Commissioned agents, export houses, overseas buying agents, piggyback marketing and trading houses offer you the chance to spend less when compared to direct exporting.

More and more cost-conscious small and medium-size companies are often likely to prefer indirect exporting as a way to break into foreign markets.

This is partly true since several smaller companies do not have the trade expertise, financial backing and fine-tuned business practices to preciously manage the complexity and risky challenges of global trade.

One more reason to contract exporting projects to global trade specialists is that business owners have the time to concentrate on their company.

Commissioned Agents

Commissioned agents are the cream of the crop of indirect exporting techniques that humbler companies use. They are buyers who live in the exporting country and who work on your behalf. Suppliers usually pay a fraction of the cost to those commissioned agents who secure products for export to other countries.

Export Houses

Export houses act as a buffer to spend less on indirect exporting. They offer a wide range of export services on contract, therefore playing the export department for companies that do not have the funds to operate their own in-house exporting operations

Trading Houses

Trading houses are local companies or regional offices of global trading offices. They secure goods from a manufacturer in their own country, and then export them for profit. Small to medium-size companies handle the sales in their own way, while the trading house is responsible for packaging, insurance, shipping and other charges billed in exporting products.

Piggyback Marketing

Also known as co-marketing, piggyback marketing pertains to a scenario where a company makes items that are used for another manufacturing product line which is then exported. For example, an audio card company whose products are included in a large PC manufacturerís export shipments. The large PC manufacturer accepts all charges as a direct exporter, while as an indirect exporter, the small audio card company is protected from these expensive costs.

Government Agents

Savvy indirect importers also ask local embassies to scout buying agents for overseas governments. Some governments even contract buying agents to handle the process rather than the government themselves. Building a relationship with an overseas government buying agent will help you get over any market costs and governing hurdles in the importing country.

Importing Industries

Automobile and several other transportation equipment manufacturers are high up on the list of industries that use indirect exporting. Many of these companies provide parts or components to other companies for integration into goods designated for export.

Indirect Exporting Positives

Indirect exporting is almost risk free, since they donít have to think about:
  • Market entry roadblocks
  • Dealing with distribution in an overseas company
  • Difficulties selling products in other countries ranging from colliding cultures to unstable exchange rates
  • Continuing end-user relationships
In indirect exporting, the sound relationship exists between the supplier and its buyer. Questions of legal power in foreign lawsuits become less of a problem for indirect exporters.

Indirect Exporting Negatives

While you can spend less money in the short and medium-term, this type of supplier barely has any control on the business taking place overseas.

Additionally, indirect exporters like the above-mentions audio card company isnít recognized by the end users who are more familiar with the overall product instead of the internal parts.

Brand-name recognition and allegiance to overseas markets thus becomes the arena of companies like Sony. These international corporations can purchase the more luxurious direct exporting methods, leaving indirect marketing the option for many small and medium-size businesses.