Professional Documents
Culture Documents
Introduction to Importing
Introduction to Importing
Importing 101
Selecting Suppliers
Paying Suppliers
Arranging Freight
Clearing Customs
10
Fulfilling Orders
11
12
Importing Checklist
14
Supplement: Tradeshows
16
Importing 101
How to Import Products from Another Country
Importing products from overseas remains a mysterious way to make a living. Most people have gotten the
urge to bring home some awesome international product they discovered while traveling or surfing the web.
Yet navigating the payments, logistics and customs clearance processes seems so complicated that most
dont dare try.
Our mission at Flexport is to use the web to make the import-export process easier than ever before. As the
first licensed customs brokerage built around a modern web application, we save importers time and money
on every shipment, while helping them avoid some of the major annoyances and pitfalls of doing
business globally.
Weve created this brief guide to the importing process to shed some light on the importing process for
businesses and individuals whove considered getting into the game but dont know quite where to begin.
Although weve created this content for novice importers, our team brings over 50 years of experience in the
import-export and logistics industries, and weve done our best to provide tips that even the most seasoned
global trade veterans will find useful.
For too many people, importing is a black box. Those on the inside, especially in the freight and logistics
industry, jealously guard their secrets from new importers. The entire industry seems to pride itself on its
ability to price discriminate, gouging at the little guys while reserving their best deals and service for the big
companies that know the game.
Our mission at Flexport is to empower importers of all sizes with the knowledge and tools to compete in
the global market. We want to help make a world where any two humans can trade with each other without
regard for geographic, cultural, regulatory, or logistical boundaries.
Introduction to Importing
Importing 101
How to Import Products from Another Country (continued)
We cant promise youll make money. We cant teach you how to find great products from other countries
that will sell well in your home market. But we can shed light onto a process that is far too confusing, and
help you avoid pitfalls and setbacks that can be painful--even catastrophic--when youre first setting out.
In our view, the process of importing goods is actually quite simple. The money is made in selecting the
right goods, at a price that leaves sufficient room to cover all your costs and then some, while building up
the distribution channels you need to move the product in sufficient volume. Thats just basic business, and
theres nothing easy about it. But the actual importing part? Thats pretty easy.
If you still have questions, let us know, we can help.
Introduction to Importing
Dive deeper in a few product categories that are close to your heart, preferably where you have true
domain expertise.
If you dont have any domain expertise in any product category, you may want to focus on learning
about an industry before you try your hand at importing. Relentlessly interviewing industry thought
leaders could be a good shortcut to learning that which might normally have come through a job in
the industry.
Introduction to Importing
Ask your friends from other countries which products they miss the most from back home. See if they
know anyone who wants to help you bring it in.
Take a few long trips overseas to attend trade shows and visit suppliers in the quest for cool products we
dont have in the U.S. yet.
Search the web endlessly looking for suppliers. Alibaba, GlobalSources and ImportGenius are great
places to start.
Reach out to drop-shippers liked Doba.com to find out what products are selling the best. Find out what
it takes to get listed on their platforms.
Always check prices for similar products on Amazon, eBay and Google (both the paid ads and organic
listings).
Research the cost per click on Google AdWords for keywords related to your product. High prices indicate
lots of competition.
TIP Build a simple e-commerce web site and get some sales before you outlay major money on inventory. Use
products drop-shipped from other importers and sell them break-even if you have to. Youll want the experience
of successfully selling and delivering a product to a customer. If you cant get a simple site built and driving sales,
youre going to struggle to move a ton of inventory that you purchase from overseas.
Introduction to Importing
Selecting Suppliers
Whether youre buying off the shelf or commissioning custom-made products, selecting the right supplier
is one of the two most important functions of an importing business (the other being sales, of course). The
Internet is naturally the place to start (and here you are, good job). Here are some ideas to get you started:
View profiles of every company offering the products you want on Alibaba, Global Sources, Made-InChina, HKTDC, Good Factories, IndiaMart and others.
Visit trade shows in the U.S., Europe and China looking for great products. EventsEye.com and
TSNN.com have the most comprehensive trade show listings.
Follow up with the companies you like the best to arrange factory visits and begin discussions on pricing
and other terms.
Ask for advice and connections from the Embassy and Consul Generals of the country you want to
import from. This will be a fun experience in and of itself.
Sign up for ImportGenius.com to identify suppliers of the brands you admire most.
Order samples from as many companies as you can and see if you can sell them through the Web.
TIP If you get a chance to visit a factory, always visit the bathroom used by the line workers. If they arent
bothering to create a quality work environment for their employees, you have no reason to think theyre going to
treat you much better.
Introduction to Importing
Paying Suppliers
Paying new suppliers is the scariest part of global trade. How do you know if you can trust these guys? There
are a few ways to mitigate risk in buying from companies overseas.
Use a letter of credit from a US Bank. Your funds are held in escrow until the supplier fulfills their end
of the bargain. A local bank will lend money to the supplier against letters of credit from US banks, so
almost all suppliers will accept it.
Switch to paying a 30% deposit only when you really trust your supplier not to run off with the money
(e.g., after youve done a couple deals with them or once youve met them in person)
Credit Card Payments: Due to the high fees involved, credit card payments are rarely used in global trade.
Wire transfers are by far the most popular way for importers to pay their overseas suppliers. But dont
be fooled into thinking the $35 bank fee is their only cost. Youre also going to pay several percent on
currency exchange fees. As your business grows itll be worth doing some research into transfer methods
with lower fees.
Among alternative international payment methods, Xoom.com stands out as particularly convenient,
though they likely wont save you money. The ability to manage the process via the web instead of waiting
in line at the bank is probably worth any extra currency transfer fees they tack onto your payment.
Bitcoin payments are an area were particularly excited about. As bitcoin exchanges emerge in more
countries, a global system of convertibility may emerge that allows you to transfer between any two
currencies by making a (very brief) hop into bitcoin. Assuming the fee of going in and out of bitcoin is
lower than between the two currencies directly, this could be a big win for importers and exporters. For
payments to Europe at least, this appears to be the case already. Were watching this space carefully to
see if companies like Buttercoin and CoinBase can help fulfill the cryptocurrencys promise.Take a few
long trips overseas to attend trade shows and visit suppliers in the quest for cool products we dont have
in the U.S. yet.
TIP Track the currency exchange rates youre getting from your payments processor and along with the going
rate shown by Googles currency converter. When your operations have grown enough to justify finding a provider
with better currency conversion rates, youll have a clear picture of the benchmark you need to beat.
Introduction to Importing
Arranging Freight
In the era of Expedia and Kayak, its surprising just how difficult it can be to arrange freight services for
your import-export operations. While big companies have the option to book directly with the major ocean
carriers, smaller businesses are forced to book through opaque layers of middlemen. Freight forwarders are
notorious for price discrimination, offering far better rates to clients with bigger shipping volumes. Youll be
well served to shop around frequently to negotiate better freight rates.
Bigger companies get better rates on freight. Take steps to professionalize your companys web
presence before you enter discussions with freight forwarders. Check out the Flexport guide to making
your importing business seem much bigger than it is for ideas on how to do this.
Your supplier can often arrange freight for you. Know that they are likely sharing in the profits from that
booking. Even so, the price may be competitive with anything you can book yourself, so if they make it
easy, go for it.
You can use different freight providers for the air or ocean portion and the land portion of the voyage.
While combining services from different companies can add to the hassles, the savings may be
significant enough to justify the inconvenience.
Flexport works with any freight provider. In fact, we specialize in helping you combine services from
different providers to save money. We collect all the documents you need directly from your supplier and
freight providers, with a dedicated Global Trade Advisor serving as the air-traffic controller to ensure all
your imported shipments arrive without delay.
TIP Coming soon youll be able to get the worlds best freight rates on Flexports freight search. Were
negotiating on behalf of our growing client base to get you the best deals on ocean freight, air freight, trucking,
warehousing and other services.
Introduction to Importing
Clearing Customs
Clearing a shipment through U.S. Customs has historically been one of the more complicated and annoying
parts of the importing process. Depending on what product you are importing and from which country, there
are 120 different forms that may need to be filed involving 10 different government agencies. And the bad
news is that the legal responsibility for understanding these regulations lies with the importer. The customs
brokerage profession exists to help importers ensure compliance with all the various laws and regulations,
while ensuring their goods arrive smoothly at their destination.
Flexport is the first customs brokerage built around a modern web application. Our online dashboard
makes it simpler and cheaper for businesses to import products from overseas, get them cleared
through US Customs, and delivered to their destination.
We show you exactly which documents and information you need to clear customs, then help get that
information from your suppliers and freight providers.
Your dedicated Global Trade Advisor supervises the entire process, providing immediate answers to your
questions, and making sure your goods arrive without delay.
We are almost the most affordable, transparent, and easy-to-use customs brokerage in the industry.
TIP Join today to see why Flexport is the fastest growing customs brokerage in the country.
Introduction to Importing
10
Fulfilling Orders
Youve found a great supplier, imported your products, and cleared them through Customs. Where will you
store the goods though? And how will you ship them out when you get an order? If youre just starting out,
and for a considerable time thereafter, youll be much better off working with a third party logistics provider
to provide these functions. Until you have considerable scale, the overhead of renting your own storage
space and shipping out each order as its received is just too high. Thankfully there are affordable warehouses all over the country that provide this service, charging you a flat storage fee per item per month, along
with in-out charges for any items coming and going. These services are crucial to helping you run the low
cost experiments required to launch a new importing venture.
You can find third party warehouses on Google Maps but keep in mind that you dont need this
warehouse to be anywhere near your operations. In fact, you may be best off finding a warehouse near
the port where you import, even if thats far from where you live.
More importers are moving their goods away from Californias warehouses because of an annual inventory tax imposed by the state. Nevada and Arizona, with their low land and labor costs are increasingly
attractive locations for fulfillment centers.
Many warehouses offer web-based inventory management and fulfillment solutions that can save you
time when you need to fulfill an order. Though quite expensive relative to its competitors, Fulfillrite and
Shipwire in particular have really set themselves apart from others through their innovative use of the
web. The extra price may be justified from the time savings from directly integrating with your
e-commerce store, so orders get shipped out from the warehouse automatically.
TIP Flexport can work with any warehouse you want, managing the entire process to ensure your goods arrive
at the facility without delay. Youll never lift a finger.
Introduction to Importing
11
i.
ii.
Does the freight include pickup from the factory and delivery to the door?
iii.
iv.
Introduction to Importing
12
i.
ii.
Intrusive exams cost from $225 to $1,000+ depending on the quantity and volume of your goods.
Introduction to Importing
13
Importing Checklist
1
Flexport files your Customs Entry with US Customs and checks if your goods arrived and have any
pending examinations
a. Pay any outstanding US Customs examinations fees to get customs release.
b. If your goods are held for customs exam it can add 3-20 days delay to your shipment. Be prepared
for this, it is not common but it does happen.
Introduction to Importing
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Importing Checklist
9
ii.
iii.
iv.
v.
Introduction to Importing
15
Supplement: Tradeshows
Below is a small list of the many trade shows or aggregators importers can attend to find quality
manufacturers and suppliers:
ASDLV
Canton Fair
China Exhibition
Expo World
PPAI Expo
If you are planning to bring in goods to a US Tradeshow please check out CBP Dos and Donts.
Introduction to Importing
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