Importing from Italy

amother

Sun, Jan 12 2014, 12:06 pm

Has a/o ever done this? Im looking to distribute a very well known company in Italy to the Us and Canada.
Im looking for info how it works and if u can make money with it?
Also, how much is the markup for a distributor?

amother

Sun, Jan 19 2014, 9:01 pm

I have some close family members who used to be involved in importing businesses (though not from Italy). First you'll need to approach the company. Find out if they have existing distributor. Decide if you want to be exclusive or non-exclusive distributor.

On product themselves, you need to check if you need approval from US/Canada side (often is the case if you're involved in foods or nutrition supplements or electronics/appliances). Also run a check if the brand is already registered.

Distributor margins depend greatly on the value of the products, volume you're going to commit to, and shipment terms (don't forget about insurance, returns, need to carry inventories, levels of customer service required). It's usually not that high, 5% or so, 10% at most. Though again, mark up would depend on how much the particular product would sell for.

You'll also need to arrange letter of credit with your bank. (I think Italian and southern European companies are rather notorious for having a very long payment period, eg over 3 months).

Look up resources available for small businesses in your local chamber of commerce.