Benefits of overseas buying
Importing stock from overseas can give your business a unique selling point while bolstering your working cashflow.
Finding a competitive and reliable supplier is only the beginning to importing success - you'll also need to build and maintain strong relationships, pay for stock, investigate transport options and customs brokers. But there are a number of tried and tested tactics you can employ to better your overseas buying experience.
Choose who you deal with.
Before choosing a supplier research their background, products, services, delivery history and clients, as well as investigating any subcontractors they might use. Compare these details with your importing objectives and business processes to see how they match up.
Communicating with your suppliers
The success of your business - from selecting the right lines to meeting sales demands - is reliant on your stock arriving on time to the right order specifications. Open communication is therefore vital to any relationship, so be honest and clear about your business's expectations and purchasing policies. A written contract can ensure you're not sprung by hidden costs while outlining other issues, such as freight scheduling or dealing with delivery delays.
Money talks
Suppliers will often add incentives or discounts for upfront payments - which can save your business significant amounts. The quandary with upfront payments is that you'll tie up your cashflow in stock that is still awaiting delivery in order to receive a discount - and it could be several months before you recoup your capital.
The good news for fashion businesses is that funding options are now available that help you buy upfront, without tying up your cashflow.
Transporting and customs
Some suppliers will organise the administrative and logistical aspects of your stock import (including clearing the goods through customs), but naturally this comes at a cost. While sourcing freight options can be time consuming and expensive, it can make sense to outsource certain elements of it to experts such as customs agents. Financing can also be sourced to cover this aspect of your stock purchase, again freeing up valuable working capital, which can be used for other business-building purposes.
Be prepared
Even if your supplier has a great reputation, things can, and probably will, go wrong at some point. You need to be prepared for most eventualities, and a contingency plan is essential. There are a range of issues to prepare for, some of the most common include a delay in shipment or the wrong order arriving - which can be an issue if you have a sale looming.
Importing your stock does come with some risks, but through building an upfront relationship with your suppliers based on trust and respect - and matching that with the right purchasing process, including finance if appropriate - you can give your business a definite advantage over other international buyers.