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Regular importers prefer to have their own buying office in sourcing
country for better co-ordination. If the importing company is not a
large one - they outsource buying function by appointing buying
agents. |
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Buying Offices and Buying Agents identify vendors, negotiate
rate, check in-process quality, perform pre-shipment inspection and
many other functions on behalf of buyer. While buying office act as
a procurement office for buyer, Buying Agents usually receive a
commission from buyer for their work.
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Selling through buying agent is advantageous for exporters also,
as it helps in significant cost and time saving. Exporter saves in
marketing cost, courier and communication cost, overseas travelling
cost etc.
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Another advantage of selling through buying agent/house is
significant reduction in business risk as buying agent
representative keeps regular control over quality during
production process. As goods have to go through pre-shipment
quality inspection under supervision of buying agent - there
is hardly any chance of getting quality complaint after the
goods reach destination
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However, selling through buying agent is very competitive
and entails far less profit marging compared to selling
direct.
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