Disadvantages of Export Houses
1. Levying Charges: Since Export Houses are responsible for packaging and shipment, they levy extra charges on the products. Some houses levy taxes as well. Therefore the market price of the product increases, and customers have to bear this extra cost. Sometimes Export Houses levy extra charges on fragile items as well.
2. Lack of Interaction: Since the Export Houses are intermediaries, they mostly deal with the customers, and the target company does not get much chance to interact with the customer. If a customer has any query regarding the product, usually export houses clarify, thereby, increasing the gap between the customers and the companies.
3. Lack of Predictability Power of Companies: Even if the Export Houses deal with the market and financial part, the target companies cannot predict future outcomes using this data. For this, they need to step into the market. Export Houses usually use their market research analysis for their benefit.
4. Logistical Problems: Since exporting involves compliance with strict rules and regulations, delays and damage to the products can be expected. These logistical problems can hamper the reputation of the companies as well as can cause huge losses as well.
5. Customer Dissatisfaction: Although Export houses provide customer support, it is still seen that they fail to resolve the queries of the customers, which leads to dissatisfaction. Often, customers receive damaged products, and if the team does not solve the issue, customers feel cheated, and this can harm the company’s reputation