By:Global OEMs
With the acceleration of the digitalization process of global trade, more and more enterprises and entrepreneurs are joining the foreign trade track. However, foreign trade entrepreneurship is not "zero-threshold". In addition to the core product procurement and operation costs, the reserve of additional funds is often the key to determining whether the project can be successfully launched. Many new practitioners will be confused: how much additional capital do you need to prepare for foreign trade? In fact, this amount of capital is not a fixed value, and it mainly depends on the business model chosen by the enterprise. The following four core costs are the key directions for additional capital planning. Doing a good job in targeted preparation can effectively avoid capital risks.
I. Platform Entry and Promotion Fees: The Basic Threshold for Foreign Trade Launch
Current mainstream foreign trade B2B platforms such as Alibaba.com and Made-in-China, or B2C platforms such as Amazon and eBay, all have annual entry fees or deposits, ranging from several thousand yuan to tens of thousands of yuan. In addition, the promotion and drainage fees within the platform are indispensable, such as Amazon's PPC advertising and Alibaba.com's top exhibition services. It is necessary to reserve a certain budget for testing in the early stage to ensure that the products get sufficient exposure. For entrepreneurs adopting the independent station model, domain name, server construction and Google advertising investment also need to be included in the additional capital planning.
II. Product Certification Fees: The Necessary Cost for Foreign Trade Compliance
Different countries and regions have strict certification requirements for imported products, such as CE certification in the EU, FDA certification in the United States, SASO certification in the Middle East, etc. The certification fee varies greatly according to the product category and testing standards, ranging from several thousand yuan to tens of thousands of yuan. Moreover, the certification process takes a long time, so it is necessary to prepare funds and time in advance to avoid order delays due to lack of certification.
III. Sample Production and Shipping Fees: The Key Investment to Secure Orders
In foreign trade transactions, it is common for customers to request samples before placing orders. Sample production needs to bear material and labor costs, while international express fees are much higher than domestic logistics. For example, the shipping fee for a single sample to Europe and the United States via DHL or FedEx may be as high as several hundred yuan. If contacting multiple potential customers at the same time, this part of the cost will increase accordingly. It is necessary to reserve special funds in advance to avoid missing cooperation opportunities due to insufficient sample fees.
IV. Initial Order Logistics Testing Fees: An Unignorable Startup Expense
The initial order of foreign trade is often a small-batch trial order, but there are many links in international logistics such as customs declaration fees, transportation fees, and insurance fees. Especially the minimum shipping cost for LCL (Less than Container Load) or air freight may be higher than expected in the early stage. It is recommended to choose a reliable logistics service provider for the first order, and reserve a certain degree of capital flexibility to cope with possible logistics premiums or unexpected situations.
Overall, the reserve of additional funds for foreign trade entrepreneurship needs to be flexibly adjusted according to the business scale. It is recommended that small-scale start-up enterprises reserve at least 30,000 to 50,000 yuan of special reserve funds, while medium and large-sized enterprises need to further increase the budget according to platform investment and product categories. It is worth noting that in the early stage, priority should be given to the small-batch order model, focusing capital investment on the above core cost links, and establishing a capital use account to keep real-time control of capital flow. Reasonable planning of additional funds can not only ensure the smooth launch of foreign trade business, but also lay a stable foundation for subsequent market expansion.
