Starting An Online Import Business (Part 4)

If you miss the previous post, read it here: Starting An Online Import Business (Part 3)

Finally, we have come to the end of the first section of our course which is Factors To Consider Before Starting An Online Import Business. So far, we have studied three factors which are:

• The market

• The price

• Where to source for suppliers

Today, we will take a look at the last factor which is:

How To Make Payments

 

This is the area where you need to be extra careful in your online import business. When you see a product that is too cheap, i.e. too good to be true, then you should know it isn’t true. Thus, you should run with your legs touching your head.

Since you are running an online import business, it means all what you will be doing (including the payment) will be done via the internet without seeing the supplier. This is the reason why should be very careful before making payment.

Payments can be made in different forms: bank transfers, T/T (Telegraphic Transfers), Credit/ Debit cards, PayPal (which is a no-go area for Nigerians) etc.

However, if you will be dealing with the Chinese stores (especially Aliexpress, Alibaba, Dhgate), I’ll urge you to make payments through your credit/ debit card. This is your ATM card issued by your bank when you opened your bank account. ATM cards with MasterCard or VISA logo can be used for this purpose. However, your card must be activated for online transaction before it can be used for this purpose.

I prefer using the ATM card for payment because these sites offer a form of protection for your money which they call the Escrow system/ platform.

The Escrow system protects your payment in your online import business in the sense that when you pay through your credit/ debit card, the import portal holds your money and does not release it to the supplier until you receive your goods in good condition and you confirm they are what you requested for. This means if the supplier fails to fulfill his side of the bargain, your money will be refunded back to you.

In subsequent posts, I will reveal to you the tips that will enable you know genuine sellers. Don’t be surprised, these e-commerce sites are filled with 'scammers'. However, there are genuine sellers there also and you will know how to spot them once you understand the nitty gritty of the business.

So far, we have gained a background and general knowledge on what starting an online import business entails. However, you need to stick to this blog for more hot tips.

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