Generally there are 2 main reasons why you should import
1) There is a saying. “Margin is made in purchasing, not selling”. Every successful Buyer in the world who works for a larger company will tell you that it’s all about the purchasing. Profits are made when buying and not selling.
Sure…., there is a profit to be made in selling but what if you are not the only one selling this product? Then you have to work for your margin at the root and not when selling the product. The competition doesn’t sleep, so they do research on you and your sales price. If they match or even lower their price you have a to-do. And that’s either accepting a loss in margin or looking for a new supplier. And you don’t want to go to your importer for that. You go to the source directly. And that’s the factory wherever in Asia or the world.
2) Apart from Reason No.1 there is also the “Innovator effect” to be taken in account. Say your competitor buys the same or similar product you have and probably from the same source (your importer). You don’t want that. You want to have a great product with a great margin but you want it to be sold in your shop/store only. So you have to be the first one who finds it and make a deal with the manufacturer to have it exclusively. And the only way this is done is being in where your priduct is made or at least close to the production vicinity, meeting companies and going to factories to see their products and perhaps develop your own product or private label.
Here are some main advantages for you to consider when importing from Asia:
- Low manufacturing costs
- Suppliers are much more open to working with smaller businesses and providing smaller quantities
- Large number of suppliers to choose from for many products, Asia might be the only place that produces the item
Along with the advantages of sourcing from overseas suppliers also comes several disadvantages that you should be equally aware of. Some of the disadvantages include:
- Perceived lower quality from customers
- Sometimes lower manufacturing and labor standards (although this is changing rapidly)
- Almost no intellectual property protection
- Language and communication barrier can be difficult to overcome
- Difficult/costly to verify manufacturer and visit on-site
- Longer shipping time
- Cultural differences in business practices
- Product importing and customs clearance
Luckily actiomo can offer you the services to negate most of the disadvantages you may perceive so you can focus on the advantages.