Editor’s Note
This article introduces the fundamentals of the import-export business, explaining how it leverages international market differences. It also previews a key challenge for 2026: the increasing complexity of tariffs.
At its core, import-export (or “trade”) is the business of moving goods (or in some cases services and IP) across borders. You buy or produce something in one country (where it’s cheap or unique), then sell or distribute it in another (where demand or price is higher). The model rides on differences in labor, regulation, scarcity, brand, and consumer tastes, and captures margin through arbitrage across markets.
In 2026, though, tariffs may make things more complicated. Import-export businesses must stay on top of evolving tariffs, customs requirements, and duties. Navigating new and evolving trade regulations means making strategic decisions that may impact their business.
Still, global merchandise exports remained near record highs as of May 2025, with modest declines in some regions. Despite changing trade policies, US exports still rose 5.5% and imports 10.9% year-to-date through July, widening the goods and services deficit by 30.9%.
Choosing the right import-export setup comes down to how much risk you want to carry, how hands-on you want to be, and how deeply you want to integrate with suppliers or buyers. Most trade businesses fall into one of three models:
Export management company (EMC)
An export management company acts as an outsourced export department for small to mid-sized manufacturers or producers. The EMC doesn’t usually own the goods—instead, it manages the entire export process for its clients, from finding global buyers to handling paperwork, coordinating logistics, and processing payments. The EMC leverages its export experience to let manufacturers be as hands-off as they want.
Profit mechanism: EMCs typically earn through commissions (often 5% to 15%), retainers, or markups on sales. Some offer retainer services or charge per transaction; in all cases, they profit by helping products reach new markets and collecting a share of the sale.
Best for: Individuals or teams skilled in sales, international marketing, or compliance who want to represent multiple producers. Alternatively, if you’re a producer or manufacturer, you can use an EMC as your external support team to enter global markets without building your own export department.
Export trading company (ETC)
An export trading company flips the EMC model. Instead of representing manufacturers, it represents foreign buyers. The company identifies what overseas markets need, then sources those goods domestically, often buying in bulk and reselling abroad.
Profit mechanism: ETCs earn through price differentials—buying low from domestic suppliers and selling higher in export markets. They may also earn service fees for sourcing, logistics, or market analysis.
Best for: Traders with deep buyer relationships or access to market intelligence abroad, and businesses that thrive on market arbitrage, especially where demand surges in emerging economies.
Import/export merchant
Import-export merchants operate independently. They buy and sell on their own account, taking full ownership (and risk) of the goods. They also handle sourcing, logistics, financing, compliance, and distribution without representing another party.
Profit mechanism: Merchants profit through markup, purchasing goods outright, and reselling them at higher prices to wholesalers, retailers, or direct consumers. Margins vary widely depending on category, logistical efficiency, and negotiation strength.
Best for: Solo entrepreneurs or small teams that want full control. Import-export merchants tend to succeed with high-demand, fast-moving goods where agility pays off—think fashion, specialty foods, and consumer electronics.
Running an importing and exporting business requires excellent logistical skills, but it also requires a solid business idea.