Importing/exporting commission rates
I am new to the site, I came across it today for the first time and it looks like an unreal source of information is available here.
Firstly apologies if my question has been answered before, I have spent hours looking for answers and can't seem to find one.
I am in the process of setting up my own business, acting as a import/export agent. I spent the last year living in China and built up a good network of contacts during my time there. I have identified a gap in the market to export certain British goods to China, and believe I can broker these deals.
One of the points I can't seem to get my head round is the commission payable when brokering deals. I believe the commission is paid by the manufacturer? What I dont understand is that if they know they will be paying a commission rate of say 10% for the transaction, then surely the first order they place will be tiny, in which case the commission payable will be minimal.
Maybe I am completely wrong, I have read elsewhere that an agreement goes in place where by the commission is paid every time goods are exchanged between the two parties in future.
I apologise for both my lack of knowledge and ignorance.
I only began learning about trading this week, hopefully someone can really help me along with this.
Adam
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Importexport -
Thanks - 1 reply
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adammaton -
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big tymer -
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