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Here's the typical scenario: you are on your annual vacation to (insert exotic country of choice) and you spot the most beautiful (insert gorgeous product) at the local bazaar.  After an hour of haggling, you pay US $5.00 and you know it can sell for at least $39.99 in the US.  

So what's stopping you? You could be selling thousands if you can just get the product into the US and start distributing them to big box stores, right?

While this scenario sounds familiar, very few of us actually start importing because the technicalities and language of importing can be daunting. Here are 5 tips to starting an import business:

1)  Country of import and type of product have significant cost implications:

Not all countries are created equal when it come to import tariffs – some countries do not have any tariffs imposed and other tariffs as high as 84% for the SAME product!  

Below is a link to some countries that have special agreements with the United States and thus do not have import taxes:

http://dataweb.usitc.gov/scripts/gsp/gsp_group.asp?country_group=GSP2007

Likewise, not all products have the same tariffs. To maneuver through the maze of government regulations, use a customs broker to help you translate "import language" into something that makes sense to you.  

2)  Don't be a copycat!

This is especially true for those who have "discovered" a product while traveling overseas and want to import it – make sure you aren't bringing in an item that another US company has already copyrighted or trademarked. It is not unusual for a product that is designed in the US and made overseas to trickle out to the local markets – save yourself time, headaches and lawyer fees by ensuring that the product you're thinking of bringing in isn't already distributed by another US company.

3)  The quantity dilemma

You'll want to know upfront if your manufacturer of choice has "minimum requirements" for production. Many factories in China have "minimums" in the thousands, so if you're pockets aren't as deep, work with smaller manufacturers in countries that are still establishing a manufacturing industry. Economies of scale mean the more you order, the cheaper it will be, but unless you already have a deal to supply a big box store, you'll want to start with smaller quantities. If possible, visit the factory that is making your product. It helps you sleep at night, just knowing that your product is made in a clean, safe and employee-friendly environment!

4)  The sample shuttle

Samples used to be free but that's less true these days. Samples can get very expensive, not because of the price of each iteration, but the shipping back and forth.  Give yourself eight to twelve weeks for the first sample to be finalized. It's best to get samples from at least two different manufacturers – that will give you an understanding of quality and price range. It's also a great negotiation tool once you have decided on your manufacturer of choice.

5)  The "No problem" problem

The "no problem" problem is about manufacturers that are afraid to tell you that there is a problem. Instead, you'll get the product 4 months later in fluorescent pink instead of valentine red. Whatever country you decide to import from, you can be sure there will be cultural quirks. You are not going to change hundreds of years of cultural history – instead, find out what those traits are so that you can plan for it.

To find out more about the country you will be working with, check out the following links:

http://www.goinglobal.com/topic/cultural_advice.asp

Congratulations! You have gracefully maneuvered through the labyrinth of import regulations. So you have 10,000 widgets in your garage...now what?

Distribution is crucial to the success of your importing business. Consider doing tradeshows, hiring sales representatives, building a website and generating viral marketing to get your product into the marketplace.