123ArticleOnline Logo
Welcome to 123ArticleOnline.com!
ALL >> Business >> View Article

Role Of Distributors & Agents In Exporting Business

Profile Picture
By Author: William King
Total Articles: 365
Comment this article
Facebook ShareTwitter ShareGoogle+ ShareTwitter Share

As a manufacturer or exporter who is willing to step into some foreign market, you should better be starting in a safe and calculated manner. One relatively safe and secure method is to start with indirect exports and see the response. There are many ways to start indirect exports, but the most widely used method is to hire the services of commission agents or get into a contract with some distributor. Although, their roles may sound a bit similar, both of them differ at some points. Let's look into the role of these two in detail.

Agents:
Also known as commission agents, they are responsible for selling your products in foreign market. They are experienced campaigners and quite familiar with the market you are going to target. They know the customers and their needs. However, the thing to remember is that they are solely responsible for selling your products. They do not buy from you directly; neither do they involve themselves in delivery or after sale services in most cases. Their source of earning is the fixed commission on every sale (or gross sales, they will make for you).

Commission agents must be ...
... able to meet following requirements before you hire their services.

 Should be having loads of experience
 Check to see if the agent also deals in some of your competitive products
 Past record of sales and the stats for business they have provided to other exporters in the past
 How much of the market that agent can cover on his/her own and to what extent
 Do they sell to end users or businesses?


Distributors:
Unlike commission agents, distributors normally purchase the product from you (at low rates) and then sell it in the market, all the time maintaining some inventory with them. Given, they also provide after sale services, they are more suited if your product needs some installation work or requires after sale services.

 Distributors should be financially stable
 They must be good in inventory stocking and warehouse management
 Should be having technical information about the product (train them if needed)
 Should be ready to work at price margins you are willing to offer
 Be careful when going into a contract and think over the clauses many times before signing
 Distributor should be capable of running or managing the advertising campaign if needed

Now, whether you should go for agents or distributors? The answer to this question will depend on your product and preferences.


William King is the director of UK Wholesale Suppliers & Dropshippers: http://www.uk-wholesaler.co.uk , UAE Dubai Property & Dubai Real Estate Properties Portal: http://www.bayut.com and Dubai Property Rentals & Dubai Rents: http://www.bayut.com/rent.html. He has 18 years of experience in the marketing and trading industries and has been helping retailers, entrepreneurs and startups with their product sourcing, promotion, marketing and supply chain requirements.

Agents, distributors, agent, export, indirect, foreign, market

Total Views: 216Word Count: 459See All articles From Author

Add Comment

Business Articles

1. Finding A Trusted Sustainability Consultant In Abu Dhabi
Author: Agile Advisors

2. Iso Certification In Dubai – Advantages For Business
Author: Agile Advisors

3. Best Forex Brokers List | Best Broker For Forex Trading 2024
Author: Top Forex Brokers Review

4. Celebrate Achievements With Customized, High-quality Awards From Trophy Deals
Author: Trophy Deals

5. Is 100% Company Ownership Possible For Expats In Saudi Arabia?
Author: jodonjo

6. We Are Hiring: Senior Executive - Indirect Taxation In Gurgaon!
Author: tanvir Khan

7. Ceratec Tower 1o8: The Eventual Fate Of Business Greatness In Balewadi, Pune
Author: Tarun

8. Enrofloxacin Manufacturer: Swisschemie
Author: Swisschemie

9. Ultimate Guide To Hotels In Mussoorie: Discover The Best Places To Stay, Including Hr Hotels And Resorts
Author: Hr Hotels and Resort

10. How Quickly Do Fast Cash Loans Online Pay Out Cash On The Same Day?
Author: Lucy Lloyd

11. Leading Digital Marketing Agency In Hyderabad And Unlock Your Brand’s Potential With Sanbrains Agency
Author: Sanbrains Seo

12. Celebrate Success With Customized Awards From Trophy Deals
Author: Trophy Deals

13. Title: Choosing The Right Humidity Stability Chamber Supplier For Your Manufacturing Needs
Author: bio gene

14. Complete Guide To Studying Mbbs In Poland
Author: Mbbs Blog

15. What Is The Process For Locating The Best Lender For Short Term Loans Online?
Author: Robert Miller

Login To Account
Login Email:
Password:
Forgot Password?
New User?
Sign Up Newsletter
Email Address: