7 Mistakes to avoid in importation business
Importation business is a field that is not very crowded in the business world though a few people are beginning to go into mini-importation.
There are certain factors to consider and mistakes to avoid in every business one chooses to do, and importation business should be dealt with carefully following that the procedure to receive goods involves a lot of Logistics.
In every importation business, certain mistakes to avoid include:
1. Not knowing the country’s regulation
This is necessary because the goods that are being bought or ordered will come from a country different from the importers own, the importer needs to get to understand a foreign country’s regulation. The importation industry in certain countries have regulations that permit certain products from being imported.
Understanding their norms will help an importer to know the exact goods that are licensed to be imported. This will save time and resources.
2. Not ordering for goods without insurance
Getting to insure your imported goods makes sure that the goods imported get to their destination safely. In case of a ship sink, cargo theft or rough handling, the importer will get compensation for it. Insurance not goods in a foreign market is the best way to take care of your items purchased.
3. Being ignorant of exchange rates
While importing goods from one country to another, business people must pay attention to exchange rates between currency fluctuations as this may cause you to lose enough margin.
4. Lack of importation knowledge
If you are not knowledgeable about importation, then there is no need to go into it. You should have a basic knowledge of it or have a guide who would follow you closely. Lack of knowledge of importation may lead to greater loss.
5. Allowing suppliers to arrange your goods
Most importers, especially newbies believe that when their supplier arrange their goods that the supplier pays the charge, but this is not so everyone as the importer may be left with local charges to clear.
6. Going for Ocean shipment always
Some goods are even less expensive to ship by air rather than the Ocean. Goods that weigh less than 330 pounds can go by air. Importers should ask their suppliers to provide options for shipment.
7. Not going into business with enough cash
Importation involves s lot of payment before an importer gets his goods. So when planning to go into importation, have enough assets or cash that can see you through the process to avoid getting stuck on the way.