Finding a dependable buyer and distributor is a difficult component of the export process. The pool of candidates may be large, but most won’t fit the criteria your product requires to make sales in a foreign market. It’s important that you outline your own criteria before entering negotiations with a prospective partner. Having a keen understanding of your business’s needs will ensure you land a trustworthy buyer.
What to Look For
The traits an overseas distributor should possess may seem obvious, but can be easily overlooked when in the midst of meetings, trade shows, and identical pitches. Remember to assess the following when seriously considering a buyer:
- Good Reputation
What do other exporters have to say about them? You are well within your rights to ask for references and testimonials from their other clients. If the buyer cannot or will not provide references, you can ask their clients directly. A directory of their clientele shouldn’t be difficult to acquire or put together yourself. However, if you can’t locate the name or contact information of a legitimate client, you may want to consider a different distributor.
- Financial Transparency & Trustworthiness:
A good export partner should be willing and able to negotiate the financial aspects of a pending contract without confusion. These aspects include a thorough explanation of what party will pay for certain elements, including: transport, custom fees, merchandise insurance, promotional fees, and more.1 They should also be able to prove they have followed through on all past payments and reimbursements.
- Knowledge
Distributors should be tuned in to the ever-changing policies of international trade. Additionally, they should have an astute understanding of both the basic and complex facets of the import-export processes. Fulfilling contractual obligations can become burdened by regulatory shifts. A good distributor eases this burden.
- Effective Communication
Communication between your business and a prospective buyer should reflect the following: professionalism, consistency, honesty, and advancement. You should never feel as though a discussion is stagnating or regressing, whether face-to-face or virtual. Either it’s leading to a future working relationship that’s mutually beneficial and respectful, or it’s a waste of time for both parties.
- Flexibility
Though it’s crucial for both parties to adhere to their contractual obligations, it’s equally important that they be flexible. The world of trade is as unpredictable as it gets. The ability to make smooth and efficient adjustments when circumstances call for it is paramount.
What to Avoid
Sometimes, all you need to do when coming to a decision on a trade partner is trust your gut. Typically, if a distributor exhibits poor communication skills, a lack of transparency and knowledge, or simply fails to meet the criteria outlined above, you will know they’re the wrong partner for you.
But if you’re still uncertain, a good indicator of a distributor’s worth is the effort they make to market both themselves and their clients. Whether through written, verbal, or visual avenues, a distributor that’s serious about their partnerships and profit will prioritize effective messaging and marketing strategies.
Need Help?
The most accessible weapon in your arsenal is the internet. If you are having trouble getting a good read on a potential partner, dedicate time to researching their company. This should be done prior to your first official meeting with the distributor. This doesn’t mean you need to know everything about them upon first contact, whether this be at a trade show, networking event, or elsewhere.
While online resources can be great, nothing can beat the personability of the NDTO! Whether you need help doing background checks on buyers, understanding contractual terms, or negotiating a good deal, our team of specialists is here. You can reach out at (701) 231-4323.
A network of dependable, good distributors can completely transform how your business experiences exporting. Knowing you can rely on your foreign distributors relieves the burden of initiating international sales. Though it can be difficult, finding good trade partners is entirely possible as long as you understand your business’s needs and outline your buyer criteria.