How to Start an Import Export Business in India

How to Start an Import Export Business in India

How to Start an Import Export Business in India



If you are interested in starting an Import-Export business in India then you have come to the right place. There are a lot of considerations to be made while starting a business in International trade but if done correctly it can be a simple and profitable business.


It is an advantage to you if you have a background in business or international relations. As this is going to help you and give you a better understanding of difficulties, that comes when you hop into this business of buying and selling of a product from an overseas supplier.


So let's start with steps and tips on how to start an Import-Export business in India.


Related Article: How Does Import and Export Business Work


Register your business and website

The first step to take is registering your business with the location of your headquarters, getting required business licenses that you will need to operate a business legally, a website and social accounts to develop a presence and grow your business. After this, you are ready to sell your business expertise and capabilities to the world.


Picking up a product for service to Import or Export

The next step to start a successful Import-Export business is to find out a product or industry that you are passionate about and you know it, you can sell in the international market. That's an ideal business model. You can conduct research and test your ideas. Don't think that you love it, therefore, you will be able to sell.


Find the right market

You have selected your product, now it is time to research for the best potential foreign market for your product or service. If you are able to spot the trend in importing and exporting of your product in a particular country it could be the business breakthrough of the lifetime.


Locate your Suppliers

Once you have a product and a market to trade internationally, you will need a manufacturer or producer that makes you product and is ready for a long term partnership. As a good relationship with your supplier will lead to success in Import-Export business.


Also, if you are manufacturing or producing your own product, you can be your own supplier this can lead to greater profits.


Pricing your product

Your next will be pricing your products. The Import-Export business model generally based on two fundamental metrics:


1) Volume (number of units)

2) Commission on volume


The end goal is to price your product in such a way that the total price of the product should not exceed what the customer is willing to pay including your commission. The Importers and exporters generally make 10% to 15% commission on the actual price that has been provided by the manufacturer. The more volume you sell the more profits you make.


Find Customers

You cannot just go and sell your products to people you find in the docks. You need to find clients and distributors who will be interested to take your products and sell to others. If you have a website with strategized digital marketing campaign then customers might end up finding you. Apart from this, you must go for hunting your customers. You can check on your local contacts, get a list of contacts from trade consulates and embassies, trade shows can be a good option to find customers in a faster and efficient manner. At the same time work on your brand awareness and social media.


Logistics

Now you have customers who love your product. Next step is the most important part to focus on i.e; Logistics. Now you have to move your product from where it has been created to place where you will be selling it.  If you want to save a lot of time and don't want to worry about getting your products transported from a factory to a warehouse, then hiring a good cargo carrier is the best idea. 


Once you give them all the information about the business and details of your product, they will arrange the shipping agreement, insurance, even the licenses and permits, so on required for transportation to another country. Definitely, this will remove a lot of responsibilities when you initially start your Import-Export business.


If you are not sure about proceeding in Import-Export business, It can't hurt to take consultation from an Import-Export business mentor