ExecutiveChronicles.com | Trading Internationally: A How-To Guide | In the modern world, it is a global marketplace in almost every industry imaginable. Online commerce, trading, and business has brought the world closer together and this has brought with it a whole world of new opportunities for businesses of all sizes. It is important, however, to be aware of the difficulties and dangers of online trade to the inexperienced trader.
Get Expert Advice
Firstly, there is no real substitute for experience, so if you don’t have it then it pays to get it from someone else. A specialist business advisor with knowledge of this will no doubt come at a price, but it may be a price worth paying.
Fully Research & Know Your Supplier
This aspect is key, the further away your supplier is the more risk you take in dealing with them. It’s more difficult to hold them to account as there is international law and the law of two territories involved. You should, where possible, endeavor to visit your supplier even though travel is going to come at an expense, as this way you can verify their claims, especially if they are claiming to manufacture the product in-house. Make sure you get shipping terms including how much is paid upfront, don’t trust a supplier that demands full payment as you then have no control over the shipment.
Use International Currencies
Various currencies are more internationally accepted than others, there are generally considered to be eight major currencies, U.S. dollar (USD), the Canadian dollar (CAD), the euro (EUR), the British pound (GBP), the Swiss franc (CHF), the New Zealand dollar (NZD), the Australian dollar (AUD) and the Japanese yen (JPY). The other option is to use a truly international currency such as a cryptocurrency such as bitcoin, you can buy btc with skrill quite easily.
Be Mindful of Exchange Rates & Bank Charges
Which currency you use to trade with your supplier is a key consideration as market fluctuations can make this a better or worse deal if one currency rises or falls. Also, know how much your bank charges for international transactions to know what this will cost.
Use Expert Translators
When negotiating terms and contracts it is important to get every detail right and this usually would involve using a contract lawyer. In international trade, one other important role is to have expert contract translators involved to make sure nothing is ambiguous or lost in translation.
Know Full Costs Including Transport
Once all if this is set up it’s a useful exercise to add up all of your costs in setting this up and importing to check if it going to be get you a net profit at the end of the day.
Check Safety Compliance
Finally, it’s important to ensure that goods supplied or manufactured in a foreign territory meet all safety legislation and rules for your country. The Consumer Product Safety Improvement Act of 2008 (CPSIA) is the relevant law for product safety in the US and this guide gives you a start to understand it.