In the face of evolving technology and the limitless resources available on the internet, locating a manufacturing exporter has become relatively easy. Indeed, a buyer can directly access manufacturing units, thereby seemingly simplifying the buying process. However, despite this progressive technological advancement, the significance of a merchant exporter remains immense and is often preferred by many buyers.
A buyer's preference for a merchant exporter over a manufacturing exporter may seem counterintuitive, given the perceived advantages of cutting out the middleman. However, closer scrutiny of the process reveals an array of advantages that are uniquely afforded by merchant exporters.
1. Quality Control and Assurance
Manufacturing units typically do not produce goods of uniform quality. There is often a categorization into A, B, or C quality products. When a buyer demands the highest quality products, manufacturing units often include B and C quality products as part of their delivery. Typically, a manufacturing unit may fill 70% of a container with A quality goods, but the remaining 30% may be B or C quality as part of a stock clearance process.
A well-equipped merchant exporter, on the other hand, can provide superior quality control to the buyer. With an in-depth understanding of the product, the merchant exporter can scrutinize the quality of goods being filled into the container. They can ensure that the quality of products meets the buyer's specifications, thus increasing customer satisfaction and loyalty.
2. Product Knowledge
Merchant exporters often specialize in specific types of goods, which means they possess a deep understanding of the product's quality parameters, market trends, and demand. They are also up-to-date with any legal and regulatory changes that may affect the export or import of these goods. This comprehensive knowledge aids them in delivering superior customer service and product expertise, which a manufacturing exporter may lack.
3. Customization and Flexibility
Merchant exporters typically have strong relationships with multiple manufacturers, giving them access to a wider range of products. This allows them to offer a greater degree of customization and flexibility to their buyers. If a buyer wants a diverse range of products that a single manufacturer may not provide, a merchant exporter can source the desired goods from different manufacturers. This added flexibility is often an attractive benefit to buyers.
4. Language and Communication
One common challenge in international trade is the language barrier. The difficulty in understanding each other's language and culture can sometimes result in miscommunication and misinterpretation. Merchant exporters, who frequently deal with international clients, are often proficient in multiple languages. They understand the nuances of cross-cultural communication, which can significantly ease the trade process and reduce misunderstandings.
5. Logistics and Documentation
Merchant exporters are well-versed in handling the complex process of logistics and documentation required for international trade. Their proficiency in dealing with customs, shipping, and documentation processes can ensure a smooth, hassle-free transaction for the buyer. A manufacturing exporter might not have the same level of expertise, resulting in possible delays or complications in the export process.
6. Risk Mitigation
Engaging with a merchant exporter can also reduce the risks associated with international trade. They have experience dealing with fluctuating market conditions, changing regulations, and unpredictable shipping timelines. By having the merchant exporter handle these challenges, the buyer can focus on their core business operations, making the whole trading process more efficient and less risky.
7. Variety of Products in the Same Niche
Merchant exporters, by virtue of having connections with multiple manufacturers, can offer a greater variety of products within the same niche. This variety is often appealing to buyers looking for diverse product options. Manufacturing exporters, by contrast, are usually limited to the products they manufacture themselves.
8. Strong Network
Merchant exporters are often able to build robust networks within the overseas community. They cultivate personal relationships with key individuals and organizations, which can provide significant advantages in terms of market knowledge, negotiation power, and problem resolution.
9. Market Knowledge
Merchant exporters, with their primary focus on exports, have the ability to gain more market knowledge. They can focus more on a particular market, understand its nuances, and deliver according to the specific requirements. On the other hand, manufacturing unit owners often juggle various responsibilities, and thus, may not have the same level of market insight.
10. Faster Response Times
Quick response times can be a decisive factor in a competitive global market. As merchant exporters focus exclusively on export operations, they can provide faster response times, thereby leading to efficient business transactions.
11. Expert Negotiators
The negotiation skills of merchant exporters often exceed those of the staff of manufacturing units. They have a vested interest in the business and their negotiation skills are backed by strong product knowledge, market understanding, and a drive to fetch more orders. On the contrary, a manufacturing unit owner may not have the time to communicate directly with the buyers, which can limit their negotiation potential.
12. Easier Returns Process
Merchant exporters typically have streamlined processes for returns, making it easier for buyers to return or exchange products. An efficient return process can significantly enhance buyer satisfaction and loyalty.
13. Effective Problem Resolution
Merchant exporters, with their robust network and strong market knowledge, are often adept at resolving any issues that might occur during the export process. They can quickly address and rectify problems, ensuring a smooth and efficient transaction.
14. Local Market Understanding
Merchant exporters often make efforts to learn the local language of the market they serve. This linguistic ability, coupled with their cultural understanding, can help them connect better with their clients, facilitating growth and success.
15. Effective Marketing Strategies
Merchant exporters have the freedom to implement their own marketing strategies. They have access to all the resources required for marketing and can use innovative ideas to promote their products effectively. A staff member in a manufacturing unit, in contrast, may not have the same level of access or freedom to strategize.
16. Regular Updates on International Standards
Merchant exporters continually update their knowledge about international standards relevant to their field. These standards may include quality, safety, and environmental aspects among others. Being aware of these standards and ensuring their implementation not only increases the credibility of the merchant exporter but also assures the buyer that the products they are purchasing are compliant with international norms.
17. Prompt After-sales Support
After-sales support is a critical component of customer satisfaction, and merchant exporters often excel in this aspect. They can provide prompt and efficient after-sales support, addressing any issues or queries that buyers may have post-purchase. This commitment to customer service can lead to higher buyer satisfaction and foster a long-term business relationship.
18. Lower MOQ
In the business world, especially when dealing with manufacturing units, there's a term known as Minimum Order Quantity (MOQ) which refers to the lowest quantity of a product that a supplier is willing to sell. However, merchant exporters often offer lower MOQs compared to manufacturing units, making it more feasible for small and medium-sized businesses to import a diverse range of goods without having to invest in a massive quantity of a single product.
19. Consolidation of Shipments:
Merchant exporters often deal with a variety of products and orders. They have the flexibility to consolidate different goods into one shipment, thereby significantly reducing shipping costs. A good example is the case study of Shoppre - they consolidate products available from various Indian e-commerce websites into one package for international shipping. This model is cost-effective and can enable a merchant exporter to provide goods at a more affordable price than manufacturing units.
20. Virtual Office Abroad:
Merchant exporters can also set up a virtual office abroad. This investment, which often costs just a few dollars, can provide them with an overseas address and phone number. It not only allows merchant exporters to manage their overseas operations more effectively but also increases the trust factor for international buyers. Manufacturing units may not always have the resources or need to set up such a facility, hence giving an edge to the merchant exporters.
21. Power of Credit Terms - Key Secret to Win:
To better understand how credit terms can help your business, let's look at what happens in cities like Nashik and Mumbai, where many businesses export fruits, vegetables, and onions. Here, a lot of new business owners meet experienced suppliers who've been in the trade game for a long time.
These suppliers often share valuable knowledge with newcomers, including information about buyers. Why? Because they see a chance to do good business.
These experienced suppliers think like businessmen. They see a chance to make a deal with startups: they'll supply goods if the startups can pay upfront. This way, the suppliers don't have to wait for their money, which is good for their cash flow.
So Startups can also reach out to several manufacturing units. They can explain that they're willing to work on credit terms if the buyer is genuine. If they build a good relationship, the manufacturing units might even give them their own buyers.
As an Export Import Guru, I've seen this happen many times in real life. Manufacturing units, who've been dealing with genuine buyers for years, are ready to give their buyers to new startups. This is because the startups show they can pay in advance and are willing to supply on credit.
This strategy is a practical and proven way to make your mark in the world of trade