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Trade leads from Internet is an important aspect of international business and considered an inexpensive way of getting new buyers and consequently export orders. There are many sources of reliable trade leads which readers can easily find through search engines. However, for effective and profitable use of these trade leads, we need to understand who places these leads, why and how to use them for expanding international business. How Reliable are Trade Leads ? It is important to distinguish between trade lead and export order. Trade leads or 'RFQ' (Request For Quote) are enquiries from unknown buyers published in public bulletin boards or b2b marketplaces or sent directly to suppliers. These are certainly not export orders - though some of these could be converted into firm order after successful negotiation. At the same time, many of these could be of questionable value. So, how do we identify trade leads from serious buyers ? Let us look at these trade leads critically and find out ways of dealing with them profitably. There are many kinds of trade leads like business opportunities, foreign government tenders etc. For this discussion, we take the most prevalent type of offers in WWW - message placed by private company or individuals to buy or sell a specific product/service within a reasonable period of time. Who Places Trade Leads ? Foreign distributors know exactly where to go when they want to buy something for re-sale. Normally, they do not need to post trade leads for sourcing. Then why such proliferation of trade leads ? How come there are so many thousands of trade leads populating hundreds of trade bulletin boards ? To answer this question - we need to understand effect of Internet on conventional distribution channels. The advent of Internet has dealt a serious blow to traditional distribution channels, specially in overseas trade. In more specific terms, middlemen are in serious danger of losing substantial business. Earlier, foreign buyers such as retailers had little option but to buy from local distributors who usually imported the stuff in bulk and supplied to retailers in adjoining areas. For retailers, importing in small quantity from unknown sources was difficult and uneconomic. Internet has helped buyers and sellers from different countries to interact freely. Retailers can now reach sellers in distant countries, see their products in websites, negotiate a favorable price and buy in small quantity. There is no dearth of exporters who are prepared to sell in small quantity at regular intervals. This direct buying by retailers at a favorable price, in turn puts pressure in local market and distributors feel hard-pressed to find new suppliers, new products and most important lower price. So, what was once a rather lengthy distribution chain of seller to exporter to importer to wholesaler to buyer, is increasingly losing middle players. It is true that large part of international trade is still dominated by traditional distribution channel, but the trend is towards marginalization of middle men, facilitated by an open medium like Internet. Then Why this Skepticism ? Like most other areas in life, reality normally lies in shades of grey rather than in black and white. So, along with serious buyers looking for serious sellers there are sundry others ranging from window shoppers, arm-chair international businessmen to downright fraudsters and conmen populating the market. As a result, one can find trade leads posted for variety of reasons such as:
Article Source: http://www.gestbiz.com/articles
Amit worked in blue-chip Indian and MNCs for 15 years in various capacities like Research and Information Analysis, Market Development, MIS, R&D Information Systems etc. before starting his e-commerce venture in 1997. You can find more articles of Amit on e-commerce and export import trade over Internet her.
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