Before I get into the specifics of importing, let me talk about some potential barriers to your success. Importing is not an ideal business for the disorganized or the carefree. Altogether, importing and exporting is a $1.2 trillion global business, so you can be sure it is serious. The good news is that the import and export trade is dominated by small businesses (96%), so you are in the majority.
I can give you excellent reasons why you should think extremely hard before going into the import business:
a. You need a lot of capital because you must buy the products outright, and suppliers will only sell to you in bulk
b. You are completely liable for what you sell, so there is a chance you could be sued if there is something wrong or harmful about your products.
c. You must commit to what you import; you cannot just drop a product because it is not selling, like you can with drop shipping.
d. You could be victimized by scammers and lose your shirt (among other things).
e. You could end up with a lot of products you cannot unload.
f. You must manage your inventory.
g. It can take months before you get your products if you are having them manufactured.
Do not be too intimidated it is plainly important to understand the risks involved before embarking on any new business venture.
Steps to Importing Products from Overseas are as follows:
1. Choose a Product (or Products) to Sell
You as an online seller are considered an import merchant because you do not have to be tied to a single industry or product line, and you buy direct from the overseas manufacturer to resell back home. Your main consideration is choosing a product you can sell, and you must be a good salesman, or you are not going to get anywhere. In most cases, it would be smart to choose products that are in high demand, something you yourself would buy or at least know a lot about. It is also good to sell items that are not immediately available, or those that are in high demand. If you are an eBayer, you could discover some probable candidates in the SaleHoo Market Research Lab.
2. Choose the Supplier
Once you have made a list of your products, you need to find suppliers or manufacturers that carry them. You can search for them individually online or use wholesale supplier directories such as our very own SaleHoo. Make a list of the ones you feel good about and start communicating with them. Ask questions to find out which suppliers are most likely to give you what you need. They should be able to give you client references, business licensing, compliance information, a physical location for the business, and product samples. Failure to deliver any of the above is a red flag. Weed out those that cannot give you most of this information and concentrate on the ones that are left. Now you can talk business.
3. Start Negotiations
Be forewarned, this may not be as easy as negotiating with local suppliers, because you will have to deal with people of different cultures who may not communicate well in English. China, for example, is one of the biggest suppliers of imports for US companies. A typical Chinese supplier will want to establish a personal relationship when doing business, because they focus more on morality and trust than legality and contracts. The end game, of course, is to get the best possible deal you can. Still, there is no reason you cannot build fruitful business relationships while you are at it. Keep in mind though, with other cultures you will need to employ slightly different tactics than you are used to.
4. Place Your First Order
With everything set up, you can place your first order, and arrange for a down payment. Most suppliers will not begin processing an order without it. Arrange for shipping as well. Note that you can get your products faster by air, but it will cost you about six times more than by sea. Some suppliers may offer free on-board freight shipping, which means that the supplier will take care of all transportation costs for loading while the buyer pays for all costs for unloading. Your unloading costs will include the insurance, transport, and expenses for unloading and storing the merchandise.
Make sure that the supplier provides you with the following documents, which will be required by Customs when the shipment arrives:
a. Commercial invoice
b. Packing list
c. Detail sheet
d. Bill of Lading
5. Pay the Taxes: You do not need an import license except for specific products, but you do need a customs broker for your first shipment. The customs broker will take care of all the paperwork required by the U.S. Customs and Border Protection for entry of the shipment, provide you with information about import duties, and arrange for the required Customs Single Entry Bond in case you default on custom duties. The custom broker may also make the Import Security filing which is required 24 hours before your shipment leaves the port of origin unless you or the supplier have already taken care of it. You may have to contract a freight-forwarding company to deliver the products to you when they arrive unless you arranged for the shipping company to deliver it to you directly.
Besides if you do have any questions give me a call: https://clarity.fm/joy-brotonath