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What is direct exporting?

What is direct exporting?

Direct Exporting – The typical exporting system is a company-owned export department, in which a manufacturer sells directly to companies or consumers in foreign countries.

In this arrangement, the company has complete control over the marketing and distribution of its goods and services, distribution, sales, pricing, and other business choices.

Direct exports are sold through foreign-based parties. Indirect exports are sold through home-based proxies or resellers. Both methods can be implemented through either merchants or agents.

In these cases, merchants actually assume ownership of the goods, as opposed to agents, who only represent the manufacturer or owner. Bartering is another method that manufacturers may use to sell their goods abroad.

A direct merchant is an organization in a foreign country that buys goods in the United States, or another country, and then proceeds to sell the goods in their own country.

The merchants usually offer complementary services to their buyers such as maintenance, parts sales, and technical support. A direct merchant often has a close relationship with the exporter, giving the merchant exclusive rights to sell and service the goods.

 

 


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