How to Start Edible Oil Export and a smooth way to approach buyers?
Any Edible oil export business is a lucrative opportunity. Small scale or new businesses in India feel exporting oil is a hard task to accomplish, however, In reality, initial paperwork requires your highest attention, approaching buyers and shipping is a cakewalk now. Sometimes people are clueless on how to even start edible-oil export but not anymore. Below we have gathered all the information, step-by-step for your better understanding of edible oil export. The following steps will help you draw your plan of action, effectively.
Foremost, before commencing export, you need to get your paperwork on point. The two most important requirements are
- Company registration – it is a certificate issued by the govt. of India, which signifies your business credentials and authenticity. Registration certificate has all your company details, address, owners, etc. in one place. It just signals, your business is genuine and any transaction you make is recorded by the government. Anyone looking to purchase from overseas needs such documents, as they wouldn’t physically visit you and can trust you if government-issued certifications are complete.
- IEC code- also known as the import or export code, with company certification this is a code issued to you by the foreign trade department. IEC code is a number issued to you and all your foreign transactions are recorded against this assigned number. It is a 10 digit code with lifetime validity. Getting an IEC code is an inevitable step before exporting oil.
To apply for all the above-mentioned certificates you require, the company’s pan no., radar card, canceled cheque, and business premises rent or ownership proof. You can apply for a company certificate or IEC code by simply visiting the GST website and Directorate General of Foreign Trade | Ministry of Commerce and Industry | Government of India respectively.
Once your paperwork is complete, the next step is to approach potential buyers. To export, you need to select a target market, where demand for edible oil is high. Right after you’ve understood the high need markets, you have to approach the buyers. You can look online, buy importers’ data, email buyers, call them or if you feel sure that things will materialize, you can visit. These are a few, old-age ways to approach buyers globally. You explain your edible-oil quality, explain the production, raw material source, and discuss price points. Single-handedly doing all this can be tedious or hiring a resource can burn a hole in your pocket.
However, we at Tradologie.com are making the buyer-approaching process easy for you. We digitally connect buyers and sellers all at one platform, without constant emailing or calling for follow-up. A well-designed portal is all you need, after registration, as a verified supplier we connect you with multiple buyers live, worldwide. You can explain all the aforesaid information to the buyers without sending a series of such emails. Such rapid communication with buyers is very fruitful, generally, if the communication is delayed chances are buyers forget about your deal or miss emails/calls but if you are dealing live, the deal will commence immediately.
Shipping and payments approach:
After you’ve managed to attain the order, the next step is sending in the samples for approval. It is the most crucial step of the deal because if the buyer’s requirements are not matched, orders can be revoked. Succeeding to this, It is advisable to discuss payment terms. In domestic orders, payment terms are usually discussed later but when you are dealing abroad, payment terms are stated before processing the order. Credit risk is a possibility in export orders, ask for advanced payments or a letter of credit to assure the genuineness of the buyer
Following the payment terms and quality inspection, you process the edible-oil order, exporting edible oil can be tricky due to the nature of the commodity. To lower the shipping risk, opt for shipment insurance, check for quality, and choose palletized containers. These few steps will ensure the edible oil is preserved properly, in transit.
We at Tradologie.com can help you accomplish all the aforementioned tasks too. With a separate back-end team, we assist with pre-order inspections and securing payments. The buyer base is authentic however to secure the supplier we ask for advanced payments and release them after shipment delivery. Even international logistics services, where we connect suppliers to numerous forwarding agents are available, The preceding is the basic hierarchy you need to follow to start exporting edible oil from India. We’ve also tried to help you with proven alternatives, for setting up your edible oil export business with more ease. Exporting isn’t a task but it is a vigilant job, assistance is mandatory and companies like ours have a structure to support your bigger dreams.