Is Import and Export Agency the Most Lucrative Industry in 2024?

In the past two years, there have suddenly been quite a few friends around me who are engaged in import and export agency. Mr. Zhang just resigned to start his own business last year, and now the monthly turnover of his company has exceeded one million yuan; Ms. Li's agency company has served more than 50 small and medium-sized enterprises within less than a year since its establishment. This industry seems to have a low threshold and high profits, but what are the unknown secrets behind it? Today, we will unveil the mystery of import and export agency companies.

With the explosive growth of cross-border e-commerce, the demand for small and medium-sized enterprises to go global has surged. Data shows that in 2023, the scale of China's cross-border e-commerce imports and exports increased by 15.6% year-on-year, but more than 60% of small and medium-sized enterprises chose agency services due to the lack of professional teams. This imbalance between supply and demand has created huge market opportunities.

Compared with traditional foreign trade, import and export agency business has three major advantages:

• Light-asset operation: There is no need to build its own warehouse or logistics system.
• High service premium: The service premium for professional customs declaration, tax refund and other services can reach 20%.
• Strong customer stickiness: Once a cooperation is established, it usually lasts for 3 - 5 years.

Although the market prospect is broad, blindly entering the market is likely to step on pitfalls. Ms. Wang once ignored the qualification issue, resulting in the first batch of goods being detained at the customs for two weeks, with heavy losses.

• Qualification threshold: Five basic qualifications such as the right to engage in import and export and customs AEO certification are required.
• Talent reserve: At least one certified customs declarer and a business manager familiar with international trade rules are needed.
• Capital turnover: Businesses such as prepaying taxes usually require 500,000 - 1 million yuan of working capital.

After ten years of exploration, Zhongshitong, a leading enterprise in the industry, has summarized the three most sustainable business models:

• Basic service type: Customs declaration + logistics + tax refund, charging a service fee of 5 - 8% per order.
• Value-added service type: Providing supporting services such as overseas warehouses and distribution, with a profit margin of up to 15%.
• Platform empowerment type: Building a digital service platform and charging annual membership fees + transaction commissions.

If you have already decided to enter this industry, you might as well listen to the suggestions of industry veterans:

• First, enter from a segmented field, such as focusing on medical devices or cosmetics categories.
• Establish at least three stable logistics partners to avoid being tied to a single channel.
• Develop an independent customs declaration system, which is the core competitiveness for improving efficiency.
• Participate in international trade exhibitions, which is the best scenario for obtaining high-quality customers.
• Reserve a capital buffer period of 6 - 12 months, as the development cycle of new customers is generally long.

As the digitalization process of global trade accelerates, the import and export agency industry is undergoing a transformation from "intermediary" to "comprehensive service provider". This track full of opportunities requires both professional capabilities and innovative thinking. After reading this article, are you more determined to enter the market, or have you found areas where you are not ready? Welcome to share your entrepreneurship plan or industry insights in the comment area.