The Secret to Profitable Import Business: 3 Costly Mistakes That Cause Losses (and How to Avoid Them)

Seeing low product prices on overseas platforms often sparks the dream of starting an import business with big profits. However, in reality, many small and medium enterprises end up losing money due to unexpected costs, disappointing product quality, and poor management.

The key to success in the import business isn’t just about finding cheap goods — it’s about understanding and mastering the entire process. Here are three major mistakes that often happen and how to avoid them to ensure your import business stays profitable.

1. Mistakes in Sourcing & Purchasing Strategy

The most fundamental — and often the most damaging — mistake happens at the very first stage: getting the right products. Many importers fall into these common traps:

• Focusing only on price: Tempted by low prices without properly verifying the supplier’s credibility.

• Good sample, poor mass production: The sample looks perfect, but when the bulk order arrives, the quality drops drastically.

• Supplier disappears after down payment: You pay a deposit, and the supplier becomes unreachable — or worse, vanishes.

• Lack of negotiation skills: Accepting prices, MOQs (Minimum Order Quantities), and terms as they are without attempting to negotiate.

  
  

These mistakes often lead to poor-quality goods or inflated costs, cutting into your profit margins before your shipment even leaves the port.

The Solution: Build a Solid Foundation through Professional SourcingTrue profit begins with securing the real cost of goods through a safe, strategic, and smart sourcing process. It’s not just about haggling — it’s about research, verification, and relationship building. Every detail matters.

To master every step — from identifying genuine suppliers, applying effective negotiation tactics, to ensuring secure payment methods — check out the complete guide to buying on Alibaba from the experts at AsiaCommerce. Click the banner below to get professional import consultation today!

2. Failing to Calculate the True Landed Cost

This is the “profit killer” that many importers overlook. Most business owners only calculate Product Price + Shipping Fee, then immediately set their selling price. What they forget is that there are many hidden costs that must be included to get the true Total Cost of Goods (Landed Cost).

Imagine you purchase a product for Rp 50,000 per piece. You might think selling it for Rp 100,000 will bring a huge profit — but have you accounted for these costs?

• Import Duties and Taxes (VAT & Income Tax): Can take up a significant percentage of your product’s total value.

• International Shipping: Air or sea freight costs.

• Shipping Insurance: Essential to protect your goods from damage or loss during transit.

• Port or Airport Handling Fees: Loading, unloading, and administrative charges.

• Domestic Delivery: Transport from the port or forwarder’s warehouse to your final destination.

If you skip these calculations, your so-called “profit” is nothing more than an illusion — and in reality, it’s a loss.

3. Disorganized Financial and Inventory Management

You may have already sourced products at great prices and calculated all your costs. However, if your record-keeping is still done manually using notebooks or complicated spreadsheets, you’ll soon face new challenges:

• No clear understanding of your Cost of Goods Sold (COGS) per unit.

• Difficulty identifying which products sell best and which are overstocked.

• Inability to monitor real-time net profit.

• Wasting hours doing manual recaps at the end of every month.

Solution: Use Technology for Precise ManagementAfter calculating all your expenses, you need the right tools to track them easily. This is where a POS application like Labamu becomes your business lifesaver.

• Accurate COGS Calculation: Enter your total product cost (landed cost) into Labamu’s inventory feature. The app automatically calculates the accurate per-unit cost, forming the foundation for all your profit calculations.

• Set Profitable Selling Prices: Based on the recorded COGS, you can confidently set selling prices with healthy profit margins — no more guesswork.

• Monitor Real-Time Profit & Loss: Every sale recorded in Labamu is automatically reflected in the profit and loss report. Open the app anytime to instantly see your true net profit, not just an illusion of gain.

  
  

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Turn the Complexity of Import Business into Effortless Profit

In essence, building a profitable import business requires the right solutions for each challenge discussed above. The key lies in two things: sourcing your products correctly and managing them efficiently.

• To overcome Mistake #1 (risks in sourcing and purchasing), you can rely on the expertise of AsiaCommerce. They help you find verified suppliers and handle secure transactions — protecting you from potential losses in the early stages.

• To tackle Mistakes #2 and #3 (difficulty calculating costs and disorganized management), Labamu is the answer. With this app, you can record all import-related expenses to get accurate COGS, then track sales and profits automatically.

  
  

By combining safe sourcing strategies from AsiaCommerce with precise financial management from Labamu, you’ll have a solid foundation to run an import business that’s truly profitable and hassle-free.