Difference between export trading companies and export management companies
Export management companies are similar to trading companies, but have some important differences because trading companies:
Specialize mainly in international purchasing and selling on behalf of foreign clients, while an ETC has no loyalty to a particular manufacturer. They are seeking the best terms for their clients.
Usually buy products in big orders and pay cash to suppliers.
Identify what foreign buyers want to spend their money on and then searches domestic sources willing to export, in comparison with Export Management Companies, which attracts buyers.
THE ADVANTAGES EXPORT MANAGEMENT COMPANIES
It’s an almost risk-free way to begin.
It demands minimal involvement in the export process.
It allows you to continue to concentrate on your domestic business.
You have limited liability for product marketing problems — there’s always someone else to point the finger at!
You learn as you go about international marketing.
Depending on the type of intermediary with which you are dealing, you don’t have to concern yourself with shipment and other logistics.
You can field-test your products for export potential.
In some instances, your local agent can field technical questions and provide necessary product support.