Starting an import export business can be a great way to tap into the global market while being based in Australia. With careful planning and preparation, you can set up a successful business importing or exporting goods. This guide will walk you through the key steps to launch your own import export company down under.
Determine Your Business Focus
The first major decision is whether you want to focus on imports or exports.
- Importers buy products from another country and sell them in Australia. This allows you to source unique or affordable merchandise from overseas suppliers.
- Exporters buy Australian products and resell them in foreign markets. This helps other countries access goods produced locally.
Once you decide on an import or export focus, you need to pick the specific products you’ll trade. Consider:
- Your industry experience and contacts
- Products in demand in your target countries
- Goods with healthy profit margins
- Items easily shipped and stored
- Regulations around certain product categories
Research Your Target Market
Thorough market research is critical before selecting products and countries to trade with.
Important factors you need to analyze for target export markets include:
- Size and demographics of the market
- Local economic conditions
- Competition
- Relevant regulations and duties
- Cultural considerations around products
For imports, research questions include:
- Is there domestic demand and how much do locals pay?
- Who are your competitors supplying this product?
- Can you supply better quality or unique products?
- What retail pricing can you realistically achieve?
Online resources, trade publications, foreign government data and trade shows are excellent places to start your research.
Secure Funding and Capital
Importing and exporting goods requires significant upfront capital. You’ll need funds to cover expenses like:
- Purchasing shipment lots of your goods
- Paying supplier deposits and logistics partners
- Operating expenses while building the business
- Securing inventory storage warehouses
- Starting advertising and sales campaigns
Finance options to explore for an import export startup:
- Personal Investment – Fund with your own savings or assets
- Business Loans – Traditional bank loans or SBA-backed small business loans
- Private Investors – Pitch to high net worth individuals for equity investment or lending
- Crowdfunding – Use online portals to accept smaller investments from a large number of backers
Build a Supply Chain and Partnerships
Define how you will access affordable suppliers and reliable freight forwarders to cost-effectively transport goods to their destination market.
Export Supply Chain
As an exporter, you’ll need to partner with players across the supply chain:
- Domestic suppliers – Source top product manufacturers within Australia
- Overseas agents – Contract sales and distribution partners in your target countries
- Freight forwarders – Setup agreements with major logistics companies for transport
- Global couriers – Final mile delivery firms like FedEx, UPS or DHL
Import Supply Chain
When importing, typical supply chain partners are:
- Overseas Suppliers – Vet and choose manufacturers or producers within your target countries
- Quality Control Firms – Optional locally-based partners to inspect goods before shipment
- Freight Forwarders – Handle international shipping, customs clearance and local delivery
- Warehouses – Provide secure storage for your inventory
Be sure to properly vet partners, check references, and formalize agreements.
Handle Registrations, Licenses and Documentation
Proper registrations and paperwork must be set up when establishing an import export company in Australia. Key items to handle include:
Government Registrations
- ABN – Register for an Australian Business Number
- GST – Register for Goods and Services Tax obligations
- Import/Export License – Apply for an export or import license through Australian Border Force
Customs Processes
- BICON Case – Set up an account with Border Connections for handling imports
- Appropriate Declarations – Register to submit Export Declaration or Self Assessed Clearance Declarations
Documentation
- Export Insurance – Consider marine cargo insurance and other policies
- Free Trade Certificates – Obtain any certificates linked to free trade agreements
- Tariff Concession Orders – Get these orders issued for certain goods if submitting lower duty requests.
Handle Logistics and Transportation
Accurate shipment planning and transportation is vital in the import-export equation. Key steps here include:
- Obtain freight quotes from various providers – consider cost, timeliness, reliability, insurance, among other factors. Negotiate.
- Properly pack shipments yourself or with a fulfilment partner – steps will differ for air vs sea freight.
- Generate commercial invoices, and certificates of origin/compliance documents as needed for clearing customs.
- Importers should keep on top of shipment tracking and progress to the destination port.
- Confirm insurance coverage is adequate based on full value of goods.
- Use a customs broker or freight forwarder’s expertise to ensure seamless customs clearance.
- Arrange local trucking or final delivery.
Market and Find Buyers
If exporting – you can’t just ship goods abroad and wait for sales. And as an importer, you need marketing initiatives to attract local buyers.
Export Sales Strategy
- Pitch major retailers, chains or independent stores within target export countries.
- Attend trade shows abroad.
- Use overseas sales agents and distributors.
- Set up an engaging website marketing directly to end consumers and b2b buyers overseas.
Import Sales Strategy
- Sell to established Australian retailers and chains under a wholesale model.
- Approach boutiques or independent stores.
- Build an appealing Australian ecommerce site – enable consumers to purchase online.
- Attend sales meetings and trade shows locally.
- Market to Australian wholesalers & distributors.
Set Your Import or Export Pricing
Carefully calculate your cost of goods sold and determine reasonable profit margin targets to establish competitive yet profitable pricing overseas (exports) or locally (imports).
Exporter Pricing Factors:
- Your cost to acquire or produce the export goods
- Local supplier discounts based on volume
- Costs related to export transportation, duties, and delivery
Importer Pricing Factors
- Your landed cost to buy and transport goods to Australia
- Desired profit margins
- Competitor retail prices for same or similar products
Manage Ongoing Import/Export Operations
With your import export company now established – managing ongoing operations is key. This includes:
- Oversee quality control along the supply chain.
- Track inventory flow and order volumes to meet demand.
- Continue developing supplier & channel relationships.
- Monitor compliance with all program requirements and documentation.
- Pay duties correctly and on time.
- Market consistently to sustain sales pipeline.
By investing in the critical infrastructure, partnerships and processes covered in this guide, your importing or exporting company will be well on its way to tapping into the lucrative global trade sector from an Australian home base.
Stay focused on providing unique value, managing costs across the pipeline, building a reliable logistics network, and delivering excellence when interfacing with customers – and your trading firm will thrive!
Best of luck in your international business endeavors down under!
