Selling Through an Intermediary
Retailers are the most popular choice for exporters because they sell directly to the consumer. They tend to reach a broad range of consumer needs as well as wider audience.
Wholesalers sell products to the retailers and carry a variety of products from a number of businesses but specialize in a specific type of good such as food products or automotive parts.
Distributors sell a variety of products from different producers. Unlike wholesalers, they do not specialize in a specific type of good and normally sell directly to customer.
- Assist you with establishing market access that may be difficult to do on your own
- Possess the knowledge, resources and distribution capabilities to help establish a presence in retail chains
- Assist you with developing business contracts
- Possess staffing and delivery capabilities to help you export your goods in a timely manner
- Helps you build business relationships
- Intermediaries can be costly because you will have to pay them commission, which could reduce your overall profit margins
- They represent many companies and they may not focus their attention on your business
- If your products are not selling, they may offer a discounted rate which will lead to a loss in sales for your business
Marketing Yourself/Direct Export
Marketing yourself is a great option if you are innovative and creative in finding new ways to sell your products directly to the consumers.
As the exporter you are responsible for developing a business plan, market research, entry strategies; as well as handling all logistics including shipment and payment.
- Develop your consumer base
- Establish a relationship with your customers
- Determine the payment options
- Use a hands-on approach
- Resources and time necessary to do the initial start-up
- Requires more “people power”
- Knowledge of all country specific regulations is your responsibility