I'm currently considering starting an import/export business but am hesitant about whether to use an agency company. I'd like to know what disadvantages import/export agency services might have? Could there be information leaks or unreasonable fees during operations? I hope experienced friends can share their insights to help me make a more informed decision.
Want to understand whether export agency business is viable, mentioning having product resources and considering this approach to expand overseas markets, inquiring about its pros/cons and considerations. The best answer points out that export agency business has advantages like cost-saving and efficiency improvement, but also drawbacks including dependency on agents and profit compression. To operate successfully, one should select reliable agents and sign proper contracts, as proper utilization can facilitate overseas market expansion.
Full escort of the import route, easy access to the global supply chain
Export agent experts, help you easily expand the international market
Avoid tariff barriers, full process transit plan customization
Export tax refund full agency, compliant and efficient fast arrival
International settlement solutions, ensure the safe arrival of funds
A key foreign trade import and export enterprise, with more than 20 years of import and export agency experience, providing one-stop service throughout the entire process!
Professional consultant answers
David LiYears of service：6Customer Rating：5.0
Senior customs declaration consultantConsult
Import/export agency services do have several drawbacks. First, agency fees represent an additional cost, and different agencies charge differently, which may affect profit margins. Second, there are communication risks—if the agency communicates poorly with suppliers or clients, it may lead to delivery delays or product mismatches. Third, there's a risk of information leakage since agencies handle large amounts of commercial secrets; poor management could result in sensitive information being exposed. Additionally, agency companies vary in professionalism—choosing an unprofessional one may lead to errors in customs clearance, causing cargo delays and extra costs. Finally, businesses lose some control over import/export processes, becoming overly reliant on agencies and missing opportunities to gain firsthand experience.
Therefore, careful evaluation is necessary when opting for import/export agency services.
Andrew HuangYears of service：7Customer Rating：5.0
Supply chain optimization expertConsult
Import/export agencies may sometimes fail to fulfill their responsibilities adequately. Some agencies handle multiple clients simultaneously, spreading their attention thin, which can lead to delayed problem-solving and hinder smooth operations.
Emily LiuYears of service：10Customer Rating：5.0
Settlement and payment expertConsult
There may be conflicts of interest between businesses and agencies. For example, in procurement, an agency might choose suppliers based on higher kickbacks rather than quality or price, harming the client's interests.
Michelle ChenYears of service：3Customer Rating：5.0
Business coordination consultantConsult
If an agency suddenly faces operational issues, such as bankruptcy, it could disrupt import/export activities, delay shipments, and cause significant losses for the client.
Jennifer WangYears of service：4Customer Rating：5.0
Market development consultantConsult
Document handling in import/export agencies can sometimes be disorganized. Poor internal processes may lead to lost or incorrectly filled documents, affecting customs clearance and payment settlements.
Robert ChenYears of service：6Customer Rating：5.0
Customer service consultantConsult
Some agencies lack innovative service approaches, failing to provide effective strategies or new trade solutions when dealing with complex and changing international market conditions.
Elizabeth LiYears of service：3Customer Rating：5.0
Compliance and risk managerConsult
High staff turnover in agencies may disrupt business continuity. Poor handovers between employees can create operational gaps, slowing down import/export processes.
William YangYears of service：5Customer Rating：5.0
International logistics consultantConsult
In tax refund procedures, inexperienced or error-prone agencies may cause delays or even failed refunds, tying up business funds and increasing costs.
Joseph ZhouYears of service：10Customer Rating：5.0
Senior foreign trade managerConsult
Over-reliance on agencies may hinder a company's ability to develop in-house expertise in foreign trade, weakening long-term growth and independent control over import/export operations.
James LiuYears of service：10Customer Rating：5.0
Foreign trade tax refund consultantConsult
If the agency is located far from the business, communication costs may rise, and difficulties in on-site inspections or face-to-face discussions could reduce problem-solving efficiency.