0:00How do import businesses make money?
0:03And where do they lose it?
0:05There are four common models.
0:07Trading: you buy in bulk and resell to other businesses.
0:11Wholesale to retail:
0:13you import and sell to shops.
0:15Direct retail, including online stores:
0:18you sell to end consumers.
0:21And importing for production,
0:23where imported goods become inputs into something you manufacture locally.
0:29Your landed cost is the true cost of a product once every duty,
0:33tax,
0:34freight and handling charge is added.
0:37New importers often price from the factory price alone.
0:41Then they discover, after the first shipment,
0:44that duties, shipping and clearance fees have eaten their entire margin.
0:49So build your pricing on landed cost, from your very first calculation.
0:55Margin is also eroded by things that never appear on an invoice.
1:00Demurrage from a slow customs process.
1:03A damaged shipment with no insurance.
1:06A scam that costs the whole order.
1:08Or a wrongly classified product that attracts a penalty.
1:13Part of becoming a professional importer is learning to price in these risks,
1:18rather than being surprised by them.