International buyers can represent an important market for excess, closeout, discontinued and other inventory opportunities.
At the same time, purchasing merchandise for export introduces additional considerations that may not exist in a domestic transaction.
Before purchasing inventory for an international market, buyers should understand both the merchandise and the requirements involved in moving that merchandise across borders.
Confirm That the Opportunity Is Available for Your Market
Not every inventory opportunity can necessarily be sold into every country or territory.
Certain transactions may have geographic restrictions, distribution limitations, contractual restrictions or export requirements.
Some merchandise may specifically be designated for export, while other opportunities may have different geographic conditions.
International buyers should confirm the applicable transaction requirements before committing to an opportunity.
Understand the Product
The first responsibility is still understanding what is being purchased.
Buyers should review whatever seller-provided information is available regarding product descriptions, quantities, condition, packaging, specifications and other relevant details.
Documentation can vary from opportunity to opportunity.
Photographs, videos, manifests, SKU lists, samples and inspection access may be available in some transactions and unavailable in others.
Buyers should never assume that a particular type of documentation or inspection opportunity will automatically be available.
Research Destination-Country Requirements
The fact that merchandise can be purchased does not automatically mean it can legally or commercially be imported into every destination.
International buyers are responsible for understanding the laws and requirements that apply in the destination country.
Depending on the merchandise, this can involve customs requirements, labeling rules, product standards, duties, taxes, permits, certifications or other regulatory requirements.
These considerations can be especially important for categories such as food, health-related products, electronics, cosmetics, children’s merchandise and other regulated goods.
Buyers should confirm applicable requirements with their customs, legal or regulatory professionals where necessary.
Understand Transportation Responsibilities
International transactions frequently involve multiple transportation stages.
Merchandise may need to move from a warehouse to a freight forwarder, consolidation facility, port, airport or other logistics location before leaving the United States.
Buyers should understand who is responsible for transportation and where responsibility for the merchandise changes hands.
Unless otherwise agreed in writing, buyers generally arrange and pay for transportation, and transportation risk generally transfers when the merchandise has been loaded onto the buyer’s designated carrier.
Specific transaction documents should always control.
Calculate the Complete Landed Cost
A purchase price that appears attractive at origin can look very different after international logistics are included.
Experienced buyers evaluate the complete landed cost.
That may include merchandise cost, inland transportation, freight forwarding, ocean or air freight, customs duties, taxes, handling, insurance, destination charges and local transportation.
Only after these costs are understood can the buyer properly evaluate whether the opportunity makes sense for the intended market.
Allow Enough Time for Planning
International transactions frequently require more coordination than domestic purchases.
Carriers, freight forwarders, customs professionals and warehouse personnel may all need to coordinate around the transaction.
Planning those requirements early can help reduce delays after the merchandise has been purchased.
RC2J and International Opportunities
RC2J Consulting works with buyers in the United States and international markets and may periodically have opportunities that are available for international purchase or designated for export.
Because availability and geographic requirements vary by opportunity, buyers should contact RC2J to confirm the applicable conditions for merchandise they are interested in purchasing.
A dedicated International & Export-Only Opportunities section is also coming soon to the RC2J website.
Until then, international buyers are welcome to browse our current opportunities and contact RC2J directly to discuss merchandise, geographic availability and transaction requirements.