How to Start an Import and Export Business in 2024

For some of you who do not know the business of importation and exportation, you are on the right page. Import is a pretty popular concept and it simply means “transactions in goods and services to a resident of a jurisdiction (such as a nation) from non-residents.

The precise definition of imports in national accounts comprises and excludes specific “borderline” cases.

This discourse articulates the best ways to begin an import and export business in 2024. Kindly explore the materials below.

How to Start an Importation Business

For those who want to go into this line of business, these are the secrets you must learn:

1. Look for Hot Products

Back in the day, you’d need to travel to many countries to be capable of identifying products to import. Now, it’s pretty simple, you can sit back in the comfort of your bedroom and do it on the internet. Look for current products or some that are not in the country presently that you think people will love.

First of all, bring a small quantity into Nigeria to see how people will react to it. That is, to quantify the acceptability of the product before importing.

If a product is not acceptable, there is no need to invest your hard-earned money into it because it won’t sell to give you your money back. You must do this initial product trial by bringing a small quantity first to see if people gonna like it.

2. Where to Get the Products

To achieve this, go to the merchant websites like Alibaba.com, Ebay.com, etc, or just Google and type the ‘keywords’, that is where to import goods from — browse through to see the type of product that may not already be in the Nigerian market.

Place your order by paying via your electronic Credit or Debit card. Most Nigerian Banks now have cards that are acceptable on these sites. You may write money through other means like a bank deposit or money transfer.

Once you’ve paid for the goods with shipment cost included. the next thing is to wait for the goods to arrive. You may not need the services of a clearing agent if the import is through premium Currier services Like DHL UPS and others.

3. Sell off the Products

Before you go about importing the product, you must have talked to your potential customers about your soon-to-arrive product using the sample from the previous product sample you brought in.

Now that you have the main products, Get the product to them and sell off at wholesale prices to make your profit.

Then repeat the process as many times as it remains profitable. To be able to increase your capital, you need to reinvest your gain from the first and second trips until you have enough money to import in mega quantity.

Check with Nigeria’s Import and Export Promotion Commission (I’m not sure if that is their real name) to see the types of products allowed into this country.

How Much You Need to Start an Import Business

That depends on the type of product you want to export. Other factors are the credit period you get, the credit period you give to your customers, and per month cash expenses you need to meet.

For a simple formula, you have to calculate a few things:

1. Estimate the expected period of credit you have to give and what you will get from your suppliers.

2. Let’s assume you will get 45 45-day credit period and you will give 60 60-day payment period to your buyers. in that case, you’ll be held responsible for 15 days only.

3. Let’s assume you think your monthly sale is 10 Lakh with 20% gross profit. Then you have to invest 8 lakh to make a sale of 10 lakh per month. Now according to point no. 2, you have to bear the liability for 15 days in a sales cycle. That brings down the amount to be invested to 4 Lakh.

4. If you have monthly expenses on salary and other maintenance of your office at 1 lakh per month then you have to bear the liability for two months straight. (You can’t enjoy any credit period here, and your buyers will give you a payment after 60 days only.) So on a 1 lakh per month, you need 2 lakh for two months.

5. Four Lakh for material and two lakh for other expenses give the final figure of 6 Lakh. Let’s maintain a contingency figure to be 25% of the base amount. So you need 8 lakh for the business

Hot Selling Products to Import and Export in Nigeria

To make more profit, you need to go for hot goods, that is, goods with high demand in the market. Here we present you with 10 hot-selling products to import and export in Nigeria:

1. Candle (With Sweet Fragrance Used For Decorations)

2. Power Bank

3. Memory Cards

4. Apple

5. Ear Phones

6. Decoder: DSTV, Startimes, Gotv, etc.

7. Screen Guard

8. Car Trackers

9. Wireless Server

10. Hair Extensions

The importation and exportation of goods in Nigeria is a lucrative business. With the discourse above, you will not have a challenge while venturing into that line of business.