If you are currently in that stage of life where you look forward to changing direction in career and at the same time you are unwilling to the same conventional job over and over again, becoming an Imported goods distributor might be the one that you find enticing. You may feel exhausted with having to be someone else’s employee who has to come to the office at certain hour.
And we have not even talked about the overtime you have to clock in even on weekend. You may think that becoming a business owner yourself sounds promising yet you are without skill in crafting a product to sell. And without something to sell in the market, entrepreneurship is just one of the many wishes you build in head.
Making a career turn as such a distributor for imported goods is a workaround to circumvent this limitation you may have. And come to think of it, it is such a genius idea, is it not? Taking this way, you need not learn the skill needed in producing a product while you are in dire need of making money fast. Why struggle with a time-consuming process (which may or may not require even more money) when you can simply get something to sell right away?
As an Imported goods distributor, you work as a reseller. You need money as capital before starting, though. After all, what other business models do not need capital in the beginning, right? The cash you have will be used to purchase goods straight from the manufacturers and the goods you obtain are the ones you will eventually sell. Be mindful, though; normally, manufacturers have minimum limit for items a future reseller can buy. Some apply competitive discounts for those who make a purchase way above the minimum limit. Consequently, you need to make a proportional calculation between your buying power and the manufacturers’ set limit.
Being an Imported goods distributor, there is an important rule you need to know: the rule of 1:10 ratio. The ratio defines that you can set your price as maximally as by 10-fold against 1 point of purchase price. So when you buy an item for one dollar, you can resell it in the market for 10 dollar. And that is just for one item only. Imagine how much you can gain when you manage to sell, say, 1000 more.
But this only works if you can find a manufacturer or a factory that can provide you with low price for their items. The higher their price, the harder it will be for you to cut a bigger profit out of the reselling. Do not discount tax either. Unless the original price set by the manufacturer has also covered for the tax fees, you need to spare some more for this purpose. Remember that a high tax fee contributes to your profit getting diminished. Obviously, it is not easy if you decide to go this route. Every career move has its own set of challenges and finding a way to gain bigger profits is definitely and arguably one of the hardest challenges to tackle.
Imported goods distributor is a job that comes with a set of things to watch over. There are some questions that you need answers to prior to starting your reseller business. Finding the answers to each and every said question will unlock larger potentials in gaining bigger profits in the process. And you might find difficulties in finding them but with hard work comes a satisfying result.
Things To Pay Attention To Before Being An Imported Goods Distributor
So, what are these questions regarding first step in becoming an Imported goods distributor we are talking about? Below are listed:
- The method of importing.
Where do the items you are going to resell come from? The most popular country of origin today is China but it is not entirely impossible for you to find other countries during the course of your research. Choosing a country will greatly affect the way you sell the products. Don’t forget to dedicate some of your time to learn about that country’s economic climate and how flexible they are in terms of international trade.
- The base price.
Get one that offers the lowest possible rate you can find in order to maximize your range of profits in the future. Among all the things that may affect the way you sell the products, base price is arguably the most important. This is significant because how much you set your price on certain products greatly depends on how cheap you buy them in the first place.
- The shipping fee.
This one ties with number 1. The shorter the distance is, the cheaper the shipping.