Trading and Distribution

Trading means moving a product from where it is cheap or plentiful to where it is needed.

• Choose one product you can understand and test (for example packaged food items or hand tools).
• Get three supplier quotes and two buyer needs: price, quantity, time.
• Check quality, shelf life, and any rules for the product.
• Never trade restricted goods; check licence and sanctions first.

Activity. Write the one-page idea and a quotes table in your currency.

Standard to meet. Put three supplier quotes and two buyer needs on one page.

Each document proves one thing. If they disagree, goods get stuck.

• Quote: what you offer and at what price. Order: what the buyer accepts.
• Commercial invoice: what is sold, quantity, price, currency, terms.
• Packing list: what is in each package, weights, sizes.
• Transport document: proof the goods were handed to the carrier. Certificate of origin: where goods come from.

Activity. Prepare a draft invoice and packing list for your mock deal and cross-check every figure.

Standard to meet. Check the documents so that no mismatches remain between them.

Trade terms decide who pays freight and who carries risk at each point.

• Standard international terms split cost and risk between seller and buyer. Pick one and write why.
• Landed cost = product + packing + freight + insurance + duties and taxes + bank charges + your costs.
• Show currency and the exchange rate you used, with the date.
• Margin = (selling price − landed cost) ÷ selling price.

Activity. Build the cost model in a spreadsheet; make three scenarios (freight +20%, currency −5%, delay).

Standard to meet. Give all lines a currency and show margin in the scenarios.

Rules protect people, the state and the trade. You must follow them.

• Classification codes decide duty; use official tariff lists for your country.
• Payment terms: advance, open account, bank guarantee; each changes risk.
• Exchange-rate risk: a 5% swing can remove your margin.
• Licences and sanctions: check before any deal; some destinations are not allowed.

Activity. Write a compliance checklist for your product and route with sources and dates.

Standard to meet. Source every check and include no restricted goods.

Assemble the whole file as if the deal were real.

• Enquiry → quote → order → invoice → packing list → shipping plan.
• Create a timeline in days from order to delivery.
• Identify three risks and what you will do about each.
• Keep the file in order with a contents list.

Activity. Assemble the file; have a peer try to find errors.

Standard to meet. Check with a peer that at most two minor errors remain, and make the timeline realistic.

A fair price keeps both sides in business.

• Know your walk-away price before you talk.
• Trade volume for price: offer a discount only for a larger order.
• Never promise delivery you cannot control.
• Keep notes of every negotiation point.

Activity. Role-play a negotiation; record the result and margin.

Standard to meet. Negotiate an agreement inside your limit and write notes.

Ask a real small buyer to comment on your quote for training purposes only.

• Do not take payment or sign a real contract in this course.
• Ask what they would change: price, quantity, speed.
• Update your file and cost model.
• List what you would need to go live: licences, bank, insurance.

Activity. Update the file and record the feedback.

Standard to meet. Date the file version and explain the changes.

Present, check and plan.

• Show your file, margin and risk table.
• Give peers feedback.
• Take the check.
• Choose a next course: Online Sales or IT Business.

Activity. Present for 8 minutes, then answer: which cost moved the margin most, which document is the riskiest, and what you would refuse.

Standard to meet. Score all rubric lines at 3 or more and give the weakest line a dated fix.

On the slide: L1 Basic · What trade means. Focus module: Find a product with a supplier and a buyer (Understand, 6 h). Trading means moving a product from where it is cheap or plentiful to where it is needed. Key points: Choose one product you can understand and test (for example packaged food items or hand tools). Get three supplier quotes and two buyer needs: price, quantity, time. Check quality, shelf life, and any rules for the product. Never trade restricted goods; check licence and sanctions first.

Notes: Describe buyer, seller and goods moving between them. Notes: use water bottles as an example. Teach: open with the worked example. Product: stainless steel water bottles. Supplier quotes: EUR 3.20, EUR 3.50 and EUR 3.90 per unit for 1,000 units. Buyer needs: 500 units, delivered in 30 days, price ceiling EUR 6.00 per unit. Then set the activity: Write the one-page idea and a quotes table in your currency. Mark against the standard: Put three supplier quotes and two buyer needs on one page.

On the slide: L2 Awareness · Trade documents. Focus module: Trade documents (Analyse, 6 h). Each document proves one thing. If they disagree, goods get stuck. Key points: Quote: what you offer and at what price. Order: what the buyer accepts. Commercial invoice: what is sold, quantity, price, currency, terms. Packing list: what is in each package, weights, sizes. Transport document: proof the goods were handed to the carrier. Certificate of origin: where goods come from.

Notes: Name the main documents. Notes: invoice 500 against packing list 480 is a mismatch to fix before shipping. Teach: open with the worked example. Invoice says 500 units; packing list shows 480. Fix before shipping: a mismatch can delay customs. Then set the activity: Prepare a draft invoice and packing list for your mock deal and cross-check every figure. Mark against the standard: Check the documents so that no mismatches remain between them. Check at this level: Name three documents in a trade file. Model answer: Invoice, packing list and transport document (also order and certificate of origin).

On the slide: L3 Foundation · Compare supplier quotes. Focus module: Find a product with a supplier and a buyer (Understand, 6 h). Trading means moving a product from where it is cheap or plentiful to where it is needed. Key points: Choose one product you can understand and test (for example packaged food items or hand tools). Get three supplier quotes and two buyer needs: price, quantity, time. Check quality, shelf life, and any rules for the product. Never trade restricted goods; check licence and sanctions first.

Notes: Compare quotes at EUR 3.20, EUR 3.50 and EUR 3.90 per unit. Notes: also compare quality and delivery, not only price. Teach: open with the worked example. Product: stainless steel water bottles. Supplier quotes: EUR 3.20, EUR 3.50 and EUR 3.90 per unit for 1,000 units. Buyer needs: 500 units, delivered in 30 days, price ceiling EUR 6.00 per unit. Then set the activity: Write the one-page idea and a quotes table in your currency. Mark against the standard: Put three supplier quotes and two buyer needs on one page.

On the slide: L4 Practitioner · Cost the deal. Focus module: Choose terms and cost the deal (Apply, 35 h). Trade terms decide who pays freight and who carries risk at each point. Key points: Standard international terms split cost and risk between seller and buyer. Pick one and write why. Landed cost = product + packing + freight + insurance + duties and taxes + bank charges + your costs. Show currency and the exchange rate you used, with the date. Margin = (selling price − landed cost) ÷ selling price.

Notes: Add goods, packing, freight, insurance, duties and bank fees. Notes: EUR 3.50 x 500 is EUR 1,750; add the rest to find landed cost. Teach: open with the worked example. Product EUR 3.50 × 500 = EUR 1,750; packing EUR 100; freight EUR 250; insurance EUR 25; duties 8% of EUR 2,125 = EUR 170; bank EUR 40; total EUR 2,335. Selling at EUR 5.60 × 500 = EUR 2,800. Margin = EUR 465 ÷ EUR 2,800 = 16.6%. Then set the activity: Build the cost model in a spreadsheet; make three scenarios (freight +20%, currency −5%, delay). Mark against the standard: Give all lines a currency and show margin in the scenarios. Check at this level: What is landed cost? Model answer: Product plus packing, freight, insurance, duties, bank charges and your costs.

On the slide: L5 Specialist · Price and negotiate. Focus module: Margins, pricing and negotiation (Evaluate, 14 h). A fair price keeps both sides in business. Key points: Know your walk-away price before you talk. Trade volume for price: offer a discount only for a larger order. Never promise delivery you cannot control. Keep notes of every negotiation point.

Notes: Set a cost, a walk-away and a counter. Notes: cost EUR 4.67 per unit, walk-away EUR 5.20, counter EUR 5.40 for 500. Teach: open with the worked example. Buyer asks for EUR 5.00. Your cost is EUR 4.67 per unit. Walk-away EUR 5.20. Counter EUR 5.40 for 500 or EUR 5.25 for 800. Then set the activity: Role-play a negotiation; record the result and margin. Mark against the standard: Negotiate an agreement inside your limit and write notes. Check at this level: What is a walk-away price? Model answer: The lowest price you will accept; set before negotiating.

On the slide: L6 Advanced · Lead a trade file. Focus module: Run the mock trade file (Analyse, 35 h). Assemble the whole file as if the deal were real. Key points: Enquiry → quote → order → invoice → packing list → shipping plan. Create a timeline in days from order to delivery. Identify three risks and what you will do about each. Keep the file in order with a contents list.

Notes: Check risks and compliance. Notes: late supplier, damage and currency risks need a buffer, better packing and a quote currency. Teach: open with the worked example. Risk table: late supplier (buffer 5 days), damage (better packing), currency (hedge or quote in buyer's currency). Then set the activity: Assemble the file; have a peer try to find errors. Mark against the standard: Check with a peer that at most two minor errors remain, and make the timeline realistic.

On the slide: L7 Super expert · Design a trade business. Focus module: Improve and test with a real buyer (Create, 28 h). Ask a real small buyer to comment on your quote for training purposes only. Key points: Do not take payment or sign a real contract in this course. Ask what they would change: price, quantity, speed. Update your file and cost model. List what you would need to go live: licences, bank, insurance.

Notes: Plan products, partners and rules. Notes: air freight adding EUR 180 cuts the margin to 10 per cent, so decide whether to offer it. Teach: open with the worked example. Buyer says: delivery in 21 days, not 30. Air freight adds EUR 180; margin drops to 10%: decide to offer 30 days only. Then set the activity: Update the file and record the feedback. Mark against the standard: Date the file version and explain the changes. Check at this level: Can this course sign real deals? Model answer: No: it is training only; real deals need licences and legal advice.