As your business grows, there will come a time when you will seriously consider turning to imports as a way to help your production line or another core part of operations. This is a very important decision that you should never take likely. When the business decides if importing goods is a good idea, you have to think about the advantages and disadvantages of using imports. This is exactly what we will talk about in the following paragraphs.
Main Advantages Of Importing
Every single year, trillions of dollars worth of goods enter every single country in the world. This clearly highlights that there might be some clear benefits of such a practice. There are foreign goods that are necessary since there are always products that are consumed faster than they can be locally produced. However, besides this, some other pros of using imports should be highlighted:
Better Quality
There are some products that have a clear reputation for being much better when they come from one region. For instance, there are numerous cases in which locally grown foods will always taste better due to climate or specific soil conditions. Just think about the olive oil that is imported from the Mediterranean in practically all corners of the world or the champagne that can only come from a specific region of France.
When you can offer better quality to your customers through imports, it is an option you seriously need to consider.
New Products
As an innovative product enters a new foreign market, the business that is the first to introduce it has a huge edge over the competition. New customers are gained faster, together with market share. This is because you are the only provider of a specific niche product at an early stage of adoption. Although other companies will surely do the same thing, the initial business is instantly established as a local market leader.
Main Disadvantages Of Importing
You have to consider the disadvantages of any business decision you have to make. Importing is not different. The main drawbacks of importing are:
Potential Customs Delays
The customs process is very complex. Usually, you need to work with an experienced customs brokerage firm to stand a chance to get it right. This is enough for many businesses to completely shy away from using imports.
When you import some products, there are some specific import regulations that have to be respected. Any problem can lead to delays.
Fees And Duties
Tariffs are always placed on some foreign goods. This is often done to encourage production at a domestic level, protect customers from some dangerous products, because of political reasons, and for national security.
When you import goods, you have to properly calculate costs. The extra costs could actually make it much more affordable to deal with local producers.
We should also highlight that governments often change tariffs out of the blue. This disrupts the entire supply chain.
Less Quality Control
This is a huge problem in some countries because of the fact that you have less oversight when you deal with the supply process. It is actually possible to end up importing goods that are pirated or some low-quality products. As a result, it is really important to vet suppliers.
