Selling Direct to Overseas Customers

Selling Direct to Overseas Customers

Selling Direct to Overseas Customers

There are certain types of overseas business which cannot be conducted suitably through intermediaries. Some large retail outlets, such as departmental or chain stores, prefer to deal direct with the foreign manufacturer. The aggregate size of their orders may be such that the employment of a local Commission Agent or a Distributor becomes unnecessary. Large organizations of this nature often possess fully adequate warehousing facilities to allow them to order merchandise in bulk and to themselves distribute to their own outlets. They will be experienced in the importation of goods and well versed in all the necessary documentation procedure.

A similar situation will arise when one is fulfilling foreign governmental or municipal authority contracts. Here again, there will be a preference for direct dealing with the manufacturer who himself may consider it desirable to maintain close personal control over the transactions.

From the foregoing it will be seen that the appointment of overseas agents is an extremely important function of overseas marketing. Considerable care should be exercised, not only in deciding the type of agent most suitable to handle one's particular product in a particular market, but also to ensure that the specific firm one chooses has adequate knowledge of one's class of merchandise and sufficient experience of the market to achieve the degree of penetration required.

In selecting agents, therefore, there are certain essentials to be considered.

Financial Position

Trading Experience

Other Lines


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