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How to survive high shipping and unstable exchange rates as an importer

How to survive high shipping and unstable exchange rates as an importer
How to survive high shipping and unstable exchange rates as an importer

How can importers survive the unstable exchange rates and high shipping costs?

Importers ask this question all the time and yet it seems like there is no answer because it is not something importers can control. The average importer experiences unstable exchange rates and high cost of shipping fees especially in times like this. This does not only affect the cost of goods, it also puts the growth of your business at risk because customers will not trust a business whose price is always fluctuating.

In reality, we can say the fluctuating exchange rates are nerve wrecking and this can be a challenge for importers.

In this article, we are going to explain how to survive the high shipping and unstable exchange rates as an importer and get your business back on track. Read on!

1. Don’t run your business on preorders

That’s right! I’m sure you will be shocked but think about it. Of what essence is giving your customers the price of goods at N1 only to discover that the price has increased to N1.5Kobo. Meanwhile, you have collected payment from customers at the rate of N1. 

Also, considering that the exchange rate may go higher by the time your goods arrive, it means you will have to tell your customers the new prices and this will not only piss your customers off, it may result in a situation where your customers ask for a refund.

2. Consider the unstable rates when calculating your prices

If at all you want to sell on preorders (even though we advise not to), you should consider adding a profit margin that will help you bear the likely exchange rates by the time your goods land. What this means is that, even though the price of the goods is N1, you can add a margin of 40 or 50Kobo and let your customers know that if the exchange rates change before the goods arrive, they will have to pay the difference. Or you outrightly, just add this margin and tell your customers the accumulated price instead.



3. Sell high-demand products

When it comes to business, saturated products are usually price competitive. This means that the only edge you might possibly have against competitors is low prices but considering that the exchange rate and shipping fees are unbearable sometimes, this might not be a wise decision. So, it is advised that you sell products that are scarce but in high demand so that you are not forced to beat down prices and you can also be assured that your products will be demanded for. Examples of high demand products are fast moving products that consistently provide a high turnover within a short period.

4. Choose the right shipping method

This is often a mistake many importers make. They try to make up for the unstable exchange rates by trying to get low shipping rates. Meanwhile, this is risky because the weight and type of goods determine the shipping method. Also, the best thing to do is to seek help and advice from your freight forwarder to know the best shipping method. If you are importing heavy-weight goods, choose sea shipping. Use air for light goods to avoid high costs of shipping. Again, talk to Naiyuan Mart to know the best shipping method for your goods.

5. Be honest with your customers and let them know the risk you face

Many may not agree to this but sometimes, honesty pays. Especially as an importer, you can let your loyal customers know that the unstable exchange rate and shipping costs affect your prices and that you may increase prices depending on the situation. Communicating with your customers helps them understand your challenge as a business owner and also reduces the risk of losing them based on unstable prices.



At Naiyuan Mart, We offer reliable, cost effective and fast air and sea cargo services to Lagos, Kano, Abuja and many other cities across the world.

No matter the size of your shipment, We are committed to getting it where it needs to go. We handle your fragile parcel delivery like no other logistics company — thoroughly and professionally.

Contact us:

+86 156 03010 790

+86 135 0003 0494

+234 701 215 5658

+234 912 122 8332