One of the most profitable opportunities available to young entrepreneurs is setting up an import/export business. To succeed at such a business, you need to have a good idea of the products that are in demand and those that are not.
Next, you will have to find business partnerships opportunities abroad with the right suppliers. Finding the right business partners will make or break your business. What would also hurt your business is not selecting the right products to import.
It is important to conduct a feasibility study of the products that are most in demand before importing them. However, often, it’s not enough that the products are in demand. There are other factors involved that makes importing them a huge mistake.
Of course, major establishments that have been in the import/export business won’t have a problem importing these products – but as a young entrepreneur, who is new to the game, importing these products can be a massive error of judgment. Let’s find out what the products to be avoided are.
Computers – The problem with importing computers is that those that are made in a particular country are specifically made for that country alone. For example, computers made in Taiwan may not be entirely suitable if you’re planning to sell them in India, unless extensive work has been done by the manufacturer to make them compatible.
Furniture – The big problem with importing furniture is that they are heavy, large and hence difficult to ship. You will probably end up spending a lot more on shipping than previously thought. Also, furniture come with a heavy markup and have a large margin for error. You will probably end up exporting items that nobody really wants.
Clothing – The big problem with clothing is that there could be a huge difference in style from the country where you are getting the supplies, from where you are selling. What qualifies for “large” in the Indian context, for example, could be only “medium” in the American lexicon. There is no telling if your manufacturer has produced exactly the type of clothing that you require. There is also a serious issue with knockoffs – many manufacturers do that and you will have no control over the quality.
Electronic Games – The problem with importing electronic games is that they can very easily be duplicated and sold for next to nothing online. Pirated versions are very common, especially in countries like China, which Intellectual Property is not given the protection it deserves.
Jewelry – The big issue with importing jewelry is that you will have little idea about what’s fake and what’s real, until you find out at your cost, at the last minute. You certainly wouldn’t want to be branded as someone who sells fake or counterfeit jewelry. That would cause permanent damage to your reputation as a jeweler.
DVD Players – Importing DVD players would be a mistake because some DVD players are only meant to be sold in certain geographic regions and may not work elsewhere. A DVD player made in the United States may not function in Malaysia, for example.