by Tekle Sebhatu
Question:
I have been asked by a Chinese sanitary ware manufacturer to work for them as their UK sales agent. My role will be to find new buyers in the UK for their products. I intend to approach as many distributors here as possible with their product catalogues and price lists with a view to generate interest in their products. What I am not planning for because I’m sure there is much more to the job than this? Is it likely that I become involved with things like payments to the supplier and if so, by what payment methods do buyers usually have to pay a Chinese supplier? Finally, where should I be looking for UK distributors?
Any advice you can give will be greatly appreciated.
With best regards,
Daniel
Answer:
Dear Daniel 16: First, let us define the roles of Foreign Sales Agent (FSA) and Foreign Distributor. Simply put, an FSA is an individual or a company who serves as the foreign representative of a supplier and seeks sales for the supplier. An FSA is usually compensated by commission and most often an FSA does not take title of the goods.
A foreign distributor sells for the supplier and usually maintains an inventory of the supplier’s products. Foreign distributor almost always takes title (ownership) of the product and usually is compensated using mark-up (percentage added).
Using the above definitions your role most likely will be as an FSA, which I believe is the best way to start. Your risk as an FSA is limited because you are only acting as a facilitator unless you choose to handle payment. As a foreign distributor, your risk is much higher because you will maintain inventory, handle payments, possibly clear customs yourself and if you don’t sell the products that you have title you will be at a big loss. Consider your risk tolerance and available resources, particularly financial when you choose one of the above. Your local trade association could be good resource for locating distributors within your area.
Secondly, it is good that you plan to approach several distributors. Don’t forget though that you must do your homework before you approach any of them. Your challenge will be to convince a distributor to carry your product and sometimes that is not easy because distributors most often have several product choices. Careful planning will help you find a good distributor if available in your area.
Re: Am I an agent or a distributor?
by mldg on 16 Mar 2006 10:32
Excellent answer that covers most of the world. Thank you.
Re: Am I an agent or a distributor?
by aquib on 28 Aug 2007 22:44
hello sir
i read letter if your intrested in my company please mail my presnol id aquibl@yahoo.co.in
i am waiting for your reply your mail .
best regargs
m.aquib
Re: Am I an agent or a distributor?
by marful48 on 30 Dec 2008 23:00
Quoting from [Resources]:by Tekle Sebhatu
Question:
I have been asked by a Chinese sanitary ware manufacturer to work for them as their UK sales agent. My role will be to find new buyers in the UK for their products. I intend to approach as many distributors here as possible with their product catalogues and price lists with a view to generate interest in their products. What I am not planning for because I’m sure there is much more to the job than this? Is it likely that I become involved with things like payments to the supplier and if so, by what payment methods do buyers usually have to pay a Chinese supplier? Finally, where should I be looking for UK distributors?
Any advice you can give will be greatly appreciated.
With best regards,
DanielAnswer:
Dear Daniel 16: First, let us define the roles of Foreign Sales Agent (FSA) and Foreign Distributor. Simply put, an FSA is an individual or a company who serves as the foreign representative of a supplier and seeks sales for the supplier. An FSA is usually compensated by commission and most often an FSA does not take title of the goods.
A foreign distributor sells for the supplier and usually maintains an inventory of the supplier’s products. Foreign distributor almost always takes title (ownership) of the product and usually is compensated using mark-up (percentage added).
Using the above definitions your role most likely will be as an FSA, which I believe is the best way to start. Your risk as an FSA is limited because you are only acting as a facilitator unless you choose to handle payment. As a foreign distributor, your risk is much higher because you will maintain inventory, handle payments, possibly clear customs yourself and if you don’t sell the products that you have title you will be at a big loss. Consider your risk tolerance and available resources, particularly financial when you choose one of the above. Your local trade association could be good resource for locating distributors within your area.
Secondly, it is good that you plan to approach several distributors. Don’t forget though that you must do your homework before you approach any of them. Your challenge will be to convince a distributor to carry your product and sometimes that is not easy because distributors most often have several product choices. Careful planning will help you find a good distributor if available in your area.
Tt (telegraphic transfer), * bill etc. vs. lc (letter of credit)
Author: Catalyst
Back to back letters of credit
Author: Catalyst
The original LC and the one issued against it are independent. See how it works.
