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What kind of money does agency export actually earn? Come and discuss together!

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I'm quite interested in the agency export business and want to know what kind of money agency export actually earns. Some friends around me have made a lot of money in this line, but I'm not quite clear about the specific profit model. Is it through the price difference of goods, or are there other ways? I hope friends who know about it can explain it to me. It would be best if it could be combined with actual business scenarios so that I can understand more clearly where the profit points of agency export are.

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Professional consultant answers

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

Foreign trade tax refund consultantConsult

The main income of agency export is the agency fee. Generally, it is charged according to a certain proportion of the amount of exported goods, for example, ranging from 1% to 5%, and the specific proportion depends on factors such as the complexity of the business and the types of goods.

Take Zhongshitong as an example. Suppose a client entrusts the export of a batch of clothes worth US$1 million. If the agency fee proportion is 3%, Zhongshitong can obtain US$30,000 in agency fees.

Moreover, during the operation process, the agency company can obtain more favorable prices for logistics, customs declaration, etc. by virtue of its scale advantage and earn the price difference. For example, if the normal customs declaration fee is 1,000 yuan and it gets a price of 800 yuan through cooperation, the 200 yuan price difference is the profit. And some agency companies will also provide value-added services, such as financing services. If the client has difficulties in capital turnover, the agency company provides financing and charges a certain interest, which is also one of the profit sources.

Elizabeth Li
Elizabeth LiYears of service:3Customer Rating:5.0

Compliance and risk managerConsult

Agency export can also earn money from tax refunds. For some enterprises, the process of handling tax refunds by themselves is complex and time-consuming, while the agency company is familiar with the process and can handle it efficiently. If the tax refund rate is 13% and the tax refund for goods worth US$1 million is about US$130,000, the agency company will divide the amount with the consignor after deducting the agency fee. This is also a profitable way.

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

Supply chain optimization expertConsult

It can also make a profit from exchange rate fluctuations. After the agency company receives foreign exchange, if it exchanges it into the domestic currency at the right time and encounters an increase in the exchange rate, it can earn an extra amount. For example, if the exchange rate is 6.5 when receiving foreign exchange and 6.6 when settling foreign exchange, for US$1 million, there will be an additional income of 1 million × (6.6 - 6.5) = 100,000 yuan.

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

Settlement and payment expertConsult

Some agency export businesses can make a profit from the procurement link. If the agency company has good supplier channels, it can purchase goods at a lower price and earn the price difference after export. However, this situation requires a relatively high ability of the agency company to integrate resources.

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

Market development consultantConsult

Providing documentation services can also make money. The agency company helps to prepare various documents required for export, such as bills of lading, packing lists, etc., and charges a certain documentation preparation fee. Although the amount is not large, it is also an income when the business volume is large.

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

International logistics consultantConsult

The interest on prepaid expenses is also a profit point. For example, if it helps the consignor to prepay customs duties and other expenses first, it will charge a certain interest before the consignor repays the money.

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

Customer service consultantConsult

Cooperating with freight forwarders and others can also generate income. If the agency company introduces customers to freight forwarders, the freight forwarders may give the agency company a certain rebate.

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

Business coordination consultantConsult

If the agency company has a long-term cooperative testing institution and introduces the consignor to conduct tests, the testing institution may give the agency company a rebate.

David Li
David LiYears of service:6Customer Rating:5.0

Senior customs declaration consultantConsult

For some products that require special certifications, the agency company assists in handling the certifications and charges service fees for profit.

The relevant questions or replies only represent the user’s personal stance and do not represent any views of this website.

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