General

The factory wants to do foreign trade, but it does not understand foreign trade business and does not have relevant qualifications. At this time, there are two options: one is to seek the cooperation of trade companies to export its products to foreign countries through foreign trade companies; the other is to build a team of its own to handle relevant qualifications and start foreign trade from 0.

Which of the two methods is more appropriate?

1. Cooperation with foreign trade companies

Advantages: The trading company has its own mature foreign trade team and workflow, and has also accumulated a large number of foreign customers. The factory seeks cooperation with foreign trade companies. It can choose multiple foreign trade companies to export a large number of its own products, or act as an agent to produce orders from trading companies.

The problem that the factory lacks talents, foreign trade qualification and foreign trade process is eliminated.

Disadvantages: trading companies usually do not cooperate with only one factory, so the price between factories and the quality of products will become a problem affecting the order sales.

By exporting products through trading companies, all customer resources are in the hands of trading companies, and factories will be very passive if they cannot reach customers.

If a trading company with a bad reputation is encountered, it is easy to be pledged for goods. The foreign trade transaction cycle is long, the order collection method is different, and the tax refund process will affect the collection time. The factory does not know when the trading company will receive the goods payment, and it will fall into a passive position.

2. Foreign trade

Advantages: recruit a foreign trade team to carry out foreign trade business on their own, so that they can master all customer resources. Foreign buyers also like to cooperate directly with the factory. First, they can control the production progress and product quality. Second, the price is relatively low, so they can scale production.

Another important point is that the factory directly exports to foreign customers, and all the export tax rebate expenses incurred can be returned to the factory. The tax rebate is also one of the net profits of exports.

Disadvantages: It takes a certain amount of time to start doing foreign trade, build a team, develop business, and find foreign buyers. In the short term, it may not be effective, and it requires a certain amount of time and money costs.

Depending on the scale of the factory, if the product is single and there is no competitive advantage, many customers will be lost.

Whether cooperating with foreign trade companies or conducting foreign trade business on its own, each has its own advantages and disadvantages. The factory can comprehensively consider its own product competitiveness, factory planning, investment budget, etc. If you want to do foreign trade easily, you can also try Huacheng Chuangzhi foreign trade software tools. The big data precision marketing platform independently developed by Huacheng Chuangzhi foreign trade software covers more than 3.2 million kinds of product information from more than 6 million potential purchasers in 193 countries and regions around the world, providing two-way services for global customers. Huacheng Chuangzhi foreign trade software includes global import and export international traders, logistics companies, manufacturers, research institutions, cross-border e-commerce and investment banks, It involves various national economic industries such as chemical industry, machinery, automobile, medical equipment, optical fiber and optical cable, laser, etc. Multiple modules are switched at will, foreign trade emails are sent to break the blockade, and all inquiries are answered without missing. Huacheng Chuangzhi foreign trade software has helped foreign trade enterprises effectively solve many problems in customer acquisition and marketing. Huacheng Chuangzhi foreign trade software allows foreign trade friends to do foreign trade easily.