5 EASY STEPS TO START IMPORT

IMPORT:

 As a starting import business, you have 5  steps  to start:

1.       Choose a product that fit to you: the first thing to do is to choose a product that you want to import, it will  be more effective to choose a  product that you know more details about it, or can fit on your skills, for example if  you have skills on computers so it will be more relevant to choose products to import from the computer market.

2.      Check your country law: first of all , you need to check if the product that you are going to import has allowance to import and if there is any  special law concerning this product. 

3.      Make a market research: once you choose the product make a market research to check all about this product: selling market price, costumers, average annual sell monthly, payment method in the market, computation, etc..

4.      Check your product price in the international market: now  you need to check if  its worth to import this product to your market, there is lot of sites that you can check prices (go to; Google, Aliexpress, tradekey, Alibaba.com etc.. ). Be careful when you compare the prices to add the transportation cost from the seller home land port to your warehouse , plus the tax ( if there is) on the product.

5.      Business plan and budget: after you decide on the product, it’s the time to make your business plan include cash flow. This stage is very important for the final decision within to invest, how much money you need to invest, and your plan for the future.

Her I recommend you to get a help from your  Accountant or an business administration expert .

                   

once every thing  is  settled, you need to start import, and you need to know how to import actually , for that the first step is to  know the common  international  terminology :

P.I ( Pro forma invoice ): A pro-forma invoice is a preliminary invoice sent to buyers in advance of a shipment or delivery of goods.  it gives a description of the purchased items and notes the cost along with other important information, such as shipping weight and transport charges.

EXW ( Ex Works ):  is an international trade term that describes an agreement in which the seller is required to make goods ready for pickup at his or her own place of business. All other transportation costs and risks are assumed by the buyer.

F.O.B ( free on board ): Free On Board (FOB) indicates that the supplier pays the shipping costs that usually also include the insurance costs from the point of production to a specified destination, at which point the buyer takes responsibility. (usually it’s the port of the seller ).

C.I.F ( cost, insurance, freight ): Cost, insurance and freight (CIF) is a trade term requiring the seller to arrange for the carriage of goods by sea to a port of destination, and provide the buyer with the documents necessary to obtain the goods from the carrier.

B/L ( bill of lading ):  A bill of lading is a legal document between the shipper of goods and the carrier detailing the type, quantity and destination of the goods being carried.

TT (telegraphic transfer  ): telegraphic transfer  is a form of  bank transfer.  Its transfer money from bank to bank directly.  T/T payments are a cheap and fast way of transferring money overseas through most banks.

C.A.D PAYMENT: ( cash against document ): The cash against documents is a management and payment tool for international transactions. Its purpose is for the seller to get the amount owed by a customer from a bank against delivery of documents (invoice, packing list,  bill of lading...etc.).

L/C ( letter of credit ):  a letter of credit is a payment undertaking given by a bank to the seller and is issued on behalf of the applicant i.e. the buyer. The Buyer is the Applicant and the Seller is the Beneficiary.

second step:

Find the source of the product: you need to make your buying research about the best market to buy  your  product, by finding the best quality and best price , and transportation delivery time.

So the best  thing to do is to go to Google and check your product  through different  websites: ( , like Alibab.com, ALIexpress.com, tradekey.com, buysmartjapan.com, tradeindia.com, etc.. ) compare quality and price.

Contact suppliers and negotiate them: send Emails to the suppliers that fit your product and ask them to give you more information about it, ask them  more details on the quality issue,  investigate every part that you have doubts about it. And at last negotiate with them on the price , this is very delicate issue and you need to be very careful , some suppliers can reduce the price but then they will low from the quality, be sure when you close the final price with the supplier that you will get the same specification that you asked for.

Shipment and packaging: close with your supplier about how you want your product to be packed, and deliver. Always ask your supplier to send you photo of the packaging since its very important part for marketing later on.  Once your packing is  designed well  you have more chance that costumers will buy ( especially if you are selling a new product).

Documents: finalize with your costumer on the shipping documents that he will apply for you ,in further to the  Invoice, Packing list, B/L ( bill of loading ). like Certificate of origin / Euro one, Certificate of health, etc…

Brand name: I will recommend you to start import your product in your brand name, first that will give an extra value to the product, second will make a difference between your product and other competitors  products.

Be aware some of the suppliers can make your brand name on the package free of charge or at a very small cost. You can ask them if they can type the brand name on the product also ( depends on the product ).

Payment: negotiate with them on the payment terms. Most of the suppliers ask you for advance  payment to start producing your item, and the rest will be when delivered by C.A.D payment. So you need to be sure that once you pay the advance payment you will not get it back, for that be careful with whom you are working with.

Or the best way is to ask your supplier for L/C payment then you will minimize the risk, once he deliver the goods your bank will pay him. ( there is different types of  L/C  will talk on this later).

P.I ( pro forma invoice): ask your supplier to send you P.I, which is kind of contract,  an advance invoice that include all the details of the product, specification, quantity, price, packaging, time of  delivery. By that you can check the final agreement with the supplier.

Be aware to have the signature of the seller on the P.I ( which indicate his acceptance for all the details that included in the P.I ) .

Checking quality before loading: once your supplier start producing, ask him to send you photo’s of your finished product, then you can control if the product fit to your demand as it written on the P.I.

I recommend always to use a local company on the supplier region or SGS company to check the goods before loading, photo don’t show you the quality.

Following up: track your shipment and follow up with the supplier to send you all document needed and update your shipping agent.

Receiving the goods: when you unload the container, check your product carefully before start marketing it ( especially if it’s a Hi tech products ).

Check the quantity to be sure that you received the same amount of product.

Contact the supplier: once every thing is settled contact the supplier to give him your feedback on the product, and thanks him.