Australians love imported goods. Some of the country’s largest imports include machinery, mineral fuels, vehicles, and electrical products.
If you’re looking to start an import business in Australia, but don’t quite know where to begin, we’ve put together a seven-step guide to put you in the right direction.
- Set Up Your Australian Business and ABN
Once you’ve researched the Australian market and know what goods and services are in demand, you’ll need to establish a business presence. The first step when forming any business in Australia is to apply for your Australian Business Number (ABN) and, if you like, create a company.
There are many types of business structures you can choose in Australia such as sole trading, partnerships, trusts, regular companies, and more.
Whatever is best for you will entirely depend on your goals and circumstances.
2. Select Your Supplier and Sample a Product
You’ll then need to find the right international supplier that will export goods to you so you can sell to your customers. When picking the right partner, you’ll need to assess a variety of factors, such as:
- Minimum order quantity
- Sample prices
- Turnaround time
- Payment terms
- Incoterms
It’s important to know what you want from your international supplier from the outset and to be clear on your expectations. Get your priorities straight early on so you’re not let down by your supplier in the long term.
You’ll also want a sample of their product to ensure it meets your requirements and the needs of your customers.
3. Work with a Freight Forwarder to Understand the Cost of Importing Your Product
Don’t go through the process of international shipping alone. Engage an independent freight forwarder to liaise with your suppliers—these are specialists who’ll help you understand the hidden costs of shipping.
Freight forwarders also have knowledge of Incoterms, which are the international commercial terms that govern the allocation of risk throughout the shipping process. This involves who is responsible for what, and at what stage during the shipment.
You don’t want to enter into a long-term contract with a supplier on the wrong Incoterm, so ensure you get tailored advice from experts.
4. Compare Air and Sea Freight
There is a swathe of differences between shipping by air and shipping by sea. Whilst ocean freight is often cheaper, it’ll take longer to get your goods from A to B. Therefore air freight is your best option if your shipment is urgent.
Unfortunately, since the COVID-19 pandemic made its impact on global supply chains, the cost of air freight has risen exponentially.
Consider whether an air-sea solution is best for you, which involves using a combination of both aircraft and ocean vessels to transport your goods overseas. It’s possible to get the best of both worlds—quick transport by air, but at the fraction of the cost by sea.
5. Plan with Transit Times
Book your shipment early. This is especially important if you’re planning to ship your cargo during shipping peak season before Christmas (around mid-August to October).
By securing space on a vessel early, you will be less likely to experience delays.
6. Prepare Your Documentation
Paperwork—it’s the less romantic, but extremely important, part of shipping.
There’s an abundance of documentation you’ll need to send to your freight forwarder when importing products—everything from the commercial invoice and the packing list to the certificate of origin and packing declaration.
Without this material, your forwarder simply can’t act efficiently. You’ll most certainly experience delays if your paperwork isn’t in order.
7. Book Your Shipment and Track Your Cargo
When everything’s in order, you’ll be ready to book your shipment.
Make sure you track your goods so you know exactly where they are at any stage of the shipping process. A freight forwarder can arrange this for you.
How Do I Import My Goods During COVID-19?
Importing during COVID-19 has proven to be a challenge.
The travel restrictions imposed by governments around the world has led to increased delays and more congestion at ports than ever before, which ultimately impacts the time your goods will arrive into the country.
Keep in mind to factor in these delays during your timeline when planning your shipments.
