Some Techniques that can Help Reduce the Risks

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There are techniques that can help reduce the risks:

Do plenty of homework.

You should learn your target country´s credit and accounting practices, cultural nuances and export restrictions.

Treat all suppliers the same.

Take the same disciplined approach to bargaining with foreign merchants as you do with domestic suppliers. Resist goods you don´t want and keep from being overcharged for items you like. Deal in goods within your own specialty and know your bottom line — the highest amount you can afford to pay and the lowest price you can reasonably accept.

Hire a freight forwarder.

Using a freight forwarder to handle packing and customs-clearing paperwork will reduce shipping costs.

Purchase insurance.

Generally speaking, the importer and purchaser takes legal possession of the goods when they leave the factory, whether or not they actually arrive. Most small importers/exporters buy "all risk" insurance, and many smaller dealers buy insurance from the freight forwarders or shippers.



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E-Market places Made Simple

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Perhaps you are wondering what an e-marketplace is. Well, for those of you who are not very familiar with this term, I will try to make it as simple as possible. You have probably heard that many buyers and sellers have the chance of meeting online and making a lot of transactions that greatly benefit their business. It is a world of opportunities for such a large number of people, especially because one can either play the role of a buyer or seller, or both!

As a matter of fact, an e-marketplace is a platform which serves buyers and sellers at the same time. This way, you can better make sales offers and buy products and services, or examine the buying and selling opportunities from the comfort of your own home or workplace. No more of that tiring running around all day long! You may also add your products and services to many e-catalogs and use numerous other value added features.

Each and every businesses owner who decides to participate in an e-marketplace can only benefit from such a choice. Nevertheless, there is a strong relationship between the potential benefits that a company can get from getting involved in an E-marketplace and how heavily the company uses the features of an e-marketplace. It is only natural that a company that concentrates on e-marketplaces will gain more in sales and, at the same time save administrative costs.

Among the benefits that e-marketplaces bring, I will only mention improved customer services, reduced paper work and last, but not least, less money spent on distributing the products.

There are two major factors that any seller who is involved in an e-marketplace can benefit from: revenue growth and cost savings. Revenue growth refers to the fact that a seller can get instant access to a large number of potential buyers for the products or services he offers.In order for a seller to participate in an e-marketplace he or she must first register. Should you have already chosen a login name, the registration process will be reduced to the easy task of filling up a form.

The profile you write and the logo you design are also very important for the image of your company. Including your products or services to an e-catalog might trigger an amazing success for your brand. In what the e-catalog is concerned, a good business owner and seller must first include his products and services in the matching subcategory and provide all the details about them. The idea behind providing this large amount of information is convincing a buyer to make a purchase on the spot.

After making the sales offers and establishing the payment and shipping methods, you are set to start doing business online in the world of e-marketplaces! It is a world that still has no limits in what the benefits can get to, that is both for the sellers and, of course, for the buyers of products and services in an e-marketplace.

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Make Your Clients a Key Part of Your Business Development Strategy?

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The first thing you need to do is a full analysis of your client base, so you understand how much of an asset it really is to your business.Any business development strategy must give great consideration to the value of your client base, both now and in the future. The flip side of that is the value that you can offer your clients. If you can answer these questions then you have obviously done the analysis and know where you need to focus to increase the value of your clients:

• How many inactive clients do you have as a percentage of your total client base?

• How many of your current clients represent growth opportunities?

• How many clients have declining value, as a percentage of your total client base?

• How many represent a constant stream of regular revenue?

• How many of your clients are in growth mode, in terms of their value to your business?

• Do you know your clients business development strategy?

• Where are the opportunities for you to provide more value and support to your clients, or to provide them with new products and services?

• Have you grouped your client base into tiers, with Tier 1 being the most valuable?

• What percentage of your client base is in Tiers 2 and 3, and could potentially become a Tier 1 client?

• Are your clients worth enough to you?

• Do you have the right clients?

• Do you have enough clients to be able to grow your business now, or do you really need to acquire new clients?

• What do the answers to these questions mean to you in terms of revenue?

This is a simple exercise, and an important one. Segment your own client base so you have the right information to then make some decisions around your business development strategy.

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How to Run an Import and Export China Business-In the Right Way

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If you are planning to venture your import and export China business, plan beforehand. Make sure you have adopted effectual business strategies to make your China business a successful business. Below are explained three formulas to make your China business a hit. Include these three ways when you weave plans to land up your import and export business in China. 

You Must Distribute Your Products Directly

In order to make it big with an export based China business, conducting a market research is very essential. Even before you start finding a Chinese partner dealing in import and export, emphasize much in carrying out market researches. Market research and due diligence must be your first concern while entering into a China business. Look for companies which are aware of import and export related problems to arise in a China business.

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How to avoid Internet Fraud

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Check the credentials of potential partners before engaging in business

Be sure to check the background of all potential partners before engaging in any business over the internet.

Payment

Letter of Credit (L/C)

A Letter of Credit is the preferred payment method. However, there is some possibility of fraud due to incorrect or forged shipping documents. Minimize the potential for fraud by contacting the L/C issuing bank.

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Building solid relationships is the key!

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People on business should use relationships to manage transactional risk.Most often it is not the payment method that becomes an issue in a transaction. Rather, it is the lack of due diligence on the part of the buyer or the seller that creates complication. All methods of payments (open account, advance payment, consignment, documentary collection and letter of credit) have proved to be effective mechanisms for decades. You will choose one of these payment methods, depending on your risk tolerance and the relationship that you have with the seller or buyer. For example, if you are the buyer and agree on advanced payment through Western Union or T/T, you will pay the seller in advance. Therefore, you will be taking a huge risk if you do not have a good relationship with the seller. I suggest that you focus on creating a solid relationship with your seller or buyer. Payment methods are only mechanisms to help you complete successful transactions.

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