Exporting by Laurel J. Delaney

Author:Laurel J. Delaney
Language: eng
Format: epub
Publisher: Apress, Berkeley, CA

Overseas Agent or Representative (Importer)

An overseas agent works on a commission basis (ranging from 2.5 to 15 percent) to locate buyers for your product, which is considered indirect exporting (more in Chapter 17). It involves selling to an intermediary, who in turn arranges the sale of your products either directly to customers or to importing wholesalers. Once a buyer is found, however, customer service and all transaction logistics, including setting up payment and arranging transportation, become your responsibility. The agent oversees your work, stays in close contact with the customer, and will step in to assist on behalf of either party if needed. The advantage of this type of working relationship is that you have a fair degree of control over price and who your customers are.

Since overseas agents, sometimes considered foreign country brokers, typically have a vast knowledge of a target market along with solid relationships with customers, they can easily identify and exploit opportunities for your enterprise, from tracking demographic trends, to announcing radical customer shifts, to identifying emerging hot new products in any given country. The trick to working effectively with agents or reps is to stay in close contact by e-mail, telephone, or Skype and set expectations in writing right at the outset.

To find agents, work with the US Commercial Service; check online sourcing platforms such as Alibaba ( http://www.alibaba.com ), Global Sources ( http://www.globalsources.com ), EC21 ( http://www.ec21.com ), and TradeKey ( http://www.tradekey.com ); inquire with the international trade team at your bank for recommendations; reach out to industry trade-show executives who have access to the exhibitors and buyers who attend; and conduct a search via the Internet by typing in “Sales agent, UK, pet supplies,” for example. Many of the ways to find an overseas agent are similar to those that I will look at in Chapter 17 in my discussion of export management companies (EMCs) .

Note

Using a company’s own sales force will exert the most international control, but often for small businesses it is at a cost that is not affordable. Using overseas agents, representatives, and distributors is a prudent stepping-stone for testing the market and learning whether your product and services can be sold successfully first through someone who knows the market better than you do.

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