How to start importation business without capital

Mini importation is a business strategy where the entrepreneur purchases products outside of his/her country and resells them in his/her country. In the case of Nigeria, the importer purchases products in the US or China or UK and resells them in Nigeria. This is a highly lucrative but risky business strategy because it involves few risks:

1. The risk of cross-border payment issues (Solution — Patronize trusted startups or money lenders, or approach your bank for foreign accounts registration).
2. The risk of falling into prey of scammers disguising as suppliers (Solution — Patronize registered suppliers on trusted e-commerce platforms like Alibaba, Aliexpress etc.)
3. The risk of loss from the purchase of the goods from abroad (Solution — Patronize trusted cross-border logistics startups like Topship, Sky Cargo, Fish Cargo, FG Zenitho, Heroshe) and ensure they have an insurance cover for the cross-border shipments
4. The risk of not knowing the best shipper to use to ship into your country (Solution — Deliverasap.ng is positioning itself to be the “freightos.com for African merchants” such that you can see the different shipping deals coming from any country to your country in a glance and make your choice from on top your bed. You also get to make payments in your local currency, so you dont need to bother worrying about changing currencies. Please click here to be one of the few to know when we launch this service.
5. How will you pickup your goods when it gets to Lagos since you are either busy in your office or not even in Lagos? That is why Deliverasap.ng is here and that is what we presently offer our customers. We can pickup your packages from any shipping cargo/company in Nigeria and deliver to your house address in the fastest time.

Mini importation is the process of importing goods into a country for a profit. The process is simple and involves importing goods of high demand and sell in your locality/country for a profit. You must have calculated other cost you would acquire through the journey like Payment for goods, logistics into the country, logistics to your house address etc. Importation is a common practice and over the years, it is the only way to sell out-of-town manufactured goods in Africa especially since most African countries are non-producing.

As with any other businesses, it is risky and laced with challenges and when such is solved, it is highly lucrative and rewarding for entrepreneurs.

The practice of bringing in goods, which are less than specified in the Tariff Classification Act, Cap T14 Laws of the Federation of Nigeria 2004 (as amended) is generally called mini importation. Mini importation is where a trader imports goods that are classified under the heading at a lower rate of duty than the heading that would ordinarily be applied to those goods.

Mini Importation versus Big-time Importation
Mini importation is often misunderstood. However, mini importation, if done correctly and legally, can be profitable for consumers who wish to purchase products at cheaper rates.

1. Importing process
   Importing process for mini-importers in Nigeria is relatively easier than that for importers. You can import goods into Nigeria as a Mini-importer. This means that your goods must be valued at NGN 1 million and below. You can obtain a Mini-importer license from the Nigerian Customs Service in accordance with Section 24 of the Customs and Excise Management Act, Cap C45, LFN 2004.

The process of importing from China is not as simple as people may think. There are many things to consider and much planning involved. For example, deciding what you want to import, where you can find it, and how to get it in your possession etc.

2. Importing costs
The cost of importation for Mini-importers in Nigeria, is influenced by the exchange rate, customs duty, and total cost of logistics. The exchange rate is affected by factors such as inflation, interest rates and monetary supply. The rate of inflation, interest rates and monetary supply are directly and indirectly determined by the government.

3. Importing challenges
Importing may not be as easy as you think. There are several challenges you might face if you want to import goods from abroad. So what are these challenges?

First, there are many restrictions and regulations in place. Second, the process can be very expensive. Third, its a complicated process that requires a lot of paperwork.

4. Importing through an agent
Importing through an agent? Its one way to go about it, but there are other options. When you do so, you will be able to avoid some of the pitfalls that usually accompany importing. But what about the drawbacks? We will delve into it some other times.

5. Importing goods from China
Importers in Nigeria can now enjoy the numerous benefits brought about by globalization, thanks to the evolution of technologies. In particular, they are now able to order products from China, the world’s leading exporter. Manufacturers in China can supply almost everything you need, and they are willing to do business all over the world. So if you re looking for a new
supplier, consider China.
When you are importing from China, you must be aware of the Chinese scammers. The Chinese scammers are everywhere. They are on eBay, Alibaba and other Chinese sites.

How do you protect yourself from the Chinese scammers? Today is not the day for that. Subscribe on here and you will get the notification when we talk about that.

For mini-importers in Nigeria, finding the right supplier is not easy. The market is saturated with products of all kinds. But what’s the best way to approach suppliers? And how can you get the best deal?

Beware of scams. In the past, importers have been duped by fake suppliers. Today, its much easier than ever to find a supplier. You just need to know where to look.

All said and done, Nigeria’s importation sector is dominated by the big boys, with the little guys left in the cold. The government has been trying to level the playing field with their most recent reform. But will this push for a more level playing field succeed? Time will tell.

As for the challenges facing mini-importers, it’s clear that many of these companies have a tough time getting products into the country followed by having to push their businesses out to their target audience. Many are faced with the challenge of ease and swift business processes; as a matter of fact, these business are lagging behind due to lack of information, few of their owners are aware of cross-border logistics startups like DeliverAsap and how DeliverAsap can help bolster a better productivity in terms of logistics and supply chain.

We are here to help your business succeed.

For more information, please register an account on Deliverasap.ng or whatsapp us on +2348094253926 or support@deliverasap.ng