The company incurred import agency fees for imported goods, and is unsure where to record them, asking whether to record them as procurement costs or as separate expense accounting, and how to operate specifically. The best answer indicates that if directly related to the purchased goods and clearly attributable to a specific batch, they should be included in procurement costs, adding them to the recorded value of the goods; if not clearly attributable or the amount is small, they can be recorded as selling or administrative expenses, to be chosen reasonably based on actual circumstances.
What are the key points for selecting product categories in import agency?
Resolved
I want to be an import agent, but I don't know how to choose product categories. There are many categories in the market, and I'm worried that if I choose the wrong one, I'll face various risks, and I'm also afraid of choosing categories with fierce competition and small profit margins. Are there any knowledgeable friends who can tell me what tips or factors to consider when selecting product categories for import agents? How can I choose categories with potential and good profits?
Trade Expert Insights Answers
Selecting product categories for import agencies requires comprehensive consideration of various aspects. Firstly, focus on market demand, choosing popular categories with continuously growing demand, such as health food and beauty products, which have strong market demand in recent years. Secondly, analyze the competitive landscape, avoiding areas with excessive competition, which can be judged by researching market share, brand concentration, etc. Furthermore, consider policy factors; some categories may have special import policies, such as tariff adjustments or import qualification requirements, and you need to ensure compliance with relevant regulations. In addition, assess supply chain stability; stable suppliers and logistics channels are important. For example, fresh produce categories have high requirements for transportation timeliness. Finally, combine with your own resources and advantages; if you have relevant industry experience or specific channel resources, choosing familiar areas will be easier to get started. In summary, comprehensively weighing these factors will help in selecting suitable categories.
You can choose some niche but distinctive categories, which will lead to relatively less competition. For example, specialty handicrafts, which may have limited supply in the domestic market, have room for development. However, you need to be aware that the target audience may be limited, and market research needs to be done beforehand.
Choosing product categories based on personal interest is also a good option. If you are familiar with and interested in a certain type of product, such as electronics, you will be more inclined to invest your energy in understanding the market, uncovering advantages, and better dealing with problems during the agency process.
When selecting import agency categories, you need to consider your financial situation. If you have ample funds, you can consider high-value goods, such as luxury jewelry. If your funds are limited, lower-priced categories like daily necessities are more suitable, with relatively lower risks, and good sales can also bring considerable returns.
Emerging categories often have potential, such as some new environmentally friendly materials. With the promotion of environmental awareness, market demand may increase. However, it should be noted that the market acceptance of such products may require cultivation, and the initial promotion costs can be high.
Choose categories with low technical barriers, so you can get started quickly. For example, ordinary clothing import agency does not require high technical skills; you just need to control quality and style. However, competition is also relatively fierce, so focus on differentiation.
Pay attention to trade relations between countries. If trade policies between two countries are friendly, imports of relevant categories may have preferential treatment, such as specific agricultural products. In this case, choosing to act as an agent for such categories may provide cost advantages.
Choose categories with high repurchase rates, such as food and beverages. Consumers will repurchase after consuming. This can ensure continuous sales. As long as the product quality is good and the taste is excellent, there will be a stable customer base.
Consider seasonal factors when selecting product categories. For example, sun protection products in summer and warming products in winter. Seasonal products sell quickly, but you need to plan the procurement and sales time in advance to avoid inventory backlog.