Importing, Demystified

Over the years, various direct marketers have attempted to portray the import-export industry as a combination business opportunity and get-rich-quick scheme in an attempt to persuade people to purchase their training manuals, books and other moneymaking products.

Some of these marketers have been successful at capturing the financial benefits and tax savings associated with owning your own business and becoming a world trader, but for the most part what they were selling was based upon hype and false promises. Leading consumers to believe that for a minimal investment of time and money they could become rich overnight.

Fortunes can be made in international trade and fortunes can be lost if you choose to believe the hype and not the sobering realities of the business itself. Importing is a business and like any other business there are certain rules, guidelines and procedures that must be followed if you want other international traders to take you seriously and hopefully do business with you on a day to day basis.

Until you understand how these basic fundamentals work you won't be able to brand yourself as a bona fide "world trader" and make the kind of contacts that you need to build your business. This title doesn't come easy. The same rules that apply to the hundreds of other importers and exporters apply to you as well. And they have remained the same since the days of the first Spanish traders that sailed the oceans looking for new trade routes and worlds to conquer.

People from different country trade with each other as a matter of survival. The Hudson Bay Company was one of the first successful British companies to operate an international trading business in the areas surrounding the Hudson Bay in Canada. For one hundred years this company traded in skins and furs between its own country and Canada.

Importing is a growing business on the Internet. Credit card shoppers and buyers with Internet access frequently log onto the Internet when searching for rare or imported products. Selling imported items can give you a big advantage over products that are manufactured here in the United States. Basically due to the fact that imported products can be purchased from overseas manufacturers at a much lower cost than what can be obtained from domestic suppliers.

As an entrepreneur considering whether or not to start a business as an Importer of overseas products and merchandise you need to consider the business aspect of becoming a world trader and don't fall for the "get-rich-quick" sales hype that con artists want you to believe. There is no magical or mystical road that leads to a pot of gold at the end of the rainbow. It is possible to find a product that may be new or unusual but for the most part your "fortune" in importing is only going to come from one sale or transaction at a time. You will have to build your business and this will take time.

Unless you purchase an import business that's for sale chances are you will have to start your business from scratch, and this means putting in some long hours at the computer nailing down trade leads, sourcing for products and contacting manufacturers that have the products you want to market.

There will be times when you will enjoy what you are doing and there will be other times when nothing that you do seems to work. But I think you will find that this is true of all businesses no matter what type they are. It will take a lot of commitment for your business to succeed and the fact that the Internet has made it easier for international traders to network with one another is not going to make it any easier.

WORKING WITH OVERSEAS MANUFACTURERS

Conducting business with foreign manufacturers is not as tough as you think it might be. The majority of them are reputable businessmen and women that will be eager to enter into a distributor-type arrangement with you for the sale and promotion of their products. If you are located in the United States you will find that English is still the universal language and don't be surprised to find that a world trader in a non-English speaking country may be well versed in the English language.

You must present yourself as a professional in all of your contacts and business dealings with potential trading partners. If a foreign executive or export manager feels that you are an honest and reputable businessperson they will be more inclined to work with you. Whether you first contact is by email, fax or snail mail you must put your best foot forward. You must speak and write professionally and never be rude or offensive in any of your communications.

Proper business etiquette is very important in world trade and this is why you will find ambassadors and the CEO's of multinational corporations studying and learning as much as they possibly can about a particular countries culture and its people before placing himself or herself in any kind of awkward situation. If you offend someone either because of ignorance of the language or the culture this could reflect very poorly upon yourself and your company.

You must realize that no matter how badly an overseas manufacturer may want to have his products distributed in the United States or any other foreign country they will not want you to represent them if you present yourself as being unprofessional.

Before asking any foreign firm for the import rights to distribute their products you must do the following:

1. Decide on the products you want to import or which industry you want to operate in.

2. Print business stationery and cards. Even though you will be using the Internet to source for products and make contacts there will come a time when you will need to send a fax or an airmail letter to a potential trade partner. Remember that only a small portion of the world has embraced the World Wide Web. There are still a lot of countries that do not have Internet access or an Internet connection is only available in regions. You will find many fine manufacturers and exporters that are interested in doing business with you do not have a web site or even a computer.

3. After you decide on which products or items you would like to import it is very important that you conduct some preliminary market research in your area or on the Internet to determine your products potential. Let's say for instance you decide that you want to concentrate on marketing a line of golf products and from your search at a few of the B2B electronic marketplaces you have identified some possible suppliers. If you do some market research you will have statistics that you can use as part of your sales pitch to the supplier. This will let the manufacturer or exporter know that you are a professional and you have already identified a potential market for his line of products. Instead of blindly stating that "you can sale his products to millions of buyers" you will be able to state "our research for the sale of your line of products has revealed to us that there exists a market of 3.5 million users of golf and golf related products whose demographics includes not only male and female golfers but department stores, retail chain stores, mail order companies, and sports outlets...."

4. Include in your letter, email or fax to the supplier how you intend on reaching this vast market. Will it be from direct mail, email marketing, manufacturer reps, or from search engine traffic as you attempt to drive traffic to your own web site?

5. If you have had any previous experience marketing golf products you should definitely include this information in your correspondence.

DON'T GIVE IN TO THE HYPE

There is no greater mystery than that which has never been understood. International trade is a very glamorous field that many people get into because of the lure of adventure and traveling around the world like a modern day Marco Polo. There is a lot of money to be made in world trade. And you can write off your overseas travels as a business expense.

But the bottom line is this: what good does it do to spend eight or ten months a year traveling from one destination to another if you come home empty handed? You should focus all of your attention on your business and leave the sight seeing and touring to the evening. Your main goal of traveling overseas is to make contacts, to promote the capabilities of your business either as an importer or Import Agent, and to find the one product that may be a diamond in the rough that you can turn into a million-dollar moneymaker for your company. There will be plenty of time for fun and adventure but only after you have accomplished what you set out to do first.