Ask any veteran businessman how things have changed in the past few decades, and you’re likely to get an answer regarding interactions with international companies. As the world has gotten smaller, several new markets have opened up to businesses of all sizes, many of which weren’t there 30 years ago.
For example, in 2018, India was the United States’ ninth biggest trading partner, with $74.3 billion in goods and services flowing between the two countries. In March of 2019, that number climbed with more than $8 billion worth of trades between the two nations. Contract that with just $5.5 billion in the year 1989, a trend that persisted for the entire year.
In many cases, finding foreign partners has helped a lot of small businesses take off. But with this increased access to other markets has come a host of risks. In many cases, businesses find themselves dealing with suppliers they’ve never met and placing a lot of trust in a relationship built online or over the phone. Before you get involved with importing goods or services abroad, it’s important to know what you’re getting into and what could happen. Read on to learn more.
Customs officers, such as monitoring for fraudulent products and items that pose potential threats to civilians. But the consequence of that diligent work is a simple one: every product must be examined carefully. Unfortunately, that takes time, and that time can be costly for businesses.
Even if you sail through customs, you still won’t sail through an ocean all that quickly. If you’re placing a very large order, chances are that it won’t be big enough to fit on an airplane, and that means that you’ve got to plan ahead for how long it’s going to take to get your product to your office.
Taxes and Tariffs
Importing items depends on the government of the United States and the country you’re dealing with. In this day and age, tariffs can pop up at any point, which can add a large tax to your bill. You need to make sure that cost is built into your final bill to ensure that you’re getting the best deal from your supplier.
Here’s where you need to really know who you’re dealing with. If you’re dealing with suppliers who aren’t known for being reliable, you could find yourself receiving shoddy merchandise or no merchandise at all. That’s why businesses opt for a procurement expert, such as TraDove, to ensure that they’re getting a product that’s worth their time and money.
Dealing with international suppliers can be a rewarding experience, but only if you’ve properly prepared yourself for the challenges that can come with it. By finding partners with experience in foreign markets, you can take advantage of our smaller business world and make these markets work for you!