Who receives the most payment in export agency? Do you know?
Solved#Other issues#
Our company plans to use export agency services and would like to understand who receives the most payment during the process. Is it the principal or the agent? Are there any nuances here? We hope to ensure smooth export procedures while also reasonably distributing payments to maximize benefits. Could someone knowledgeable elaborate on the specifics and influencing factors regarding payment collection in export agency?
Professional consultant answers
Amanda YangYears of service：3Customer Rating：5.0
Cost control consultantConsult
In export agency, generally the principal receives the most payment. The agent mainly collects service fees, typically calculated as a percentage of the export goods' value, such as 1%-5%. As the owner of the goods, the principal receives the majority of the payment after deducting agency fees and related expenses.
However, some special circumstances may affect payment distribution. For example, if the principal's goods have quality issues leading to returns or price reductions during sales, this would impact the final payment received. Additionally, if the agent and principal agree on special profit-sharing models, such as giving the agent a higher percentage after reaching certain sales targets, the agent might receive relatively more income. But overall, the principal still receives the bulk of the payment.
Andrew HuangYears of service：7Customer Rating：5.0
Supply chain optimization expertConsult
Usually the principal receives more payment since the goods belong to them. The agent only earns commission fees, which are generally not high. If the agent received more payment than the principal, the principal wouldn't agree, so normally the principal gets the larger share.
Michelle ChenYears of service：3Customer Rating：5.0
Business coordination consultantConsult
Of course the principal receives more payment. The agent profits only from small commission fees. If agents took more payment, the export agency business would be chaotic, and principals wouldn't accept it.
William YangYears of service：5Customer Rating：5.0
International logistics consultantConsult
Generally the principal receives more payment. The agent mainly earns service fees. Only under special agreements might the agent receive more, but overall the principal still gets the larger share.
Robert ChenYears of service：6Customer Rating：5.0
Customer service consultantConsult
The principal receives more payment. The agent only assists with export procedures and earns limited fees, while the payment mainly belongs to the principal as their revenue.
Jennifer WangYears of service：4Customer Rating：5.0
Market development consultantConsult
Normally the principal receives the most payment, while the agent collects fixed commission fees. Unless there's a special agreement, the agent wouldn't take the larger share of payment.
Joseph ZhouYears of service：10Customer Rating：5.0
Senior foreign trade managerConsult
Most often the principal receives the most payment. Agents earn service fees - if they took more payment, it would defy logic and market principles.
Emily LiuYears of service：10Customer Rating：5.0
Settlement and payment expertConsult
The principal receives more payment since the products belong to them. The agent only provides agency services and collects service fees, while payment mainly belongs to the principal.
David LiYears of service：6Customer Rating：5.0
Senior customs declaration consultantConsult
Generally the principal receives more payment. The agent's main income comes from commission fees and wouldn't have advantage in payment distribution.
Elizabeth LiYears of service：3Customer Rating：5.0
Compliance and risk managerConsult
The principal receives more payment. The agent only assists with exports and earns commission fees, while the bulk of payment naturally belongs to the principal.