7 Characteristics of a Genuine Seller of Commodities

Finding a genuine seller of commodities is not an entirely easy feat. The market is riddled with sellers who are selling a fake product, not reliable or do not actually have the products. However, with the right information, genuine sellers can easily be identified.

Here are some characteristics buyers should look out for when searching for genuine sellers of commodities.

The seller has a track record of dealing with bigger businesses

It takes a lot of expertise, persistence, and credibility to sell to big businesses. Hence, sellers that have a track record of selling to such businesses are usually more reliable and credible. These sellers are usually the real owners of their products, not fake brokers that run around with the client’s money without having the commodities they claim to have.

They are also very good at building lasting relationships with customers. Big businesses often look to form long relationships with their sellers – not just to make spot buys. They want sellers that are conversant with their products and can be called on at any time should they run into a problem. Patronizing such sellers is always a good idea.

They are registered on a marketplace that verifies local farmers and sellers

Marketplaces verify sellers on their platform as a form of protection for both sellers and buyers. It makes it difficult for fraudsters to pose as sellers on these marketplaces and defrauding buyers in the process.

To get verified on a marketplace, sellers are required to submit personal information like email address, house and business addresses, unexpired ID card, and passport. Official company details, financial information, and tax numbers are also often requested for. All these requirements serve to ensure that the seller is genuine so buyers can be assured that they are in good hands.

Recognized by the country’s export council

Export councils register sellers who are genuinely interested in exporting their commodities out of the country. They are regulatory bodies that promote and regulate export trade as well as implement export polices.

They also provide professional assistance to exporters. Such areas include export procedures, documentation, financing, quality control, export packaging, costing, pricing, and so on. When a seller is registered under the country’s export council, their goods are subject to proper inspection by specific agencies.

These goods will not be shipped unless they meet the required standard of quality, have complete documentation and meet the buyers’ expectation. Hence, the buyer is protected from counterfeit commodities or other fraudulent activities.

Has an export license

Export licenses are documents issued by the appropriate licensing agency which grants sellers permission to export their commodities out of a country without any hassle. The license is only issued after a careful review of the export transaction and all prerequisites have been met. Commodities shipped without an export license are seized at the customs which serves as a loss to the buyer.

Registered under a trade body in their country

Trade bodies are non-profit organizations formed by businesses in the same industry. They are formed to protect the interest of their members, promote trade laws, and be the voice of the industry against unfair legislation.

Trade bodies prescribe the code of ethics for their industry in order to discourage unethical behaviour. They also an avenue for like-minded individuals to network, share ideas and make connections that would be impossible without the association. An important thing they offer is certifications and licenses. These provide a sense of reliability in the minds of customers. It assures them that they are dealing with a genuine seller.

Communicates clearly and is consistent

A seller that lacks proper communication skills is not one that any buyer will want to do business with. Effective communication builds trust and emotional connection between the seller and the buyer. The buyer can comfortably discuss their needs with the seller and the seller can effectively alleviate their concerns and make them feel valued. Consistency is also a very important characteristic. A consistent seller is one that continuously delivers genuine commodities, knows what’s going on in the market and is always looking for ways to improve. A buyer is sure can rely on such seller.

Understands the product

Genuine sellers understand their products. They know everything there is to know about them. They know the features, functions, several applications, advantages and disadvantages, lifecycle, among others.

The seller is thus able to present the benefits of the commodity accurately to the buyer in terms that make sense. Sellers that have a proper understanding of their products. And it shows how invested they are in the products and how passionate they are about it.

How to become a product sourcing agent and make good earnings


An Ultimate strategy to get into the Nigerian export value supply chain

As a product sourcing agent you can conveniently plug into the export value chain, what a good way to build up a successful exportation business from nothing and have fun doing it? Not only does it require little financial investment to start, but it offers the prestige of working with Nigerian exporters spread all over the Country.

What you need to start: You don’t need previous experience in the field, but you should have a good head for organizing and constant attention to little details.

Making contacts with exporters: As product sourcing agents, you will need to make contact with the Nigeria exporters, you can register with some trade portals where you will have access to their chosen commodities, specifications and contacts details, you can send a mail to them and inform them that you can met their requirement, you will need to submit a product sample, and you can then go ahead to discuss the price and the terms of payment

You clients: As a product sourcing agent you will deal with farmers, you will need to go their farms and deal with them directly and you might need to transport the commodity to the city, you can also deal with the local buying agents and the commodity merchant, although, they are very expensive but they make product sourcing very easy.

The value chain:

The farmers – Local buying agent (LBA) – Commodity Merchant – Commodity Sales Agent – Exporters

Farmers: Cultivate and harvest the commodities: Nigeria, one of Africa’s most populous countries, has a highly diversified agro-ecological condition, which makes the production of a wide range of agricultural products possible. Agriculture is one of the most potentially viable sectors of the Nigerian economy, particularly in terms of its employment generation potentials as well as its contribution to Nation’s Gross Domestic Product (GDP) and export revenue earnings

The Agricultural sector is being totally transformed by the federal government to enable the country move from traditional farming to modern agriculture as a business both for small and large-scale farmers. The objective is to ensure food security whilst also promoting exports in agriculture value chains where we have a comparative advantage. A lot of Nigerian exporters are investing in large scale plantation of different agricultural product, making over 900% returns on their investment. As a small investors you can get involved in the export value chain by getting a land lease for a year at N5,000 per hectare or buying the land completely and start large scale agricultural plantation

Local buying agent (LBA): They Purchase commodities from different farmers and pre –process them for export. They make sure they have enough commodity in stuck before the market day The local buying agents (LBA) is divided into two parts we have the local commodity merchant and city or large commodity merchant..The local commodity merchant operate at the local level, for instance a local buying agents that operates in Jujunku in Taraba state will by from the farm and stock his shop with agricultural commodities before the markets day, The city commodity merchant are in Kano, Lafia, Kaduna, they are big players before you can buy from them you must have a big order, some Asians that come to Nigeria do buy from them made in Nigeria raw goods, because the city commodity merchant can arrange for five to ten containers within few days As a product sourcing agent, you can buy from them if you have big orders, especially when you have the financial muscle to buy in large quantity, dealing with them ultimately saves time of the sourcing agents because you will get your commodities at one point

Commodity Merchants: Purchase commodity from different local buying agents and farmers to process and sell to the sales agent and exporters. They are in Lagos and you will need to give them advance payment before they can supply you your chosen commodity. I will advice any new entrants into commodity sourcing to deal with the farmers, or the local buying agents, because commodity merchant are very expensive to deal with.

Commodity sales agent: Purchase the commodity from merchants and local buying agents to deliver to exporters’ warehouse. Some of them are in Lagos.

Need a point man: As a product sourcing agent often times you will need a point man, when you are sourcing for agro products, a point man will make product souring very easy for you they know the terrain and they now how to deal with the agents, they help in quick and effective coordination of your chosen agricultural commodity.

Exporters: They are the receiver of the products, they deal with the international markets In the export value chain an exporter can decide to deal with any of the agents or commodity merchants, he can decides to pay in advance or when the commodity is delivered to the warehouse. A lot of Nigerians are operating a highly lucrative export company and they are making a steady income of between N500,000 and N10,000,000 monthly, regularly, and at their spare time. The profit from the first transaction can be ploughed back and an investor will be able to build up his capital base. The cheapest exportable product is charcoal and the start up capital is N650,000 and the profit on investment is N150,000 per trailer, Nigerians cannot even met the demand coming from the Europeans Countries now. If you have an ability to sell, and an air of diplomacy, the export business might be right for you. All you need is the desire and determination to make it work.

Product sourcing for the local manufacturing company Do you know some local manufacturers looking for ways to increase their market for the goods they produce? You can help them source for their raw material, a lot of Nigerian companies are looking for cassava tuners, cassava flour, Shea butter, Cocoa, maize, Groundnut, you can get their LPO, I discovered that some of them pay on delivery being their regular supply can raise your income level.

Export Business Can Still Accommodate More Nigerians: The non-oil export business is still at its very primitive stage in Nigeria with a very high potential for growth. The market is, thus, inexhaustible (especially for agricultural commodities and other consumables). Therefore, there is space for everyone that will like to earn foreign exchange via the export business. If you are interested in the export business, you can start as a product sourcing agent and increase your skill in the export value chain.

The biggest advantage is the money you’ll make. Once you get the business underway, the commission for setting up sales is very profitable. And after you establish and maintain a number of exclusive accounts, you’ll find the time you spend is highly rewarded with money.

To get started as a seller; follow link below


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