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How much profit can generally be made from the agency import of food?

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I want to do the business of agency import of food, but I'm not quite clear about the profit situation here. I'd like to ask about how much the profit of agency import of food is approximately. Will it be affected by many factors, like the type of food, market positioning and so on? I hope friends who know about it can explain it to me so that I can have an idea and decide whether to enter this industry or not.

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Professional consultant answers

Sarah Zhang
Sarah ZhangYears of service:8Customer Rating:5.0

Document expertConsult

The profit of agency import of food is affected by various factors. Firstly, it is the type of food. For example, for imported high-end chocolates, red wines, etc., due to the mid-to-high-end positioning of the target audience, the profit margin is relatively large and the gross profit margin may be 30% - 50%. While for imported snacks for mass consumption, the competition is fierce and the gross profit margin may be 20% - 30%.

Market positioning is also crucial. If it is positioned for online sales, it can save the rent cost of physical stores, but the online marketing expenses need to be considered; for offline physical stores, costs such as rent and labor need to be borne. In addition, the procurement channels also affect the profit. Cooperating with platforms like Zhongshitong that directly cooperate with foreign suppliers can obtain more favorable prices and increase profits. If purchasing through multiple layers of middlemen, the cost is high and the profit will naturally be compressed. In short, with proper management considering all factors, the profit is still quite.

Andrew Huang
Andrew HuangYears of service:7Customer Rating:5.0

Supply chain optimization expertConsult

The profit has a great relationship with the sales channels. When distributing products in large supermarkets and shopping malls, the sales volume may be high, but the costs such as entrance fees are also high; the cost of the community group buying channel is relatively low, but the competition is also fierce, and the profit is generally around 20% - 35%.

William Yang
William YangYears of service:5Customer Rating:5.0

International logistics consultantConsult

If the exclusive agency right can be obtained, the profit will be higher. For some niche but distinctive imported foods, through effective promotion, the profit can reach 30% - 40%, it depends on whether such products can be excavated.

James Liu
James LiuYears of service:10Customer Rating:5.0

Foreign trade tax refund consultantConsult

The brand awareness has an obvious impact on the profit. Although the sales volume of imported foods of well-known brands is good, the purchase price is high, and the profit may be 25% - 35%; the purchase price of new brands is low, but the promotion difficulty is large, and the profit is not necessarily low, it depends on the promotion effect.

Jennifer Wang
Jennifer WangYears of service:4Customer Rating:5.0

Market development consultantConsult

The logistics cost also needs to be taken into account. If the cost can be well controlled during the transportation process, such as choosing the appropriate transportation mode, the profit can be more, otherwise the profit will be eaten up by the logistics.

Michelle Chen
Michelle ChenYears of service:3Customer Rating:5.0

Business coordination consultantConsult

The consumption level of the sales area also affects the profit. In first-tier cities, consumers have a high acceptance of imported foods and a low price sensitivity, and the profit can be 30% - 50%, which is relatively lower in third- and fourth-tier cities.

Joseph Zhou
Joseph ZhouYears of service:10Customer Rating:5.0

Senior foreign trade managerConsult

The off-season and peak season also have an impact. For example, the demand for imported foods is large during holidays, and the profit will be high. During the off-season, it may have to rely on promotions, and the profit will be affected. The overall profit fluctuation is 10% - 20%.

Amanda Yang
Amanda YangYears of service:3Customer Rating:5.0

Cost control consultantConsult

The profit of agency import of food is also related to warehousing. For foods with high requirements for warehousing conditions, the warehousing cost is high, and the profit will be reduced. It is very important to control the warehousing cost well.

Robert Chen
Robert ChenYears of service:6Customer Rating:5.0

Customer service consultantConsult

The sales ability of employees also affects the profit. Good salespersons can increase the sales volume, and the profit will naturally increase. Therefore, employee training cannot be ignored.

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