Expanding businesses to new territories and going overseas always entails a lot of work. The herculean and overwhelming nature of importing to overseas port fend off many small-to-medium enterprises from scaling up their business in new territories. What is IOR Egypt?
Let’s take the example of Egypt consumer market; entrepreneurs know about its potential. They know how lucrative this market can be once you establish your business there. But still, only a few of them formally enter the region. Most businesses that enter this region are service-based. The vendors and traders dealing in physical goods don’t consider this region for expansion because they know they have to deal with the import process.
For a small business, importing requires extensive efforts. Such small businesses can’t afford to take care of imports due to their limited in-house resources. Moreover, imports to Egypt have their own unique issues that deter many small-scale businesses from entering this otherwise lucrative market. It is true that dealing with imports on a constant basis without experts like Importers of Record is no easy task.
Nevertheless, entrepreneurs shouldn’t give up on a booming potential market. If you are not venturing into the MENA region just because you don’t want to deal with imports on your own, then why don’t you outsource this function? Yes, you can outsource your import work to expert Importers of Record— the people who know every last bit about the importation. You can easily find regular and e-commerce Importers of Record that particularly deal for Egypt country.
Benefits of Outsourcing Egypt Importation Work
We will try to break down theses benefits into smaller categories so that you can easily assess your unique business model by this discussion.
It is More Cost-Effective to Hire an IOR in Egypt Instead of Establishing an In-House Import Desk
Costs, expenses, profits, and savings—every proprietor needs to balance these basic elements to ensure the growth and sustainability of their business. In deciding between handling your Egypt imports on your own or outsourcing them, you need to factor several elements pertaining to expenses. Let’s see what costs are involved when you set up your own in-house import desk instead of working with Importers of Record.
A Barrage of Upfront and Overhead Expenses Opens through IOR Provider
Gone are the days when imports and exports were only managed through physical documents; software assistance is also required. Moreover, the customs officials present at Egypt ports also expect to deal with importers that have a professional, computerized setup in place.
From customs clearance to inventory management, you need to take care of all the import details through software. Such software applications are quite intricate and particularly designed to streamline the complexities of import work and documentation. These softwares are quite expensive due to their high upfront cost. On top of that, you also need to pay for the license from time to time, which is an overhead expense. Having such specialized software at your disposal means you also need to train your existing staff or go on to hire new people to run it.
In short, having in-house import process software means you need to take care of a range of upfront and recurrent expenses. Even after spending a considerable amount of resources on setting up software and team, you still need to be on your toes; after all, as the owner, it is your responsibility to ensure that all operations are running smoothly.
All these expenditures and efforts will not bring the results you desire, especially if your imports to Egypt involve a few declarations.
On the other hand, you have the services of the Importers of Record. They will charge you a fee for their services. But that’s the only thing you need to manage and worry about. An IOR dealing in Egyptian Imports will cover everything within its service fee, from warehousing to the customs clearance and delivering products to your intended destinations.
If you put the cost of an in-house import desk and a fee of IOR Egypt services against each other, the latter will easily come out as a more cost-effective option.
No Need to Study Customs Laws Once You Hire IOR Provider
The Middle East is not a federation of different states. It is a region with more than ten countries having their own independent customs laws. If you want to import your products to the region, then it is a no-brainer that you need to be fully aware of the laws in these countries pertaining to customs.
For instance, if you are planning to enter Egypt market, then you need to know relevant custom laws to fine prints. Now, imagine, you start your day with already too much administrative work on your plate, and then also you need to go through the customs laws to ensure you are fully complying with them. For individual entrepreneurs and even those working with small teams, taking care of such typical and jargon-heavy work is not possible. You can either run your core operations or deal with the customs compliance needed at the ports of destination. Trying to manage both can cause errors and bring difficulties.
By hiring Importers of Records that deal with Egypt imports, you don’t need to know anything about the customs laws and compliances. Whether they are revising its import regulations or adding new taxes, your designated regular or Egypt e-commerce IOR will take care of all these things and will process your imports accordingly.
Don’t Waste Your Multitasking Abilities
Even if you and your team love multitasking and are ready to face the challenge of dealing with customs regulations on your own, we would suggest that you hold your horses and reconsider your approach. It would be better if you funnel all that passion and dedication in finessing your core competencies and business operations. In the long run, it will increase your productivity and as well as profits.
For an Unprecedented Growth of Your E-commerce Operation
There is another aspect of outsourcing your Egyptian Imports: if you are an e-commerce venture that wants to enter a new consumer base in any MENA country, then you ‘must’ outsource your imports. We have put special stress here because opting for outsourcing as an e-commerce business entails wide-ranging benefits.
For instance, you can work with expert Egypt IORs that don’t just handle imports and all its documentation. They can also sell for you since they have the seller status on large e-commerce platforms in Egypt. In other words, they are Egypt seller IORs that can work on your behalf. Noon.com is one of the biggest e-commerce websites in the UAE and KSA. If you want to place your products on it, you can work with a dedicated Noon Importer of Record Provider.
This IOR will first take care of each and every aspect of your import: from document preparation to customs compliance to shipment tracking to tax payment. Then it will also place your product on the website by using its seller’s status on the Noon’s Seller Lab. The second part of seller IOR’s job entails a big advantage. It suggests that you don’t need to register your business in the country you are selling your products in (steering clear of a lot of administrative work).
Similarly, there are seller IORs that work on Amazon (Souq) in the region and offer the same services as discussed above. You can also find a single seller IOR that can work both as Amazon and Noon Importer of Record. Outsourcing your e-commerce imports to a seller IOR can turn out to be a lucrative scheme in the long run.
Besides these major benefits of outsourcing your Egypt imports, your business can also benefit from the following consequences.
Better risk management: Egypt, is quite strict with its laws. By outsourcing your imports, you don’t have to worry about any potential law breach and non-compliance because your business won’t be liable for it.
Better in-house efficiency: Even if you manage to deal with your imports through in-house resources, the drop in productivity is inevitable, no matter if you and your team are doing overtime. By keeping all the hassle of imports away from your office, you can keep your team efficient and more productive.
Before we wrap up this article, we would like to answer one important question that many business owners ask: should we still persist with outsourcing when the import declarations are constantly being increased? Experiencing growth in imports is an indicator of business growth, but it’s not a signal for establishing your own import desk.
Yes, increased imports will also increase outsourcing costs. However, it will continue to save you from the growing administrative burden too. Being entirely free from the administrative work of imports means you can funnel in more effort and existing human resources into your core business.