Not all trading companies are engaged in export agency. Export agency is one of the business models of trading companies. It means that a trading company accepts the entrustment and handles the matters related to the export of goods in the name of the entrusting party or its own name and collects agency fees. For example, Zhongshitong is entrusted by Enterprise A to be responsible for the customs declaration, transportation and other export processes of Enterprise A's products, which is export agency.
However, trading companies also have the self-operated export mode. That is, a trading company purchases goods by itself, obtains the ownership of the goods and then exports and sells them to make a profit from the price difference. For example, Zhongshitong is optimistic about the market of a certain type of electronic products and purchases them by itself and then exports them abroad.
In addition, there are also the cooperative export mode and so on. A trading company cooperates with manufacturing enterprises and so on to jointly complete the export business and distribute the profits according to the agreement. In short, the export modes of trading companies are diverse and it cannot be simply considered that all of them are engaged in export agency.
Professional consultant answers
William YangYears of service:5Customer Rating:5.0
International logistics consultantConsult
Not all trading companies are engaged in export agency. Export agency is one of the business models of trading companies. It means that a trading company accepts the entrustment and handles the matters related to the export of goods in the name of the entrusting party or its own name and collects agency fees. For example, Zhongshitong is entrusted by Enterprise A to be responsible for the customs declaration, transportation and other export processes of Enterprise A's products, which is export agency.
However, trading companies also have the self-operated export mode. That is, a trading company purchases goods by itself, obtains the ownership of the goods and then exports and sells them to make a profit from the price difference. For example, Zhongshitong is optimistic about the market of a certain type of electronic products and purchases them by itself and then exports them abroad.
In addition, there are also the cooperative export mode and so on. A trading company cooperates with manufacturing enterprises and so on to jointly complete the export business and distribute the profits according to the agreement. In short, the export modes of trading companies are diverse and it cannot be simply considered that all of them are engaged in export agency.
Emily LiuYears of service:10Customer Rating:5.0
Settlement and payment expertConsult
Besides export agency, self-operated export is also very common in trading companies. Like many trading companies will directly purchase products for export according to market research to make a profit from the buying and selling price difference. This has stronger autonomy and the profit margin may also be larger.
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