There are many things you need to take care of when doing import and export activities in Indonesia. One of them is finding a supplier for the goods you want to sell. Sometimes, it is difficult to find a supplier that you can trust on your own. So one needs the help of a broker. Then what is a broker in export and import?
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What is a Broker in Import and Export ?
In the world of exports and imports, a broker is a firm or agent that mediates between importers or buyers and exporters or suppliers. Usually, they can help when you need to find suppliers or goods in other countries that you don’t know the details of the trade map.
The broker is responsible to keep the confidentiality of their buyer and supplier. So, Both Supplier and buyer will not know each other. All the communications and negotiation between them will be mediated via the broker.
What Can an Import and Export Broker Do?
Before using a broker services, it is important to understand what kind of services an import-export broker provide. Usually, a broker will provides several services, such as :
1. Finding a Supplier
When you want to find a significant supplier for your business, a broker will be ready to help you. It is even better if the broker comes from the same country as your goods sources.
2. Estimate the Value and Price in the Market
Besides finding the supplier, a broker can help to check the market of your goods. On the process, the price can also be calculated based on your needs.
3. Negotiate with Buyer and Supplier
When dealing with the supplier, the broker will help you negotiate with the supplier on your behalf. The same things happens vice versa.
4. Managing the Purchase and Sales Documents
Not only communicating, the broker also deals with all the documents needed. Whether it is purchase and / or sales documents.
Processes of Using a Brokerage Service
If you are going to use a broker service, there are several processes you need to know first. To describe it more clearly, I will use an example of finding a coffee supplier in Indonesia. Here are the processes below.
1. Contact a Brokerage Service
Initially, let’s say you are a buyer who wants to import coffee from Indonesia. Yet you have no idea which one will be the best coffee supplier.
2. Decide the Initial Fee
After you contact the broker, both of you can decide the initial fee of finding a supplier in Indonesia. Then you can continue to the next steps.
3. Set an Agreement Between the Broker and Buyer
Following the fee arrangement, the broker will set a Non-Disclosure and Commission Agreement between you and the broker. Inside the agreement, usually there will be explanations about the fee and to not disclose the agreement to anyone.
4. Finding the Right Supplier
Ever since both of the parties sign the agreement, the broker starts finding a coffee supplier in Indonesia.
5. Deal Between the Buyer and Supplier
Subsequently, you can start the deal after the broker find the right coffee supplier from Indonesia. In other words, all the deal process will be done by the broker on your behalf.