How to start an import-export business in the UK

Importing and exporting play crucial roles in the UK’s economy, giving us access to a wide range of products, such as technology, vehicles, medicine, fresh food, oil, and textiles.

In 2023, the UK’s imported goods and services market was valued at £876 billion, while exports were worth £861 billion.

The UK’s trade landscape in 2024 represented a mixed picture.

While services exports showed improvement from the previous year, smaller businesses continued to feel the effects of Brexit.

International trade remains hugely important for the UK economy and can offer profitable opportunities for start-ups.

For example, exporting could allow you to reach new markets and scale up your business; while importing could give you access to new products and potentially reduce costs.

If you’re keen to start your own import-export business, here are some tips to help you on your way.

What is an import-export business?

The term import-export business is commonly used to describe a business involved in importing and exporting goods or services.

Such businesses handle the logistics, compliance, and trading activities required to move products across international borders.

An import-export business involves two key elements – importing products in demand in one country and exporting goods sought after in another.

Businesses generate a profit through the difference between the purchase price and the selling price, factoring in shipping, customs duties, and taxes.

UK businesses often import items like electronics because they can be cheaper or are only made abroad.

For exports, UK companies might send products like pharmaceuticals to other countries.

These items are often valued for their quality and innovation, appealing to customers in countries where such products are not readily available or produced to the same standard.

Businesses can tap into international markets by trading globally, expanding their customer base and increasing sales.

What are the benefits of starting an import-export business?

Starting an import-export business has several advantages for budding business owners who want to enter global markets.

Here are some of the key benefits:

• global reach – you could sell to international markets, which potentially means more customers and more sales opportunities
• diverse product range – you could find unique products from around the world, offering customers items that are not readily available locally
• scalability – you could begin with a small investment, focusing on specific markets or products, and grow your business as you learn and gain experience
• competitive edge – by understanding global trends and consumer demands, you could offer competitive pricing
• flexibility – you could run your business from anywhere, using online platforms for marketing and sales.

These benefits make the import-export industry an attractive option for those with ambitions to enter the global trade arena, starting small and scaling up as opportunities increase.

Types of import-export businesses

Let’s examine the types of businesses that fall under the import-export umbrella and the differences between them.

1. Product-based businesses

A product-based import-export business involves buying and selling physical items.

Some of the most common types of goods imported and exported can include:

• technology
• food and drink
• automotive parts
• pharmaceuticals
• crafts
• textiles
• luxury goods
• clothing.

Entrepreneurs can choose products to import and export based on market needs and trends.

This type of business could prove to be hands-on and complex, requiring time to handle logistics, customs, and inventory.

Owners may need a deep understanding of international trade rules and ensure products meet the standards of their target markets.

This type of import-export business can suit those who can spot market opportunities and understand trends.

It encompasses different approaches, such as retail, wholesale, and dropshipping.

Retail

Retail import-export businesses sell imported goods directly to consumers through physical stores or online shops.

This approach could give entrepreneurs a competitive edge with unique products.

If you have previous retail experience and/or enjoy communicating with customers face-to-face, this could be a good option.

Wholesale

This involves buying goods in bulk directly from the manufacturers to sell to retailers and other businesses.

The model typically operates on a large scale, allowing wholesalers to provide competitive pricing to their customers.

It can require strong, positive relationships with suppliers and efficient, reliable distribution networks.

Dropshipping

Dropshipping allows entrepreneurs to sell products without the burden of holding any inventory themselves.

In a dropshipping business, the owner partners with a supplier who handles stock storage, order fulfilment, and shipping, while the dropshipping business focuses on marketing and sales.

This low-risk business type involves minimal upfront investment and could allow for more flexible product offerings.

2. Service-based businesses

A service-based import-export business can provide a wide range of services across various industries.
These could include:

• consulting services, in business development or management
• travel and tourism services, providing specialised tours and experiences
• training and education
• IT and technology, such as software solutions or cyber security
• legal and compliance services
• marketing and branding
• logistics and supply chain management.

This type of business could offer services directly to consumers or provide support to other companies.

It may suit entrepreneurs with strong problem-solving and organisational skills, which would help them navigate international markets.

3. Import/export trading

Import-export trading companies play a crucial role in helping international trade by acting as middlemen between overseas sellers and domestic buyers.

They specialise in navigating complex international markets and regulations, managing logistics such as shipping, and helping businesses comply with legal requirements.

This type of start-up helps other businesses access new markets by providing market insights and handling the paperwork, allowing its customers to focus on core operations.

How do I start an import-export business?

Here are some key steps to help you start your import-export business:

Research

Start by doing thorough market research to find products and markets that could be profitable for your business.

Look at demand, competition, and supply chain logistics to find promising areas.

It’s also important to check the UK and international standards needed for smooth operations.

Learn more on the GOV.UK website.

Planning

A clear business plan could help you launch and grow your start-up.

Using the research you have gathered on your chosen product or industry, you could begin to set realistic, achievable business goals.

Your business plan should include business objectives, competitor analysis, marketing and sales strategies, and financial forecasts.

Set competitive prices to ensure profitability.

A solid business plan will keep your business on track for growth.

Download our free business plan template.

Choose your business structure

Decide on the best structure for your business, which will affect how it operates.

Arguably the simplest and most common structure for an import-export business could be sole trader.

This allows for a single owner to have complete control of the business.

Other options include a limited company structure or a partnership.

Read our complete guide to start-up business structures.

Once you have selected the right structure for your business, you must register with HMRC for tax purposes.

If you have chosen a limited company structure, you must register with Companies House.

Licences and registrations

To import goods and export goods into and from the UK (not including Northern Ireland), you will need an Economic Operators Registration and Identification (EORI) number, which is used for customs clearance in the European Union.

This number is needed to apply for an Open General Export Licence (OGEL) if required.

You can check to see if your products require this licence by visiting the Department of International Trade website. 

If your products are not covered by an OGEL licence but are controlled, you will need a Standard Individual Export Licence (SIEL).

Read about how to apply for an export licence on the government website.

Depending on what you plan to import and export, and which countries are involved, you may need to follow industry-specific and international regulations to operate legally.

Check the government’s guidance on import-export rules.

Customs declarations and procedures

When importing or exporting products, you must make customs declarations through HMRC’s Customs Declarations Service.

Rules can change, so always check the current HMRC guidelines.

When importing goods, you’ll typically need several key documents, including:

1. the import licence
2. a bill of lading or B/L (which acts as a receipt, contract and document of title)
3. packing lists
4. a commercial invoice.

When exporting goods, the key documents you typically need are:

1. a certification of origin
2. a commercial invoice
3. export licence
4. an export declaration.

The customs process involves some financial obligations, including tariffs (rates can vary), import duties, and VAT.

Source your suppliers

Finding the right suppliers and maintaining a strong relationship with them could be essential for the success of an import-export business.

To find potential suppliers, you could attend networking events, visit trade shows, or use online platforms such as Global Sources or Great.gov.uk.

When you find a potential supplier, show them the benefits of entering your market, possibly with a detailed document.

Logistics and supply chain management

To keep your start-up’s operations running smoothly, it’s important to stay on top of logistics and manage your supply chain efficiently.

You may wish to consider choosing:

• the most reliable shipping methods for your products
• logistics partners who have a reputation for being reliable
• effective methods to manage your inventory and storage.

These strategies could help keep costs down and potential risks to a minimum.

Consider risk management processes and business insurance to protect your start-up.

Read our complete guide to small business insurance in the UK.

Financing your business and payment methods

There are several ways you could finance an import-export start-up.

Common methods include bank loans, loans from friends and family, personal savings, and government grants.

You might also consider a Start Up Loan to start or grow your business.

You could borrow up to £25,000 with a fixed interest rate of 6% per year.

Consider thoroughly researching your options before applying for funding to ensure that you pick the most suitable option for your business.

Remember:

As you will be moving products across borders, it’s essential to understand currency exchanges and the associated risks to your business’s finances.

You will also need to understand various international payment methods, such as letters of credit (LC), open accounts, and cash in advance, and decide which options would best suit your business.

It’s a good idea to seek independent specialist financial advice to determine whether a financial product is right for you and your business.