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Updated March 02, 2021

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"Export-Import Business": How to Get Started

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When you hear about the export-import business, it’s easy to assume that this industry is reserved for large corporations, especially those with government connections. This could not be further from the truth. The reality is that more than 90% of the export-import industry is made up of small businesses.

Contrary to popular belief, the ins and outs of this business are not so hard to learn, and the entry barrier is relatively low. However, before you enter this industry, there are some technical skills you'll need to acquire first, such as learning about international trade law and finding custom brokers. There are quite a few types of businesses inside the export-import industry, each with their own set of benefits and difficulties, and we will learn about some of those below.

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Interested in starting an export-import business and getting a slice of the $400 billion industry? Here are some tips to help you get started:

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1. Startup Investment
You can start your business with as low as $2,000, but it will largely depend on your scale of operations and business model. If you want to start small, you can simply find a local company looking for customers abroad, and you can find their buyers. This business model requires very few costs, as you'll only need a computer for emailing purposes and a phone for international calls. If you plan to import goods from overseas to sell in the domestic market, you'll need a relatively high capital to purchase your initial stocks.

2. Find your Product
Regardless of whether you’re focusing on exporting or importing, you'll need to find the right product with enough marketability. The opportunities are everywhere, especially if you live in a developed country. Many U.S. companies don’t realize that expansion to the overseas market is a huge opportunity. After you find a suitable product, you'll then need to look for potential market opportunities and try to establish contacts in the foreign country.

Many websites provide a platform for placing export-import ads to find overseas buyers, whether they are totally free or with paid fees. Before you place an ad, though, it's a good idea to first approach the seller and offer them your service. Prepare a professional business proposal, as it will help the process significantly.

3. Licenses and Permits
Depending on your location, you may need an export-import license before you can begin your operation. Check out www.usa.gov/import-export and contact your local authorities for information regarding required licenses and permits before you start the business.

Earning Potential

The average earning for the industry is an astonishing $75,000 per year, ranging from as low as below $20,000 to more than $200,000. Keep in mind that as you are selling other companies' products, so the profit margin is relatively low and will depend on your negotiation skills with the buyer, as well as negotiating bargains with the seller.

Once your business is established, you can expand to be an export management company (EMC - www.globalnegotiator.com/international-trade/dictionary/export-management-company-emc) that manages other domestic companies export processes, or an export trading company (ETC - www.investopedia.com/terms/e/export-trading-company-etc.asp), finding domestic buyers for overseas products. By being an established export-import company, you can charge a higher premium, increasing your potential earnings significantly.