Importing: Minimizing risks and maximizing opportunity

Growing a small business sometimes requires moving beyond local suppliers and exploring global markets. On the other hand, importing goods poses risks such as delays in customs clearance and unexpected fees and taxes. 

In this blog, we explore the risks and rewards of importing and how you can make the most of the opportunities it provides. 

Importing can be a powerful tool to expand your small business, offering opportunities to enhance product offerings, reduce costs, and improve operational efficiency.

Some of the top reasons for importing goods include: 

• Product diversification: Importing allows you to bring new or niche products into your local market, helping you stand out from competitors and meet evolving customer demands. For example, by sourcing products not readily available domestically, you can appeal to specialized customer bases or create entirely new market segments.

• Improved profit margin: Importing goods or raw materials can improve profit margins by giving you access to more competitive pricing, whether due to lower production costs or improved resource availability. These cost savings can be reinvested into areas like marketing or product development.

• Supply chain resilience: Relying on a single source for products or materials can leave your business vulnerable to disruptions, such as natural disasters or production delays. Importing supports effective supply chain risk management by allowing you to diversify your supplier base and ensure a more stable and reliable flow of goods. 

• Scalability: Importing can help you efficiently scale your operations by providing access to larger quantities of products or raw materials. By leveraging international suppliers, you can also increase production capacity without making significant investments in expanding your own facilities.

From supplier reliability to trade compliance challenges, understanding potential pitfalls—and how to mitigate them—can help you avoid business disruption or excess costs. Here’s how you can manage key import risks with the support of FedEx tools and services.

Creative Global Technology is one business that depends on reliable and efficient shipping solutions to mitigate the risks and maximize the benefits of importing. Established in 2016, the company specializes in sourcing pre-owned consumer electronic devices. These devices are primarily smartphones, tablets, and laptops which are sourced from suppliers in the U.S. according to orders placed by distributors. 

The devices are typically imported as freight with shipments ranging from hundreds of kilograms to several tons. Due to fluctuating pricing and market demands, the volume of shipments can vary significantly and increase suddenly.  

To be responsive to this market demand, Creative Global Technology requires fast and efficient processes for managing imports such as the ability to easily obtain quotes and track shipments.  It has chosen to work with FedEx primarily for its competitive transit times and what it sees as a cost-effective solution to its shipping needs. FedEx also provides flexible delivery, splitting shipments into several deliveries on separate days to help the business manage its storage capacity.  

According to Creative Global Technology, working with FedEx has simplified its import experience in several ways:

• Faster pickup and delivery: FedEx offers quicker pickup and delivery times, with efficient remote pick-up operation being a key advantage.
• Improved transparency: In the past, the business worked with a freight forwarder and had delayed visibility into the status of shipments. Now, they can track shipments at fedex.com to get an instant view of their shipments during transit. 
• Improved efficiency: The business regularly uses FedEx’s online tools to obtain quotes, create shipping labels, and track shipments, helping to streamline administration. Working with a single provider for freight and parcel needs has also reduced the complexity of coordinating with multiple logistics companies.