by Dr.Amit Kumar Chatterjee,
published November 25, 2008
syndicated: 0 | total views: 32 |
word count: 684
laesbarhedsindex readability score: Difficult Readability
website: http://www.infobanc.com/
E
xporting directly to small overseas retailers is a comparatively new phenomenon, brought about by Internet. Selling directly to small US or European retail outlets even 10 years back was an uphill task because of many hurdles like lack of information on buyers, expensive communication media, scant information on http://www.infobanc.com overseas consumer interest, difficulty in accepting small payments etc. Trade Fairs and Buying Agents were two major avenues for small and medium exporters.
Internet, acting like a disruptive force, brought about major changes in traditional supply chain of Exporter > Buying Agent > Importer > Distributor > Stockiest > Retailer .
Seamless, easy and inexpensive communication through continents brought exporter and retailer closer, removing many myths and wrong notions. The retailer suddenly discovered how much he/she stand to gain by importing directly because of huge price difference between merchandise of local stockiest and that of exporter's. The exporter found the middlemen disappearing and was too glad to deal directly with buyer.
The phenomenon has been aptly described by many such as Sigurd Helland in Import Your Own Products And Make Your Profit Margin Miles Wider, Online Or Off and Robert Nelson in Importing Made Easy.
Today, traditional supply chain is still in use for major chunk of exportable merchandise - but direct transaction between exporters and overseas retailers is growing very fast. Smart exporters have already organized themselves for serving overseas retailers - but Are you ready ? We discuss here what it takes to be successful in this new area of opportunity.
Retailer Buys in Small Quantity
If you plan to address small retailers - forget container load quantities. The business of retail is such that - large purchase can block money and even jeopardize business. The retailer may variously coin order quantity as 'first order' or 'sample order' - but it is very unlikely that he/she will ever order large quantity of one model/product. So, if your business model does not permit small order - retailer is not really your forte. Others may find Minimum Order Quantity a valuable clause in their product catalog.
Orders are More Frequent
Retailer will come back with repeat orders more often than a large importer as he/she can neither afford to maintain large inventory nor can keep rack space empty. Export orders will come as often as consumers demand, such as during Christmas season.
Margins are Higher
Silver line for exporters - you may compensate smaller quantity with higher price. Compared to the price charged by local stockiest - the retailer is unlikely to feel size able pinch and may not object to slightly higher price provided you communicate smoothly.
Be Sensitive to Issue of Trust
Importing from overseas country may bring excellent profit, but it is certainly more risky than buying from local distributor or stockiest. The issue of trust will always play on the mind of retailer, specially during first transaction, and he/she is likely to keep the first order as low as possible. The exporter should be sensitive to this concern and negotiate accordingly.
Prefer Air Freight
Most small retailers are not equipped to handle logistics operators and are uncomfortable with long delivery period in sea freight. Air freight, though more expensive, suits retailer's requirements better. However, the retailer may not be aware with these issues, specially the first timers. As exporter, you should quote air freight as much as possible and educate the retailer if necessary.
How to Get Information on Retailers
There are many retailers' associations in USA and Europe. You may contact them for their list of members. Easier option is to contact The Great Indian Bazaar who has compiled a directory of over 2000 overseas retailers (small retail outlets, convenience stores, drop shippers, large retail chains etc).
Conclusion
Exporting to small overseas retailers does not require significant investment and shipment can easily be handled through couriers. As a result, small Indian exporters and those new to export field will find this opportunity very lucrative. Margin from single shipment may not be much - but a handful of active retailers can keep a small to medium exporter busy throughout the year.
Which are the factors that should be taken into account in the process of cargo transportation planning, depending on its specific character, terms of delivery, vehicle carrying capacity?
When estimating the cost of certain cargo transportatio
Recently a popular trend in restaurant furniture and bar furniture has been to move away from regular dining height tables and chairs and towards attaining a more comfortable and informal look by using sofas accompanied with coffee tables. This has l
Forex trading is a complex business that has to be maintained with extreme caution and detail. However, many of the investors who enjoy a high investment income from large or multiple forex accounts do not have the time or the energy to spend behind
The Centennial credit card is an unsecured card created for individuals with a damaged credit report. It is issued by First Premier Bank an FDIC member.
It has easy approval requirements, but does carry some fees. Including a one time $95 fee,
If you are a business do you know all about this? Surely it will help to grow your business successfully. Many people want to start small business. But they don’t have right information. Because of incomplete knowledge they fell in business. They req
The need for individuals to find people these days can be done quickly if they will use the most effective source of information that most people use these days – the internet.
Of course, it is not a secret for the most of us that the interne
Logbook in simple terms means a vehicle registration certificate issued by Driving and Vehicle Licensing Agency (DVLA) in the UK. I hope you are aware of the fact that registration document V5 popularly known as logbook has become invalid from July 2
You're excited. You have a great idea for a profitable online business. Maybe it is an original idea that has not been marketed online before. Maybe you have come up with a new spin on the ordinary. Whatever it is
If you have been longing to start a business online you may be coming across terms you've never heard before. You may also have found the opportunities available are overwhelming. Where do you begin?
There will come a time that you need to relocate and move from your old home that you’ve been living in since birth. At first, it is quite hard for you to move and leave your friends and relatives, but in time, it can get easier for you especially it
Printable version
Publisher HTML version
Post a Comment
Email
Add to Favorites
