Before now, starting an import business was a herculean
task. You had to contend with import duties, tax, quality assessment, letter of
credit, and custom fees.
Although the old establishment still exists there are
slight variations due to globalization. Formally only deep pocket individuals and
businesses could go into importation.
Today any individual could join the bandwagon with little
cash. Import business is about purchasing goods wholesale at low prices and
selling for profit. This article will show you how to start an import business
anywhere in the world.
Things
to Import
The product depends on your business plan and niche. Top
products imported into Nigeria are office equipment, kitchen utensils, phone
and tablets.
Others are electronic gadgets, shoes, cloths, accessories
and laptops. More are headphones, chargers, batteries and hair extensions.
- Choose a product
- Open an account
- Go online
- Search foreign stores
- Place order
- Pay for goods
- Take delivery of goods
How
to start a Small Import Business
The
Rudiments of Importation
It is good to understand the rudiments of importation
business. The basics involve buying low, selling high. The margin between the
purchase price and sales is your profit.
Buying at a low price is possible if the small business
owner buys directly from manufacturers. Alternately they could buy from big
importers. However the major challenge to small scale investors is finance.
Minimum
Order Quantity
Every major supplier and manufacturer has what they call
Minimum Order Quantity. The minimum order quantity is the lowest quantity of
products they are willing to sell.
Some suppliers peg the minimum quantity for purchase at
1000 units. While manufacturers place a minimum order of 10,000 units.
This MOQ is the reason small investors without adequate capital
are removed from the equation. Manufacturers love volume and are only
interested in selling to big importers.
Import
Business Flow Chart
The product is manufacturer then sold to big importer who
sells to small business. The small business then sells to customers. The value
chain is what affects the final price of the product and profit margin.
Factory – Big Importer – Small Business Owner – Customer
How
Things Have Change
There is a big change in the import value chain in today’s
reality. The internet has opened the world to commerce in an unprecedented way.
Small businessmen are able to reach manufacturers and
skip the big importers. This is because the small business owner is not bound
by demography or air travel.
They can reach manufacturers at very little cost and
remove the middleman. They purchase the product at the lower unit price from
manufactures and sells to customers at maximum profit.
Top
Manufacturers
Top product manufacturers and suppliers are USA, Europe
and China. China has in recent times become the marketplace of the world.
The reason is because of huge labor force, cheaper prices
and technology advancement. The Chinese manufacturers dominate the world and
are willing to do business with Africa. They produce billions of consumer good
in mega plants at cheaper costs.
The
Products Quality
The products quality depends on the standardization
enforced by governments. Manufactures readily comply with each countries
provision on quality. High quality products would always find eager customers
and recommendations.
To ensure that you buy quality products study the
feedback of customers on a product. Those with 4 to 5 stars are good products
to consider. Other ways is to read the product description and search the net
for information.
How
to Start the Import Business
There are a few things you need to start your import
business. You need a laptop, 3G/ 4G modem and smartphone. The modem is to
facilitate internet connection 247.
You need a shipping address to receive goods, email
address and bank account. Use your home address as your company address. You
can buy a used laptop at N10, 000, universal USB modem N2, 500 and 1 month
internet subscription at N1000.
Where
to Buy Products
Once you have your computer and internet connection the
next step is to find suppliers. There are many good supplier eager to do
business. Your job is to find small scale importers especially from China. Here
are some reliable importers for small business owners.
iPmart.com
The iPmart focuses only on electronic products. They
offer buyers electronic products such as smartphone’s and phone accessories.
The gadgets are numerous and high quality.
They can ship products from the United States, Malaysia and
China. To purchase products all you need to do is signup on the website and
become a registered member.
Aliexpress.com
Aliexpress.com is the number one destination for small
importers. A subsidiary of Alibaba the site has 20+ product categories for
importers. They have registered suppliers and buyers in 220 countries.
Dhgate.com
If you want to do business with medium and small
enterprises in China look no further. The eCommerce website allows importers
order products directly on the site. They offer a wide range of products,
customer service, online chat and email messaging.
Amazon.com
Amazon.com is a top player in eCommerce business. They
stock millions of products from suppliers and merchants. All you need to do is
sign up and browse through the website. Select products into your shopping cart
and make payment. Note that not all goods are shipped to Nigeria.
How
to Pay for Products
There are many payment methods used to purchase goods.
You could use a PayPal account, debit card or electronic fund transfer. Other
methods include Escrow or letter of credit from your bank. Top website provide
buyer protection to secure payment against fraudsters.
How
do you get Your Goods?
There are many shipping options available to merchants.
The goods are delivered either by mail, DHL.
The mail service is slow and your goods could get stolen.
DHL or FEDEX mail are more expensive but very fast. While the mail may cost
less and take about 60 days, DHL would take 2-3 days.
Sell
your Products
Sell you products directly from your store or use the
internet. You could build an eCommerce store or sell via social media. Start
small by purchasing a few products to learn the tricks. As your business grows
gradually increase inventory.
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