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How To: Import Products From Japan

Monday, September 29th, 2008

When it comes to business and the market, many Americans operate under the illusion that the same rules apply to imports from other countries as apply within America itself; namely, grow your business and realize the American dream.

However, all business owners, and particularly those who are importing, have to remember that while the aspirations of the individual are important (if not central in an oblique way) to the well being of the United States, they do not come before the well being of the nation as a whole.

The Pearl of the Orient

So why is this important in an article that discusses imports in Japan? Well, when it comes to the important products being sold today, Japan has us beat in many areas.

Not only that, but the United States and Japan have always had a tense relationship when it comes to trade, largely due to protectionist feelings on the side of the States and isolationist feelings on the side of the Japanese.

This means that import issues and regulations for products from Japan are convoluted in the extreme, and most often have to be looked at on an item by item basis.

So what exactly are the main items that are imported from Japan to the United States? Well, a top three list yields up cars, electronics, and pharmaceuticals in that order.

Other important imports - ones that businesses are built around - include semi-conductors and petro chemicals.

For the individual American businessperson, it is the first three that are likely going to be the targets of your business, so let’s take a quick look as best we can into some of the procedures and customs you are likely to encounter when you are looking to import from Japan.

• Always be polite. One of the biggest mistakes that American entrepreneurs make when dealing with business partners, particularly those in the Far East, is neglecting manners.

Japanese business means you don’t let your feelings show - and that is the most important rule there is.

• Be prepared to pay. Unfortunately for the individual entrepreneur, those cheap prices on all manner of great Japanese products don’t stay so cheap once they are in your hand.

The reason? Those tense trade relations we were talking about. The top three imports from Japan are all areas in which the States would like to take a lead, so in order to combat a flooding of the US market with Japanese goods there are some pretty high tariffs.

You can expect that price to skyrocket once you get it into the States, and you will have to build around that in the retail value.

• Approach business like business! A really big mistake that a lot of foreign importers make with Japanese companies is not treating them like American companies.

It’s hard not to get wrapped up in our perception of Japanese culture, but you have to remember that business is business all over the world - and you can’t take honesty for granted from anyone!

It is also important that, if you are importing anything from Japan, that you keep in touch with current events on the US/Japan trade front.

There are almost continuous court cases being brought up between governments and businesses in regards to Japan/American trade, any one of which could affect you and your business.

Most people find it much easier to go through a middle company, one which can act as a broker; again, this is really only feasible if you are planning on retailing high end goods.

Tags: customs, Doing Business Internationally, how to, import, importing products, international business, japan, products, tips
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Finding Product Sources Using Trade Lead Sites

Friday, November 30th, 2007

Part of the success of any small business is being able to take advantage of as wide a range of resources as possible. One great resource for any small business is a trade lead site.

We will take a look at what trade lead sites are in this article, along with ways that they can help you to grow your business - both in terms of selling and sourcing.

So What Are They?

Trade lead sites are websites that are dedicated to information exchange on the behalf of small businesses. There are quite a few free trade lead sites, as well as those which small businesses must pay for in order to obtain information from.

Trade lead sites usually act as huge hubs for small businesses; they can be used to find new business contacts, source products, even to find new customers. They also usually provide quite a lot of information about the economic climate.

Just as there are a couple options when it comes to free or paid trade lead sites, there are other variations in the style of trade lead sites available. You can select a trade lead site that operates on a national level, or one which includes companies that operate globally.

There are also industry specific trade lead sites. The biggest sites generally break down their contact information by category, so it is a bit easier to find.

Using a Trade Lead Site to Source Products

If you are looking to use a trade lead site to source products, you will probably have to spend a little bit of time getting used to the site first. As we mentioned above, they can have a wealth of information, so you will need to be able to find the areas where you might be able to source your products, and then spend some time sorting through the options to find the right source option for you.

You may notice that most trade lead sites list primarily companies from other companies, so if global sourcing and importing is an avenue you want to explore, trade lead sites are an excellent option. Just make sure, as with any supplier you’re interested in, to do your research .

Once you do find product sources (and it can be as easy as selecting an “offers to sell” option), all you have to do is compare prices on the same or similar goods to see which will best suit your business.

Examples of Trade Lead Sites

As you have probably already gathered from this article, there are a lot of different types of trade lead sites. In addition to paid subscription or not, there are sites which require a registration and others that you can just browse.

One of the most comprehensive trade lead sites we have come across is Premier Business Club. Not only are all the usual ingredients present, but there is also a running tally on the offers to buy and the offers to sell listed (not surprisingly, and this holds true for most TLS, it is the business equivalent of dating sites when it comes to numbers, with sellers outnumbering buyers. Great for sourcing, not so great for finding customers). There are lots of other trade lead sites out there - here are some more examples:

* Importers.com (import/export leads and information)
* TradeBoss.com (worldwide B2B trade listings)

Trade lead sites are not that difficult to find on the web, and the one you choose will, of course, depend on your own preferences. They can be a great way for small businesses to source products - and savvy or niche providers will also find new customers.

Tags: export, import, importers.com, Leeia Ladipoh, Product Sourcing, source, trade lead sites, trade listings, tradeboss.com
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Basics of Wholesale Product Outsourcing: Small to Medium Business Owners

Wednesday, November 14th, 2007

The business environment in the past decade or more has changed rapidly. It is now possible for a small to medium-sized business to flourish with the help of thorough market research and efficient wholesale product sourcing.

This kind of sourcing has its advantages and its pitfalls: if the source is genuine, profits are guaranteed, but if the source is defective in one way or the other, the entire business can fail. To ensure continued success in wholesale product sourcing, here are a few basics that a small to medium reseller needs to keep in mind:

Before buying wholesale, the buyer has to be sure of an existing target market in which the products can be resold at a profit. You should only buy a product on wholesale if there is a demand for it, feeding an existing demand is easier than creating one. Equally important: what is of no value to you could be of high value to someone else.

If a wholesale source seems too good to be true, it is probably a scam. Sourcing products on a wholesale basis is never easy, and needs a lot of legwork. Research is your best friend in finding a genuine wholesaler, there is no cheap shortcut to finding a wholesaler who would meet his or her end of the bargain.

A wholesaler should not be contracted till he or she is verified as having existed for a considerable period of time, factory-authorized, and working from a solid infrastructure. One of the best ways is still to call the wholesaler, and if possible, to make a visit.

Middlemen have to be avoided at all costs; these are the people who do not have access to the goods themselves. They arbitrate between the buyer and the seller while marking up the cost, sometimes posing to be legitimate wholesalers themselves. You must always verify if the wholesaler has a real, longstanding relationship with the manufacturer.

The idea is not only to be able to find a wholesaler who is selling the goods you want, but one who is also selling them at enough discount for you to be able to make a profit. Discount does not mean a compromise in quality, however.

A small-medium business owner can choose from amongst the following types of wholesalers:

Dropshippers: For a small to medium-sized business owner, drop shipping can be an excellent option. This means that you simply open a store, advertise a product chosen from the wholesaler and take orders. You charge your customer a retail rate for the product and pass the order to your wholesaler. Your wholesaler processes the order by packing and shipping the product directly to your customer, charging you the wholesale rate.

You do not need to have an inventory, only a small back-up store in case your wholesaler fails you, which you can order in "light bulk" from a supplier. The prices do go up in this case, because dropshipping can be expensive, so you have to ensure that you still make an adequate profit out of the amount you charge your customer.

Manufacturers: Most big manufacturers are not accessible to small businesses, but if you can find a way to get in touch, you might be able to buy wholesale directly from the manufacturer. Most small to medium or new manufacturers are more than happy to become wholesalers themselves, all you will need to deal with them would be an ID, tax license and resale license.

Since there is no distributor between you and the manufacturer, your profit margins would be higher. One of the best ways to source products from manufactures is to attend Merchandise marts and Trade fairs.

Liquidators: This can be attractive for small business owners as liquidators often sell stuff for pennies which can later be sold for dollars. The important thing is to find why the liquidation is taking place.

If it is happening to clear out the warehouse of a business that is closing down, but the goods are ok, then this is a good deal. But sometimes liquidations also happen because a product has no demand, or is defective, and this is where caution comes in.

Distributors: Wholesalers and distributors are those who buy in bulk from the manufacturers for resale to retailers. If you can find a factory-authorized distributor for a product and develop a long-term business relationship, you can place re-orders easily, and lower your buying price significantly.

Importers: Cheaper markets in Asia, especially China, have become very attractive to small-medium business owners because of the low cost of products: importing is now a viable option in order to achieve higher profit margins.

Importing involves more risk, higher volumes and higher payments, so it is best approached with the help of professionals. Communication with the wholesaler and the maintenance of delivery dates and quality standards is paramount.

The sort of wholesale supply that would be suitable for you would depend on the type of products you wish to source, what the size of your business is and the target market you have in mind. Wholesale sourcing is never simple; but once established, it can yield benefits for the long term.

Tags: advice, distributors, Doing Business Internationally, export, import, liquidators, manufacturers, outsourcing, Product Sourcing, small business, source, tips, wholesale, wholesale product outsourcing
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What You Should Know About Importing Products

Friday, September 7th, 2007

If you plan on selling a large quantity of products, then importing may be something you’ll want to consider. By avoiding domestic and overseas middlemen, you’ll be able to get your products at a considerable discount. However, importing can be complicated and intimidating so it’s best to know as much as you can before you begin. Here are some important points that will help you in understanding the importing process:

1. Lead time - The time you place your import order to the time it reaches your U.S. warehouse could easily be 45 days or longer. So it’s best to prepare for your shipment early and to expect some delays in manufacturing and in customs.

2. Shipment size - You’re getting a great deal on price because you’re agreeing to purchase a large amount of goods. Importing by way of container ships will require purchase of either a 20′ or 40′ container. However, it’s possible you can get in on a group order with other importers that will allow you to buy just a portion of the full container.

3. Payment terms - Typically, you will have to pay all or a fraction of the payment upfront. Some manufacturers will allow you to do a Letter of Credit (LC), which is like an escrow account where funds aren’t released to the manufacturer until the Bill of Lading is presented; although using an LC is expensive, as banks take a percentage of the amount for their escrow service.

4. Legalities - There are numerous forms that are required to be completed in order for a shipment to pass through customs. You will need to make sure the forms are filled out accurately and that you have paid the required import duties to ensure that your shipment is not held up in customs.

Un-complicating the importing process

You can make your life a lot easier by working with a freight forwarder and a customs broker. And if you’re lucky, you might be able to find a good company that offers both services. A freight forwarder will arrange for shipment of your products from the factory to your warehouse. This is a complicated process involving several steps and is best left up to a company that is familiar with each step. Many times, you will end up saving money because forwarders are usually given a discounted rate by certain shipping companies. Now, using a Customs Broker will help to ensure that all your paperwork is in order. They double-check each form, making sure you declared the right amount and have labeled everything correctly. A custom broker helps to eliminate any long delays in customs. If your shipment is held, your customs broker will work to move your goods through customs quickly. A custom broker usually only charges a few hundred dollars, but the piece of mind you’ll receive in return is worth much more.

Even seasoned importers have learned that the small cost paid to companies who assist with importing more than pays for itself in freight discounts, piece of mind and time saved.

Tags: advice, Carrie Hinkel, Doing Business Internationally, import, importing products, Product Sourcing, source, tips
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International Trade - Importing Basics

Tuesday, July 31st, 2007

It is very essential to understand the importing basics if you plan to begin international trade that requires importing something from foreign countries to your country. History of importing goes as far back as the beginning of trading because you have to get those goods and materials that are not available in the country where we are doing business. You may need to import a particular material, even if it is available in the country, when you can get it from another country at a cheaper price. Whatever may be the reason for importing, you must understand some practical aspects related with the importing of goods. These include the legal aspects as well as the method of getting the required goods in to the country.

Importing Business Things to Consider:

Importing basics for international trade require that you plan in such a way that all the elements of the process fit together for smooth operation. For example, take the advice of legal experts when you sign contracts with your foreign counterpart. Also keep in mind the due dates of the payments for the material you are importing from the other countries. Do not expect that the exchange rate will remain unchanged after you have placed the order. Take care that you are complying with all the rules and regulations in this regard. Moreover, plan for transportation, storage, insurance and documentation. Get all the terms of the contract examined by legal experts. Also, ensure what the implications will be if the imported product is not up to the mark in quality.

If there is any rule that states that a license is necessary for importing in international trade, then collect information about it and get the required license from competent authorities. Another importing basic in international trade is management of transport. First, determine the quantity of goods you are planning to import. The quantity of goods is a major factor in deciding the means of transport. For example, if the quantity is too much then it may not be feasible to import by air transportation. Another factor is the length of time taken in the process of transportation. If the material you are going to import is to be used as raw material for the production of some item then considering this duration becomes more important.

There are two kinds of importers of goods for international trade. Some importers directly import the required goods. On the other hand, there are people who depute someone else to handle all the issues related to the importing and purchase from him. However, direct importing requires that you be personally in touch with the overseas supplier of the material. Profitability is more in this case but you have to face the problems of language, exchange rate fluctuation and extra costs.

Alexander Gordon is a writer for http://www.smallbusinessconsulting.com - The Small Business Consulting Community.

Article Source: http://EzineArticles.com/

Tags: Doing Business Internationally, import, International Market, shipping, Small Business Consulting
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Tool of the Trade: Forward Contracts

Monday, June 25th, 2007

Forward Contracts are a very useful tool for all of those importers/exporters who have to keep their margins tight.

For many companies the "head in the sand technique" is very popular. Order goods today, send over the deposit and then in 6 weeks when the goods are about to come into the docks and payment on the rest is due, that’s when they notice the market has moved and "oops" - it has gone the wrong way. Here is a quick but effective example:

A US company wants to buy goods from the UK. They are quoted at 100,000 GBP, and the UK company expects to be paid in Pound Sterling. The order is placed and the US company has 2 choices: one is to pay the deposit using a spot payment and pay the remainder on a spot payment in 6 to 8 weeks as per the contract, and the other option is to buy a forward contract which includes the deposit money.

If we had a price of $1.95 to the pound at the time of the order and a forward was booked, this would equate to a cost of $195,000. The US company would know from day one how much those goods from the UK were going to cost so prices in the states could be set accordingly.

However, if a spot price was used it might look something like this: 30% deposit, 30,000 GBP at $1.95 is $58,500 and then 6 weeks later the markets have moved and the dollar is weaker and the US company is now buying the remaining 70,000 GBP at $1.99 per Pound. A total of $139,300 added to the deposit paid means a cost of $197,800 for the same 100,000 GBP - a difference of $2,800 for doing the same job.

Now I know you can argue that the markets could move the other way and you could save a similar amount; but what we are talking about here is piece of mind and good business sense. If you know how much something is going to cost you in advance then you can plan your budget and your cost; but a major event in the world the day before you have to buy currency could be devastating on your business. Let me help you make your business more profitable - if you are exchanging currencies around the world we can help wherever you are based.

Tags: Apfx S, Apfx Services, Doing Business Internationally, exporting, foreign exchange, forward contacts, import
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Where to Start With An Import Export Business

Wednesday, May 30th, 2007

Tags: Doing Business Internationally, export, import, The import export coach, tips advice
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