Importing goods for your online business

If you have not yet considered importing goods as a sourcing method for your ebay business or online store, then you are missing out on some huge opportunities to grow your business and increase revenue. You need to use a combination of sourcing methods to help your business be successful, and importing goods can result in big profits.

Why import goods from overseas

There are a number of reasons why you might consider importing goods. Importing provides you with an opportunity to provide goods that are not normally available in your home country, giving you a competitive advantage. In addition you can often negotiate exclusivity for certain products or range of products enabling you to stand out in a crowd.

Another big benefit of direct importing is that you eliminate the middleman as you are negotiating directly with the manufacturer. This will lower your acquisition price and increase your profits. In some cases you will also get more product choice, for example different sizes and colors, which can again differentiate you from your competition.

As a business person you also get more complete control when going straight to the manufacturer. You may be able to specify different packaging options, different labelling, and a level of customisation that is again different from your competitors.

There is also a greater transparency of your shipping and duty costs when you import goods directly from the manufacturer. If you were working with a distributor, all shipping and duty costs and additional mark-ups would be added to the cost of your products, making it more difficult to understand where you could reduce costs and increase profits.

Importers, Agents and Distributors

An importer is anyone who orders imported goods from overseas, which includes the typical online store owner or ebay seller. An agent, on the other hand, is an organisation working on your behalf that will accept delivery of products coming into your country. They will take care of paying the duties and moving those products on to you. It is important to understand that the agent does not accept ownership of the product at any time.

A distributer would not typically get involved in direct importing, as they will want their overseas manufacturers to handle all of the importing and transportation process. When dealing with a distributer all import, handling and transportation costs are included in the product price.

When starting out in the importing business, it is quite possible to handle all elements of the supply chain yourself, which will give you more control and increase your profit margins. However, until you are very familiar with the importing process in your product niche, it is advisable to use an agent to facilitate this process.

Importing products for your online business is an excellent way to increase your profit margins and diversify your product sourcing efforts. However, it is vitally important to ensure that you deal with quality pre-screened manufacturers that won't rip you off. It is well worth considering using the services of companies like Worldwide Brands and SaleHoo to provide you with lists of pre-qualified manufacturers and exporters. This will ensure that your first experience of importing is an enjoyable and profitable one.