Why Use a Trade Intermediary for Caribbean Imports

Intermediary vs Direct Sourcing

Direct sourcing works well when you have established supplier relationships, in-house logistics expertise, and the bandwidth to manage documentation across multiple jurisdictions. For everyone else -- especially businesses entering Caribbean trade for the first time -- an intermediary bridges the gap between ambition and execution.

An intermediary brings a ready network of vetted suppliers, understands destination-country regulations, and absorbs much of the operational complexity that would otherwise land on your team.

What a Trade Intermediary Does

• Supplier vetting -- verifying business registration, production capacity, quality certifications, and trade references before you commit capital
• Price negotiation -- leveraging volume relationships and market knowledge to secure competitive FOB pricing
• Documentation -- coordinating certificates of origin, phytosanitary certificates, bills of lading, and commercial invoices
• Logistics coordination -- booking freight, arranging container loading, and tracking shipments from warehouse to destination port
• Dispute resolution -- acting as a neutral party when quality or delivery issues arise

How Commission-Based Models Work

Most trade intermediaries operate on a commission basis, typically 2-5% of the deal value. This aligns incentives -- the intermediary earns more when you trade more, and nothing if the deal falls through. Commission is usually built into the FOB price so there are no surprise invoices.

Some intermediaries charge flat fees for specific services like supplier audits or documentation preparation. Always clarify the fee structure in writing before engaging.

Risk Mitigation

• NCNDA agreements -- Non-Circumvention, Non-Disclosure Agreements protect all parties from being bypassed after introductions are made
• Verified suppliers -- intermediaries maintain pre-qualified supplier lists, reducing the risk of fraud or substandard goods
• Payment protection -- structuring deals through Letters of Credit or escrow arrangements so funds are only released against compliant documents
• Pre-shipment inspection -- arranging independent quality checks (SGS, Bureau Veritas) before goods leave the origin country

When You Should Use an Intermediary

• You are entering a new market and lack local contacts
• You need to source from multiple suppliers across different product categories
• Your team does not have trade compliance or logistics expertise
• You want to test a market before committing to a permanent procurement office

When You May Not Need One

• You have long-standing direct relationships with reliable suppliers
• You operate your own freight forwarding or customs brokerage
• Your volumes are large enough to justify a dedicated sourcing team