Small leather exporter with stock on hand

Small and mid-sized overseas makers of bags, shoes, upholstery and accessories who want smaller lots than a tannery usually sells.

You sell at a markup over your purchase price, plus shipping and handling charges where appropriate. Margins depend on leather type, volume and how well you manage stock.

• Grading and judging leather quality
• Sales and relationship building
• Inventory and cash flow management
• Handling export paperwork

• Tying up cash in stock that does not sell: start small and track turnover
• Storage conditions, since leather can be damaged by damp, heat and pests
• Check federal export filing rules, sanctions screening and any permits for restricted or exotic skins
• General liability and cargo insurance, plus your city or county business license and any warehouse zoning rules
• Payment risk with overseas buyers: consider letters of credit or payment before shipping
• Check destination-country import duties and documentation so shipments do not get held up

Estimates suggest startup costs typically run around $20,000 to $80,000, depending on how much leather stock you buy, your storage unit and your export setup. Start small and track turnover so cash is not tied up.

Monthly revenue is typically estimated at around $8,000 to $40,000, depending on stock levels, buyers and order sizes, from roughly 25 hours a week. Stock that does not sell can tie up cash.

Check federal export filing rules, sanctions screening and any permits for restricted or exotic skins. Also check your city or county business license, warehouse zoning, general liability and cargo insurance, and destination-country import duties and documentation.