Beginners Guide to International Trading
There are many reasons you might consider the step of starting to trade internationally, and there’s no reason not to, even individuals can shop from all over the world with ease. But in business, there are a few key issues to be aware of to do so efficiently.
Know Where you are Looking to Buy or Sell
There should be a reason for buying internationally, and this will tell you where you are looking to buy from? It could be that you are shifting from buying from a local distributor and are going direct to the manufacturer. You could be looking to source a more authentic product if it is a regional specialty, such as real Parma Ham, or Scotch Whiskey. Be aware of language issues and even consider a translator, if necessary.
Be Knowledgeable About Tariffs & Charges
It is important to be aware of any tariffs or import charges you are going to incur when bringing items into the country. Don’t assume that goods from one country will present the same, or similar, charges of that from another. You will need to check the tariff charged for each type of good and from each country to be sure of the true cost of your goods.
Currency, Exchange Rates & Costs
You need to be aware of the exchange rate between your currency and the local currency in the selling jurisdiction. These rates are not stable, they change all the time, and this is particularly important if you are being invoiced in the local currency of the seller rather than your home currency. There are also other payment options such as buying Bitcoins and paying that way, but also the value of these can change.
Delivery is a lot more complicated than when you are purchasing locally. There is going to be a longer distance, and therefore a longer wait. There are express shipping methods available for international items, but the cost and availability can depend on the type and size of the shipment. For large orders, it often only cost-effective to have containers shipped by sea as this is time-consuming and can often take many weeks and can face delays at port. You may also have to arrange the overland transport for the container from the customs warehouse to your premises.
Safety Certificates & Standards
It’s important to be aware that differences in safety standards, certificates, and assessments vary from place to place. It’s not simply enough to have the items verified in one place, even if the criteria exceed the destination. Unless the manufacturer has already done this for your country, you are going to have your stock tested and certified by the relevant authorities. Various companies can help organize this on your behalfs, such as Sherpa Certification, which have the expertise to avoid any rejections or complications.
This article has been contributed on behalf of Paxful. However, the information provided herein is not and is not intended to be, investment, financial, or other advice.