- Imraan Moosa - CrackerSolutions
Hello again 
I recently received a comment asking for some advice on starting an import/export business and so I decided to read up a little on the subject so that I could provide some insight and share what I have learnt. I do not claim to be an expert on this topic, however I am most willing to learn together with you. With that said..let us begin!
The international market is becoming more and more popular as the world progresses. Actually it is becoming hot! Gone are the days were things like flying, sailing across countries were laughable. We live in a world with endless possibilities and it is becoming more and more common for the average person to begin an import/export business.
Take a step back however. International trading is not something new. Remember the old days, when travellers around the world use to set sail in order to barter cotton, spices and other precious stones. We as more technologically-advanced people, have just found easier ways to import/export our products.
Not everybody is cut-out to be an international trader. If you are the type of person who shudders at the thought of making a sales pitch, or you are an organizationally challenged person then I would say that you don’t want to be doing this kind of business. If however, you are a really enthusiastic person- who enjoys tracking receipts, invoices – or if you love the idea of working with people from different cultures, then I would tell you to just keep going! You are on the right track!
Why do we Import/Export?
It comes down to 3 main reasons being:
- Availability: There are certain products you just can’t obtain from within your own country and therefore need to import it from another.
- Image: Sometimes the ‘image’ of a product from another country just appeals more or has a greater effect even though the same product is available in your country.
- Price: The price of a product from another country in comparison to the price in your country being lower – would be profitable to import and sell within your country – at a lower price.
Aside from these things, countries usually export products which they can product inexpensively due to technology and resources and import products which they can not/find difficult to produce. Take for example a country such as Saudi Arabia which is gifted with oil. They contain the resources together with the technology to take advantage of this oil and export it – but they may need to import clothing.
There are different types of Import/Export Businesses niz:
- Export Management Company (EMC): An EMC handles the exporting or a product for a domestic company that wants to sell its product internationally, but does not know how to or does not want to know how to. They handle most of everything. They take care of distribution, packing, dealers, arranging shipping and sometimes the EMC takes title to the goods becoming their own distributor.
- Export Trading Company (ETC): An ETC focuses on the other side of the coin. They find out what products are in demand from foreign buyers and then find domestic sources that are willing to export. See the difference between an EMC and a ETC?
- Import/Export Merchant: This sort of entrepreneur is like a free agent bound to themselves only, taking all the risks – but gaining all the profits too. They specialize in no specific product, nor do they have a permanent client base. They look for whatever is in demand at that moment, import/export it – package and ship it.
Other things that you will need to look into – finding a trade market! Every product needs customers in which to sell to and you will need to research what foreign customers are in demand for and do market research so that you are fully equipped.
I have now come to the end of my mini Import/Export Business guide. What I have written is just the beginning on a major topic of how to start an Import/Export Business. However, I hope that I have hyped you, oh future Importer/Exporter enough to continue reading more on the topic so that you may fulfil your dream.
If you have any furthur questions, comments or suggestions – feel free to comment on my blog or email me: id3ntity@gmail.com
Lunch is ready..and I’m out
- Imraan Moos
