Welcome back to today’s articles we will be sharing 10 mistakes most mini importer makes and how you can avoid them.
Though, importation is a very profitable business and yet easy to start there are some certain mistakes you really need to avoid so as to make a good profit from this business and enjoy it
10 Mistakes To Avoid while starting a mini Importation Business
1. Capital
In every business, you really need to know that you need capital to start no matter how small it is make sure you do a good calculation and get your capital down ready.
Most importers always skip this step especially mini importers because they know the business can be started with a very low capital they just find cheap goods to import and start the process forgetting there are some other fees attached like clearing fees among others. Some will think since it’s until the product land before they pay the clearing fee they will be like before then I will have the money. When a product land most of them will take a very long time to clear and forget that there is always time for each product to sell else when the hot selling product time is gone you will end up selling them at lesser or equal to the selling cost or just a little profit.
Do all your calculations very well and have enough capital on grand or at hand.
2. Exchange rate
The exchange rate is one of the issues since importation involves inter-country which means you need to be specific about the time you are starting the business because the exchange rate varies based on the time you are making a purchase. And also some agents have their exchange rate we will discuss that in the next subheadings.
Always take note of the exchange rate when importing and don’t assume
3. Budgeting based on Google exchange rates
This is a very dangerous part because a lot of people just check google and think maybe the same exchange rate on google is what will be used for importation which is not. Google exchange rate is just the Central Bank rate.
You need to know the rate of your agents, the product manufacturer and also the shipping agent rate at the moment of processing the order so that your calculation will be accurate.
Also, note that before your good land in your country shipping exchange rate can vary so calculate very well and give margins.
4. Shipping and Clearing Cost
This part is very important and that is why I always advise anybody just starting importation to start with less weigh products because that will cost less for shipping and clearing. Sometimes the cost of shipping and clearing might be even higher than the actual products, especially heavy products.
Human hair, for example, is a very good start because it is very light and yet costs to sell when it gets here.
5. Shipping delay
Delay is dangerous but when you calculate your shipping time very well you can be accurate most time. Always use good shipping companies that always delivered on time without delay. Make sure you make proper research before starting the importation business and calculate the delay with your time because anything can happen at any time.
6. Shipping Company
Choosing the right shipping company is very important because they have a good impact on how much you will be selling the product and you know they are the ones that will handle your product down to your country.
It is advisable to use the best shipping company yet affordable. If you use a bad shipping company you are at a very high risk of losing your products may be due to loss or any other things. Use a reliable shipping company and insured ones so if your products are lost or damaged you can get your money back
And think about the price and time it will get to you so that you can sell at the best price to your customers.
7. Profitability
In every business, Profit is very important because that is the reason why we are doing business in the first place.
Make sure you do a lot of accurate calculations and have a good profit margin that can fix any issue or extra cost you might fall into later.
But yet make your selling price sensible do going too much.
The best way to do all that accurately is to make a good research on the product, the audience and the best means to ship it down to your country
8. Accepting Refunds?
This is on your customer’s side. It is best not to accept a refund. Some importers make mistakes by accepting refunds. If you accept a refund they will misuse it. Yes, they can be exceptional but it is advisable not to accept refunds. Some customers will not have patience some products may be delayed and they would have concluded they don’t get the product. Some might have a change of taste when the product reaches them and they will just say they don’t get what they order stuff like that.
Just make it clear that no refund
9. Following the crowd
Most important follow the crow by selling what others are selling without proper research and most time it ends up in tears. It’s best to make proper research on what people are selling before you rush into it
10. Not staying abreast of new Nigerian laws and regulations
This is very important. You need to read your country’s rules and regulations guiding your business before even starting that business. Nigeria has certain laws and regulations abiding mini importation business and some other businesses it is very important to read before starting at all and abide by all of the rules.
For example, Nigeria Custome have some Import Prohibition list and if you import those products you will lose them
Read Nigeria’s custom Import Prohibition list
Conclusion
In conclusion, you need to always make proper research on the business you are about to go into before starting and follow professional advice or an experienced person in the business so that you can skip a lot of mistakes they might have made or you will probably make if you do it alone