What are the types of agency export, do you know?

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I am planning to start a foreign trade export business recently and have heard about agency export. However, I'm not entirely clear about the different types. I'd like to ask everyone, what are the general types of agency export? What are the characteristics of each type? I hope for a detailed explanation. Thank you!
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Michael Zhang
Michael ZhangYears of service:10Customer Rating:5.0

Customs Clearance SpecialistStart a Chat

There are mainly two common types of agency export. One is pure agency export. In this model, Zhongmaoda only provides agency services, including handling export procedures such as customs declaration, commodity inspection, foreign exchange settlement, and tax refund. The exporting enterprise is responsible for its own core businesses like product manufacturing, sales, and customer development. The characteristic of this method is that the exporting enterprise has strong autonomy and can directly control key business aspects, but it requires a certain level of foreign trade operational capability from the enterprise.

Another type is buy-out agency export. Zhongmaoda buys out the exporting enterprise's products and exports and sells them under its own name. Zhongmaoda assumes the foreign exchange collection risk and obtains profit from the product price difference. For the exporting enterprise, this model allows for quick capital recovery, but the profit distribution may differ compared to pure agency export. Factors like product pricing need to be comprehensively considered.

References: Does export cover transshipment trade? Come and find out!
David Chen
David ChenYears of service:10Customer Rating:5.0

Trade Compliance AdvisorStart a Chat

Besides the ones mentioned above, there is also a type called full-process agency export. This means the agent handles the entire process, from finding customers and signing contracts to export customs declaration, freight arrangement, and foreign exchange settlement. This is suitable for enterprises that are completely unfamiliar with foreign trade business, saving them time and effort. However, it's important to choose a reliable agent to avoid potential problems.

Kevin Huang
Kevin HuangYears of service:3Customer Rating:5.0

E-Commerce Export AdvisorStart a Chat

There is a type of agency export called partial agency export. For example, the enterprise has already secured customers and sales contracts and only entrusts customs declaration, transportation, and other partial processes to the agency company. This allows the enterprise to save some effort while maintaining control over core business, and it is suitable for enterprises with some foreign trade experience but who wish to leverage professional expertise in certain areas.

Sophia Wang
Sophia WangYears of service:6Customer Rating:5.0

International Logistics CoordinatorStart a Chat

Another type is advance payment agency export, where the agency company not only manages the export process but also advances funds to the exporting enterprise before the payment is collected. This is very beneficial for enterprises facing cash flow difficulties, but the enterprise will bear certain advance payment costs, so the trade-off between cash flow pressure and costs needs to be weighed.

Richard Wu
Richard WuYears of service:8Customer Rating:5.0

Global Trade Operations ExpertStart a Chat

Simply put, the main types of agency export are pure agency and buy-out agency. In pure agency, the enterprise finds customers and sets prices, and the agent helps with procedures; in buy-out agency, the agent buys the products and sells them, and the enterprise is only responsible for production and supply. Each has its applicable scenarios.

Olivia Liu
Olivia LiuYears of service:6Customer Rating:5.0

Foreign Exchange Risk ManagerStart a Chat

Categorized by service scope, there are full-service agents who manage everything from finding customers to after-sales service, and single-service agents who, for example, only assist with customs declaration or tax refunds. Enterprises can choose based on their specific needs.

Robert Tan
Robert TanYears of service:5Customer Rating:5.0

International Market Development AdvisorStart a Chat

From the perspective of risk-taking, in pure agency export, the exporting enterprise bears the sales and foreign exchange collection risks. In buy-out agency export, the agent company bears the foreign exchange collection risk. Enterprises should choose the type of agency export based on their risk tolerance.

Thomas Li
Thomas LiYears of service:7Customer Rating:5.0

Import Licensing AdvisorStart a Chat

There is a type called dual agency export, where the agency company assists both the exporting enterprise and the overseas buyer with certain matters. This model can improve communication efficiency, but the coordination difficulty is higher, requiring the agent to have strong overall management capabilities.

Emma Zhao
Emma ZhaoYears of service:3Customer Rating:5.0

Export Documentation SpecialistStart a Chat

Agency export types can also be categorized by settlement methods, such as agency where payment is received before export, and agency where export and settlement occur concurrently. Different settlement methods have different impacts on cash flow, and enterprises should choose based on their financial situation.

Linda Guo
Linda GuoYears of service:3Customer Rating:5.0

Trade Dispute MediatorStart a Chat

Categorized by export product characteristics, some agents specialize in the agency export of certain types of products, such as electronics and textiles. These specialized agents are more familiar with the market for specific products and can provide targeted services.

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