The import and export business in the US is a lucrative one to be in, with both standing at $2.9 trillion and $2.3 trillion consecutively in the year 2017. With the constant movement of goods in and out of the country, being in the middle of this dynamic helps individuals and firms rake in tons of cash in any year. Also known as intermediaries, what they mainly do is purchase a product from a foreign country and sells it to those in their own country. That could be direct to people or entities.
The norm in this field is to specialize, as opposed to being a jack of all trades. You’ll find that one can, for example, can specialize in precious metal of a particular grade, or a company only selling home accessories. In another case, when searching for a social security disability lawyer near me, one can find an affiliate link selling branded prosthetic limbs. It is in specializing that such companies and individuals can make a handsome profit, especially if they are the sole distributors.
Basics of being an intermediary
What makes import and export companies successful are the connections and networks they have. They don’t start with shipping goods and then looking for a market. They fill an existing demand, and often from down payments, customers put down as a show of commitment. Though that’s just one example, the first chain of events is standard. A company imports goods at a reduced price because they make their purchase using a wholesale price and mark up the cost, selling it to customers at a substantial profit.
Though there is specialization, intermediaries do not only represent one brand but a range of manufacturers. That’s why you’ll find a company that sells imported wine from quite an array of wineries. Though their base market is wine lovers, they appreciate that within this group, people have varying tastes.
Another way intermediaries are through importing, branding and repacking goods to make the off to be theirs. One example to use is a company importing graffiti t-shirts with no labels from a company in Turkey, placing their won and selling them to the relevant community of customers. It is therefore not primarily about selling goods and products on behalf of other brands but also making profits from branding merchandise bought.
Becoming an intermediary requires a smart business plan within an existing framework. For it to succeed, however it needs selling to a current market and having the connection to long-term contracts with other companies. With these in place, you’re on your way to contributing to this economy.