Export import trading is one of the quickest growing fields that entrepreneurs are getting involved in because small money is required to initiate and continue the business. Remember that there are literally millions of items out there that people desire and want and they will buy those items at a significant mark up. Starting an import business can be extremely profitable for you, especially during periods of global monetary fluctuations like we have now. But there is need of being smart and appropriately managing the products that you trade. It is not essential that for importing and exporting the goods you must have manufacturing units or warehouses, there are people who are exporting and have just one room office in their house. They don't have any manufacturing unit or any godown, but they surely have the market knowledge and demand of the overseas buyers. Here we are making you aware of such market tactics.
Before starting trading business you need to work on following points-
• Locate perfect markets where you can get high quality imports at incredibly low prices.
• Discover other countries’ need; you can also discover items that others countries require and your region can provide it. For example Products like handicraft items, home furnishing, fashion accessories, artificial & imitation jewelry, cotton bags, rugs & carpets and lot many products are manufactured in remote areas of India and can be sourced from there.
• Understand the duties and taxes of importing and exporting products to or from your country. Also find out whether you need license for this or not.
After all this you can look forward to next steps-
• Find manufacturers information; for this you can take help from various trade consultants which can help you finding business affiliates.
• Maintain your catalog; after studying the need of market you are now able to manage the list of products which you want to import or supply.
• Select mode of payments and payment terms for your company; there are lots of payments modes and terms on which you need to work out. Decide if you need Credit card payments, Cheque payments, Letter of credit etc. Letter of Credit: is very important in Import/Export business to Reduce the Risk, the banks assures that the goods are delivered before the money is exchanged.
•Reduces the risk of having to pay in advance for goods as an importer, As an exporter, you have the buyer's bank's assurance that you will receive payment.
• Negotiation in Incoterms: Incoterms are standard trade definitions that dictate the shipping and payment responsibilities of each party.
The best known Incoterms include EXW (Ex works), FOB (Free on Board), CIF (Cost, Insurance and Freight), DDU (Delivered Duty Unpaid), and CPT (Carriage Paid To) |
