Are you ready to start importing and exporting for your business? Importing and exporting can be tricky. Yet it can make an unbelievable difference to your organisation and its success when done right.
Below we have outlined five common mishaps that businesses make when importing and exporting to ensure that you can avoid these mistakes and enable your business to grow.
Mishap #1: Not being aware of exchange rates:
As the currency market constantly fluctuates, it can affect your bottom line by bringing challenges when trading on 30-90 days.
You need to make sure that you monitor the changes of the exchange rates so that you can forge deals with foreign suppliers at the right time when prices start to even out. Further information can be found here.
Mishap #2: Forgetting to track every transaction:
When making international transactions, it is important that you keep track of your records, from when you declare a good through to a termination of a transaction.
If something unexpected happens, having records ensures your company is perfectly in line with the laws within other countries.
Mishap #3: Not verifying the legitimacy of a supplier or customer:
Here are some important questions that you might need to ask your supplier/customer to identify if they are trustworthy:
1. Does the supplier have a good track record?
2. Do they have the full rights to the product?
3. Does the supplier have a valid website or online presence?
4. Is the product exactly where they say it is?
5. How many years have they been in operation?
If your supplier/customer provide an inadequate answer to any of the above questions, then it is worth delving deeper to ensure that you only work with people who you can trust and don’t put your business at risk.
Mishap #4: Failing to insure goods:
Even if you are using a freight forwarder, there are still risks associated with importing and exporting. Goods can get damaged, ships can sink, along with many other problems that could have a massive impact on your business if you don’t have the right insurance.
If you need more information related to the types of insurance you may need, check out this article here.
Mishap #5: Going with the cheapest supplier/shipper possible:
It can often be tempting to cut costs by going with the cheapest supplier, but you have to be mindful that there will usually be a reason for this. The cheapest supplier may not have the right insurance or plans in place to ensure your goods are safe and shipped correctly.
The best thing to do is go with a known name supplier that is a reasonable price for your business. It is better to pay more to be confident your goods will arrive safe and sound.
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