A lot goes into every international trade transaction; from product sourcing to logistics, payment security, and much more. But while there are attractive profitable opportunities to explore, there are also great risks involved, and one risk that can cost you your entire investment is failing to ensure that the quality of the goods you’re exporting meets the export standard agreed between you and the international client.
Quality assessment is usually a great problem for a lot of exporters and managing this risk is key to building a profitable fast-growing international trade business, since meeting your obligations would help spread word of mouth. But when you fail to meet the quality standards specified, you wouldn’t just lose clients, but would also very likely lose your investment.
− Feasibility Study Writers −
Still Looking For Finance? You Can Now Get The Loan/Investment You Need With Our Bank And Investor Ready Professional Feasibility Study & Report Writing Service
With our world-class MBA Standard professional bank and investor-ready feasibility study and report writing service, you can finally get the finance you need to succeed! Our feasibility study & report writing services are very comprehensive and in-depth!
If you’re an exporter in Nigeria or any country located around the world, here are 6 ways to ensure the quality of goods you’re buying locally, exporting, or importing meets international market standards:
1). Study The Laws Of The Region Or Country You’re Exporting To:
Every region in the world has a minimum standard for the commodities that can be imported into their countries. Whether for petroleum products, agricultural products, or solid minerals, there’s a minimum standard for every nation, before moving on to the importer’s standard requirements.
Studying and understanding what is acceptable in most parts of Asia, Europe, America, and parts of Africa can be the difference between success and failure.
For instance, when it comes to spices, ASTA (American Spice Trade Association) standard is what is expected in many parts of the world, but then, there’s also the FAQ (Fair Average Quality) standard that is also accepted in other parts.
For petroleum products, many countries have a preference for commodities with low sulfur contents, and so give their required specifications.
The same applies for solid minerals as some countries only want solid minerals that have higher concentration levels to be imported into their nations so as to eliminate excessive dust and reduce global warming effects generated when trying to process low-quality minerals.
Before you commit to a specification with an international buyer, first find out what the minimum acceptable import quality is for the country and work your way up from there. Even if the buyer wants a standard lower than what’s allowed into their country, the cargo might get seized at the delivery seaport and if you have not been paid yet, you’d very likely lose your entire investment.
Always start negotiating quality standards from the minimum acceptable standards in whichever country you’re shipping to.
2). Only Contractually Agree On Realistic Specifications:
Some buyers would want the specifications of the commodity they’re purchasing to be unrealistic. And by this, it means giving ridiculous requirements for commodities where the requirement does not match the price.
Usually, these type of buyers will want to pay the lowest possible price for the highest possible quality. And when you see them, you should not go too far with the inquiry because first, their values, beliefs, and respect of other people’s wellbeing are highly questionable. They only care about themselves and no matter how much you try to please them, they’ll find a way to frustrate you.
Before you commit to any specifications, first ensure that the price of the commodity and the quality matches right, and if the quality is too tough to meet up with, then its best you simply tell them what you can and cannot do.
3). Pay Attention To The Branding, Labelling, & Packaging:
While most people pay too much attention to just the quality specifications of the product, a lot of them tend to pay far lesser attention to the area of branding, labelling, and packaging.
It’s important that you must also meet the branding, labelling, and packaging terms as agreed, else you might not get paid despite meeting the quality specifications of the product.
4). Mutually Hire The Services Of A Globally Respected Inspection Company:
Never agree to have the buyer be responsible for inspection. In the same light, the buyer should never let the exporter be responsible for inspection.
It is important that an independent inspection body is responsible for inspection so that there will be no partiality in the quality tests from either the buyer or seller side.
The same way, if you’re purchasing locally before you export to your international buyer, ensure you have a standard inspection company to carry out tests on the commodity to ensure it matches the quality specifications before you pay to them.
Some globally recognised inspection companies are SGS, Bureau Veritas, & Cotecna.
5). Have A Local Supplier Deliver To Your Warehouse Before Paying:
As an exporter, buying locally in remote communities for export could be a huge quality and security risk. And to mitigate this, one thing you could do to give yourself the best chance of shipping only the agreed specifications between you and your buyer is to give a local purchase order (LPO) to a local supplier who would then supply to your warehouse and only get paid if the goods pass the agreed specifications.
− Export Business −
How To Make Your First $10,000 (₦3,600,000) Exporting Commodities From Nigeria To International Buyers: Online Course & eBook
With our highly in-depth and comprehensive online export business course that will teach you everything you need to know on how to earn your first $10,000 exporting commodities from Nigeria, you can finally have the best chance of building a successful export business in Nigeria, Africa, or anywhere around the world from scratch!
In the LPO, you’d state the agreed specifications, and if possible, issue a local bank payment guarantee to the supplier stating your commitment to pay if they deliver as per your specifications.
6). Cover Insurance:
The last important part to handle is to ensure that you cover insurance for 110% of the value of the commodity against all forms of risks that could impact the quality of the goods in transit.
When you do this and for some reason, water or any external factor affects the commodity through some means or the other far beyond your control and of no fault of yours, the insurance company would have no choice but to pay for the commodity.
What are your thoughts on how to ensure the quality of goods exported meets the agreed export standards? Let me know by leaving a comment below.
This Online Course & Book Will Show You How To Build A Successful Export Business From Scratch!
The export business remains one of the most profitable businesses in the world, including Nigeria, with profit margins going anywhere from 30% to in some cases over 100%. With the growing clamour by the Nigerian government for entrepreneurs should go into the export business, the need to effectively educate people on everything they need to know and to show them how to make their first one million Naira from the export business in Nigeria has become very paramount.
In the light of the lucrative opportunities in the export business in Nigeria, Stan Edom, the founder of StartupTipsDaily Media, and the founder of Globexia Limited, a commodity trading firm with thousands of dollars in export revenue in solid minerals and agricultural products, has taken out time to prepare a robust online export business course with a free eBook on how to create a fortune investing in the export business in Nigeria. This Online course will teach anyone everything they need to know on how to build a successful export business from scratch, present a live case study, and show you how to export lucrative highly-valued commodities profitably from Nigeria. It also has a section that shows the reader how to start out as a broker.
This online course and e-book is perfect for beginners in the export business in Nigeria, as it will take you from a novice to an export professional, and help you either make money by starting your own export business in Nigeria, or by becoming an export consultant or broker.
You can follow the link below to learn more, sign up for the course, and get a free export eBook.
Offer: How To Create A Fortune Investing In The Export Business
Online Course & Book Author: Stan Edom
Course Delivery Format: Online & eBook
How To Sign Up: Click Here