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What are the common trade methods for export agency? Come and find out!

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I'd like to learn about the trade methods for export agency. Our company plans to use export agency but isn't very familiar with trade methods. I hope to know the common trade methods for export agency and the characteristics of each, so we can choose the most suitable one based on our situation. Could you introduce them to me?

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Professional consultant answers

William Yang
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 Liu
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 Chen
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 Zhang
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 Zhou
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 Wang
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 Chen
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 Li
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 Yang
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 Liu
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.

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