Being the/a UK distributor for a US product?

Kipepeo

I want to preface this by saying it's all just an idea at the moment, I have no idea if it will even be viable, let alone if the creator would be interested. Which is why I'm asking for advice.

I'm interested in becoming the UK distributor of a niche (but popular) product range in the US. Let's say it's health supplements. It's definitely not a(n) MLM.

They don't have a UK or even European distributor. They do ship to Europe but shipping is crazy, sometimes even more than the cost of the order itself.

So I was hoping someone would be able to help me with information about startup costs mainly. I have a small savings pot and might be able to borrow some from family. It obviously depends on realistic figures.

I have a couple of resources/know-how such as a storage facility, being able to build and run a website, potential employees should I need them, and I know there is demand for the products. But what I lack is serious money and business knowledge.

Can anyone help with ballpark figures? And maybe point me in the direction of where I can find more information? TIA.

theoretica

Some questions to start with, perhaps. What would import duty and VAT be on them?  Shipping from US?  Shelf life?  How varied is the product (eg shoes you would need every size in stock, kettles there might only be a choice of two models).

DCFC79

If the company were looking to use a distributor why would they choose Kipepeo Importer over a more established one ?

Something else as well, if it's supplements or whatever the item is they will need to be approved for it to be a starter.

martindow

Assuming the figures including duty, VAT etc. add up and there are no regulation problems it is not just a matter of making a website and watching the cash roll in.

Websites can be cheap and easy to set up but the problem is getting customers to find your site and trust you.

 

[Deleted User]

Is the product even approved for sale here?

A friend at my job got me to bring back supplements from a US supplier while I was over there because they don't sell them here, I did check and they're not illegal but I suspect they're not sold here for some other reason

Teahfc

To import to the UK direct from the USA you will need to know the full terms to start with.

Is the price you get a delivery to the UK price or is it a ex factory facility in USA, if the latter you will need a forwarding agent in the USA to do all the paperwork plus arrange transport from factory to port or airport. Then upon arrival at the U.K. you will need to have a clearing agent to arrange the consignment to be cleared of customs and duties paid. 

Either way without a line of credit you would then have to pay those costs before anybody touches it. Add the cost of the product plus a storage facility to distribute from and that’s quite a cost to get started. 

Is the product a VAT Product? You will need to register to get a VAT number. 

Have you an accountant? They could do that. 

Have you questioned why they don’t have a receiver in Europe even though they are shipping to Europe. 

How are they selling said product ? Via website currently ? 

Regarding of starting up costs It’s a case of putting X amount into it ? 

Would you make your business a ltd company or would you operate as a sole trader ? 

I imported for 20 plus years a short dated food product group from the USA, I had known the supplier 10 years and had 3 customers I targeted. 

My start up costs had to include 4 weeks payments to pay accountant, suppliers, clearing agents, transport /storage company. As my customer only paid 28 days after delivery. 

Worth talking to am accountant after putting a business plan together. 

Good luck hope it works out. 👍🏻

martindow

Teahfc said:

Is the product a VAT Product? You will need to register to get a VAT number.

There are two options here.  One is to register for VAT which you will need to do any way if sales are over the threshold (£85k I think) and which may be the best course if the OP intends to wholesale to VAT registered customers.  This is a question for an accoiuntant to advise on.

If sales are under the threshold you don't have to register for VAT.  You ask HMRC for an EORI.  This is the equivalent of a VAT number that is used for customs clearance.  Of course you can't reclaim the VAT import payment but you don't have to charge your customers VAT.  A lot more of us may need this after January 1st for European imports (I won't mention the B word).

https://www.gov.uk/eori