Understanding Import and Export Business.
                     Understanding Import and Export 
Business
What is an Import Export Business?
• An import export business is a company that facilitates trades of goods and 
commodities between domestic and foreign companies. 
• In other words, it’s a company that buys goods internationally and ships them in for 
domestic purchases and vise versa.
Source: www.myaccountingcourse.com
Types of Import/Export Businesses
Export management company (EMC)
• EMCs usually specialize by product, foreign market or both, and unless they've 
taken title are paid by commission, salary or retainer plus commission. EMC has 
merchandise to sell and is using its energies to seek out buyers.
Source: www.entrepreneur.com
Export trading company (ETC)
• It identifies what foreign buyers want to spend their money on and then hunts 
down domestic sources willing to export. 
• An ETC sometimes takes title to the goods and sometimes works on a commission 
basis.
Source: www. entrepreneur.com
Import/export merchant
• In this one purchases goods directly from a domestic or foreign manufacturer and 
then packs, ships and resells the goods on his own.
Source: www. entrepreneur.com
Trade Channels
Manufacturer's representative
• A salesperson who specializes in a type of product or line of complementary 
products often provides additional product assistance, such as warehousing and 
technical service.
Source: www.entrepreneur.com
Distributor or wholesale distributor
• A company that buys the product you've imported and sells it to a retailer or other 
agent for further distribution until it gets to the end user
Source: www.entrepreneur.com
Representative
• A savvy salesperson who pitches your product to wholesale or retail buyers, then 
passes the sale on to you; differs from a manufacturer's representative in that he 
doesn't necessarily specialize in a particular product or group of products.
Source: www.entrepreneur.com
Retailer
• The tail end of the trade channel where the merchandise smacks into the 
consumer.
Source: www.entrepreneur.com
Target Market
• The proper market research can help boost your trading company into a true profit 
center, and the more research you do, the better prepared you are before you 
officially open your doors, the less floundering you're likely to do.
Source: www.entrepreneur.com