Many of the exporters in developing countries like India, China etc have faced the following situation. You find a potential buyers from Europe or USA for your products, but then after communication for while with this western importer, the potential buyer just disappears, foreign importers don’t buy from you.
Foreign importers don’t buy from you and you never hear from them anymore…sounds familiar right?
With this article, we want to explain you one very important reason why foreign importers don’t buy from you.
NB! This article is especially for people from developing countries.
The fact is most people from developing countries don’t understand that reason why foreign importers don’t buy. Now I will break it down for you!
So, what is the reason, why they do that?
In most of the cases, the reason is the lack of the trust! Yes, that’s right! Foreign buyer just doesn’t trust you, even you have super-offer and great product. If they won’t trust you, then they won’t buy from you.
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Why foreign importer don’t buy from you
Building a trust will lead you to the sales. More trust you have with your clients, the bigger is the probability, that foreign importer will finally buy from you.
Also its better for you as an exporter as well, you will understand more about your client needs and you can make a more personalized offer to him in future.
So, why they don’t trust you? Here are many reasons, I will explain to you most important ones.
1. The bias
Most Europeans and Americans have the bias towards people who from developing countries. Deep in their mind, they have fears, that companies and people from developing countries want to cheat them and are maybe scammers.
So It’s a purely psychological obstacle.
The roots of this belief are ranging from the distant past. It’s hard to change that belief especially if westerner doesn’t have any experiences with people from India or China.
After first deal, usually, westerners understand, that they actually can trust exporters from India or Asia very well.
I remember when I was importing from China first time. I was super-skeptical and had so many paranoias. Still, after the first deal, all changes and I started to trust people From Asia. Next deal with people from Asia was much more smooth and faster to me.
Actually, because of the rising popularity of the e-commerce what allow people to order products from all around the world, bias are slowly decreasing. People see, that they can buy products from China or India online and they will be not scammed. So, this is about to change over time, but still, this problem is valid.
2. Different culture and thinking ways
Most Europeans and Americans afraid, that because your thinking and culture are so different compared western thinking, then you will interpret their requirements differently. Westerners afraid you are not able to meet their requirements. We think that finally, we will get products what isn’t what they expected.
This is especially true when westerner wants to import from South East Asia, China, India. It’s because Asian, especially Chinese, Vietnamese, Indian, Thai cultures, and languages are so different.
It’s very hardly understandable for westerners who first time do business with the People from there.
This is a very important point, having done business with people from China I can confirm, things have different meanings in a different culture. This can be a very strong reason, why foreign importers don’t buy from you.
If something is produced “well” in one country, then this doesn’t mean, that the “well” means same conditions, requirements in some other, very different culture.
Experienced people know this and they know where they should put extra attention to and with what should be careful of. Also, if you have done business with people from different culture, then you know, how to make sure that you will get the outcome what you expect.
But people who never made any deal with Chinese, Indians, for them it is unknown. For them, it’s easy to fail, because they don’t understand what the different culture actually means.
I had realized in China, that even me and Chinese, we understand “things” what each of us says, we still can’t be sure, that we understand “things” in the same way or meaning. If I first time arrived in China airport I truly felt, like I had landed in some strange and very far away planet with very different people.
It takes time for a westerner to get used to other cultures and deeply understand it. For me it took many years living in China, then I finally understand enough how Chinese are thinking. And I confirm Chinese and also Indians are thinking very differently compared people from USA, Europe.
So, it’s a no-brainer, that people with no such an experiences, they just decide do not take the high risk and maybe not buy, even the price you offer is great. They prefer to buy the same product from somewhere near, from similar culture what they are familiar with.
Previous is related to the fact, that people tend to afraid and act skeptically into everything, what they don’t understand well – its human nature. So it can really be the reason, why foreign importers don’t buy.
But, no worries, we will give you some great solutions, how to overcome this obstacle.
3. Very limited English ability
If Importer realizes, that your English is too poor, then they automatically think, that it’s too complicated to make business with you.
They think that you probably won’t understand all details and you will send the product, what won’t meet their requirements.
If you are struggling with English, then you can find yourself a friend who can help talk with that foreigner.It’s easy to overcome this problem, more and more people speak and write fluently in English.
4. Too aggressive sales tactics-the very important one why foreign importers don’t buy
Most of the exporters from Asia, India have a way too aggressive sales tactics for Europeans and Americans. This is especially valid for exporters from India and China.
People from developing countries are using the same tactics that are working in Asia and India where is a huge population.
They are using aggressive tactics, because its normal in their countries and they even cant imagine, that this could be done differently in some other country.
Unfortunately, most of them don’t understand, that if you use same tactics for foreigners, then in 99% of the cases you just scare the potential buyer away!
Too active selling is not effective in the west.
Example, if I start negotiation with the Indian or Asian supplier and if their first question to me is when I will buy? Or how big first order I want?, then with 99% definitely I won’t choose that supplier.
Because I want at first know about the product, I want to be sure that supplier is offering the product what I am looking for. All the requirements need to be met first. Also, the payment terms need to meet both side needs, then the negotiation process will start. Then exporter can ask when I plan to buy and how much.
5. Not enough flexibility in terms
This is a big problem for people from Asia. Asian culture is itself not supporting to be flexible. In Asia, if something, let’s say payment term is set by the manager, then it’s very rare that customers can negotiate them.
Unfortunately, nowadays when importers have a wide choice and they can buy whenever they want, then the flexibility of payment terms is very important. If you can accept favorable payment terms, let’s say 100% LC, and others are not accepting this, then this can be your competitive advantage!
6. Not allowing the inspection of the goods, before first payment
Some companies are not allowing potential clients to visit their warehouses and see the products, before the initial payment. Often trading companies are afraid, that if foreigner sees the original producer details, then they will go to the original one.
Actually, its rarely happen. Companie should let foreign buyer come and see the product by themselves. This will also let you be surer that buyer is reliable. You can also have face to face meeting and sign the contract.
I can confirm, that if you let foreign buyer to your warehouse, so they can check your products, then they are more likely to buy from you. They see that you have nothing to hide, so they will trust you more.
If you say to the foreigner, that we don’t accept any visit, before 10% or 30% of advance payment is done, then you are saying NO to the potential sale! This will definitely make foreign importers don’t buy from you.
Previous six factors are most important things you need to control if you want to build trust and reach to the deal with foreign buyers.
Now I will give you also some useful tips as well, how to build trust with the potential foreigner buyer.
How to build more trust with foreign buyers
Building a trust will lead you to the sales. More trust you have with your clients, the bigger is the probability, that foreign importer will finally buy from you. Also, it’s better for you as an exporter as well, you will understand more about your client needs and you can make the more personalized offer to him in future.
- Be always transparent and don’t hide anything, be neutral and natural. If you try to hide something, the foreigner will feel it!
- Always welcome foreigner come to your country, meet you, see your country and see your products. This will build trust well.
- Practice your English in reading, writing, listening, speaking. If your English is good, this also builds trust.
- Make foreigner friends, talk with foreigners, try to understand their culture. If you start talking with potential foreigner buyer, then tell that you have many foreign friends and you like western culture.
- Give the answer to every foreigner question in a detailed way. This proves that you understand foreigner and he trusts you more.
- Always build trust and don’t start with aggressive sales tactics at first place. First, you build the connection with him. Price and payment questions let be the latest ones, when you have already won the trust!
- Be flexible, try to offer terms based on the customer needs.
I hope my letter gives you a better understanding how to act with potential foreign buyers/importers. So, always build trust to prevent that foreign importers don’t buy from you!
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