FAQ 1

1. Since we are largely dependent on Heartful Crafts for supply, what measures will be implemented to ensure consistent and timely delivery of products to fulfill customer orders?

Response:
Heartful Crafts is a self-help group consisting of artisans who produce handmade and GI-tagged products on a made-to-order basis. As a participant of the Export Mastery training program, you will be connected directly with the artisan network. This gives you the opportunity to coordinate and understand production timelines in advance.

Key clarifications:

• Artisans do not operate on a pre-stocked manufacturing model. They begin work after receiving confirmed orders.

• In this model, consistent and timely delivery depends entirely on accurate coordination and practical planning between the merchant exporter (you) and the artisan.

• You must not confirm strict delivery timelines (e.g., 10–15 days) to any buyer unless you have verified the feasibility directly with the artisan, especially for labor-intensive or traditional products.

• During the live sessions, you will be trained on managing buyer expectations, production cycles, and pre-communication best practices.

• For greater operational control in the future, you may engage with logistics partners independently and establish a warehousing system of your own to maintain buffer stock for high-demand SKUs. However, Heartful Crafts and its artisans do not offer warehousing or buffer stock facilities at this stage.

• Please note that the artisans operate from their homes or community locations, and they do not maintain ready inventory.

This model requires a structured and transparent approach to managing timelines, and you will be trained extensively in this as part of the course.

2. As customer data will need to be shared with Heartful Crafts, what assurances can be provided that this information will be handled securely and not used to approach these customers directly?

Response:
Heartful Crafts is a self-help group that functions purely as a production partner. It does not conduct any direct marketing, customer outreach, or sales activity, nor does it engage in business development or lead generation. Its focus is solely on fulfilling production tasks.

To ensure data confidentiality:

• A formal non-disclosure clause will be included in the agreement between you and Heartful Crafts, to legally restrict any unauthorized usage or sharing of customer information.

• Artisans and associated production members are not equipped, trained, or operationally inclined to contact customers directly or conduct follow-up communication of any kind.

• Heartful Crafts does not maintain a customer-facing business interface and is not structured to operate in the B2C or B2B marketing domain.

• The purpose of involving merchant exporters like yourself is to act as the interface between buyers and the artisans, while Heartful Crafts remains focused on production only.

This structure inherently ensures that customer data shared by you remains confidential and protected, both practically and contractually.

3. What is the proposed contractual framework for this engagement? A draft agreement is required for review and vetting by our legal counsel.

Response:
This program has been designed under the “Learn and Earn” model provided by the Indian Institute of eCommerce. The training program spans 12 live sessions, during which all participants are educated on key topics including export operations, buyer handling, supplier engagement, and documentation.

Regarding the contractual framework:

• A Service Level Agreement (SLA) will be provided to all eligible participants after successful completion of the 12-session program.

• The SLA will cover terms of engagement with Heartful Crafts, including roles, responsibilities, payment mechanisms, data confidentiality, and timelines.

• At this point, the intention is not to immediately enter into binding commercial agreements, especially as participants are still undergoing foundational training.

• Upon successful completion of the program and demonstration of readiness to engage in transactions, the SLA will be made available for review and legal vetting.

This staged approach ensures that agreements are signed only when both operational understanding and business readiness are established.

4. Please outline the logistics support Heartful Crafts will provide — including packaging, warehousing, and last-mile delivery, if applicable.

Response:
Heartful Crafts provides standard production and packaging support in line with traditional artisan methods. It does not operate on a centralized warehousing or end-to-end logistics model. The following outlines the scope of logistical support:

• Packaging: Artisans provide secure and appropriate packaging for the nature of the products being produced. Basic product safety is ensured. Custom packaging requirements (such as branded boxes, inserts, tags) can be discussed, subject to feasibility and volume commitments.

• Warehousing: Heartful Crafts does not maintain any warehousing infrastructure. All products are made to order and dispatched after production. If warehousing or stockholding is required, you may engage independently with third-party logistics (3PL) providers.

• Last-Mile Delivery: In the export trade, shipping terms (FOB, CIF, DDP) are selected by the international buyer. Based on the incoterm agreed, shipping is handled via logistics providers such as DHL, FedEx, Aramex, etc. Heartful Crafts can coordinate dispatch to these service providers from the production location, but does not manage end-to-end delivery.

These topics will be covered in detail during your training sessions, including how to work with logistics partners and plan exports effectively.

5. Will Heartful Crafts facilitate coordination with third-party inspection agencies for product verification?

Response:
Yes, Heartful Crafts can accommodate coordination with recognized third-party inspection agencies upon request. However, the responsibility for engaging and covering the cost of inspection lies with the buyer or merchant exporter.

Details to note:

• Heartful Crafts does not maintain in-house inspection services but will cooperate fully with credible third-party agencies like SGS, Intertek, etc., provided that proper prior coordination is done.

• Artisans work from individual homes or community setups; inspections can be arranged at these locations with prior consent and scheduling.

• It is important to understand that these are not factory conditions. These are handcrafted goods made in small batches, and inspection methods must align with the handmade nature of the products.

Any inspection requirements should be communicated clearly and documented as part of the buyer agreement. Heartful Crafts will support the process but does not absorb responsibility for the cost or logistics of third-party inspections.

6. What is the minimum order quantity (MOQ) that can be serviced reliably?

Response:
The minimum order quantity (MOQ) for products sourced through Heartful Crafts generally starts at 100 pieces per SKU. This baseline is considered viable for ensuring proper artisan engagement, raw material procurement, and delivery planning.

Further clarifications:

• The MOQ may vary depending on product complexity, material availability, and production location.

• For certain handmade or GI-tagged products, the artisans may require higher minimum quantities to maintain quality and justify production effort.

• For the purpose of training and pilot testing, small sample quantities are accepted. These are primarily for buyer demonstrations, operational practice, and quality verification.

Participants are encouraged to use the initial training phase to work with smaller sample volumes, and then gradually transition to production-ready orders in line with the recommended MOQ.

7. Can we begin by processing single or low-volume orders to build a reference base and evaluate operational efficiency?

Response:
Yes, the Export Mastery training program is specifically designed to allow participants to begin with single or low-volume sample orders. This aligns with the learning objective of the course and supports hands-on experience.

Purpose and scope of low-volume orders:

• These orders enable you to gain firsthand knowledge of artisan coordination, documentation handling, and international shipping.

• They provide an opportunity to test the operational flow before moving into higher-volume commercial transactions.

• Sample deals also help in generating buyer confidence and preparing product portfolios for future negotiations.

This structure is intentionally built into the “Learn and Earn” model, allowing participants to gain practical export exposure while safeguarding both parties from operational risk during early stages.

8. Are we permitted to present Heartful Crafts’ existing clientele or completed projects as part of our customer portfolio for credibility-building?

Response:
No, participants are not authorized to present Heartful Crafts' internal operations, historical clientele, or order records for the purpose of building their own sales or marketing portfolios.

Important points:

• Heartful Crafts operates as a self-help production group, not a commercial B2B supplier with formal buyer relationships that can be shared.

• Most orders in the past have been directly handled by trade intermediaries or overseas partners without disclosure of client identity.

• The artisans focus solely on production and are not part of a CRM system or institutional project structure that tracks clients in the traditional sense.

Participants are, however, encouraged to build their own transaction history by:

• Documenting sample deals.

• Showcasing the heritage, process, and GI certification (where applicable) of the products they are working with.

• Positioning themselves as merchant exporters under the Indian Institute of eCommerce ecosystem.

All external marketing or portfolio usage of Heartful Crafts assets must be pre-approved in writing.

9. What pricing mechanisms will be used to ensure we remain competitive in the marketplace while maintaining reasonable margins?

Response:
Product pricing within Heartful Crafts is based on the ex-factory pricing model, which includes the cost of artisan labor, raw materials, and basic packaging. The pricing structure is aligned to ensure fairness to artisans while allowing margin room for merchant exporters.

Key considerations:

• The general margin range achievable by exporters is between 10% to 15% in bulk order scenarios. This is considered a healthy and sustainable markup in handcrafted exports.

• Exporters are free to determine their final selling price depending on:

  • Product positioning.

  • Channel of sale (B2B, D2C, retail, etc.).

  • Level of value addition (e.g., branding, packaging, market development).

• Pricing is periodically reviewed to remain aligned with international demand and competitor benchmarks, where relevant.

• Customization, complex finishing, or rush orders may attract additional charges based on artisan time and material effort.

Price transparency is maintained throughout the order cycle. However, exporters must assess market trends and product viability independently to ensure competitiveness in their respective markets.

10. Is there scope for an exclusivity agreement for specific product lines, designs, or territories to prevent market overlap?

Response:
General exclusivity agreements are not offered by default for any products under the Heartful Crafts ecosystem. The model is designed to keep the artisan network open and accessible for fair trade and shared opportunity.

However, certain conditional exclusivity options may be explored under the following terms:

• Exclusivity can be considered only on custom-designed products that have been developed uniquely for a specific exporter and are not part of Heartful Crafts’ existing range.

• The exporter must provide a clear design brief, ensure financial feasibility, and commit to minimum recurring order quantities on a monthly or quarterly basis.

• Exclusivity will apply only to the custom product variant, and not to general categories or product families.

• Heartful Crafts reserves the right to decline exclusivity if it is deemed restrictive to the broader interest of the artisan community or in cases where the exporter cannot commit to consistent volumes.

Heartful Crafts does not offer exclusivity for standard product lines, geographic territories, or entire categories. Any exception must be documented through a separate agreement following mutual approval.

11. To what extent can product customization be accommodated in terms of design, finish, and packaging?

Response:
Product customization is available on a case-by-case basis, depending on the artisan's technical ability, product type, design complexity, and required minimum order quantity (MOQ).

The key conditions are as follows:

• Basic Customization (e.g., color adjustments, minor design modifications, simple packaging branding) may be possible, subject to prior feasibility confirmation.

• Advanced Customization (e.g., entirely new designs or non-traditional product development) is handled as a sampling request and is not guaranteed until reviewed and accepted by the artisan. In such cases:

  • Artisans must first review the design for production feasibility.

  • Sample development charges and longer lead times may apply.

  • Final acceptance is subject to the artisan’s willingness and ability to execute the design.

• GI-Tagged Products: Customizations that deviate from the traditional characteristics of GI-tagged products may result in the product losing its GI designation. This must be considered when submitting any modification request.

• Minimum Order Quantity (MOQ) for Custom Orders: Typically higher than standard orders. Artisans may require a committed quantity (e.g., 300–500 pieces) to justify production setup for custom runs.

• Packaging Customization: Custom packaging (e.g., branded boxes, inserts, tags) can be supported if agreed in advance, and if the merchant exporter is willing to cover the associated costs.

All customization requests are subject to approval, dependent on production timelines, resource availability, and communication clarity. Commitments should not be made to buyers until feasibility is confirmed in writing by the Heartful Crafts team.

12. What is the standard production lead time post order confirmation? Are expedited options available?

Response:
The standard production lead time for Heartful Crafts products typically ranges between 3 to 6 weeks, depending on product complexity, quantity, and artisan availability.

Key considerations include:

• Order Processing: Production begins only after the order is confirmed and the required advance payment is received.

• Factors Influencing Timelines:

  • Type of product and level of craftsmanship involved.

  • Availability of raw materials, seasonality, and artisan schedule.

  • Customization, if requested, may extend the delivery timeline.

• Expedited Production: While expedited options can be explored, they are not guaranteed and must be requested at the time of order inquiry. Confirmation of feasibility must be obtained before offering expedited timelines to any international buyer.

• Advisory: Merchant exporters must avoid committing to accelerated timelines (e.g., 10–15 days) without written confirmation from the artisan or coordinating team.

Timely and reliable delivery requires planning, transparent coordination, and responsible buyer communication, which is emphasized throughout the training sessions.

13. What are the policies for returns, replacements, or handling defective goods?

Response:
Heartful Crafts follows a case-by-case policy for returns and replacements, based on the nature of the order (sample vs. bulk) and the validity of the complaint.

Policy outline:

• Sample Orders:

  • These are generally non-returnable and non-refundable unless the item received is incorrect, visibly damaged, or does not match the pre-approved specification.

  • Prior to dispatch, product photos are shared for verification. Once approved by the buyer/exporter, the product is shipped.

• Bulk Orders:

  • Products are dispatched only after internal quality checks.

  • If a manufacturing defect or shipping damage is reported within a reasonable timeframe (with supporting evidence), replacement or compensation is considered.

  • All bulk shipments are recommended to be covered under export insurance. This ensures accountability for losses due to transit damage.

• Customization Issues:

  • For customized products, once the design and sample are approved, replacements or refunds are not entertained unless the delivered product materially differs from the approved sample.

Heartful Crafts prioritizes quality, but as the products are handcrafted, minor variations are natural and not considered defects. Merchant exporters are expected to manage buyer communication accordingly.

14. Can Heartful Crafts maintain buffer stock for fast-moving SKUs to support quicker fulfillment?

Response:
Heartful Crafts does not maintain inventory or buffer stock for any product categories. This is consistent with the operational model of the artisan groups involved, who produce on a made-to-order basis.

Clarifications:

• Production is initiated only after order confirmation and advance payment. This is to avoid unsold inventory and financial strain on artisans who do not have working capital to maintain stock.

• Small quantities of select sample units (e.g., 100–200 pieces) may occasionally be available for quick dispatch, but these are not guaranteed or maintained for ongoing inventory planning.

• If buffer stock is a business requirement, the merchant exporter may:

  • Independently purchase additional units in advance and store them in a third-party warehouse.

  • Enter into a private arrangement with a logistics partner for local inventory holding.

• Artisans are not expected or obligated to hold finished goods inventory for any merchant exporter unless specifically pre-agreed under separate terms.

This model ensures that artisans are not exposed to unsold liabilities and helps preserve the integrity of the made-to-order, fair-payment workflow.

15. What quality control processes are currently in place? Can independent audits be conducted?

Response:
Heartful Crafts maintains a multi-step internal quality control process for all products prior to dispatch. Additionally, independent third-party audits are permitted under standard guidelines.

Details:

• Internal QC Checks:

  • Raw materials are verified before production begins.

  • In-process checks are carried out by senior artisans or team coordinators.

  • Final product checks are conducted for measurement, finish, and packaging compliance before handover to logistics.

• Third-Party Audits:

  • Independent inspections (e.g., by SGS, Intertek, or other recognized agencies) are allowed upon request.

  • The merchant exporter or buyer is responsible for scheduling the audit and bearing its cost.

  • Artisan locations must be notified in advance, as inspections may be conducted at individual home-based production setups.

• Expectations from QC in Handmade Products:

  • While consistency is prioritized, minor natural variations are inherent to handmade processes.

  • Specifications agreed with the buyer must be clear, documented, and pre-approved to avoid disputes.

Exporters are advised to conduct sample approvals, maintain written buyer confirmations, and if needed, engage an inspection agency at their own discretion and expense before final dispatch.

16. Who will be designated as the single point of contact from your team for coordination and issue resolution?

Response:
During the initial training phase, participants will coordinate primarily with the designated support contact from the Indian Institute of eCommerce, currently Mr. Aftab, who is responsible for handling all day-to-day queries related to Heartful Crafts operations, including product selection, order assistance, and artisan coordination.

Further details:

• For any escalations or training-related concerns, Sumit Pareek, the program mentor, remains accessible to ensure structured guidance and oversight.

• Post-training, once merchant exporters are actively transacting and scaling, additional support staff may be assigned to handle larger volumes or complex coordination, subject to operational needs.

• All communication is typically handled via official WhatsApp, email, or phone coordination to ensure response traceability and issue tracking.

This centralized structure ensures efficient coordination while maintaining professional communication standards during both the training and post-training phases.

17. What are the proposed payment terms? Is there scope for a credit facility based on performance and volume?

Response:
Heartful Crafts operates on an advance-payment model. There is no provision for credit facility under any volume or performance-based arrangement, due to the financial and operational nature of the artisan-based system.

Clarifications:

• Production is initiated only upon receipt of full or mutually agreed advance payment from the buyer or the merchant exporter.

• Artisans rely on the advance to procure raw materials and support their livelihood. They do not maintain working capital reserves and are not positioned to offer deferred payment terms.

• Most transactions follow either:

  • 100% advance payment, or

  • Staggered terms, such as 50% advance and 50% before dispatch (on bulk orders), which are reviewed on a case-by-case basis after a proven track record.

FOB or X-Factory shipping terms are discussed based on buyer preferences, but credit terms are categorically not offered under the Heartful Crafts structure.

Merchant exporters are advised to plan and communicate this clearly to buyers to avoid disruption during order confirmation.

18. Will Heartful Crafts support white-labeling or co-branded products for our sales channels?

Response:
Heartful Crafts supports co-branding under certain conditions but does not offer white-labeling by default due to the need to preserve the integrity and identity of its artisan community.

The distinction is outlined below:

• Co-Branding (Permitted):

  • You may promote products under a dual-branding model that acknowledges both your entity and the artisan source (e.g., "Crafted by Heartful Crafts, promoted by [Your Brand]").

  • This may include custom packaging and labeling, subject to MOQ and associated costs.

• White-Labeling (Conditional):

  • Full rebranding (i.e., removing Heartful Crafts identity entirely) is not permitted by default.

  • It may be considered for exporters providing:

    • Large and consistent monthly volumes.

    • A written commitment to long-term sourcing.

    • A binding supply agreement protecting artisan rights and order assurance.

• Restrictions:

  • Local merchant exporters cannot use Heartful Crafts as a supply unit for commercial resale under entirely private branding without formal approval and an exclusive supply agreement.

  • All packaging or labelling changes must be reviewed in advance and costed accordingly.

Branding flexibility is available, but only when it does not compromise the ethical and identity commitments of the Heartful Crafts ecosystem.

19. Is there potential for joint marketing efforts to promote the artisans and product lines?

Response:
Joint marketing initiatives are not financially supported by Heartful Crafts. However, support is available in the form of digital marketing assets, training materials, and promotional tools for use by merchant exporters.

Support Provided:

• Indian Institute of eCommerce supplies marketing collaterals, such as:

  • Product photographs.

  • Artisan background stories.

  • Informational brochures and video content.

• Participants may use these assets to:

  • Promote the products in their own sales channels.

  • Build buyer engagement campaigns.

  • Develop their merchant exporter brand with an ethical and community-driven angle.

Scope for collaboration:

• Joint marketing campaigns (e.g., ad spends, trade shows, press features) may be considered at a later stage, only if:

  • The merchant exporter has a consistent sales record.

  • There is mutual interest and commercial feasibility.

  • There is clarity on brand ownership, cost-sharing, and lead attribution.

Heartful Crafts and its supporting entities are not in a financial position to fund third-party marketing but will assist with structured resources and content to support genuine sales efforts.

20. Are the products certified under any sustainability, fair trade, or eco-friendly standards?

Response:
Products offered by Heartful Crafts are generally not certified under international frameworks such as Fair Trade, SEDEX, or BSCI. However, several of the products fall under the Government of India’s Geographical Indication (GI) certification, which recognizes their origin, sustainability, and traditional production practices.

Clarifications:

• Many products are made using natural dyes, traditional methods, and non-mechanized processes, which inherently support eco-friendly and sustainable standards.

• Artisans produce in small batches, use limited energy, and rely on manual labor, thus aligning with responsible sourcing principles even if formal international labels are not currently in place.

• Merchant exporters who require certifications for specific export markets may:

  • Apply for third-party sustainability certifications independently under their own business entities.

  • Coordinate with artisan groups for future certification applications where feasible.

Heartful Crafts is working toward ecosystem development and may pursue certifications over time based on funding, partnerships, and demand. At this time, expectations for internationally recognized sustainability seals must be managed accordingly.

21. Is Heartful Crafts open to technology integrations such as inventory or order management systems for real-time tracking?

Response:
At present, Heartful Crafts operates through a simplified infrastructure that supports direct communication and coordination but does not support API integrations, real-time dashboards, or automated inventory/order management systems.

Key clarifications:

• Inventory Management:

  • Heartful Crafts functions on a made-to-order model. Artisans do not maintain real-time inventory databases or SKU stock levels. Inventory management is not applicable in the traditional sense due to the nature of handcrafted, on-demand production.

• Order Tracking:

  • Order status updates are managed manually through WhatsApp, email, or direct communication between the exporter and the coordination team. Updates on production progress and dispatch schedules are provided upon request.

• Technology Limitations:

  • Heartful Crafts is not a funded or corporate-scale organization like Flipkart or Amazon. Its focus remains on enabling artisan income generation rather than deploying high-end tech systems.

  • As such, there is no provision for third-party software integrations, warehouse syncing, or live status tracking.

Exporters who require advanced systems are welcome to build their own backend management tools for internal operations, while continuing to interface with Heartful Crafts via standard communication channels.

22. What is the preferred method for dispute resolution in case of any contractual or operational issues?

Response:
Heartful Crafts follows a structured but practical dispute resolution framework designed to ensure fair treatment for both the merchant exporter and the artisan group, while avoiding prolonged legal escalation where possible.

Resolution structure:

1. Internal Coordination:

   • In the case of any issue (e.g., quality deviation, delivery delay, incorrect order), the first step is direct communication with the assigned point of contact for resolution.

   • In most cases, issues are resolved through clear documentation and evidence sharing (e.g., product photos, email trail).

2. Escalation:

   • If initial coordination does not resolve the issue, the matter can be escalated to the program manager or Indian Institute of eCommerce mentor for mediation during the training phase.

3. Legal Framework (Post-Training Stage):

   • For commercial agreements post-training, the service agreement will include a formal dispute resolution clause.

   • Disputes will be addressed via arbitration, as per the Indian Arbitration and Conciliation Act.

   • Jurisdiction will remain within India, and both parties may seek legal counsel as needed.

Important to note:

• Heartful Crafts does not support litigation against individual artisans who work in rural settings with limited legal literacy.

• In the event of a genuine failure or breach, funds may be withheld and refunds or corrective measures facilitated through internal management, if substantiated by documentation.

23. Lastly, does Heartful Crafts have the necessary infrastructure and manpower to scale operations in line with increasing demand?

Response:
Yes, Heartful Crafts has the capacity to scale operations by leveraging its expanding network of rural artisans, supported by a decentralized, demand-based production structure.

Key details:

• Scalability Model:

  • There is no centralized production unit or factory. Instead, the model is built on onboarding additional artisan clusters across India as order volume increases.

  • Production is distributed, meaning multiple artisans can work concurrently on different batches to fulfill higher-volume requests.

• Operational Limitations to Acknowledge:

  • Artisans will not begin production without advance payment.

  • No credit-based production will be undertaken, regardless of volume.

  • Scaling is subject to responsible order planning, fair timelines, and clear product specifications.

• Infrastructure Flexibility:

  • Additional artisans are onboarded as needed, after training and quality verification.

  • Orders can be split among groups to meet larger buyer requirements, provided that payment schedules and lead times are realistic.

HeartfulCrafts is structured to expand output based on demand, but it requires mutual coordination, payment compliance, and planning from the merchant exporter to ensure sustainable scaling.