Global exchange is one of the hot industries of the new millennium. But it’s not new. Think Marco Polo. Think the excellent caravans of the age with their cargoes of silks and spices. Think even further back to ancient man trading shells and salt with distant tribes. Trading exist because one group or country has a source of some product or merchandise that’s in demand by the other. And as the world gets more and more technologically advanced, as we shift in subtle and not so subtle ways of one-world modes of consideration, international trade becomes increasingly more rewarding, both in terms of gain and personal satisfaction.
The import/export industry is the key driver of growth or recession in any country. Depending on if there are more exports or imports than the other, the consequences it has on every market, including Nigeria’s, is always profound.
Although this business is largely conducted by the private sector, the government regulates all the industries and still maintains some state-owned products such as crude oil to be exported solely by the country, with the help of agents to ease a great deal of the transactions.
The possibilities for exportation is vast, and in a nation like Nigeria that is full of mineral resources and agricultural goods as stated in a different guide, venturing to the import/export company is a great bet for any entrepreneur in almost any nation around the world to take up.
What Is The Import/Export Business About?
The import/export industry is around the importation and exportation of goods and services from the shores of each nation around the world.
An exporter usually receives a buy order from an importer. And after all of the co-requirements are met by both parties, a bargain is signed–in which the importer would normally sign a year-long contract with the exporter, which is then corrected to 5 years following a first successful one-year delivery.
Truth And Benefits Of The Import/Export Business
It may build or ruin a nation’s market
You need license to be a direct exporter
It can be capital intensive
it may also be launched with $0
There’s always a lot of mistrust problems between the importer and the exporter
Most goods that you want to export or import are already banned
Business Opportunities From The Import/Export Business
1). Direct Goods Export:
Here a company who manufactures locally could source global clients for their company and export their products . This is usually capital intensive, as you have to be generating the products yourself, which will cost money, or you may have to outrightly purchase out from the producers to export with your personal margins.
2 ). Export Management:
Export management businesses help organizations who have goods for exports but do not know how to go about it or do not wish to understand at all. What the export management company does is to act as a consultant for the direct supplier, communicate with all the buyers using the provider’s business name, and close deals on behalf of their supplier.
The provider would usually have a fixed amount they pay the Export Management Company monthly, in addition to a commission they would earn on every successful sale.
3). Export Agents:
Here you act as a broker for the importer or the exporter or both.
If for instance, the cost of white Sesame seeds from Nigeria $1,700 a ton, you can strike a deal with a supplier to accept $1650 per ton or better still, you could source a buyer who would purchase from you for about $1,750 per ton.
Brokering any export trade is the perfect method to approach the industry since, you can be exporting distinct products across various industries, and still create far more profit margins compared to the people you’re brokering on their own behalf.
Requirements For Beginning And Import/Export Business In Nigeria
Register The Business
Register With The Nigerian Export Promotion Council (NEPC)
Register With Customs By Completing The Form NXP
Get Exceptional Licences And Permits For The Goods You’re Dealing In
Verify Your Products Are Not On The Prohibited Goods List
Buy Your Insurance Covered
Partner With A Freight Forwarding Service Company To Ship Your Own Goods
The Best Way To Find Buyers For Your Own Import/Export Business
Leverage LinkedIn To The Fullest
Register With Export Promotion Councils (EPC)
Find Local Buyers Who Represent Foreign Companies
Fill Orders From Neighborhood Buyers Who Export To Foreign Organizations
Register On International Trade Platforms
Have An International SEO-Ready Website
Does Email Marketing
Hire Australian Agents On Commission Basis
Contact The Countries Chamber of Commerce
Participate In Trade Fairs
Get Import Lists From Foreign Embassies
Challenges Of The Import/Export Business
Issues with loans and financing
Volatile exchange rates
Customs and taxes
Natural factors such as drought, pests, and diseases for agricultural goods
Sourcing from reputable suppliers
High and shaky product pricing
Poor product modification to meet international standards
Obtaining export permit and documentation
Government policies always interrupt long-term contracts
Beginning an import/export company in Nigeria comes with both its advantages and disadvantages. If implemented well, the vendor could rake in a whole lot of cash. But if not well handled, significant losses could be listed.
While most people believe exportation should cost tens of thousands of dollars, moving in as a broker and using a broad network of local suppliers to supplement your goods sales will go a long way in Assisting You to build a profitable business that won’t just enable you to generate high earnings in prevalent broker commissions, but can Make Certain You contribute positively to Nigeria’s or your own country’s GDP