ExportImport.Guru : Entry in International Business via International Brokers - Export Booster Barai

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Brokers mainly do marketing activities and find buyers for Exporter.

Q. What are charges of broker ?

A. Broker charge some % of commission on Invoice value, that commission has to be paid to broker once Exporter receives fund in their account

Q. What commission broker charge ?

A. Broker Charge 0.25% to 5% on invoice value based on Products.

Q. How broker find buyer for us ?

A. Generally broker has got good contact base in foreign of their friends & relatives. Moreover they also do online marketing, they have got good communication & marketing skills

Q. Are Borkers = Merchant Exporters

A. No Brokers are not merchant Exporter, Merchant Exporter has his own IEC Code , he might be exporting his products on his brand name

While broker does not have a company or IEC, he finds only buyer and provide it to Manufacturer or Merchant Exporter.

Q. Why can't Broker do deal directly ?

A. Broker generally don't have much financial capacity instead of starting small business, many work as a broker for major company who can invest a much in this trade. Many broker also becomes successful Exporter later on.

Q. Is broker business safe? Broker work for Exporter & Exporter can cheat broker by asking buyer to deal with him directly...

A. Broker does legal agreement with Exporter. If Exporter does direct deal without providing them commission then he could be taken to court

Moreover Broker gets all Website email I'd & password access of Exporter, so broker tracks all activities of Exporter till contract end.

Q. What is the life of agreement / contract with broker?

A. Generally contract are done between 1 to 5 year with broker.

Q. Do broker work for startup ?

A. Generally broker work for only those who can invest much in trade but I have made few Borkers who also work for Startups.

Q. Is it worth to work with broker

A. If you don't have much time for marketing, if you are not tec savvy then broker is good to provide a business start but broker charge much commission , if they charge 5% of your invoice (bill) then its equal to 50% of profit on Products & i.e they do get without investment.

Q. Are broker & buying agent same ?

A. Many times I have heard people telling that agent & broker are same but it's not , agent are available in foreign countries one needs to provide them products as an sample, they market it & they also charge commission after deal ?

Q. What is difference between agent and broker in international market ?

A. Broker are found in our country & Agents are found abroad. They do almost same work , so many people says that both are same. But in actual person marketing for our products from India is broker & person marketing our products from abroad are buying agents.

Q. Do Exporter need to pay commission on first deal ?

A. No, Contract are made such that broker will get commission on every deal

Q. Why buyer would prefer to buy from broker ?

A. Broker do not revail their identity. Broker does marketing from Exporters official email I'd , buyer feels that he his in direct connection with manufacturing unit or supplier or Exporter. Many times broker represent itself as marketing manager or marketing executive for a firm.

&

In many cases broker has got his own relatives who only trust broker.

Cordially yours,
Kishan Barai
http://www.baraioverseas.com/