What Types of Import/Export Businesses are there?

The fact is, any business that is not only selling domestically is in the supply and demand chain of import export business. This also means, if you've ever sold any product on eBay, you may very well be in the import export business.

Import export businesses can be simplified to the following processes. It starts from a manufacturer producing merchandise. It's exporter/export trading company will then promote the products internationally. An importer/import trading company buys the products for a particular buyer, and the buyer will then sell to a retailer or directly to the customer.

Thanks to technology and also to the English language, the import export business has become everybody's business. There are several types of work that can be done by individuals/small companies. The following are several types of import export business that you can do.

Manufacturer's representative: If you are specialized in a certain industry, you can very well go to an oversea manufacturer and ask to represent them in the countries of your choice. A representative has the edge because you are the expert in the industry or a certain market. For example, if you are an expert in the wooden furniture business and you have been selling in the western US region, you have the great opportunity of going to a Chinese furniture maker and asking to be a representative of their western US region. Most of the manufacturers love people like you because you are their free labor (no base, only commission) to help them get into the market. It's a win-win situation for both you and the manufacturer.

Export management company (EMC): An EMC handles export operations for a domestic company that wants to sell its product overseas but doesn't know how (and perhaps doesn't want to know how). The EMC does it all-hiring dealers, distributors and representatives; handling advertising, marketing and promotions; overseeing labeling and packaging; arranging shipping; and sometimes getting financing. In some cases, the EMC even takes title to the goods, in essence becoming its own distributor. EMC's usually specialize by product, foreign market or both, and--unless they've taken title--are paid by commission, salary or retainer plus commission.

Export trading company (ETC): While an EMC has merchandise to sell and is using its energies to seek out buyers, an ETC attacks the other side of the trading coin. It identifies what foreign buyers want to spend their money on and then hunts down domestic sources willing to export. An ETC sometimes takes title to the goods and sometimes works on a commission basis.

Import/export merchant: This international entrepreneur is a sort of free agent. He has no specific client base, and he doesn't specialize in any one industry or line of products. Instead, he purchases goods directly from a domestic or foreign manufacturer and then packs, ships and resells the goods on his own. This means, of course, that unlike the EMC, he assumes all the risks (as well as all the profits).

Import/export Agent: The true broker definition, this business never or at the very most, rarely invests capital in inventory or directly handles merchandise, products or services.

Distributor or wholesale distributor: a company that buys the product you've imported and sells it to a retailer or other agent for eventual distribution to the end user.

Representative: a savvy salesperson who pitches your product to wholesale or retail buyers, then passes the sale on to you; differs from a manufacturer's representative in that he doesn't necessarily specialize in a particular product or group of products. On the other hand, he/she has a very good relationship with one or many wholesaler/retailers.

Retailer: the tail end of the trade channel where the merchandise smacks into the consumer; as yet another variation on a theme, if the end user is not Joan Q. Public but an original equipment manufacturer (OEM), then you don't need to worry about the retailer because the OEM becomes your end of the line (think Compaq purchasing a software program to pass along to its personal computer buyer as part of the goodie package).