The import and export trading industry remain one of the most lucrative industry one could choose to venture in these days. Since there are a lot of goods in demand in many international and local markets, this industry can provide a significant ROI for anyone who has a decent working knowledge about international trade and possesses sound business skills. With the right strategy, one can generate anywhere from a thousand to millions of dollars in revenue in this line of business.
However, in order to succeed in this kind of business, one must always have a close look at the nuts and bolts of their operations, which more often than not, is where most costly pitfalls and errors take place. Unlike other industry, the import and export trading sector are extremely diverse. If one does not have in-depth knowledge about the basics of international trade, then they are bound to commit mistakes which could result to significant financial damage, loss of customers, or even total bankruptcy of the business.
From incorrect costing of imported goods and not availing cargo insurance, to not validating the legitimacy of the supplier and not having the appropriate customs permit – there are a handful of costly mistakes that could derail your import and export business from reaching success. To give you an insight about the common mistakes in import and export business that you should avoid, here are the key takeaways of the infographic below from Excelsior Worldwide Freight Logistics:
- Lack of Knowledge in Import and Export Regulation
- Hiring an Incompetent or Unexperienced Customs Broker
- Not Declaring the Correct Value in Customs
- Unfamiliarity of Incoterms
- Failing to Properly Insure Goods
- Not Verifying the Legitimacy of the Supplier or Buyer of the Product
Learn more about the importance of not committing these common mistakes by checking out the infographic below.