The Three Types of Import and Export Businesses

The Three Types of Import and Export Businesses

export-businessesThere are three basic types of import/export business which should be considered when talking about import and export:

• ETC (company for import trading) is the opposite of EMC. EMC will handle all the merchandise and will find the buyers, whereas the ETC will find desired goods that foreign customers and buyers want to buy. Then they will find a local company or sources that are willing to do the export. Occasionally, they will work on a commission, but they will find the best stuff for you!

• EMC ( a company that manages export) handles export trades and operations for a local company that wishes to sell their goods overseas but is not sure how to do that or even if it doesn’t want to get involved in that process. They will do all the work for you. For example, they will hire the dealers, representatives, and distributors and they will handle all the advertising, promotions, and marketing for you. Also, they will oversee all the packaging and marking of the trades, shipping, and sometimes even the necessary financing.

• The merchant for import or export is an entrepreneur and a free agent that is internationally or locally based. He will buy the goods directly from foreign or domestic companies and manufacturers and then pack, ship, and resell them on his own (without interference with import/export companies). Those entrepreneurs don’t have any special trading field of industry or products. Opposite to the ETC, he takes all the risks, but of course all the profit too.

So, whether you want to deal with import and export directly or not, this brief introduction to import/export business should give you some basic start when trading in foreign countries and who to search for when you just want to trade, but not being involved in the process.