Why Businesses Choose to Become Import and Export Companies

importing and exportingThere are a number of reasons that businesses in the US choose to venture outside of the borders and become import and export companies. For small and medium-sized businesses, the benefits of exporting alone, without importing, can be substantial. Regardless of whether your business is an import and export company or only concentrates on one side of the equation, the laws and taxation requirements must be met.

How Selling and Trading Abroad Helps Import and Export Companies

Believe it or not, the majority of the world’s consumers are located outside of the United States.  Therefore, by exporting their products, import and export companies can increase sales and expand into new markets. Additionally, exports tend to yield greater profit margins because American made merchandise is considered unique, innovative, and of higher quality than similar items manufactured in foreign markets. This, along with the fact that overseas buyers tend to purchase goods by the container instead of by the pallet make it so that orders from foreign customers are larger than the average domestically placed order.

Another thing that foreign markets do for import and export companies is to allow these businesses to achieve longer and more sustainable sales for their products. This is especially true for businesses that handle seasonal merchandise. Selling overseas increases sales to markets that have cycles that are opposite to those of the United States. Additionally, exporting allows import and export companies to extend the life cycles of more mature product lines that have been sold in the United States and allow these items to enjoy a new life in foreign markets.

How Foreign Products Affect Import and Export Companies

Import and export companies also benefit when non-US companies sell their wares in this country, as well. It helps to bring in components that cannot be produced in this country. In addition, there are products that acquire a higher relevance if they are directly imported from another country. Take, for example, perfume. It is more expensive when it comes from France. People prefer to buy from there, even though it can be produced locally. Finally, and most controversially, due to labor and raw material costs, it tends to be cheaper to produce and assemble products in foreign countries, rather than in the US.

However, the caveat is that you must know the laws of both the US and the countries where you are doing business. In order to help with that, it is best to find a brokerage business whose sole purpose is to assist import and export companies. If you are in the El Paso area and your business needs help in these areas, turn to Cordova Brokerage International. We have been handling all types of customs movements since 1994.

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