The introductory letter should be concise. Briefly introduce the company and let the prospective buyer knows what you can offer. The product catalogue, if available, should be mailed with the letter, especially when the prospective buyer is a chain store. If the catalogue is heavy, send it as air printed matter to save postage and send the letter separately, but be sure to indicate in the letter that a catalogue has been mailed separately. Unless the prospective buyer is reputable or known to the exporter, it is not necessary to send a quotation at this stage, except when specifically requested by the buyer.

The export-trader may handle a wide range of products and it is not advisable to reveal all prices. Quote only on the items that are of interest to the buyer (please see Uninvited Inquiries in International Trade related information).

Large importers like chain stores normally receive many letters and offers from the exporters worldwide. When writing to a chain store, make sure that the letter and offer are addressed to the department handling the product that you are selling. Otherwise, the offer may wind up in the recycling bin.

Follow Ups

International mail usually takes several days to few weeks to reach the buyer. Avoid sending a follow-up letter too soon, even if the introductory letter was sent by fax.

For every 100 introductory letters that are sent out, it is quite normal to receive about 10 responses only. The response, if any, to the initial contact normally comes after two months, and sometimes after six months or more.

Follow up the letter and offer at a suitable time. If the buyer requests that you wait, you must wait. Follow ups made too soon and too often will result in you receiving the message: "Please be patient and wait!".

It is customary for exporters to have agents (the distributor or sales representative) located in the importing country. The distributor imports, stocks and distributes the product. The sales representative solicits order from the distributor and collects a commission and/or a fee from the exporter and/or the distributor.

Agency Arrangement

Agency Contract

In certain countries agency contracts are regulated by the government. Agency contracts may be required by some exporting countries in commission sales abroad, even on a non-exclusive agency basis. The agency contract and supporting shipping documents are used by the exporter to apply for the remittance to pay the overseas agent's commission.

The exporter must be cautious in selecting an agent and in preparing the agency contract. The agency contract in certain countries is quite onerous. It can cost the exporter a fortune to rescind the contract due to the agent's poor performance or non-compliance to the terms of the contract. At times, it is impossible to rescind the contract under the national laws and regulations. The international litigation is costly.

The agency contract issued and signed is binding and it must be respected by the exporter and the agent. The export-manufacturer who is exclusively represented in a country must not intentionally sell its products to that country through any export-traders in the exporter's country or in a third country. This malpractice is exercised by some exporters in the hope of selling more. The malpractice usually ends in a price war between the exporter's own product in the importing country. The agent's loss of profit may end in the agent's loss of confidence in the product and the exporter.

Agency Inquiry

Quite often, an exporter exclusively represented in a country may still receive inquiries from other agents in that country. Some agency contracts may stipulate a procedure to follow in the event of receiving such inquiries. Otherwise, the exporter may send a reply indicating that it is being represented already in that country and give the name, address and contact number of the agent, and then forward a copy of both the reply and the inquiry to the exclusive agent for reference. Or, the exporter may forward a copy of the inquiry to the exclusive agent, without directly replying to the inquiry.

The goals of the export company influence the criteria in selecting an overseas agent. It is necessary to take foreign cultures and business practices into consideration when selecting the overseas agent. The experience, connections, interest, commitment, sincerity and credibility of the agent are vital to the success of the export product and company.