General

The factory wants to do foreign trade, but it does not understand foreign trade business and has no relevant qualifications. At this time, there are two options: one is to seek cooperation with trading companies and export its products to foreign countries through foreign trade companies; the other is to build a team and handle relevant qualifications, and start to do foreign trade from 0.

Which of these 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, and can choose multiple foreign trade companies to export a large number of its own products, and can also act as an agent to produce orders from the trading company.

The problems of lack of talents, lack of foreign trade qualification and lack of understanding of foreign trade process are eliminated.

Disadvantages: Trading companies usually do not cooperate with only one factory, so the price and product quality between factories will affect the order sales.

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

If you encounter a trading company with a bad reputation, it is easy to be pledged, 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 will be in a passive position if it does not know when the trading company receives the payment.

2. Do foreign trade by yourself

Advantages: recruit a foreign trade team, carry out foreign trade business by themselves, and 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, and they can scale production.

Another important point is that the factory directly exports to foreign customers, and all the export tax rebate costs generated 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 foreign trade, build a team, conduct business, and find foreign buyers. It may not be effective in the short term, and it needs to pay a certain amount of time and money costs.

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

Whether cooperating with foreign trade companies or conducting foreign trade business by itself, each has its own advantages and disadvantages. The factory can comprehensively consider its own product competitiveness, factory planning, investment budget and other aspects. If you want to do foreign trade easily, you can also try Huacheng Chuangzhi foreign trade software tool. The big data precision marketing platform independently developed by Huacheng Chuangzhi foreign trade software covers more than 3.2 million product information of more than 6 million potential purchasers in 193 countries and regions around the world, and provides two-way services for global customers. Huacheng Chuangzhi foreign trade software includes global import and export international traders, logistics companies, manufacturers, scientific 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 and so on. Multiple modules can be switched at will. Foreign trade mail can be sent to break the blockade, and inquiries can be answered without omission. Huacheng Chuangzhi Foreign Trade Software has helped foreign trade enterprises effectively solve many customer acquisition and marketing problems. Huacheng Chuangzhi Foreign Trade Software has made it easy for foreign trade friends to do foreign trade.