For those looking for a little more excitement, starting an import business can be adventurous and highly lucrative. Successful importers travel the world, negotiate with manufacturers, and bring in attractive goods that have an incredible value to the importers native land. It may take a little bit of sales and negotiating skills, creativity and resourcefulness, and maybe even an interest in learning how other cultures do business.

But travel and negotiating isn’t necessarily required. In fact, that’s what has recently made the import business such an attractive venture. Someone entering the import business can get by with a computer, a fax machine and an Internet connection. This not only makes this an easy business to get into, but one with relatively low start up costs.

The Internet has literally revolutionized the import business and made trading across international borders incredibly easy. With an email address and a chat program, you can negotiate and execute a contract, and have your goods sent directly to your front door – but that’s only if you plan to actually use your own money.

In most cases, your role is not to bring products into your country and sell each unit to an end user. Instead, you purchase products in bulk and sell them at bulk to the retailer. You play the role of a wholesaler.

In other words, you don’t necessarily have to use your own money because the retailer will be the one releasing funds to purchase the product. You play the role of the classic middle man, but you are the deal maker that sources products at such a great rate. This entire process can be done without ever touching or seeing the product first hand. You will, however, hire an agent at the customs borders to verify the merchandise quantity and quality before the trade is executed.

So Why Go Through All This Hassle?

International trading of goods makes sense because some countries either have materials that are not available locally, or they have cheaper labor costs and specialized knowledge. For example, technology parts are manufactured in Singapore and China, which provides opportunity for an importer to go directly to the source of these cheaper parts. In other words, a country has a supply of a commodity or merchandise that people in the importer’s country wants. That allows you, the importer, to purchase that product overseas and sell it at a markup.

How Does the Process Work?

A typical import trade agreement goes as follows:

1. The importer hires an agent in the exporting country to search for a product at a particular price, which will be paid a commission upon fulfillment of the order
2. The importer receives and reviews a pro forma invoice, which includes the price and terms of the agreement
3. The importer (or end buyer) has their bank send a Letter of Credit to the exporter, which guarantees payment once both parties terms are met
4. Customs agent verifies quantity and quality of goods and confirms terms have been met and funds are released to exporter
5. The merchandise goes through customs
6. Goods are shipped to final destination

While there are variations on this process, largely depending on the negotiated terms, this is the standard procedure for importing goods. The Bank’s Letter of Credit is the safest way to process this order without either party being scammed. As an importer, a Letter of Credit reduces the risk of having to pay for goods in advance. An exporter has the buyer’s bank’s assurance that they will receive payment provided the terms are met.

What Can You Import?

If your imagination is starting to run, let it. As long as it is legal, you can import just about anything from rice to electrical conductors; mp3 players to Oriental rugs. You can import products to sell on eBay or cell phone cases to wholesale to multiple retailers around your neighborhood.

To find these products, you can simply contact an import agent who is familiar with working with particular countries. They can act on your behalf as the negotiator for price, shipping terms, and other conditions. Other resources are to consult your local Board of Trade, Chamber of Commerce, or call the local Consulates and Embassies to help you make the connections you need. These organizations will assist you in making your efforts run smoothly.

You will also want to familiarize yourself with Incoterms, or the standard trade definitions and language that dictate how trade terms are established. Terms like FOB (Free on Board), CIF (Cost, Insurance and Freight), and DDU (Delivered Duty Unpaid), will establish who pays for shipping and who pays for insurance. All of these things affect your bottom line and profit potential.

Other things you’ll want to consider are additional packaging fees, commissions to your trade agents, customs duties, tariff rates, and so on. These are minor costs of doing business that you’ll want to work into your wholesale price to the retailer in order to make the most profit.

To get a complete guide on how to start your own business from home, purchase Alistar Hunt’s guide to profiting in the import business. He brings 36 years experience in showing you how to easily source products and sell them at 5 – 10 times your cost, and his step-by-step guide can get you up and running quickly.

Just think of the profit of a $12 mp3 player that you can wholesale for $60 a piece. Without any of their own money, an importer would make $48,000 net just off a small 1,000 order. Not a bad payday for something that doesn’t require leaving your home or any of your own money.

Purchase Your Import Business Blueprint Here