What are the challenges faced by Merchant Exporters in India and how to overcome it?

As everyone knows in the world 90% of Trade is Constituted by a trader being Exporter or importer , We as a Trader play a very important role in the Markets.

By the end of this article i will take you through the challenges faced by Merchant Exporters .

Being a Merchant Exporter Means you don't have any Manufacturing Units , Its all that you Buy from the market time to time based on your requirement or You Tie up with a Manufacturer To supply all your needs in the requisite time.

Merchant Exporters Should note the following :

1. 1. Don't take orders if you don't know that product , Many have this in Mind i am a merchandiser i can do any product Which are Under the sky! You are Not working for a Local market , But you are working on international trade , so this decision will not just harm your Company but whole country and the future aspiring Exporters too!
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3. 2. A deep workout is required while Procuring , You need to be very careful in the local market for procurement as they dont tend to understand your needs , Requirements , Specifications . You need to have a Smart work on the ground.
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5. 3. The Negotiation is the key in Merchandise Business , I can say this is where you can make profit of.
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7. 4. Do the trade with 100% Confidence , If you have taken up the trade don't depress the counterpart , Give it to your best . DONT GIVE UP!
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9. 5. Don't send a crap quality for the Heaven sake , If you cant give quality goods don't try exports this is not For you ! You have to appreciate all Money is a Hard Earned money .
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11. 6. Risk Management / Supply chain Management - Stick to the time frame given by your Buyer , You have to take up order and close the deal in the stipulated time . Very important , as it shows your commitment , authenticity , punctuality .
13. 7. Being a Merchandiser , the only way to prove yourself right is supplying Good quality , Competitive prices & At the said time frame .
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15. 8. Its a Floating market , If you are trading in Commodities , The importer also wana check whether you are giving at right prices , so he approaches to other exporters for the supply.
17. 9. You Have to also Understand since its a Global Market , Importer can also Approach other countries for procurement , This is due to Higher prices , quality , Commitment .
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19. 10. It gives a Plenty of options being a Trader to do Multi - Product exports !
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21. 11. Global market gives you access to trade from any market Globally . You can sit at A Country , Procure at B Country and Sell at C Country .
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23. 12. Be sure of Certifications Required to Export your goods , Dont rush at last time ,Nobody can support you .
25. 13. In Documentations , Exports are merciless don't expect it !
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27. 14. Planning your shipment with your shipping agent , cha is the latter part of the trade , Sit , Plan & then move , A Slight Mis Understanding , Can make your consignment stand in Ports for days!
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29. 15. Dont Give any advance to anyone ( I mean towards Supplier ) if you dont know them neither you have seen them. Dont get trapped if you find any product at any juncture which is less than 50% of the market cost .This is were people get Bankrupted in exports before getting into exports .
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31. 16. Dont Mention your contact number & Email id & even your importers details ( I.e Number & email ) on your export Invoice , it becomes easy to access your data !!
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33. 17. Fluctuation are a great loss to us , But still you have to work smarter in the market !
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Hope the above article helps the Merchant Exporters In India.

If its worth reading , Please share it with your Eximpreneurs , Lets support each other !

If you want to become or Already a Merchant Exporter and has Questions for me , Please leave here , I will try to answer you !

Cheers,

Santhosh Raghavan

If you are a Importer of A4 Paper in INDIA , Read this !!

There is a Huge requirement of A4 Paper in Indian market due to the shortage of raw material and many more factors which enables the business people to look into imports . Paper and paper products are a all time demand products in the market globally! Most of the indian importers are carried away by the brands like " Double A " ( MOSTLY ) . They say in the market of india it has a premium quality and good prints ( Ofcourse its true even i have used it ) . But you need to understand that established Brands has already their distributorships in almost all metro cities in india . When the brand is already having its distributorships in other country , they have already singed legal agreements with the investor here ( or has taken distributorships ) that all goods will route through you for any orders we get in your region . If it all you are getting a Supplier who is Going to supply the same brand to you , and if you import you require a NOC From brand , so that you can safely import without hurdles . The countries where indian importers try to import is thailand , indonesia , philiphines , spain . Thailand is the main country where most importers are fooled ( i am not blaming any country here , its the mistake done from indian importers due to lack of knowledge ) , they ask advance , L/C , Escrow payment , pay for factory visit etc NEVER NEVER Give any Advance nor raise any L/C Because without seeing the goods how are you going to pay any single penny whom you dont know? ( dont play a blind game ). The best practice is if you are a real importer and has requirements fly down to that country sit in front manufacturer who has stock , get into cash and carry deal .  IF YOU GIVE ADVANCE WHAT HAPPENS ? In the trade practices , Normally We tend To give advance to the exporter only if we trust him , know him through reference . In paper deals Most of the time you end up paying to the wrong supplier and importers are bankrupted. Even the Embassy office of india in Thailand has left a Notification that " we have received number of complaints from importers that after they pay to supplier the goods never came to india " . So NEVER Pay advance .  IF YOU GIVE L/C , WHAT HAPPENS ? Its a safest method for both exporter and importer , but in Paper deals , as the supplier will accept L/c at first when it comes to implementation of the deal the supplier fails to supply as he doesn't have the credit worthiness hence its a loss to the Buyer on various bank charges which adds up to 5 % . Your payments are safe but Losing 5% for nothing is not worth . So BEWARE . My story - We had imported 2 containers of A4 paper in the year 2014 and had sold out immediately in chennai port. at that time we went to thailand chose the goods as per our requirement we settled in cash and arranged for the shipping from bangkok to chennai by ourselves . at that time we paid 24% duty + 5% was our expense + local tax was the expense towards our trade . > **STORIES IN PAPER TRADE - THEY ASK YOU PAY 30 % ADVANCE , 40 % PACKING 30% ON SHIPMENT . NEXT THEY WILL ASK YOU TO PAY FOR FACTORY VISIT , PAY THROUGH L/C , PAY THROUGH ESCROW PAYMENT , SOME CLAIM I AM A GOLD MEMBER OF ALIBABA , SOME SHOW YOU FAKE PAST SHIPMENTS DOCUMENTS , SOME WILL CALL YOU TO THEIR COUNTRY BUT WILL NOT ANSWER YOUR CALL ONCE YOU LAND IN THEIR COUNTRY. PRICES BELOW 1USD IS POSSIBLE IN THAILAND COUNTRY'S MALL BUT THOSE ARE NOT ALLOWED TO BE EXPORTED . SO BEWARE!!!** WHAT SHOULD BE DONE NOW ? You wont get the supplier in social medias , the data given by XYZ Company is another way of making Easy money . The only best way is Fly to that country , Check the stock , check the quality , Get it tested by yourself or by third party agency like SGS . Opt for cash and carry only as of today . You have to check the import duty , shipping cost , Local tax in order to get the figure for your calculations. Dont loose your hard earned money to a looser! Protect our country from defaming 🙂 If you feel worth reading it , Spread it across your network . Lets save us and our country men. ☺️ If you Would like to get Updated in your Exim Journey Join this group #Learneximimport . Comment below on your queries , i would be happy help Cheers Santhosh Raghavan

How should i approach a Market and get Business Being a Startup?

In this Digital world , Getting Information , Knowledge seems to be Damn Easy , As you have access to Articles , youtube vidoes , Free seminar Bla Bla Etc In spite of all these information available on the net Startups face a troubleshoot to get started , That means Everyone wants to learn what is needed to do business , But that isnt Available at one spot . This is the exact reason why i interpret my experience through the articles now and then here !!! So just remember Getting Knowledge and Implementation has to go Hand on hand otherwise you arent going to implement .

Many startups come up to me , asking how do i Get into that particular market ?

MARKET SELECTION & HOW TO VENTURE IN , Is the most easiest thing to understand , Target the Trade deficit countries . Moreover , We have financial constraints which disable us to visit countries and check the market , Today in the digital era you can very well use Exim data to understand markets , Use Indian trade portal . You got to know that XYZ Is the target country , Now in order to intervene into that market you need to understand how that market is operating , Market mechanics , How much is the inflow and outflow of goods in the market , whether the goods is completely consumed in that market or it is re-exported , how much is the requirement , competition level , competition with Low margin exporters , whether that country can procure the goods from other country ( what is the possibility of that ) , what is the risk ( Yea ) , Which brands goes well , what kinda products they can import , what is the restricted products in that country , what is the financial stability of the country , How much is the transit period , Precautions to take while transporting goods .

Once you are able to answer the above questions , Obviously yes when you visit that country for the first time , most people say me why should i visit that country , visiting that country will answer all the above questions and you are also able to get the buyer there in the market .

Most of the startups have a query that i want to send my goods on my brand , just remember if you want to sell in your brand in other country , that country people should recognize your brand , your authenticity , taste etc. In order to have branding go for brand awareness , Go for multiple shipments , prove your quality , taste , effective pricing , then people run back to your brand .

Today 60% of the trade in Exports are Happening on CREDIT ( We should blame us as an Indian we are trading on credit and taking very high for us as well for the country , as there is outward remittances ) Be very careful to check your Buyer on the financial track record. ( This is a Tricky ) Not all Credit takers are there for Fraud business . There is also a Technical reason behind it . I.e the investment what you make in exporting ( Buying goods & logistics expense ) is the same investment he makes it to pay import duty in his country , in this incase buyer will refrain from paying advance or L/C & its a valid reason from his point of view. Now i dont mean ALL CREDIT TAKERS Are Not Fraud ! Yes it depends on the situations ( Only the mis - Handling of situations , false commitments ) Make them for that Fraudulent activity. So check the credibility , Financial Background and then Get started.

Hope this article has helped you for MARKET SELECTION !!

If its worth reading , please share this with your eximpreneurs 🙂🙂🙂

Leave your comment below on your thoughts , any queations please leave it , i will try to answer you !

Cheers
Santhosh Raghavan

How Should i Market my Goods Globally ?

Many Have Asked me , How should i Market it ? Why will a Importer Buy from me ? What is exactly required To convince a Importer to buy from me?

So here i go , Today Everybody have to Learn " HOW TO GIVE VALUE " To your Customers , The traditional method of pitching the Goods & You expecting the buyer to buy from you Doesnt Work anymore!!! I have seen Different People Blindly Posting their products and getting a Response and start conversations , Later some do end up Failing to the terms & some do few transactions and later they are Stationary .

Cracking a Long term Buyer takes Months on Months ( Surprisingly you cant find them on Facebook as of now , who knows Its Digital Era they may also be found in coming days 😆😅)

> Digitally , Neither a Buyer believes a seller NOR a Seller Believes Buyer Unless and until you have met him Personally and have recommendation on!

There is only One way to Connect , Trust & Start the trade , Go to the Target Country which you want to work with ! If it is Dubai Go to Alweer Market , If it is Vietnam go to Hochi minh Market etc , Sitting right back & Doing transactions in the absence of your Counterpart / Trustworthy in the target country is No More SAFER! Not to Deny the works from Government Even they Conduct International Buyer - Seller Meets Between Different Countries in INDIA & Abroad . Get in Touch with the Export Promotion Councils , TPCI , FIEO , Different Chambers of Commerce .

Tips For FREE For the Newbies :

1. Get the Product Knowledge ( You should be Damn Confident on the product you are selling ) - End to end Knowledge from sourcing to Pricing.

2. Show some value to your customer .( Why should they buy from you )

3. Quality is the Key in Exports ( Dont Compromise , whether its on product or on Packing )

4. If you wana Trade Globally , Meet the buyer Face to Face , see his Financial track record , Stay back in that country at least for 10 days , Meet Different Whole sellers and what they require , see how they transact the deals OR There are very well Experts in the Market Who have ready to do trade services , you can hire them . But choice is yours .

5. For your Information on Docs , Do take up ECGC Policy ( Just to check credibility again from the govt. prospective )

6. be sure to keep all the conversations on a legal documents .

7. Finally , Without Risk No-one has succeeded in his trade , Learn & Experience the Risk and take it as a part of your Exports Journey .

Mostly the exporters Build their trust with Importers by giving them credit , Give Competitive prices ( Having met various people in the market , this is the way where new entrants gets a chance to work & Prove themselves , Not promoting anybody here to trade on credit , But you need to understand the signals of the markets ) . Many have wild Expectations being a startup themselves and has No credibility in their own country . ( Lets be straight , No Cooked up stories here , i am sorry i may be harsh this time , but it is the truth)

Again , Please dont ask again how to get Buyers , Its pretty straight and clear That either you should Travel to other country ( Sometimes you may get or may not ) or Hire a Expert who could do these works for you , Decision is yours!

Hope this article Helps the startups Understand the real way of generating the buyers !!

If its worth reading , Please share it with your Eximpreneurs !

I am happy to Answer any of your queries here !!!

Cheers
Santhosh Raghavan

How to Start Onions Exports from the scratch ?

As Many People here , Had given me a Push to write my Next article , which is a Single Product Multi Market Article , Where a Startup can Learn !! Read it till the end 🙂😀

 WHY TO START WITH ONIONS AS A COMMODITY ?

* Low Investment ( The only Commodity which you can fill the whole container with lowest investment )
* Decent Margins - This is Fluctuating Market , So yes Its just like a Lucky draw at some point of time.
* Good Commodity for the startups to learn in reality.
* Fastest moving Product .
* Huge scope in Asian Continent.
* Demand throughout the year
* No Season Barrier.



WHAT ARE THE MAJOR MARKET FOR PROCUREMENT?

Nashik ( Maharashtra ) - Vani , Pimpalgoan , Lasalgoan , umrana etc This is Worlds Best & Accepted Quality in the international. But why ? This are Oval shaped , Red in Color , Good taste , and can stay for a Longer time ( If anyone wants to store it or stock it) .

Bellary ( Karnataka ) - Comparatively this are Pink onions has a Good market in Malaysia . If Quality Onions Found can be exported .

Gujarat - White Onions are exported to European Countries like Netherlands , Republic of Czech etc.

Rajasthan - This are typically for both local and Export i can say not all Produce can be exported , as it is light red in color.

Percentage wise Market share in exports - 40% from Maharashtra , 30% Karnataka , Remaining from Gujarat & Rajasthan.

WHAT IS THE MARKET OF ONIONS GLOBALLY ?

We have Red onions , White Onions & Golden onions been Exported from India .

Dubai , Srilanka , Malaysia , Singapore are the highest importers of Onions from India . Apart from sri lanka , One season some onions are grown in their land the other three countries typically import onions .

Apart from the above countries we also export to Philippines , Thailand , Vietnam , Turkey , Egypt , Bangladesh , Nepal etc - This are the markets on the basis of the Demand & Supply They import from India .

European Countries - They accept it as Dehydrated onions , Cut onions , Frozen Onions ( We call it as Value added Products ) Country like - Netherlands , Republic of Czech , Germany , Poland etc.

 WHAT IS THE RISK INVOLVED ?

It is a Highly perishable goods , So it should be handled with care.

What should a Exporter take into consideration ?

* Procurement ( VERY VERY Important ) - You cant load container of onions sitting right back from your sofa & transferring the funds . You have to be on ground .
* Transportation - Extreme care has to be taken in Monsoon & winter seasons .
* International Shipping - Make sure you get a right CHA & Shipping company to handle this , Otherwise your Shipping company woudnt be able to ship in the prescribed schedule as they lack experience . For Eg. If your ship is Sailing on sunday the cut off would be on Friday , Friday Morning the Goods should be given to your Shipping company ( If he is asking the goods 3 or more days before the sailing day, he is a Fishy Shipping company ).Get the Quotation & container booking , as the chances are there due to the demand the prices also fluctuates .
* Payments - Theoretically - People seek Credit in this trade Because most of the exporters are already doing this trade on Credit from long time. Technically - Importer doesnt Come Forward to give advance or L/C As the importer is also Investing almost the same amount to get the container out , so mostly importers dont Give L/c / Advance.
* Since its a Very Common Product , There is lot of Competition , But still there is Huge Demand in the market .
* You have see and plan the shipment very seriously as CHLTA H Attitude doesn't work here . If you are planning to ship it next week , keep your plans ready to travel well in advance .

 COMPETITORS ( IN GLOBAL MARKET )

I can proudly say that we dont have strong opposition on this product unlike other products . We are very strong on this on the taste , aroma . Other countries which produce onions are China , Egypt , Pakistan even they export and it is just the game of Demand and supply.
## WHY DO IMPORTERS DEFAULT IN PAYMENTS IN THIS TRADE?

Many have to understand the reality here that , You may have sent Good stuff , But at the end of the day Buyer pays for what he has seen / got . So the Bad Quality & Depreciation in the markets Makes the importer to think about Defaulting . Nobody is Born " FRAUD " Its the situation Which enables them for that act.

This is a Volume Business , People who wants Good Turnover & Decent Margins can turn their eyes in this trade😀😅😎

 FACTS

* Its Not cheap , LOL!
* A Good way to start practically from sourcing to Getting payments for a start .
* Kuch Paane ke liye Kuch khona bhi Padta h ( Choice is yours ) 😆😅😁
* A Good sum of Money is Achieved if you see the market and then send . ( Blindly sending containers every week doesnt work and you will be bankrupted very soon )
* Dont send the containers to everyone you see in fb ( I am a Victim Once ) , Check the credibility & move in .
* If you arent sure , Get a Expert for your Company ( Save your Money & Time ) . Implementing things is better than Education ( Sometimes 😎😎😎).

Hope this article has helped you understand how to start Onions exports from the scratch !!!

If it is worth Reading , Please share it With your Eximpreneurs , Lets Support Each other , At the end of the day we are as One being INDIAN Exporting from our country !!

Cheers
Santhosh Raghavan

Did you Know - Why Startups Fail in Exports / Imports Business ?

Most of the startups Now - a - Days are Looking at Breakthrough either they may be a working professional ( fed up with 9 -5 job or looking at change ) or a business owner who wants expand his business Globally.

I really appreciate the startups efforts , patience , time , energy , investment . Hats off to you guys , But please remember that you should also sustain in the market so the efforts taken by you pays off to you and your generation .

## Coming back to the Point now , Why startups fail ?

-They dont have a Practical exposure / Experience to handle the business . why? They lack the knowledge , It is always ethical when you get guided by guru's or Experts in that industry ( Not all Experts will be mentoring , LOL! 😁😃😁) This is the foundation step that Startups has to work out with. Getting practical knowledge with an update helps you for the consistent business & growth as well.

- Being a Startup , they get excited when a foreigner Approaches him/her for the Product. I understand when we meet / experience what we love we get excited. But this is Business , You should frame your boundaries before you start your talk on your trade / transactions. ( Very important )

-Managing funds - I can say its a top priority step whether you are good at financials or not . managing this will make your startup run smoothly. Being said that ( In India ) Even though there are 100s of advertisements on loans, you need to take out cash from your pocket & start your trade .

-Building a strong Relationship with your buyer is a very important skill in your startup , because today we are in the world of doing business on CREDIT ( no Harm if you give credit ) but you need to know your Buyer well ( Their financial background & Business background ) which every startup has to verify by themselves . Today we never know who goes bankkrupt either personally or through the business . A Consistent talk will give you the smell on the current situation of the buyer. ( I never say startup to do trade on CREDIT , But we are forced to do so as market is moving in that direction 😉😅)

-Supply chain Management - Again this plays a vital role in the cash turnaround ( this is what makes money actually ) - Need to get in touch with RIGHT & GENUINE Supplier . Before you approach a supplier you need to know its Harvesting time , production time , where , how ,when its produced . Product knowledge is Damn Important . the skill of negotiation is the need of the hour 😆.

-Shipment / Transportation - Be aware especially in Mumbai ( Nothing to hide , lets be frank ) Whenever a startup approaches most of the shipping companies gets you a hefty Bills to settle , 1st time you talk you get a fancy figures , 2nd time its ok lets do , 3 rd time when you speak up , it turns out be on a higher angle so please be sure before taking any service from logistics , get in writing all inclusive cost .I have seen myself getting Trapped due to un-competitive / last time change in logistics cost. ultimately failing to do the trade.

-Keep your expectations low , very important . I feel that in exports people have high expectations on Margins . Obviously i dont say you to kick - start with 0 Margins . a Nominal margins allows you to do the trade peacefully

To wrap up , Maintaining all the above will help you to sustain in the market , and see the growth . I write this article with much Positive thoughts in Mind so that our Countrymen's Doesn't fall into the pit of failure.

You can leave your comments , you can ask any doubts / advises / clarifications leave in the below comments .

Dont Forget to Share this with your eximpruners if you feel this is worth reading😃🙂

You can also join our group " #LearnExportImport " to learn & Keep you updated in Exim Journey.

Hope this article help you take appropriate decisions :)

#santhoshraghavan Santhosh Raghavan

Edit

How can we start Exports Business From the SCRATCH TODAY ?

Trying & Starting an Export business is one of the Greatest Startup in the WORLD , But why - You support Your country's growth & Give employment 🙂 


**Coming to the point now , i am giving away Some of the Practical Tips over here !**

First - Learn the basics to advance in international trade ( To be frank no institutes / Consultant can help you learn unless you strive to learn it ) . Spending money more than 5-10k to learn is also not worth as this is not a Professional Course , as your aim is to do business and not to run a training center ( If at all you are planning to do it also is Perfect! )

Secondly - Practice what you have learnt , If you aren't implementing then learning becomes a Big question to you ! or you may have chances to Distract ( As we are so busy in the world ) When i say practice i mean try implementing what you have learnt.

Thirdly - Coming to the technical aspects , In exports you require the following - Product knowledge , Supply chain management , Logistics co - ordination , Buyer ( Very important , tricky ) , Documentation , Banking LAST But not the least Investment . This are the raw materials to start Exports business on a technical angle.

A simple Thought for a startups - Aim at Low investment product with decent margin and with Consistent order is a good to start with!

For Eg : Roses To Singapore , Philippines

How should you plan your startup - Product knowledge & Investment goes hand on hand , At some point of time i know there is a good demand of XYZ Product in ABC Country i have investment & know the market but lack - Sourcing , product knowledge , supply chain management . That puts off everybody in the industry , especially the merchant exporter . This is the back - bone to implement orders.

For Buyers , In todays Digital world , it is damm easy to generate leads than business . You cant generate a business sitting right back at your seat ( unless and until 1. you have a guy , again trusted guy to take care off if it goes bankrupted 2. You have some connection in your circle where you are confident . 3. if you wana spill your hard - earned money for nothing ) .

Getting a International business needs - Understanding of counterparts , mindset , credibility , Experience in trade , pressure to handle loads of orders , a professional expertise . this is how you build a importer who will stay back with you for a long time . i am trading with a single buyer from 6 + years ( This is how i build it ).

Once you have the basic knowledge in trade , Product knowledge , Buyer you are 80% Done in your trade , rest is just a peanut! Managing compliance part , taking care of logistics , banking are part of any business.

Hope this article has given you some insights , Comment your thoughts . :) comment section is all yours :) Comment your queries happy to answer those as well :)

Share it if you feel worth reading among your Exim entrepreneurs !


Jai Hind!

#SanthoshRaghavan Santhosh Raghavan