"Merchant Exporter" means a person engaged in the trading activity and exporting or intending to export goods. Merchant exporter procures the material from a manufacturer and exports in his firm’s name. Here merchant exporter procures the order from an international market. Merchant exporter does not have own manufacturing unit or processing factory.
Actually, most exporters don't create any base thus they fail, few points to be noted
1. In this global scenario buyer focus to buy only from manufacturing unit, so if you select such business model where you need to fight with manufacturing unit you are more likely FAIL, If you are Merchant Exporter you need to create such a model that you should create your USP [Unique Selling Point]
2. Suppose you choose the product like "Ceramic Tiles" you should think 1000 times that why a buyer will prefer to buy from you ? as he has got tons of MFG units options available in the market
3. The merchant should create such a business model where he has got the edge, he can choose a unique agro and food products so no fight with MFG units.
4. If merchant exporter wants to exporter industrial goods then he should have done pre-tie up with Manufacturing units those who do not export. Pre-contract must be done so that even if order receives by MFG unit it would be forwarded to merchant exporter.
One of my student name Jenish Datani went to a spices industry name "Hathi Masala", at first meeting the response was negative but he did not quit, he kept visiting them and made good relationship with them, at first he only told Hathi masala that he would promote his firm in the international market. He used the IEC Code of Hathi Masala and worked for the company for FREE, find a deal for MFG unit & helped MFG unit to promote its exports in Kenya. After 2 Successful shipments, he started his own firm OMNIFIC Exim and got an IEC Code for it. He told Hathi Masala that he is only going to Export products under "Hathi Masala" Brand but under his firm of Omnific Exim, for Kenya he got distributorship, now for Omnific Exim (Merchant Exporter) has become such a powerful spices exporter because of the backup he got from MFG unit. Now even he can ask his foreign clients to visit his factory. He is given boss chair, he has been given ownership like status.
I have got many such examples of successful merchant exporter of mine.
Karan from http://www.pearlexim.com/, Karan has visited several MFG units who are not much developed in Exports, he told them that he will help in exporting, he help MFG units to get his IEC Code, RCMC, etc. Marketed only for MFG unit "Jalaram Industries" to promoted wheat floor for him and started exports from "Jalaram Industries", later he developed his firm PEARL EXIM and started his work in full fledge, according to him the biggest benefit he got is the learning by helping the different industry. Tie up with supplier helped him to quote best price in International Market. You can also start your business as an international broker, broker does marketing for supplier / MFG units who has good produts with Unique Selling Point. The broker can start business without investment , he does pre tie up with suppliers to supply products at the time of exports and legal agremnts are done for broker safty. http://www.visionagri.com/ started as a broker now they are also a successful exporter. The biggest advantage International broker get is the exposer of the international market and product knowledge which one can never get in a job. Broker does not require any company or IEC, if you want to become broker you can start now, however good marketing and communication skills are required in it. I can provide you many such companies to work with , you can whatsapp me on +91 8128111191.
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To bring more and more Merchant and Manufacturing Unit under One Umbrella, we have developed ExportBooster.IN
Even MFG units are looking for a good tie up partner for exports as the International market is very big need to take help of many to make its product availability worldwide.
The biggest focus which merchant exporter must do is to find the probable supplier first, else you will keep shooting an email and you will never get any responce from genuine people only fraud people will try to bring you under their trap.
You must ask a question 1000 times in your mind that how different I am in providing the product or services then other, if you found the answer then you found your USP [Unique Selling Point] and yes now you should start marketing.
The benefit in helping MFG & doing marketing and exports for them
-> Good for long term relationship
-> You worked hard for MFG units exports and they will kick you out and will deal directly with buyer , even this is good for you because you got the knowledge, which would prove to be an asset & that you can only get by helping others.
Want to Earn More Profit at first
Most people have the eagerness to earn and not serve so they quit this quickly. At first, you must buy a product of 100 INR & sell it on 99 INR in the local market, the loss is your learning experience you will never get in B-School. Paytm was doing the loss of 1700 Crore, they are focusing on turnover not profit, at first you need to focus on turnover.
No Product Knowledge
Starting Exports without product knowledge is riding a car without a fuel. You need to meet 1000 suppliers to gain more and more product knowledge
Choosing Multiple Product
Choosing too many multiple products will confuse you and your buyer, in this modern era speciality has got his importance.
Thinking Exim Business can be done online
Never for startups, startups need to come out for PC / Mobile need to visit at several places, need to meet people, etc. It could be done online after 5 years. Face to Face meeting is 1000 times more powerful than Facebook / Whatsapp Chat. [Key tool for negoations]
Thinking you need many parties for success
Most of my big clients only got 3 to 4 buyers who are doing great exports. Even when I was in CHA I found that many have got only 1 buyer but he buys 10 containers in a month.
Lack of Persistence & Patience
Whats wrong even if you do 1 deal in 1 Year ? you focus on frequency & repeat order later on.
Moving forward without a mentor
At startup you always need a guide a mentor because in Exim Business there is no Step by Step guidance, in this trade you need to take a step and need to look at 17 other direction simultaneously, need to take other step & look turn around and see 360 degree, thus most coaching class, Youtube, Google, training institute, coach failed to make most people successful in this trade. So you always need a Guru to answer all your doubts so ExportImport.Guru is for you.
"Most of my clients/students find the party with the help of their personal contacts of their friends and relatives. So you need to create more and more friends in your life you will never know who will trigger."
Always WhatsApp me & I will try my best to help you +91 8128111191