Importing

By Entrepreneur Staff

Pencil

Importing Definition:

The process of bringing goods from one country for the purpose of reselling them in another country

When it comes to sourcing products to sell, for many products, foreign sources of supply can provide higher quality, lower costs or some other desirable feature in comparison to U.S. sources. For instance, Italian shoes, French wines and Japanese cameras are widely available in the United States because of their recognized superiority in some respects to domestic alternatives.

Importing doesn't have to be limited to goods, either. Many companies have grown by importing services in imaginative ways. For instance, a large quantity of the data-entry work that used to be done in the United States is now done by workers in countries such as India and China. The companies for whom this work is being done have effectively imported the data-entry services of international workers.

At one time, identifying sources of products to import was a serious challenge for U.S. importers. But vast improvements in the global telecommunications network have greatly eased that task. Today anyone with a computer and a modem can do web searches to locate suppliers virtually anywhere in the world. Furthermore, they can communicate with those suppliers, exchanging specifications and requirements far more easily, swiftly and conveniently than ever before.

If you have an idea for importing a product made in another country, it should be easy to find a supplier who can sell it to you. Here are some tips for finding a source of products to import:

  • Start by focusing on countries whose imports to the United States are granted favored status. This means lower import duties and lower costs for you.
  • Once you've selected countries as likely sources, contact trade representatives at the appropriate embassies. They should be able to provide you with lists of manufacturers of the products you're interested in.
  • Attend foreign and domestic trade fairs where companies seeking to export to the United States are exhibitors.
  • Read U.S. and foreign newspapers and magazines, scanning for advertisements and articles about products you might want to import.

The internet is having a large impact on the way international business is conducted. This impact is especially significant when it comes to finding leads for international trade partners. You can visit The Federation of International Trade Associations site for online trade resources as well as numerous links and tools for finding products to import and other opportunities to grow your business internationally.

Once you've identified some likely sources of products to import, make contact with the company and begin gathering information. You'll want to obtain samples of products and, of course, discuss prices and terms of payment. Take special care to check the quality of the products--the United States is a sophisticated marketplace, and shoddy products that might succeed elsewhere will be shunned here.

As in any circumstance where you're checking out a new prospective supplier, ask for references. Get a referral to a company that has dealt with this supplier before, and call to check them out.

Shipping procedures are a paramount concern when moving products long distances. High-value items may be shipped by air, but many products come by ship. This often means transit times measured in months, with the associated risks of missing market opportunities. Make sure your supplier understands your requirements for delivery and that the shipping procedure chosen will do the job. Once you're happy with the arrangements, have an attorney experienced in international trade review the contract.

More from Operations

Capital Equipment

Equipment that you use to manufacture a product, provide a service or use to sell, store and deliver merchandise. This equipment has an extended life so that it is properly regarded as a fixed asset.

See full definition

Fulfillment

The process of receiving, packaging and shipping orders for goods

See full definition

Importing

The process of bringing goods from one country for the purpose of reselling them in another country

See full definition

Depreciation

An expense item set up to express the diminishing life expectancy and value of any equipment (including vehicles). Depreciation is set up over a fixed period of time based on current tax regulation. Items fully depreciated are no longer carried as assets on the company books.

See full definition

Latest Articles

Leadership

7 Telltale Signs of a Weak Leader

Whether a bully or a people pleaser who can't tell hard truths, poor leadership takes many forms.

Business News

Alexis Ohanian Says This Is His Best Investment So Far: $10,000 Turned Into More Than $17 Million

Ohanian has backed 40 unicorns, but one investment stands out the most.

Business News

I Tried Buying a Car on Amazon. Here Are the Pros and Cons.

Amazon Autos just launched, and users can buy a new car online. Here's how it works and what needs to improve.