Top 6 Common Import and Export Business Mistakes to Avoid



Establishing an import-export business can be a highly rewarding endeavor, but also one that has plenty of challenges, too. Cross-border import-export business requires a lot more understanding of the foreign market, which is not an easy task. And while there is plenty of information that novice global traders can access on the internet, only a few have the patience, time, and resources to understand it all.

Top-Common-Import-Export-Business-Mistakes

However, while there are a lot of things to learn in the import-export industry, there are only a handful of mistakes that would-be importers and exporters will need to familiarize themselves right before they start their business. For veterans in the industry, having a “refresher course” about these mistakes is also critical to quickly identify the root cause of the problem when their operations go off track.

One of the most common pitfalls when running an import-export company is not paying attention to the exchange rates. Since this industry mainly requires the exchange of goods between borders, monitoring the currency fluctuations closely is extremely imperative in order to know if you are generating profit or making losses. From the time of negotiations to the point of transporting and eventual delivery of the goods, the value of two countries’ currencies with regard to the US dollar could greatly fluctuate, which means that one party might incur a higher loss and the other might make a higher profit.

Not paying attention to local and/or foreign laws in terms of product packaging, marking and language is another costly mistake to make in import-export business. In every country, there are packaging standards which importers and exporters must comply with so that they can identify which shipment come from which region. Failure to comply with these standards can lead to hefty fines and even suspension of your license to import from or export to that country.

Aside from these two, there are more common yet often overlooked pitfalls that novice importers and exporters must avoid in order to run successful global trade operations. Knowing these common mistakes will not only help you achieve an efficient import-export operation but will also provide you with peace of mind and win the trust of your clientele.

To summarize, here are the key points from the below Infographic developed by team Excelsior, which describes the most common mistakes that you must avoid while running an import-export business.
  • Lack of Knowledge in Import and Export Regulation
  • Hiring an Incompetent or Unexperienced Customs Broker
  • Not Declaring the Correct Value in Customs
  • Unfamiliarity with Incoterms
  • Failing to Insure Goods Properly
  • Not Verifying the Legitimacy of the Supplier or Buyer of the Product
Top-Common-Import-Export-Business-Mistakes-to-Avoid-Infographic


Top 6 Common Import and Export Business Mistakes to Avoid Top 6 Common Import and Export Business Mistakes to Avoid Reviewed by Brian Williams on 7/04/2018 Rating: 5

No comments:

Powered by Blogger.