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Who’s Who in Exporting and International Marketing

Whether you’re communicating via the Internet or responding to international phone calls, make sure you have a handle on who the major exporting players are and what roles they play.

Exporter, export merchant, export wholesaler: A company or person located in the country of export that sells on its own account.

Export broker, export sales or marketing agent: Commonly located in the country of export, the chief function of an export broker is to create liaison between a foreign buyer and domestic seller. The broker does not take possession of the products that are being exported and is paid by commission.

Export buying agent: A representative of the foreign buyer or importer who is located in the country of export. The agent offers services in response to the buyer’s request, such as identifying potential sellers and negotiating prices. He or she may also review samples and inspect the goods prior to export. The agent is typically compensated by a commission. This is similar to a resident buyer; however, the resident buyer is an employee of the foreign buyer.

Export management company: A private company that acts as the export department for several companies, serving on behalf of the clients by conducting export business and correspondence in the name of the manufacturer. It may work on commission or salary. This option may be ideal for a small- to medium-sized business unable to afford its own international marketing division.

Export management company vs. export trading company: Trading company takes title to the goods, export-management company does not.

Export trading company: A company involved in commercial and financial activities to facilitate exports by unaffiliated persons; activities include distribution, shipping, warehousing and finance. Such transactions are increasingly conducted on-line.

Export wholesale consolidator: An export wholesaler who consolidates a variety of products into one shipment in response to the demands of the foreign buyer, often an importer or supermarket chain. The consolidator purchases products from a variety of suppliers to offer year-round global supply to the buyer.

Foreign customs house broker or customs broker: A person in the importing country hired to facilitate the entry procedure, such as product valuation and classification or payment of duties.

Foreign distributor: The foreign distributor sells an exporter’s merchandise directly to the foreign buyer, wholesaler or retailer after import. Since the distributor takes title to the goods, the exporter is less burdened with market demand fluctuations.

Foreign sales representative: Located overseas, the sales representative seeks domestic buyers for a foreign exporter by offering marketing services and making samples and catalogs available. Often paid on commission, the sales representative does not take possession or title of the goods being exported, but may assist with import logistics.

Freight forwarder: A person or company that handles the export transportation and related formalities on behalf of a shipper or exporter, such as booking space on a ship or airplane and providing all the necessary export documentation.

Importer: A company or person located in the country of import that buys on its own account.

Manufacturer’s export agent: Typically offers similar, but fewer, services of an export management company. However the export agent retains its own identity by operating in its own name. Often paid a straight commission which does not include advertising and financial assistance. This option is beneficial for firms that want to sell small orders, enter a new market or sell a relatively new product overseas.

Merchant or exporter vs. an agent: Both are independent wholesale marketing companies. However the merchant takes title to the products to be sold, while the agent does not.

Retail buying office: A retailer’s own buying office that purchases direct from manufacturers or agents. As retailers grow into global players, the buying office becomes a centralized retail buying office that makes purchasing decisions for its hundreds of outlets in-country and overseas.

Re-exporter: Imports or buys imported goods, then exports the products to a different country; typically operates in a country without import duties, in a foreign/free trade zone or in a customs bonded warehouse.


Last modified: Thursday, October 14, 2004 PM