To start an export-import business, you research which products and markets to trade, write a business plan, register the company and obtain any import or export licences your country requires, then line up suppliers, service providers, marketing and logistics. The steps below take these in order.
An export-import business is a trade intermediary: it buys from sellers in one country and sells to buyers in another. Starting one takes preparation, and the details depend heavily on the country you operate from. If you are setting up in India, our guide on how to start an import and export business in India covers the India-specific steps.
Research the market
Before you commit money, find out which markets and products are worth your time. For each target market, look at which products sell well, who the leading companies are and how they price. Then check the import and export laws of every country you plan to trade with. This research shows you the most promising markets and products, and the risks that come with them.
Start the legal check with the tariff classification of each product. The import duty, any licence requirement and any restriction on a product are all tied to its customs code (the HS code, or its national version such as the HTSUS in the United States, or the Customs Tariff and the ITC(HS) policy schedule in India). A wrong code at this stage means wrong duty in your costing and possibly a shipment held at the border. The most frequent errors are listed in common trade compliance mistakes and how to avoid them.
Write a business plan
Once you have chosen markets and products, put the plan in writing. It should state your business goals, target market, pricing strategy, marketing plan and financial projections. Work out your start-up costs, running costs and expected income, including the duties and taxes you will pay on imports. A clear plan helps you raise money and keeps the business on course. If you will need credit or payment security from banks, read about trade finance before you finalise the numbers.
Register the business and get licences
Choose a business name and register the company with the relevant authorities in your country. Depending on where you are and what you trade, you may also need an import or export licence or other permits. From the first shipment, the business has to comply with the customs and trade rules of each country involved.
Build your team and partners
You will need people who know international trade, logistics and finance. You will also need outside partners: suppliers, freight forwarders and other service providers who handle the parts of the trade you do not do yourself.
Source your products
Find suppliers who can deliver the quality you need at a competitive price, reliably. Trade shows, online marketplaces and industry associations are common places to find them. Build long-term relationships with the good ones so that quality stays consistent from order to order.
Plan your marketing
Decide who your ideal customers are and how you will reach them. Social media, email and search engine optimisation (SEO) are the usual online channels; Mailchimp’s introduction to digital marketing explains how they work. For an export-import business, SEO helps buyers searching for your products find your website: targeting the search terms they use and publishing useful content can bring more visitors and more enquiries.
Manage logistics and customs
Logistics covers shipping, delivery, customs clearance and compliance with each country’s regulations. A reputable freight forwarder can handle much of the international shipping for you. Keep track of inventory and the supply chain so that you can meet customer demand.
Keep a record of how each product was classified and why, so that you can answer questions from customs later; building an audit-proof HS classification file explains what that record should contain.