[Sonsowey]

I have known many Latin Americans, Colombians specifically, who have sent boxes of electronics or clothing back home for relatives to sell, and have cleaned up because the prices of these goods are so over-inflated there. American clothing can sell for a huge markup, and there is a lack of stores like H&M, Forever 21, etc. which specialize in trendy, cheap clothing that, while not top notch, also isn't complete crap.

I have often thought of starting a business either importing these clothes and selling them to stores, or opening a storefront directly.

I wonder if anyone has experience doing this sort of business in Latin America.

Specifically, do you actually pay local and import taxes?

How do you handle security and being sure your security is legit?

Any general tips on this would be great. I know people there who have small storefronts that sell clothes and it seems that basically anyone can do this. I also know people who sell electronics and have become quite well-off from this. These people are Colombians though so the perspective of a foreigner would be well appreciated

I look at things like this for instance, nice-looking dresses for under $10 US. These could easily sell for $20-30 US in Colombia. I just wonder if taxes, fees, and unforseen expenses, possibly bribes etc. end up making business like this in Latin America generally worthless.

http://www.forever21.com/Product/Categor...ess&sort=3

[Smitha1983]

Sounds like a good idea.

[Pete]

I'm interested. Most "brand" clothes over there are fake. So I've seen people there offer me good money for baseball caps and some clothing.

[Tigre]

Forever21 is open in Colombia now (in Medellin at least).

I know some guys who do this. It's not a way to make shitloads of money. You can make small amounts to get extra spending money, I guess. Or recoup some of the cost of your plane ticket by strategically bringing a few items to resell.

The peso has tanked recently, which means Colombians have less buying power for imported items.

Maybe buy loss leaders and Black Friday sales from the USA and bring them to Colombia. I've only ever seen this done on a small scale (less than six of each item).

Buy clothes in one city and resell them in another (buy in Medellin, sell in Cartagena, say).

Or buy in San Andres and sell on the mainland. Although San Andres's duty free deals are mostly in perfumes and liquors, and Colombians won't easily trust those to be genuine without a good reason.

To compare potential markups, look at Mercado Libre versus Amazon.

[scotian]

Whenever you consider doing business with Colombians in Colombia, which I have, never forget that it only costs about $250 to have someone murdered down here, food for thought amigo.

[The_CEO]

Ha. You must be the first man to go to Colombia and think of IMPORTING as a get rich plan.

Really though I'd think you'd be better off sourcing inexpensive but unique Colombian products like crafts and selling them in well off markets like the US or wherever you're from.

Also,you cannot simply buy H&M or whatever gear and re-sell it. You'd need to become a distributor or licensed to sell said brand's product.

[Sherman]

Another interesting possibility is exporting. In Colombia, they make beautiful handmade furniture that costs a fraction of what it would cost in the United States.

[Designate]

(03-19-2015 10:28 PM)The_CEO Wrote:  

Really though I'd think you'd be better off sourcing inexpensive but unique Colombian products like crafts and selling them in well off markets like the US or wherever you're from.

Yeah, you could easily do that on Etsy.

[scotian]

(03-19-2015 10:28 PM)The_CEO Wrote:  

Ha. You must be the first man to go to Colombia and think of IMPORTING as a get rich plan.

Really though I'd think you'd be better off sourcing inexpensive but unique Colombian products like crafts and selling them in well off markets like the US or wherever you're from.

Also,you cannot simply buy H&M or whatever gear and re-sell it. You'd need to become a distributor or licensed to sell said brand's product.

Black market is huge here man, he could advertise online or sell it in markets or whatever, the amount of knock off fake shit down here is incredible.

[The_CEO]

(03-19-2015 10:55 PM)scotian Wrote:  

(03-19-2015 10:28 PM)The_CEO Wrote:  

Ha. You must be the first man to go to Colombia and think of IMPORTING as a get rich plan.

Really though I'd think you'd be better off sourcing inexpensive but unique Colombian products like crafts and selling them in well off markets like the US or wherever you're from.

Also,you cannot simply buy H&M or whatever gear and re-sell it. You'd need to become a distributor or licensed to sell said brand's product.

Black market is huge here man, he could advertise online or sell it in markets or whatever, the amount of knock off fake shit down here is incredible.

Ok, I meant, if he intended to be 'above board'.

[Philly215]

(03-19-2015 05:53 PM)Sonsowey Wrote:  

I have known many Latin Americans, Colombians specifically, who have sent boxes of electronics or clothing back home for relatives to sell, and have cleaned up because the prices of these goods are so over-inflated there. American clothing can sell for a huge markup, and there is a lack of stores like H&M, Forever 21, etc. which specialize in trendy, cheap clothing that, while not top notch, also isn't complete crap.

I have often thought of starting a business either importing these clothes and selling them to stores, or opening a storefront directly.

I wonder if anyone has experience doing this sort of business in Latin America.

Specifically, do you actually pay local and import taxes?

How do you handle security and being sure your security is legit?

Any general tips on this would be great. I know people there who have small storefronts that sell clothes and it seems that basically anyone can do this. I also know people who sell electronics and have become quite well-off from this. These people are Colombians though so the perspective of a foreigner would be well appreciated

I look at things like this for instance, nice-looking dresses for under $10 US. These could easily sell for $20-30 US in Colombia. I just wonder if taxes, fees, and unforseen expenses, possibly bribes etc. end up making business like this in Latin America generally worthless.

http://www.forever21.com/Product/Categor...ess&sort=3

I have experience with exporting to Central America and Africa with cars and closeout/liquidation products. The only way to make serious money doing this is to export a ton of volume, or to vertically integrate the entire process. Both require a lot of capital to start, unless you start out pretty much as a broker/trading agent. In order to do that, you need a trusted buyer in the foreign country, who will trust you enough to wire you cash for products. From there build your book and capital, but that can take years

You can buy truckloads/40 foot containers of returns, overstock, shelf pulls, close to expiration products to export. These typical start $6000 and can get up over $125k especially for small cosmetics with a ton of quantity. Its pretty cheap to ship a container down there $1200-2000 depending on the supply of ships. A lot of companies that are importing bananas, cocoa, coffee will load the return ships with products like this for export.

So to do volume, you need a lot of capital to buy the products, then have the logistics set up in the foreign country to be able to actually sell the container. Whether its wholesale or retail. People do just flip the entire container at customs to distributors or bigger resellers.

Most of the auto exporters own the entire process and make a killing. Buy the cars in the US at auction, ship to a foreign country where they own or their family owns several dealerships. You could fill a container with 4 cars and ship to another country, and resell. Honestly though, you're adding extra hassle into the same margins that you would have just selling in the US.

Colombia is very tough on importing duties. I do business with an electronics retailer in the US, who is Colombian. We have been talking a lot about sending a container there to test the market, as he already has retail contacts there. Cars don't work because they don't import used cars, and you'll never get licensed to import new cars. Best way to start in Colombia is clothing, cosmetics, expiring supplements, ethnic care products. The margins are thin on electronics as it is, so your better off just selling them in the US.

Best way to start is to contact some freight forwarders in the US and if they like you, maybe the will introduce you to some of the foreign buyers. From there you are basically their broker for stuff that is a headache for them, until you build trust. You can also just network with business owner in your area that are foreign.

As you can see this takes a lot of time and capital. Most of the time its easier to just do it here in the US, and make more $, with less headache.

[Sonsowey]

(03-19-2015 10:02 PM)scotian Wrote:  

Whenever you consider doing business with Colombians in Colombia, which I have, never forget that it only costs about $250 to have someone murdered down here, food for thought amigo.

This much I know, sadly I know people in Colombia who have had attempts on their life after going to the bank... Luckily these people survived but it's rough out there.

(03-19-2015 10:28 PM)The_CEO Wrote:  

Really though I'd think you'd be better off sourcing inexpensive but unique Colombian products like crafts and selling them in well off markets like the US or wherever you're from.

Exporting Colombian crafts is not a bad idea, pretty easy to get set up on Amazon and just hire a photographer to take pics of Jewelry, clothing, etc.

[Philly215]

I think you will have a really hard time ever doing enough volume on Amazon with Colombian crafts for it to be worth the time and money. I doubt anything ranks that high, so you're going to have to spend money to market the products off site, and pull people into your Amazon page.

If you want to make money doing this, contact Colombian business owners/retailers in FL and NJ (or wherever else) and be their supplier. Source products in Colombia and ship to a US warehouse, then to the individual buyers from there. Your basically their distributor. Take the orders before you're down there, and send pictures and samples while you're in Colombia. Low downside starting out, because your not necessarily taking title to inventory, low risk.

Plus, why risk any danger in Colombia? Selling at markets in the US alone can be dangerous. If you like reselling/retail and you like Colombia, just set up your business in the US. Make your money and travel to Colombia and enjoy it as much as you can.