Import internationally

1. Perform market research 

Identify the products or )!ç-services you want to buy from one or more international markets. China, Japan, Germany, Hong Kong, South Korea, the Netherlands and the United States are among the top ten importers. 

Look up market research reports on the demand for various goods in the world's top import countries. Do a quick check of the top-selling items on Amazon. See what the best-sellers are for the category of items you're interested in selling or buying. Use Google Trends to find products that are rising in demand.

Reach out to international contacts for their views on products that can be profitable for your business. Access market intelligence in your home country to get a clear idea on what's selling well locally or has tremendous potential in the near future.

Engage an attorney to get a good hang of the product quality and safety standards in your country and/or countries you plan to sell to internationally. Based on this understanding, choose suppliers that can match product laws and customer expectations in your market(s).

2. Find wholesalers and manufacturers 

Will you buy products directly from the manufacturer or a trading company? A middleman will reduce your profit margins but provide ready goods for sale in your local market. Partnering with the right suppliers is essential. Here are some tips:

• Ask relevant contacts for information on import/export brokers.
• Do an online search for wholesalers or trade agents.
• Find suppliers on B2B marketplaces like Alibaba, Amazon and Global Sources.
• Attend trade fairs in the particular country. If you have your sights on China, you can plan to attend the Canton Fair/China Import and Export Fair, which is held twice a year, and attracts over 20,000 international exhibitors, a majority of whom are Chinese exhibitors.
• Identify wholesale marketplaces in the particular country. For example, if you plan to source toys, accessories, bags and small appliances from China, visit Yiwu market on your China trip and engage with suppliers.
• Get samples and properly check what quality and environmental standards they comply with.

After you've identified suppliers or wholesalers, the next step is to prepare the import contract. If you're dealing with a country in which English is not the first language, draft the agreement in English and the official language of that country. A typical sourcing agreement will include the following information:

• Terms of delivery: Who will be responsible for delivery, insurance and customs clearance at each stage?
• Payment methods: Learn about the preferred payment methods in the particular country. Avoid payment options that pose a risk of fraud.
• Quality assurances: State the specifications, packaging and other product-related requirements explicitly in the agreement. You will be in a better position to request replacements or your money back if the manufacturer delivers a faulty shipment.
• Laboratory testing: For your product to meet the safety standards of your country, your supplier must provide the appropriate safety testing and certification. 
• Dispute resolution: Include an arbitration clause to settle disputes less stressfully and expensively than fighting it out in the judicial courts.

Calculate the landed cost

The landed cost is the final cost of products and all shipping and logistics costs involved in getting the goods delivered to the final location. It includes international freight and logistics charges, port charges, import charges, customs clearance fees, import duties and taxes, and cost of local delivery.

Foreign currency exchange rates also factor in the landed cost. Many importers expect suppliers to quote in U.S. dollars but their costs also price in currency risk or they adjust price over time to account for currency fluctuations. Understand your supplier’s exposure so they aren’t severely affected by currency fluctuations, which can impact their pricing. To reduce your foreign exchange risk, lock in rates and pricing for a longer timeframe.

4. Negotiate prices and payment terms 

Suppliers are usually willing to lower their prices if you express interest in developing a long-term relationship with them. Planning to source products directly from a manufacturer in a low-cost country? Avoid negotiating below the price floor, which is the lowest price that can be legally charged for a product. Remember - you get what you pay for. Driving too hard a bargain will likely result in low-quality products.

When buying products from an international supplier, avoid paying the full price or making a large down payment before the goods are in your possession. This will give you leverage in the event of a dispute with the supplier. For instance, if you've paid up 30% and you receive defective products, you can release the rest of the payment only after the supplier replaces the shipment.

Identify the preferred payment methods in the particular country. PayPal may be a safe bet in most western countries but fewer Chinese suppliers or distributors may accept this payment mode. International wire transfers/telegraphic transfers and Western Union are other options.

5. Familiarize yourself with shipping terms, customs and duties 

Stay on the right side of the law with a clear understanding of import-export rules and regulations. Understand the duties and taxes that apply to the products you're importing into or exporting out of your country. Make sure you have all the documents required for customs clearance. All countries require the bill of lading, commercial invoice, importer license, country or origin certificate and pro forma invoice.

Shipping terms set out the obligations of the buyer and seller. For example, under free on board (FOB) terms, the seller takes on the costs and risks up to the point the products board on the vessel. Under cost, insurance and freight (CIF) terms, the seller pays for the transport of goods to the port of destination, freight for the goods to be delivered to the port chosen by the buyer, and bears the insurance costs of the goods while they are in transit.

6. Market effectively 

Even the best products cannot sell themselves. Your target market will base their decisions on your product descriptions and photos, USP and brand assurances, which include number of years in business, customer testimonials, product popularity and so on. Sow seeds of trust and deliver on your promise with consistent quality and timely delivery. Consider rewarding loyal customers with discounts, early access to new products and free shipping on orders exceeding a certain value. Whether you plan to be an Amazon seller, have a major branded online presence or have your website/brick-and-mortar business, level up your marketing game to remain competitive in your space.

7. Monitor customer reviews 

Once you've gained sales momentum, keep a tab on customer feedback and ratings. Are they satisfied with the quality of the product? Do they feel your products are overpriced? An understanding of how competitive your products are in the market will help you tweak prices, plan marketing strategies and make appropriate supplier- or distributor-related decisions.