The common trade methods for export agency mainly include general trade and processing trade (processing with supplied materials, processing with imported materials), etc.
General trade is the most common, where goods are produced or procured domestically and then directly exported, with payment made by the foreign client to the agent, who deducts the agency fee and transfers the rest to the client. This method is straightforward and suitable for companies with independent production capabilities and competitive products.
Processing with supplied materials involves foreign clients providing raw materials, which are processed by domestic companies and then exported back to the clients, with the domestic companies earning processing fees. Companies don’t bear the risk of raw material procurement, but profits mainly come from processing fees.
Processing with imported materials involves domestic companies purchasing raw materials themselves, processing them into finished products, and exporting them. Companies have independent operational rights and relatively higher profit margins but must bear the risks of raw material procurement and sales.
Professional consultant answers
William YangYears of service:5Customer Rating:5.0
International logistics consultantConsult
The common trade methods for export agency mainly include general trade and processing trade (processing with supplied materials, processing with imported materials), etc.
General trade is the most common, where goods are produced or procured domestically and then directly exported, with payment made by the foreign client to the agent, who deducts the agency fee and transfers the rest to the client. This method is straightforward and suitable for companies with independent production capabilities and competitive products.
Processing with supplied materials involves foreign clients providing raw materials, which are processed by domestic companies and then exported back to the clients, with the domestic companies earning processing fees. Companies don’t bear the risk of raw material procurement, but profits mainly come from processing fees.
Processing with imported materials involves domestic companies purchasing raw materials themselves, processing them into finished products, and exporting them. Companies have independent operational rights and relatively higher profit margins but must bear the risks of raw material procurement and sales.
James LiuYears of service:10Customer Rating:5.0
Foreign trade tax refund consultantConsult
There is also consignment trade, where exporters first consign goods to overseas agents, who sell them based on market conditions and settle payments afterward. This method allows products to enter the local market faster, but exporters bear the risks during the consignment period.
Michelle ChenYears of service:3Customer Rating:5.0
Business coordination consultantConsult
Compensation trade is also common, where importers receive machinery, equipment, or technology from exporters on credit and repay with products produced or other agreed-upon goods. This helps cash-strapped companies acquire advanced equipment and technology, but product sales may be constrained.
Sarah ZhangYears of service:8Customer Rating:5.0
Document expertConsult
Border small-scale trade is often used in border areas, referring to trade activities between enterprises in border counties (banners) or cities approved by the state and neighboring countries' enterprises or trade institutions through designated land border ports, with certain policy advantages.
Joseph ZhouYears of service:10Customer Rating:5.0
Senior foreign trade managerConsult
E-commerce trade involves exporting through online platforms, leveraging the internet to expand overseas clients. It offers convenience and low costs but requires strong online operations and marketing capabilities.
Jennifer WangYears of service:4Customer Rating:5.0
Market development consultantConsult
Exclusive sales trade involves exporters signing exclusive sales agreements with distributors, granting them sole rights to sell specified goods in specific regions and periods. This effectively controls the market but reduces exporters' direct control.
Robert ChenYears of service:6Customer Rating:5.0
Customer service consultantConsult
In agency trade, there is exclusive agency, where exporters appoint only one agent in a specific region to promote products. The agent has exclusive rights, encouraging active market development, but exporters rely heavily on the agent.
David LiYears of service:6Customer Rating:5.0
Senior customs declaration consultantConsult
Auction trade involves selling goods to the highest bidder through auction houses at specified times and locations under certain rules. It suits unique or non-standardized products.
Amanda YangYears of service:3Customer Rating:5.0
Cost control consultantConsult
Exhibition trade involves selling goods at trade fairs or exhibitions while displaying them. It allows direct customer interaction and market insight but requires extensive preparation.
Emily LiuYears of service:10Customer Rating:5.0
Settlement and payment expertConsult
Barter trade involves direct exchange of goods without monetary intermediaries. It can mitigate exchange rate risks but makes finding suitable partners difficult, and balancing goods' value is challenging.