Dilemma in Import-Export Destination Selection
Traders connect two territories or economies – abundant and deficient. Remember, not all the territories or economies are self-sufficient or deficient with respect to all items. When you are operating in a local area, you can have a very fair idea as what products are in abundant and what is not, but while operating on bigger geography it becomes difficult. Moreover, demand and supply also gets affected by several factors. So, you should precisely know the import or export destinations before jumping in the wagon of trading.
Difficulty in Finding the Right Import-Export Partners
Ascertaining the credibility of your import-export partner is important to run a successful trading business. You can’t afford to invest much time in follow-up regarding the shipments. You want them on time to fulfil the requirements of the market or your clients. A market research company can provide inputs on reliable import-export partners based on data obtained from CHA, logistics, customs and government agencies. Know the names of importers or exporters, quantities shipped, shipper and consignee addresses and phone numbers, and more to work with more confidence and trust.
Is It Commercially-Viable?
Once you have found the import-export destinations and partners, is it enough to get started with? The answer is no. Everyone is here to earn and make a profit from the trade. Consider the commercial viability of the import-export investment and effort. Take note of the shipment time, freight charges and weather conditions. For example, if you considering to import semiconductor devices in India, you may have numerous destination choices from Asia, Europe, North American and Oceania. But importing from Asian countries like China or Hong Kong is likely to cost you less. Selection of the trade data provider should be done wisely. If you operate in India and have global trade relations, find out a reliable import-export data provider In India that covers your trading interest.
Meeting Regulatory Frameworks
While some items could be universally banned in trading, there are many where different jurisdictions have a different say. So, it’s same like boarding a plane and airport screening, where some items are allowed by some airlines while restricted by some others. Ignoring those norms could have severe repercussions – the seizure of items, custom penalties or fines, unprecedented delay, and business opportunity loss. Besides, your trading partners must be legally authorized to import or export the products of your choice.
Complexity in Competition Assessment
Building a profitable trade business and establishing a strong hold on the market you work in requires offering a product or service that outpaces what your competitors have to offer. Make sure you offer products that consumers will buy at a price that produces enough revenue for the business to cover its expenses. Fulfilling this objective is complicated. A competitive assessment of your counterparts is required. Your marketing department or agency needs to measure this competition so that you can attract your customers and nurture brand loyalty.
The Bottom line
All these highlighted issues demand regular attention because there is nothing consistent in trade. What is relevant today may become obsolete tomorrow. Learn from the success and failures, and consistently evolve your import-export business strategy, thereby checking the loopholes and staying relevant to the market’s demand.