Tuesday, Sep 26, 2023

3 Types of Import/Export Businesses

When one group or country has a supply of merchandise or a commodity that is in demand in another area, trade can take place. International trade dates back to prehistoric times and consists of import and export services Arizona. To import something is to ship it in from another location, while to export something is to send it elsewhere. This depends on your point of view. When you send goods away, you are exporting them, but to the party who receives them, it is an import.

Advances in technology have affected international trade as they have almost every other aspect of life. These effects have been mostly positive, making importing and exporting more efficient. As a result, an import/export business stands to be both personally satisfying and financially rewarding. If you are interested in starting an import/export business, you should know about the different types.

  1. Import/Export Merchant

An import/export merchant is someone who resells and ships goods that he or she purchased directly from the manufacturer, whether foreign or domestic. A merchant is a free agent who doesn’t specialize in any one line of products or specific industry.

  1. Export Management Company

Say there is a domestic company that wants to sell its product overseas but doesn’t know how. An export management company is one that specializes in a particular foreign market or product. For a cut of the profits, the EMC will handle everything involved in selling the product overseas:

  • Packaging
  • Shipping
  • Distribution
  • Advertising and marketing
  • Invoicing

This is beneficial for both the EMC and the manufacturer, which may be too small an outfit to handle an international shipping division of its own.

  1. Export Trading Company

Like an EMC, an export trading company works to facilitate trade. However, it works on behalf of the foreign company looking to purchase a certain product and seeks out exporters on the domestic side.