| The U.K is among the world's top ten countries in | | | | Currency conversion can be difficult if you are a small |
| terms of exports and attracts investors from the | | | | trader with many international customers. Merchant |
| EU, the U.S., and many other countries across the | | | | sites such as eBay and payment facilitators like |
| world. The U.K exports most of its commodities to | | | | Paypal fortunately offer the option of accepting cash |
| the EU, U.S., and Asia. The Middle East and Australia | | | | in the currency of your choice. |
| also form important export destinations. | | | | 3. Bank transaction |
| If you are a drop-ship reseller based in the U.K. or | | | | When dealing with multiple customers in a particular |
| want to export to the U.K. markets, you need to be | | | | country, having a bank account in the destination |
| aware of regulations, requirements, and best trade | | | | country eases financial transactions. The bank can |
| practices. International trade involves paperwork, | | | | stand in as guarantor or be authorized to release and |
| particularly if you deal in high volumes. Drop-ship | | | | accept payments from customers not comfortable |
| resellers are spared many stresses of international | | | | or familiar with online payments and long-distance |
| trading because the supplier takes care of the | | | | funds transfers. |
| paperwork and other issues. However, the reseller | | | | 4. Protection from payment-related crimes |
| should be aware of international drop-ship | | | | One of the reasons more people are not conducting |
| requirements and how they can impact their business. | | | | payment transfers online is the high degree of risk |
| Paperwork | | | | perceived to be associated with such transactions. |
| The supplier should have a contract with the buyer if | | | | Hacking, phishing, and password and identity theft |
| selling in high volumes. The contract should be | | | | can harm not only the customer but also the trader, |
| written, and it must be signed by both parties. One | | | | whose negligence is held responsible for the loss. The |
| of the main purposes of having a contract is spelling | | | | trader needs to provide a safe environment for |
| out the roles and responsibilities of each signing party. | | | | online financial transactions. This includes an |
| This includes cost breakup, payments, and how to | | | | SSL-secured website, customer verification, and |
| calculate liability for insurance. | | | | software to detect unauthorized activity on the site. |
| As a reseller, you should sign a contract with your | | | | Licenses and Intellectual Property |
| drop-shipper. The contract should cover destinations, | | | | Resellers and wholesalers must discuss the ownership |
| logistics, insurance, duties, and customs requirements. | | | | of the proprietary product during the negotiation |
| Without these terms clearly stated, you run the risk | | | | stage. In a drop-shipping arrangement, while the |
| of disputes, lawsuits, and losses. | | | | wholesaler or manufacturer supplies and ships the |
| In addition to a contract, the reseller must also | | | | product, the return address on the shipment is |
| investigate the following: | | | | always that of the reseller. The brand name belongs |
| 1. Import license: If your supplier is located in another | | | | exclusively to the manufacturer. |
| country, you will need an import license for bringing | | | | A manufacturer may refuse to service customers in |
| their products into the U.K. Licensing norms depend | | | | countries without an intellectual property protection |
| on the type of product imported and the originating | | | | system. In countries that have this system, the |
| country. Importing food items, for example, has | | | | manufacturer or owner of copyright has to register |
| certain additional requirements that import of bead | | | | the trademark and product. Because drop-ship |
| jewelry does not have. | | | | volumes are often low, resellers may not understand |
| 2. Export license: If your supplier is located in the U.K., | | | | the importance of trademark registration in a country |
| they need to have an export license. Like import | | | | with only a few customers. However, a good design |
| licenses, an export license defines the type of | | | | or idea can be easily copied and sold in other |
| products you can export and the destination | | | | countries unless the manufacturer has taken care to |
| countries. | | | | protect their intellectual property. This deprives the |
| 3. Declaring exports to customs: Joining the EU has | | | | manufacturer of profits and can indirectly impact the |
| simplified trade among member countries. You can | | | | reseller as well-if the customers shift to imitation |
| export within the EU with minimum documentation. | | | | products, it could ruin your business. Make sure that |
| The reseller does not have to declare the export | | | | the products you sell are genuine; if you are caught |
| goods when trading within the EU. However, you are | | | | selling imitation products by the rightful owner of the |
| required to report the transaction via the New | | | | design, it could mean loss of reputation, fines, trade |
| Export System if you are exporting products to | | | | restrictions, and even prison for you. |
| non-EU destinations. When signing the contract with | | | | Unlike most wholesale resellers, drop-ship resellers do |
| your supplier, discuss who is responsible for declaring | | | | not hold a license to sell products on behalf of the |
| the transaction to the customs department. | | | | manufacturer. They instead source products from |
| 4. Inspections: Inspection of the consignment is | | | | the distributor, who holds a distribution and marketing |
| carried out by an independent agency to verify that | | | | license. Therefore, it simplifies the drop-ship trader's |
| the goods named in the packing list are indeed going | | | | business. However, if you are sourcing products from |
| onboard. | | | | a wholesaler or distributor, make sure they hold the |
| 5. Insurance: The suppliers need to file an insurance | | | | license to distribute the product. Otherwise, you |
| certificate to export or import products. | | | | would be selling products in violation of intellectual |
| 6. Receiving port: The supplier must fill out different | | | | property laws. |
| forms when hiring the services of a shipping | | | | Small manufacturers may need to be gently |
| company for overseas export. The Standard Shipping | | | | persuaded to sell products to international customers, |
| Note is a list of instructions to the receiving port. It | | | | particularly if they have thriving local operations. If |
| advises the port authorities how your shipment | | | | you want to expand business, you will need to |
| should be treated, lists the items carried, and | | | | cooperate with suppliers to expand your operations. |
| provides instructions on handling, storage, and | | | | First, the manufacturer needs to apply for a |
| forwarding. Dock and warehouse receipts are | | | | trademark in the destination countries. For trademark |
| important requirements for unloading and storing | | | | holders in the U.K., there is no need to apply |
| goods. | | | | separately for trademark registration in different EU |
| 7. Shipping company: The Export Cargo Shipping | | | | countries-a single application through the Office of |
| Instruction notifies the cargo company about the | | | | Harmonization of International Markets is enough. |
| type of item they are carrying and how they should | | | | Outside the EU, trademarks are registered by the |
| be handled. A properly drawn out Shipping Instruction | | | | World Intellectual Property Organization. |
| prevents damage to the goods and danger from | | | | Marketing |
| improper packing, loading, storage, and unloading. A | | | | A reseller's role in the partnership with wholesalers is |
| consignment note refers to a list of items being | | | | that of a marketer. He or she finds new customers |
| shipped, and the exporter is required to provide that | | | | and persuades them to buy the supplier's products. In |
| in addition to instructions on how to handle cargo. | | | | return, the supplier offers products to resellers at |
| 8. Lading notification: The shipping company will | | | | wholesale prices. Therefore, your earnings depend on |
| provide a list of items they received from you or the | | | | how well you market the product. A good marketing |
| supplier. This is proof that you had shipped the items. | | | | strategy is an important part of the drop-ship |
| 9. Consul's permission: Check if the destination | | | | business. |
| country allows imports without a note from their | | | | 1. Study the demand-supply scenario: Is there a |
| consul in the originating country. If not, you will need | | | | market for your products? Can you offer what your |
| to get a letter from their consul in the U.K. allowing | | | | competitors cannot? Are people willing to pay higher |
| the goods to be sent to the buyer country. | | | | prices for your products? This research will also help |
| 10. VAT/duties: To bypass taxation and duty | | | | you identify potential suppliers in the new market. |
| requirements at the destination, request an import | | | | 2. Adapt to cultural differences: Outside the EU, |
| certificate that allows the speedy distribution of the | | | | cultural differences can look intimidating to the |
| goods on payment of a security deposit. | | | | inexperienced reseller. Read up as much as possible |
| 11. Payment: Resellers usually pay suppliers through | | | | on the destination countries. If you have a good |
| online payment methods or wire transfer. For greater | | | | grasp of cultural nuances, you may end up getting |
| volumes of products, they may sign a documentary | | | | more customers and repeat orders. |
| collection with a local bank, after which the shipped | | | | 3. Look into the issue of replacement and refunds: If |
| products are handed over to them (or sent to | | | | you live in the U.K. and your customer is located in |
| buyers). Online payment is discussed in detail in the | | | | the Middle East, he or she may not like to ship the |
| following section. | | | | product all the way to the U.K. for replacement. It is |
| Online Payment | | | | always sensible to have a local partner in that |
| For small business such as wholesale resellers, | | | | country for troubleshooting small, niggling issues that |
| international payment procedures would be difficult | | | | can snowball into major problems if you have to |
| without online financial transactions. Traders in the | | | | handle them long distance. |
| U.K. need to focus on four aspects when outlining a | | | | 4. Affiliate with reliable service providers: Besides a |
| payment mode in their business plan. | | | | local representative, you also need trustworthy |
| 1. Payment method | | | | partners for shipping and delivery. Fortunately, there |
| The competition within the drop-shipping business is | | | | are many good shipping companies operating in the |
| so tough that you cannot afford to have a restricted | | | | U.K. with operations across the world. If you contact |
| payment policy. If your rivals offer easy payment | | | | the U.K. office of your favored shipping company, |
| options, you have to do the same to maintain | | | | they will put you in touch with their international |
| competitiveness. Online funds transfer websites such | | | | offices. |
| as Paypal are the most popular tools for sending or | | | | Drop-shipping requires proper planning if you want to |
| receiving B2C payments. Wire transfers are a | | | | turn it into a source of full-time income. Testing the |
| preferred option as well, but the possibility of fraud in | | | | waters in the international market is one way to |
| wire transfer is greater. Credit card payment is also | | | | expand business. It will also help you rise above |
| popular, particularly because it allows direct payment | | | | competition. Due to the recession, the U.K. market |
| without involving third-party transfer. Having an | | | | has had lower profitability than in years prior to 2008. |
| integrated ordering and payment policy is important. | | | | Government as well as private spending has been |
| Many customers would rather order as well as | | | | low, affecting many businesses negatively. Taking |
| discuss payments over phone. | | | | business to new markets can help resellers cope with |
| 2. Currency and currency exchange | | | | the recession. |