Track down leads on the Internet or in trade publications.
There are plenty of opportunities for international trade that can be very profitable in the long run. The growth is entirely up to you. I hope this guide will help you in your way to successful export import company! Share your opinion in the comments below! If you have your question, please write it below, I would be glad to answer your questions or to introduce your project to my team at Astorts Group to be evaluated.
Alessandro Rocco Pietrocola is an entrepreneur and investor based in London and operating mainly in Europe, Asia and Oceania with main focus on UK, Baltic Countries, Russia, China, Hong Kong, Malaysia, Singapore, Middle East and New Zealand as area of interest! At the moment is the CEO of Astorts Group. He is an UK FCA (Financial Conduct Authority) Approved Person and is has great experience as director of regulated companies. He uses to dedicate part of his life to inspire others and help them achieve the most out of their life. Since he was 20, he had successfully founded and managed several companies operating in the field of management consulting, wealth management and fintech. He loves travelling, he is a cigars lover, an amateur golfer and a dapper man.