• Email Address: vip@organicompany.net
  • Phone number: 00201018634828
English
  • English
  • Spanish
  • Portuguese
  • Arabic
  • Russian
  • Ukrainian
  • Brazilian
  • Indonesian
  • Malagasy
  • French
  • German
  • Chinese

Are you thinking of exporting products? Will you deal with a distributor? Agent's mother!


 You know you are ready to trade internationally, but do you know if you want to export? The right answer for you depends in large part on why you want to go global in the first place.

So the export makes sense in the following cases:

If the price of liberating the pound relative to the dollar is small: because the dollar is currently equal to 17: 20 pounds, this will make it easier for you that the products made in Egypt will be the cheapest products, because if it costs you 100 pounds, you will definitely sell them for more than 5 dollars, so the currency difference will be a great gain for you even If only one dollar had increased.


If you want to increase sales and profits: High income levels in many countries create opportunities for them to purchase goods and services from abroad.


If you want to serve a market that does not have production facilities or has limited production facilities.


If your current business wants to test an overseas market to see if the product is acceptable before you consider investing in a local production facility.


 If you want to use your excess production capacity to reduce fixed costs per unit.


 If you want to extend the product life cycle by exporting to markets that are not currently served.


If you enjoy selling and dealing with people from other countries and cultures.


In this article, we will explain what it means to deal with a distributor? What does it mean to have an agent? This is not the end, but you will know the characteristics of each of them, and how to differentiate between them?


Decide if you want to deal with a distributor or agent


After you have decided to enter the export business, you must decide how you want to set up your business. You have two options:


Either you deal with a distributor: (a middleman who buys and holds ownership of the goods) (for example: you sell to him your product and he sells it in his country under his name and trademark)


 Or you deal with an agent: (a company that brings two parties together but does not take ownership of the goods). (For example: You have a product that you want to export to a country and you will depend on an agent for you there who will connect you with merchants who take your products and sell them, and the agent will have a percentage of this deal.


You should know that the distributor has higher risks and expenses than the agent, but the distributor also has more control over the export process.


In the following lines, we will explain in detail what is the distributor? And what is the agent? And help you determine the right path for you. We have already talked about them in an article (I have good products, who can buy them?) The first article in this series, but we did not mention their details that we will mention in this article


distributor

Do you want to export products? Will you deal with a distributor? Or an agent?!

A distributor is an independently owned company that mainly engages in wholesale and takes ownership of the goods being distributed. The distributor is an intermediary that deals with consumer or commercial goods that can or may not be manufactured (such as agricultural products), which he will import from the Egyptian source.


Distributors usually buy merchandise at their own expense and resell them at a higher price. Accepting the risks and rights that come with ownership of merchandise, they buy merchandise from the producer, move merchandise to their own warehouses, and then sell them to dealers at a higher price.


Distributor characteristics

An independently owned company.

Takes ownership of the goods being distributed i.e. ownership passes from the seller to the buyer at the time of purchase

They are often categorized by product line (such as medical products, devices, or electronic devices).


In the field of export, there are two main types of distributors:

First: wholesalers

The distributor, called the wholesaler in this case, provides the following services to its customers and suppliers:

ü Purchasing: The distributor acts as a purchasing intermediary for its customers.

ü Formation of products: that is, the distributor purchases goods from a variety of suppliers and does not depend on one supplier and thus maintains the stock that meets the needs of its customers.

ü Retail: The distributor buys large quantities and sells to its customers in smaller quantities.

ü Selling: The distributor provides a sales force to its suppliers.

ü Warehousing: The distributor works in the field of warehousing for consumers, where he delivers goods to his customers at the request of customers. And it stores the surplus until customers order it again

ü Transportation: The distributor arranges to deliver the goods to his customers. How will he pass it on to them?

ü Financing: The distributor provides credit terms to its customers.

Second: Drop Shipping Affiliate Marketing

Here, the person who carries out the drop shipping agrees with the importer on all the export details, determines the price, how to ship and all other details. Then the exporter or the owner of the product undertakes the shipping process and delivers the product to the importer, so the dropshipper does not deal with the product permanently and does not change the name of the product to its brand.


agent

Do you want to export products? Will you deal with a distributor? Or an agent?!

An agent is similar to a distributor in that it is an intermediary, however, the agent does not take ownership of the goods and provides fewer services than the distributor. The agent's role is to take orders and (usually) receive a commission for his services. Import agents operate in the country in which the product is imported.


For example: CADE International is an import agent based in America, CADE Company realizes that the Egyptians Factory is a company that manufactures high quality women’s jackets in Egypt, and that there is an American merchant who is interested in taking the jackets to sell to his customers, so CADE is an intermediary that brings the seller and buyer together but does not take the right ownership of the goods and does not provide any of the services that a distributor can perform.


Agent properties

An independently owned company.

It does not put its own brand name on products being bought and sold.

Actively participates in negotiations either to sell or buy products.

Commission rate depends on

The nature and type of the product, the nature of the market in which it is sold, and the level of competition.

In the field of export there are two main types of factors which are:

First: The traditional import agents:

 The import agent works in the country to which the product is exported. For example, you can select a product in Egypt and work towards representing that product (the seller) in foreign markets as its agent in the foreign market.


Second: Intermediaries:

A broker is an independent agent who brings buyers and sellers together For the most part, a broker works for sellers, although some brokers represent buyers. A broker differs from a traditional export agent in that it does not usually represent a company and is instead traditionally employed to collect unique or non-recurring deals .


 For example, a broker is contacted from a company to announce that there is an excess stock in its stores, and it is an Egyptian carpet manufacturing company, so the broker communicates with a carpet distributor outside Egypt, to be in Singapore, and the carpet company is connected to the carpet distributor in Singapore through this broker and takes his commission from the Egyptian company .


With this, we have finished this article in a series of articles in the comprehensive guide for novice exporters, which included the definition of distributor and agent, and what are the characteristics of distributor and agent? And goodbye in another article and a new useful topic for those interested in exporting. In the following article, we will talk about the most important rules and licenses that you should be aware of before you export.


 Thank you for being one of the customers of Organic Import and Export, we sincerely appreciate your business and hope you will come back soon.