What is the Scope of Import/Export Business in India?

An import-export business is a company that initiates the trade of goods and services from one country to another. In order words, the trade of goods and commodities between domestic and foreign companies is known as import and export business. The ease of doing business in India and its high profitability make import-export business ideas the best business ideas to start in India.

There are several import and export business ideas that you can start in India. You can either purchase goods internationally and ship them domestically or the other way around. It allows domestic people to receive goods that are not available in the market. It increases the demand for the product, making it more profitable. Let us look at some of the import and export business ideas.

Import and export business ideas:

Some of the import-export business ideas are as follows:

1. Import-export agent

Becoming an import/export agent is an easy way to get into the business. You will be acting as a broker and handle the deals and the export and import business between your country and others. You will receive a commission fee from the exporter of the product and also the importer.

It is a highly profitable business idea. However, it requires connections in the market. You must have full information about the different trades that might happen in the country. Once you know it, you can bring two parties together for the export-import business.

2. Online exporting

Online exporting is the best export business idea to start. You can list your products on various e-commerce websites like Amazon, Flipkart, eBay, etc., and people can purchase your products irrespective of their location. However, exporting online is a good idea only if you have lightweight products that can be shipped by air.

Starting an online export business is very common. Many individuals and small business owners open an online store on Amazon and sell their products all over the world. It is a great export business idea to start.

3. Dropshipping

Dropshipping is a new business idea that is high in demand. If you don't want to deal with the stocks and inventory, physically dropshipping is the best import business idea for you. Dropshippers only deal with online marketing and selling of goods and services without keeping the inventory.

You can start your dropshipping business with the help of Shopify. It is a common platform that allows you with all the tools you need for your business in one place.

4. Custom warehousing

Custom warehousing allows importers to load their commodities and shipment offer in one place. Customs warehousing is a place where the products are being kept temporarily until import custom procedures are finished. Every importer company needs warehousing, so it is one of the best import business ideas to start.

5. Logistics expert

The next business idea that you can start is a logistics expert. The logistics experts help importers and exporters with transport and logistics operations in an effective way. Some small exporters and importers might not have relevant knowledge of the logistics operations, so they hire logistics experts. It is a great business idea to start if you have logistics experience and knowledge.

How to Start Import-Export Business?

Want to know how to start an import-export business? Follow the steps mentioned below:

1. Import-export business plan

The first step is to make an import-export business plan. It includes the details of your business, costs, financial estimates, budget, registration and licenses permits, taxes, etc. Creating a business plan allows you to have a clear picture of the next steps of your business.

2. Licenses and Registrations

The next step in starting your import and export business is to get licenses and registrations of the business. You will require various licenses and certifications for clearance of goods and shipping purposes. You will need an IEC code, Bill of entry number (BIN), import license,  insurance certificate, industrial license, establishment license and registration, GSTIN number, etc.

3. Pick a product for import and export

The next step is to find a product that you want to sell in the international markets. Once you find the right product, identify the target market. Look for people interested in buying your products. You can advertise on social media to reach out to people internationally.

4. Source your suppliers

After selecting the product, find the suppliers or local manufacturers. Finding a good supplier is essential for the ease of doing business in the long run. It is essential that the supplier is reliable, honest and has good quality products because that will help build your reputation in the market.

5. Price the products

Now that you have a reliable supplier and good quality products, price your products. Pricing plays an essential role in the profits of the business. If you price your products too low, it will be detrimental to your business growth. If the prices of the products are too high, they might not sell. So price your products keeping the market rates and a reasonable profit margin in mind.

6. Find your customers

Find interested customers. Finding the target market and finding your customers are two different things. You cannot send your shipment to the port of New York and sell your products. You need distributors and clients who can sell your products to their customer base. You can find clients and customers from digital marketing campaigns.

7. Transport the products and offer great customer service

The last step is to transport the products to the distributors and clients you found using marketing campaigns. Once you transport the products, offer great customer service globally. It will help you retain your existing customers and attract more customers.

Conclusion

To conclude, we can say that the scope of import and export business is bright. The import and export business is the best business idea to start in India. To start a business, you are required to have a proper business plan, suppliers, licenses and registrations, etc. You can refer to the points mentioned above to start your own export and import business.

Also Read:

1) How to Start Dry Fruit Export Business in 2021 from India?
2) How to start a business on importing raw materials?
3) How to Start a Meat Export Business in India?
4) How to start a gold jewellery export business?

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FAQs

Q. What documents are required to import goods in India?

Ans. There are many documents required to import goods in India. The several documents required are as follows:

• Bill of entry
• Import license
• Purchase order or letter of credit
• Industrial license
• Commercial invoice
• Bill of lading
• Insurance certificate

Q. How to do business in India?

Ans. The steps to do a business in India are as follows:

• Decide the business
• Create a business plan
• Research about the business
• Create a business structure
• Recruit employees
• Hire the right advisors for the business
• Adapt to the market
• Source the products and services
• Start the business

Q. Is an import/export business profitable?

Ans. The majority of import-export businesses are profitable. It is essential to do research on the industry and have a business plan, to enhance the profits. If you understand your business inside out, the chances of success are higher. To increase the profits and revenue of your business, you can promote your business online using social media platforms.