I have a question regarding domestic/foreign intermediaries in exporting. Do they sell products on behalf of the exporter or do they buy them from the exporter and then resell them in their own name?
In international business, intermediaries, so called distributors, purchase products from the exporting company and take title to them. They then resell the products in a foreign market and assume responsibility for marketing, sales, and possibly after-sales service. The distributor bears the risk of inventory and sales. This is most often the case with consumer products.
Intermediaries, so called agents, act on behalf of the exporter and help market and sell the products. Agents do not own the products they sell-they simply facilitate the sale in exchange for a commission. The exporter retains ownership of the products and usually handles shipping and delivery. This is most common in service industries such as real estate and insurances.
Intermediaries, so called agents, act on behalf of the exporter and help market and sell the products. Agents do not own the products they sell-they simply facilitate the sale in exchange for a commission. The exporter retains ownership of the products and usually handles shipping and delivery. This is most common in service industries such as real estate and insurances.