What Is The Concept of Indirect Export?

Indirect Export:- It includes occasional exporting, that is companies work through independent agencies to export their products. These intermediaries may be:-

Domestic Export Merchants:- Buys manufacturers products and sells them abroad.

Domestic Export Agent:- Seeks and negotiates foreign purchases and is paid a commission e.g. trading companies.

Cooperative Organizations:- Carries on exporting activities on behalf of several producers and is partly under their administrative control. Often used by producers of primary products – fruits, nuts.

Export Management Co.:-

It involves less investment since the company does not have to establish an export department or an overseas sales force of a set of foreign contacts.

It involves less risk as international marketing intermediaries bring know-how and services to the seller, he will make fever mistakes.