Self - Export VS Agent - Export: 90% of Bosses Make the Wrong Choice!
Mr. Zhang is very recently: The company's business is expanding, and the products need to be sold overseas, but should he choose self - export or agent - export? " If you are also having a headache about this question, this article is for you. The two models each have their own advantages and disadvantages. Making the wrong choice may affect profits, efficiency, and even long - term development. Today, we will help you sort out your ideas thoroughly from dimensions such as cost, risk, and flexibility.
Self - export seemingly saves the agency fee, but the hidden costs cannot be ignored:
- It is necessary to form a professional foreign trade team, increasing labor costs by 30% - 50%
- It needs to bear the operational risks of processes such as customs declaration, logistics, and tax refund on its own
- The investment cycle for developing overseas customers is long, and the upfront marketing costs are high
While the advantages of agent - export lie in:
- Pay a 5% - 8% agency fee according to the order, and the cost is predictable
- Share the mature channels of the agent, reducing the cost of trial and error
- No need to hoard foreign exchange, avoiding the risk of exchange rate fluctuations
Ms. Li's lesson is very typical: When self - exporting last year, the goods were detained by the destination country due to inconsistent documents, resulting in a loss of nearly 200,000 yuan. The self - operating model requires enterprises:
- To fully bear commercial risks such as payment arrears and quality disputes
- To be proficient in international trade regulations, otherwise face compliance penalties
Agent - export, on the other hand, through:
- The agent's prepayment mechanism to reduce the bad debt risk
- The professional team to handle complex settlement methods such as LC and TT
- Transferring part of the customs inspection responsibility
In the long run, self - export enterprises can:
- Accumulate overseas customer resources and establish their own brands
- Master the pricing initiative and increase the profit margin by 15% - 25%
- Flexibly adjust market strategies and respond quickly to changes in demand
But agent - export is more suitable for:
- Start - up enterprises to quickly enter the international market
- Industries with rapid product iteration (such as electronic products)
- Transitional solutions to avoid trade barriers
There is no absolute good or bad, only suitability. It is recommended to ask yourself three questions first: Can the existing team handle complex foreign trade processes? Is the short - term financial pressure acceptable? What is the overseas market strategy for the next three years? Welcome to share your reasons for choosing in the comment area, or send a private message to get a customized solution. In the next issue, we will elaborate on the "Guide to Avoiding Pitfalls in Export Tax Refunds for Small and Medium - sized Enterprises". Click to follow and don't miss it.
- Further Reading
- The Secret Weapons of Geely's Export Agency You Don't Know
- Can Import and Export Agency Companies Really Save You Money?
- The Bitter Lessons of Small Enterprises' Export Tax Refunds
- Zhoushan Potato Chip Import Customs Clearance Agent: The Secret Guide You Didn't Know
- Do you really understand the agent export of manufacturing enterprises?
- Not Hiring an Agent, Is Food Import in Shenzhen Actually So Difficult?
If you require China procurement agency or import-export agency services, please get in touch with us through the following channels. Our professional consultants will reach out to you promptly for personalized support.
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