| So how can one get involved in import export | | | | commissions may be paid to you by either or |
| business? | | | | both of the parties, the buyer as well as the seller |
| One: You can start an import export business | | | | and the method constitutes the easiest way to |
| using your own money | | | | get started in import export business. |
| Most people think of getting involved buying | | | | Three: Import Export Sourcing Agent |
| product overseas with their own money, on their | | | | You can work as an independent import export |
| own account. This is the most logical and | | | | sourcing contractor, an involvement in import |
| preferred way for most. Buy a product, pay for | | | | export business that is very much in the same |
| it, take title to the goods, import your purchases | | | | category as described above, but with more |
| into the country you want to sell them in, sell | | | | responsibilities in the entire import export process. |
| them, and do it all over again. | | | | Say for example a clothing store in the United |
| Two: Import export agent - putting buyers and | | | | States will hire you to find a manufacturer in Bali, |
| sellers together | | | | Indonesia that could manufacture garments based |
| If you are familiar with a particular country, | | | | on their product design specifications. Armed with |
| especially if you have been there numerous times | | | | drawings of product given to you by the retailer |
| and may already know what is manufactured | | | | you'd source more than one prospective |
| there and where to find suppliers of those | | | | manufacturer in Bali to prepare samples of |
| products, you can offer your knowledge to | | | | product to be eventually ordered by the retailer in |
| others. If for example you have been to Thailand | | | | quantity. Each manufacturer would prepare the |
| many times, may had lived there before, and | | | | sample as well as a quote sheet showing quantity |
| know the Thai product, you can approach a retail | | | | discounts and delivery time. The retailer would |
| store buyer in the United States, in the city | | | | select one of the suppliers you had sourced based |
| where you live or elsewhere, and offer to be his | | | | on product quality, price and delivery time, and |
| buyer, especially if he carries products from | | | | then ask you to award the contract to that |
| Thailand. In this case the US-based retailer may | | | | supplier. You would then have to oversee |
| hire you to place an order on a product he sells | | | | production, quality control, preparation of |
| from Thailand. You will order the product in | | | | documents and pay for the goods with the |
| Thailand, put the shipment together, pay for the | | | | retailer's money, not you with yours, who would |
| product not with your money but with his money, | | | | become the actual importer and consignee on the |
| and ship the good to his store in the United | | | | shipping documents. As above, you would get paid |
| States, with his store's name as the consignee on | | | | by the retailer-importer on commission basis, plus |
| the shipping documents. For your services the | | | | expenses as well as possibly be kept on a |
| US-base retailer-importer will pay you agreed upon | | | | retainer to be available next time. |
| commission. The amount of the commission is | | | | Four: Export Shipment Broker |
| negotiable, not a fixed percentage. The amount | | | | Last is an example that is based once again on |
| may depend on the amount of your time you'll | | | | using other people's money to put buyers and |
| put into putting the shipment together, your | | | | sellers together. In this example a manufacturer in |
| overhead associated with the export side of the | | | | Thailand is offering a container load of a product, |
| process, expenses you will incur at the country of | | | | for example toys. The shipment is ready to be |
| origin, needing to travel back and forth to the | | | | shipped, and must be bought as is, whatever the |
| manufacturer's factory or dealing with the export | | | | qualities of each item style inside. The shipment |
| shipping company. The retailer will be the importer, | | | | may be assorted, and it may contain some |
| he will pay not only for the goods but for the | | | | attractive products but also some less marginal |
| cost of preparation of the export documents, | | | | ones, perhaps even seconds, or discontinued |
| packing and actual international freight from | | | | products. The manufacturer-exporter is looking |
| country of origin, Thailand, to destination, | | | | for a buyer. You are an agent that knows who |
| wherever may be his store or warehouse. Your | | | | may be interested, who are the buyers for these |
| commission may be a percentage of the total | | | | type of products. It could be a store in Miami, |
| invoice value or a negotiated amount between the | | | | Florida or in Berlin, Germany, or in any other |
| two of you. Under this scenario you are using | | | | country that you know buyers in for this type of |
| other people's money but your expertise. You can | | | | product. You provide samples from the |
| get started tomorrow. Obviously if you have | | | | seller-exporter to the buyer-importer. If the buyer |
| never been to Thailand you may not want to | | | | agrees to buy the container at the agreed upon |
| offer your services as import export agent of | | | | price, you may handle the whole sale transaction |
| Thai products. | | | | on what could be a back-to-back letter of credit |
| There are two basic variants of this involvement. | | | | using your bank in Denver, or wherever you are |
| One described above where your commission is | | | | located. The buyer in Berlin pays you by a L/C in |
| paid by the importer on whose behalf you have | | | | the amount of $40,000 and once the funds clear |
| worked. Similarly, however, while you are in | | | | your bank, your bank cuts an L/C in the amount |
| Thailand, a Thai manufacturer may offer you a | | | | of $30,000 to the seller's bank in Thailand and you |
| sample of his product to introduce to prospective | | | | pocket the difference less bank expenses. The |
| buyers in the United States. In this case you may | | | | container goes from Thailand to Berlin, Germany, |
| return from your last trip to Thailand as | | | | not via the United States - you never take title |
| Manufacturer's Representative - perhaps not with | | | | to the goods. You only connect the seller with the |
| an exclusive contract to represent his products in | | | | buyer and broker the deal. Needless to say the |
| the United States but with the understanding that | | | | export shipment can be brokered by countless |
| should you find buyer for his product who may | | | | number of other brokers who will come across |
| want to place an order, he, the Thai-based | | | | the export offer by the manufacture-exporter |
| manufacturer will pay you an agreed upon | | | | located in Thailand. |
| commission on the shipment. | | | | Learn how to get started in import export |
| From these two examples it is clear that you can | | | | business, see Insider's Guide to Successful |
| work with other people's money, not just your | | | | Importing from the Third World. |
| own, putting buyers and sellers together where | | | | |