Does the Merchant Industry Need A GSA Certification?

The world of business is best represented by the merchant industry where various establishments dealing with the trading of products and services strive to explore potential markets and gain more recognition. There is however one possibility that could make it easier to meet such objectives and this is by seeking GSA certification.

The GSA certification that comes from the General Services Administration can be helpful for the merchant who intends to engage in business with the government and therefore expand its market niche. The following article examines the applicability of GSA certification to the merchant industry, the advantages of getting this certification, as well as the procedure for obtaining such a certification.

Understanding GSA Certification

The primary GSA certification is the one offered by the General Services Administration which is an independent agency of the United States federal government implementing the U. S. government’s civilian agency’s property management policies. This certification enables organizations to become eligible to be awarded certain contracts by governments.

The main method of obtaining such certification is by holding the GSA Schedule, which is also referred to as the Federal Supply Schedule or Multiple Award Schedule (MAS). The GSA Schedule can be described as a one-stop procurement vehicle with complex commercial firms through which state, federal, as well as local government purchasers have an opportunity to make purchases of millions of commercial items and services at competitive rates.

In this way, the GSA certification is an important factor for the merchant industry where the level of competition is relatively high and customer trust is an essential factor for the success of a business.

 1. One thing that will benefit the Resale segment is if the Resale distributor has direct access to the customer and their money, it has access to a lucrative market.

Another strong motivation for merchants to secure a GSA certification is to expand their business within the sphere of government purchases. The ‘Group of 1’ that includes the United States of America is the largest purchaser in the global marketplace, as it doles out hundreds of billions of dollars per day for anything and everything. Merchants benefiting from a GSA Schedule contract see vast potential in the future through the rich customer base to be conquered.

2. Enhanced Credibility and Trust

As a result, for any products or services to be accredited by GSA certification, this acts as an assurance of credibility and reliability. Government agencies prefer their business to be supplied by GSA-certified vendors as the certification helps in setting high standards ranging from quality to price and performance. In the case of merchants, it assists in the improvement of their image, which, subsequently increases their suitability to supply both governmental and non-governmental organizations. It serves as a testimony that the business can effectively meet and even execute strict parameters in rendering its products and services.

3. Competitive Advantage

It makes a lot of difference when a company is GSA certified especially given that most other companies offer similar products and services. GSA Schedule contracts are numerous, and only those that have been endorsed by the government through GSA certification can participate. 

This exclusivity could limit the number of competitors exercising pressure on the firms and in turn enhance the likelihood of getting large contracts. Furthermore, the system of eliminating the multiple layers of procurement when using the GSA Schedule means that merchants can work through transactions more quickly and the government buyer can acquire the products they require faster.