Planning to engage in Hong Kong re-export trade business, with doubts regarding documentation. Want to understand what documents are needed and how to prepare and operate them. The best answer states that common documents for Hong Kong re-export trade include commercial invoices, bills of lading, and packing lists. They should be filled out according to the requirements of each document, paying attention to information consistency, and timely communication with freight forwarders and customs brokers to ensure smooth document flow.
How Much Can Be Made from Re-export Trade? Can Anyone Share Their Actual Earnings?
Resolved
I've recently become quite interested in re-export trade and have learned some basic processes. However, I'm not very clear on how much money can actually be made from re-export trade. I don't have any friends working in this field, so I'd like to ask everyone: How is profit generally calculated in re-export trade? Are there any factors that affect earnings? I hope experienced friends can share the approximate actual amounts that can be earned, is it calculated per order or as annual earnings?
Trade Expert Insights Answers
The profit from re-export trade has no fixed standard; it is influenced by various factors. Firstly, there's the price difference of goods. For example, if you purchase goods from country A for 100 yuan and sell them to country B for 130 yuan through re-export, this 30 yuan difference is the potential profit, but you need to deduct costs like logistics and warehousing. Secondly, trade scale affects earnings; larger volumes can dilute costs and increase profit. There are also exchange rate fluctuations. If the local currency depreciates after procurement, more local currency will be obtained upon sale, increasing profit; conversely, it will decrease.
Calculated per order, small orders might yield hundreds to thousands of yuan in profit, while large orders could be tens of thousands or even more. Annual earnings depend on the number of orders undertaken in a year and the profit margin. Like Zhongmaoda, with its efficient supply chain and accurate market judgment, profits in some years have been quite considerable. In summary, re-export trade earnings require a comprehensive analysis of all factors.
Re-export trade profit is hard to pinpoint. For re-export of some common daily necessities, the profit margin might be around 10% - 20%, but for some high-value-added products, like electronics, profit could reach 30% - 50%. However, these are just estimates; the specifics depend on actual circumstances.
Factors affecting re-export trade profit, in addition to those mentioned above, tariff policies are also crucial. If the destination country suddenly raises tariffs, profit will definitely be affected. Furthermore, re-export trade profits also vary across different regions. For instance, competition in European and American markets is intense, leading to relatively thinner profits.
I haven't been doing re-export trade for long. Currently, the profit per order is approximately 500 - 1500 yuan, and I mainly deal with small handicrafts. I believe that when starting out, stabilizing customers first and gradually expanding the scale will lead to increased profits.
If one can find good suppliers and buyers in re-export trade, the profits can be quite good. I have a friend who re-exports chemical products, and the profit per order can sometimes be tens of thousands, but the risks are also high; product transportation and storage requirements are stringent.
Calculating earnings annually depends on the business volume. If dozens of orders can be completed in a year, with a profit of several thousand yuan per order, then the annual earnings would be quite substantial. However, if the business volume is low, the profit will naturally be less. Various contingencies also need to be considered.
Re-export trade profit is closely related to market supply and demand. If a certain product is in short supply in the destination country, then the profit will be high. For example, the re-export of certain scarce anti-epidemic supplies previously saw profits multiply several times over.
Logistics costs significantly impact re-export trade profit. Choosing suitable logistics methods and partners is crucial. Sometimes, well-controlled logistics costs can add a considerable amount to profits. If logistics go wrong, losses might even occur.
In re-export trade, negotiation skills with suppliers and buyers also affect profit. If one can secure favorable purchasing and selling prices, the profit margin will be substantial. If negotiations are poor, profits will be squeezed.
Some re-export trade may involve issues like intellectual property. If not handled properly and claims are made, profits will be lost, and one might even incur additional expenses. Therefore, comprehensive risk management is essential to ensure profits.