What are the export management companies? purchasing your products from the manufacturer , marketing your products, and export laws.. Learn about them through our article
An export management company is a company that facilitates the distribution of other companies’ goods to foreign markets, and usually an export management company exports goods on behalf of several other companies.
To prevent conflicts of interest, export management companies do not work with companies that compete with their existing customers.
Some export management companies have internal export teams that promote the company’s products in foreign markets and arrange the goods to be shipped abroad.
Many companies rely on export management companies because small companies lack resources to fund an in-house export team, while large companies reduce operational expenses by outsourcing this function, and this is where the export management company comes in.
In some cases, export companies receive a commission from the sales they make to the companies they deal with, and some export companies purchase large quantities of goods from factories and sell them at a higher price to foreign purchasers and earn profits.
It is notworthy that an export contract or agreement may last for several months or years, and the exporting company usually enjoys exclusive rights to market the manufacturer’s products for the duration of the contract.
Purchase from the manufacturer
If the export company exports the goods directly from the manufacturer,its commercial agents are responsible for promoting these products in overseas countries.
The company must take the necessary measures to transport goods to the foreign countries, and this entails concluding mediation deals with shipping companies and airlines.
When the goods reach the destination country, the local workers of the export company must take the necessary measures to either transport the goods directly to customers or store and sell them through retailers.
The goods are usually sold at a price set during negotiations between the export company and the manufacturer.
Export regulation laws
There are laws in some countries that require exporting companies to pay customs taxes or duties on certain types of imported goods
Export management companies must pay any applicable taxes and include these costs in pricing negotiations. In addition, rules in some countries prevent companies from importing certain types of products.
In all these cases, the export company shall bear all liabilities – rather than the manufacturer – to ensure that exports do not violate local laws in other countries.
Many export management companies also facilitate the sales process and do not purchase goods from the manufacutrer, and these companies try to negotiate deals with retailers and distribution companies in foreign countries to market and sell the products.
The export company is also usually responsible for arranging for the goods to be transported from the factory or warehouses to storage facilities used by foreign customers. In this case, the costs associated with each phase of transportation must be calculated and added to the price of the shipped goods.