If you’re looking to import products to sell on eBay, China is the country that most often comes to mind (and it is a great source!). But what about all those countries closer to home? The countries of Europe are often overlooked as a source, but can be a treasure trove of products that are also right on our doorstep. And that is why this month we are going to look at what, where and how to source from Europe.
Why source your products from Europe?
• Unusual and exclusive products. You can source goods from Europe that you won’t easily find elsewhere, if at all, and which other sellers may never locate. Here’s a question to prove how good an option this can be:
Have you ever been on holiday to Europe and seen a new or unusual product, and thought… that would sell like hot cakes at home? Well, why not give it a try?
• It’s just down the road (well almost)! So, instead of transporting goods from 6,000 miles away in the Far East you’ll be bringing them just a few hundred miles… so it’s cheaper, quicker and a whole lot easier.
• Fewer import headaches. In many cases it’s just like sourcing from the UK. There are no quotas, licences, taxes or import duties to bother about (in the majority of cases).
• No problem with product standards. A product approved for sale in any one EU country is automatically approved for sale in the UK – and vice versa.
Possible snags to consider
• Language barriers. There are over 23 different languages in Europe, and it can be tricky finding suppliers who speak good English.
• Limited export experience. Many exporters may not be quite as export-savvy as those in China, for example.
• Pricing. Europe isn’t best thought of as a cheap source of goods with many countries having prices similar to the UK. The solution to this is to go for unusual, good quality and higher margin products, things that your customers will be willing to pay a premium for. (This isn’t an absolute rule. As you’ll know if you’ve been abroad some things can be considerably cheaper in some European countries. But it is a good rule of thumb to work from.)
Good product areas to try
Bearing the above in mind, here are just a few product areas which might be a good place to start your European sourcing: gifts, crafts, designer clothing, designer footwear, fashion accessories, jewellery, cosmetics, pharmaceuticals, beauty products, gadgets, toys, household goods, garden products, textiles, antiques and collectibles, glass and ceramics, art, motor spares and accessories, health products, household textiles, machinery, equipment, tools and spares, audio and video products.
How to source from Europe
• Search for product ideas. Start by drawing up a big “hit list” of possibilities. The European versions of eBay are great for gathering ideas. And also (maybe it’s sacrilege to say it!) the European versions of Amazon (try www.amazon.fr and www.amazon.de) are packed with interesting product ideas you often don’t see in the UK.
You can even take research trips… ideal if you’re on holiday in Europe. And the cost of travel and so on might qualify as a deductible expense against taxes – ask your accountant first though, just to be sure!
• Do some market research. If you see a possible product and it’s not currently sold in the UK, order a handful and see if they sell before sourcing a large stock. That’s because European tastes can be very different to other parts of the world and not all products that sell well in Europe will be a hit in the UK.
• Make use of trade directories and other trade contacts. All European countries have a Chamber of Commerce in the UK, and vice versa. Some contact details are provided later. All European countries have a foreign trade site, usually with English pages. They can often link you up with suppliers of whatever you are looking for and provide other useful information.
Recommended – The Kompass directories are really great for finding sources in European countries. Go to the UK site and you can search in English for whatever you want in whatever European country you want it (although you won’t know if the supplier speaks English, of course). It’s here: www.gb.kompass.com
• Lastly, make an approach. Favour suppliers with some export experience and at least a smattering of English. Tip: Assuming you don’t speak the language of the country concerned you can translate sections from catalogues, letters and even entire websites using an online translator. A good one to try is Yahoo! Babelfish: babelfish.yahoo.com
Where to import from… and what can you source?
Europe is more than the European Union or EU countries, of course, though to make things easier it’s probably best to keep to those EU countries. Here’s a current list in case you’re not sure which they are: Austria, Belgium, Bulgaria, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden. (Norway, Iceland and Switzerland aren’t in the EU, but are pretty easy to import from too).
But what I would tend to do, rather than trying to source products from the entire EU is to focus on a few countries (or even just one) and become a real import expert in that country. Here are the countries I think have best potential (in alphabetical order, not order of priority):
Czech Republic
With a large manufacturing sector the main export products of the country are: machinery, machine parts, transport equipment, wood products, paper products, footwear, ceramics, and other manufactured goods. The UK is the Czech Republic’s fifth largest market. The country benefits from being one of the cheaper manufacturing countries in Europe. Official currency is the Czech crown (koruna).
British Chamber of Commerce in the Czech Republic
Tel. +420 224 835 161 (Prague)
Website: www.britishchamber.cz
Czechtrade
National trade promotional agency of the Ministry of Industry and Trade of the Czech Republic.
Website: www.czechtradeoffices.com
France
France is the sixth largest exporting economy in the world. The UK is already its fourth largest trading partner and its main exports are: machinery and transportation equipment and aircraft (not that you’ll be wanting to sell planes on eBay of course – not all of a country’s exports are suitable!), plastic products, chemicals and pharmaceutical products, iron and steel products, electronics, designer clothing, luxury goods and foodstuffs. If you fancy eBaying luxury goods and designer fashions then this could be a great place to find them at factory gate prices.
British Chamber Of Commerce In France
Tel. +33 1 53 30 81 30 (Paris)
Website: www.francobritishchambers.com
Firmafrance
The French official B2B website for international promotion of French export companies. Lots and lots of contacts.
Website: www.firmafrance.com
Germany
According to the Economy Watch website, Germany is the fifth largest economy in the world and the largest economy in the Eurozone. It is a heavily export-orientated country. With a strong network of trade contacts with almost all the major trading countries in Europe and worldwide (plus a weaker euro). Germany became the world’s third largest exporter in 2010. Although famous for luxury cars its main export products are machinery, parts and accessories, vehicle accessories, chemical products, metal products, electrical equipment and products, manufactured goods, foodstuffs, textiles, technology products.
British Chamber Of Commerce In Germany
Tel. +493 0206 7080 (Berlin)
Website: www.bccg.de
German Business Portal
Website: www.german-business-portal.info
Italy
Many Italian brands and products are world famous, but there’s so much more to Italy than sports cars. The main exported products include: engineering products, electrical equipment, textiles and clothing, fashion accessories, leather products, motor vehicles and parts, transport equipment, chemicals, food and beverages, metal products. You’ll find that the better product sources tend to be in the north of the country, the main manufacturing centre.
British Chamber Of Commerce In Italy
Tel. +39 0287 7798 (Milan)
Website: www.britchamitaly.com
Italtrade
The made in Italy official portal
Website: www.italtrade.com
Poland
Poland is Europe’s sixth largest economy and despite the recession has one of the fastest-growing economies in Europe. It is becoming an increasingly important export country, especially to the EU. It benefits from being one of Europe’s lower cost manufacturing countries. Official currency is currently the zloty. Key exports are: electronics, cars and car parts, transport equipment, medicines, pharmaceuticals, foodstuffs, clothing, glassware and pottery, chemical products.
British Chamber of Commerce in Poland
Tel. +48 223 200 100
Website: www.bpcc.org.pl
Trade & Investment Promotion Sections Of Polish Embassies
Website: polska.trade.gov.pl/en
Portugal
The economy of Portugal has grown fast over the last 20 years from being an agricultural economy to a manufacturing one. The major export products of the country are: clothing and footwear, textiles, chemicals, machinery, wood products, paper products, leather products, foodstuffs. The UK is Portugal’s fourth largest export partner. The country benefits from being one of the lower cost countries in Western Europe. British Chamber Of Commerce In Portugal
Tel. +352 213 942 020 (Lisbon)
Website: www.bpcc.pt
AICEP Portugal Global
Includes Source From Portugal Directory.
Website: www.portugalglobal.pt
Spain
Although most often thought of as a tourist country Spain is a major exporter of goods to other EU countries. Key export products include motor vehicles, motor parts and accessories, foodstuffs, olive oil, medicines, footwear, machinery and pharmaceuticals. Good for handicrafts and household goods, and one of the world’s largest exporters of ceramics and pottery.
British Chamber Of Commerce In Spain
Tel. 349 3317 3220 (Barcelona)
Website: www.britishchamberspain.com
Spain Business
Official website of the Spanish Institute for Foreign Trade (ICEX), Spain’s Ministry of Industry, Tourism and Trade.
Website: www.spainbusiness.com
Importing from Europe made simple
Now here’s what’s really interesting about sourcing from the EU: When you import from another EU country it’s not officially considered to be an import at all, but rather just a “movement” or “removal” of goods. That means that the normal import restrictions and red tape that apply when importing from, say China, just don’t apply at all.
Taxes. Products you source from other European Union countries aren’t subject to import duty if they are in free circulation there, but VAT and excise duty may apply. However, if you bring in goods from another EU member state, you’ll have to complete what is known as an Intrastat Supplementary Declaration (SD) if your EU acquisitions exceed an annual exemption threshold.
Excise duty is charged on excisable goods brought into the UK whether you acquire these goods from within the European Union or from outside. (This mainly only applies to alcohol and tobacco which I’m assuming you won’t be selling anyway.)
VAT is usually payable on all imports at the same rate that applies to a product or service supplied in the UK. If you’re a VAT-registered business you can claim this back in the usual way.
For more information on this the Business Link website is good: www.businesslink.gov.uk
Shipping. Shipping is easy from most EU countries nowadays. Ask the seller to use one of the many courier services, or their local post office. Rates can be very competitive so shop around. Delivery of regular mail takes as little as two days from most EU countries.
Money. All the EU countries use the Euro currency apart from (currently) Bulgaria, Czech Republic, Denmark, Hungary, Latvia, Lithuania, Poland, Romania, Sweden and, of course, the UK.
If you’re buying from a Eurozone country it’s far better to open a Euro account with your bank and make payments directly from that, than to convert money for each purchase. But note… you’ll probably be able to get a better exchange rate from a commercial currency exchange company than your bank! Here’s one to try: Currencies Direct at: www.currenciesdirect.com
Tip: The Pound-Euro exchange rate has been quite volatile over the last few years, so it’s worth keeping an eye on trends and exchange-rate fluctuations. A large swing one way or another could make your European sourced products poorer value… or alternatively much better value!