Are you thinking of establishing your own foreign trade company? This is a very good idea because now the world is kind of in the palm of our hand, we can easily reach everywhere; Moreover, the import and export volume is increasing day by day. If you have a bright business idea for foreign trade, namely import-export, you should start this process by establishing a small business.
So, do you have any idea what kind of business idea for foreign trade would be really good? If your answer is no, you are in the right place. In our article, we have included business ideas with the highest profit rate. Any of these business ideas can be a good starting point to bring your startup to life.
All of the import-export business ideas listed in our article have proven to be highly profitable.
Before examining these ideas in detail, how about evaluating foreign trade in general terms? Because when it comes to the success of your venture, it is also important to have information about what kind of problems you will deal with in the sector in question, or to what extent the sector will have a business volume-potential.
Historical Development of Foreign Trade
Import-export, which is the basis of foreign trade, is one of the oldest trade types in the world. Every country has always needed different items from each other, and this is exactly how the thing called trade was born. Because many different nations or tribes have specialized in very different items and products since ancient times, and have used various methods to deliver these products to each other.
For example, one country or region was rich in the metal element, while the other had an abundance of meat or fruit. Consequently, these two parties started to exchange their products with each other, that is to say, barter. Initially, such barter transactions were made only between neighboring countries, regions or tribes.
Later, maritime transport developed so much that it was possible to travel long distances by sea or even explore new continents. This is where the foundations of the import-export sector, namely foreign trade, were laid.
The development of transport, especially maritime transport, ports and infrastructure work towards inland areas, were the most influential factors that triggered the development of international trade. This situation created many new import or export ideas / opportunities.
As you can see, the import and export industry is one of the oldest business types ever. Moreover, it does not look like it will disappear in a short time. As long as there are different nations, international trade will always exist.
The import-export sector owes its existence to differences in climate, available natural resources and development levels between countries .
These three facts we mentioned are still valid and explain clearly why different countries specialize in different products. One country has advanced technology while the other has low cost raw materials. One has fruits and spices, the other has timber. Differences always create new opportunities and bring people bright business ideas.
Today’s Foreign Trade Approach
Today, imports and exports are seen as one of the sectors with the highest volume of business worldwide.
The volume of goods traded between the European Union and the rest of the world is growing steadily. This growth is beneficial for all players of the sector.
Let’s talk about the 4 regions / countries that are leading in foreign trade:
- European union
- United States of America
If you live in one of the developing countries, you should consider prior to export to these 4 players. In fact, it would be appropriate to give priority to the European Union among these four.
It is the most suitable market for entrepreneurs from the European Union, South East Asia, India and Africa. The European Union has the lowest import tax in the world, and is most open to exporters from developing countries.
Another interesting fact is that imports and exports are usually carried out by small and medium-sized companies rather than large companies. So you don’t need to be a very large or multinational company to bring your initiative to life. You can even run your business from your home!
The Most Profitable Business Ideas Regarding Foreign Trade (Import-Export)
After this brief information on import-export, it is time to take a closer look at the best business ideas of the sector in question, with a very high profit return.
1. Establishing a Supply Company
Perhaps the easiest and most economical business idea of the import or export industry is to establish a supply company. This business emerged from the concept of export-import representation in a simpler form and developed day by day.
The goal as a company is to provide a product, supplier or buyer for your customer, and you usually receive a one-off fee for this.
This is the perfect way to jump into the industry. In this way, you get valuable information, experiences and links that you can use in the next stages. Moreover, you do not need experience to start a business as a supply company / agent.
Your job is to find an offshore company that demands procurement service. You must make sure exactly what the requirements and demands of the company in question are. Once you have made everything clear, you must sign a supply agreement with your customer, in which your fee will be stated.
After the deal, you should start looking for resources that fit the needs. You should contact suppliers and manufacturers in your country and visit them frequently to make sure your suppliers are meeting the customer’s demand. In this way, you will also have the opportunity to control the products.
After finding the supplier, buyer or product your customer is looking for and making the necessary check, it means that it is time to present the details to your customer and receive your payment.
There are many different online sites where those who want to start the procurement business can register their companies to acquire customers regularly. With this method, you can carry out commercial transactions even from your home and start your enterprise easily with small costs.
2. Foreign Trade Representation
Another of the easiest import-export ideas to realize is representation.
This business idea is also called “foreign trade brokerage”. This is the most inexpensive way to get started in the import or export business and ensure a steady flow of commission fees.
The person undertaking the task of representative receives commission from both the import and the exporting company. Commission fee is a certain percentage of the total value of the transaction performed.
Foreign trade representative is a “mediator”. Let’s say your customer is a local exporting company that wants to find buyers overseas. The duty of the representative is to sign a commission agreement with this company and search for suitable buyers.
If you have a buyer ready to buy products / services at a certain price, you bring the parties together. Payment is made directly to the supplier in your country. However, the supplier is obliged to pay the agreed commission fee to the representative.
Similarly, it is possible to earn commission fees from import transactions. At this point, your task as a foreign trade representative is to find a low-cost supplier from another country. If your customer (buyer) is ready to purchase services from the supplier you find, they should also pay you a certain commission fee.
The following two things are extremely important for a representative who wants to protect the commission fee.
- Commission agreement must be sound and legal.
- You need to maintain good relationships with your customers and always offer them a valuable service.
Representations, such as supply companies, are one of the most feasible of foreign trade business ideas. However, the next business ideas will be much more complex.
Another business idea is direct exports, a traditional way of entering foreign trade. You have to directly purchase, manufacture and export products.
This is the most risky method, but it is possible to make the biggest profit with this method. It is quite common for people from developing countries such as India or China to gain wealth through direct exports. Exports are lucrative because local prices are sometimes much lower than export costs. For example, if you want to start a direct export business in India, you need to know very well what kind of goods are exported in this country. Product selection is very important in the direct export business.
If we summarize the important points for direct export;
- The most important thing is to choose the right products for export. You have to do a proper market analysis. You need to choose the most suitable product for you and a second product with sufficient profit potential. If you choose the wrong product, you will not be able to make a profit or even find a buyer.
- Secondly, by analyzing the import or export data well, you should make sure which countries are the leaders in the import for the product you want to export. You need to find the right target countries for your products.
If you live in developing countries such as India, South Africa or other Asian countries, your target market must be the European Union. For this reason, you should deepen your research and try to select countries that are compatible with your target from this region. So you have to shoot a point.
3. You should also know how to reach real international buyers. This is the hardest part of the job because you cannot buy the list of real buyers online. You need to know how to reach the RIGHT buyers and build trust and solid relationships so that you can finally reach an agreement.
If you really want to be successful in direct exports, you should never ignore marketing activities. Knowing exactly who your customers are and what they want from you for what will enable you to take firm steps forward in this new industry.
It is much easier to import a product and sell it in your home country than to export the same product – because you know your home country market much better than the markets of the export countries. You can do a deep market research or choose the right product to import and resell.
If you live in a developing country, then you may definitely want to import Western brands of food and beverage and technology products from the European Union.
Before investing in the products you will import, you must have a sales network or dealer.
As with direct exports, you need a considerable amount of money to purchase / produce a product and establish a sales network. Most importantly, you need to make sure you choose the right product.
5. Online Export
Does anyone of you still haven’t heard of Amazon or online sales sites like eBay? What about gone or n11?
Through these sites, you can buy your products in bulk, then sell them on online platforms by adding a considerable percentage of profit per unit price. By analyzing trends, you can determine which product is selling well, obtain these products from other countries and sell them online.
You can open an online store on any of Amazon, eBay, Aliexpress platforms, upload great photos, promote your product, or even add your brand label to the product presentation.
The online sales method is great for selling small and light products that you can carry by air. Fashion items, clothes, handbags, toys, etc. All items can be easily sold online.
It is common for businesses to find a Chinese manufacturer, have their products custom designed, and allow the Chinese manufacturer’s label to be added to the design. The important thing in online sales is the branding process and the design excellence, because this is the only way you can stand out from the crowd.
Online sales; online marketing, SEO, content creation for your online store, integrating technology, online payments, CRM, tracking system, etc. It requires special knowledge and skills. Online sales have become one of the rising trends of today, and it continues to grow day by day by succeeding in including the audience who do not sell in these environments.
You should remember that you will need a lot of talent to successfully bring this business idea to life.
You also need a website for your business to start selling products online. Your main platform will be your own website. Regardless of whether you are importing or exporting, you must have a website in either case. For this reason, we recommend that you purchase your domain name as soon as possible.
Find an effective domain name for your website and get started right away!