Note: This article contains affiliate links (hyperlinks, widgets, or through images), which means I receive compensation if you purchase a product through them. Regardless, I only recommend products or services I use personally and/or believe will add value to my readers. Visit my disclosure page for more information.
If you are looking to expand your business horizons, one possible option may be to look beyond international borders. But trading internationally can be a real minefield to navigate.
There are different issues for buyers than there are for sellers. There are financial and payment issues, assessing potential partners, and plenty of potential legal problems.
This beginner’s guide will walk you through many of these that are critical to international business success. Best of luck out there!
We need to remember that trade is a great peacemaker that enriches people and increases international understanding and ties between nations.
-Dan Quayle
Selling
Every single business out there is in the sales game. Even if you are a service provider, you are selling.
What you are selling is your skills, experience, or expertise.
Be aware that your potential international buyer may not be of the same cultural background as you or even speak English as their first language.
For this reason, it is important to be clear and concise in your communications, use proper English, and refrain from slang or colloquialisms.
Buying
When buying from other areas, it is essential to be aware of certain things. Delivery times may be significantly longer than when buying from local suppliers.
Plan accordingly, and it may be necessary to order more in advance to make high shipping costs palatable. The downside to this is that extra storage space may be required to operate.
Payment Platforms
You will need to make arrangements to either send or receive payments when trading overseas.
You can use regular channels such as card payments or bank transfers; however, these can have hefty fees attached to some jurisdictions.
It may be better to consider alternative methods like web payment services such as PayPal, but again fees can be prohibitive to some.
You can also look to new and alternative currencies, such as cryptocurrencies. You can transfer money via western union to bitcoin.
Research
It’s essential to research any potential trading partner as thoroughly as possible.
You can usually find registration information about companies from their government websites. This will give you access to information such as how long they have been trading, company directors, and people with significant influence, and even earnings and tax returns.
You should also talk directly to them and try to arrange a meeting if possible. Verify any claims that the company makes, if they are proposing themselves as a manufacturer, ask to see their factory, or at least view it on a virtual call.
Legal Issues
There are also plenty of legal issues to navigate with foreign purchases.
You need to ensure the goods are permitted items. Safety certificates need to be checked to ensure that they comply with local standards.
Technology has connected our world more than ever before. Now we can enjoy an easier exchange of goods and services overseas. Here are some critical factors that will help you on your business journey! Click To TweetIf you buy a product from one country it may be suitable there but not in your home economy.
It’s also important to be aware of any import tariffs that may be applied on receipt of the goods, and if not paid, you could find your goods impounded by the customs department until the taxes are satisfied.
Krystle Cook – the creator of Home Jobs by MOM – put her psychology degree on a shelf and dived into a pile of diapers and dishes instead. She is a wife and mother to two rambunctious boys, sweating it out in her Texas hometown. She loves cooking, DIY home projects, and family fun activities.
Who Wins – Corded or Cordless Power Tools?