Getting started with import and export UK-wide

Choosing the right export route to market

Agents, distributors, direct sales, e-commerce, licensing, or joint ventures - how to select the best market entry model.

Guide summary

Choose your export route based on your product, budget, and how much control you want. Options include agents (commission), distributors (buy bulk), direct sales, e-commerce, licensing, joint ventures, or setting up a local branch or subsidiary. Each route has different legal rules, costs, and risks – check the details before you decide.

  • Use an agent for low-cost market entry but remember they have statutory termination rights
  • Use a distributor if you want them to hold stock – all terms are negotiable
  • Sell directly for highest control but expect high time and cost investment
  • Start with e-commerce – marketplaces will be 59% of global e-commerce by 2027
  • Protect your IP before licensing – register in each country using Madrid or PCT
  • Get legal advice for joint ventures – UK businesses were fined £1.7m for market sharing
  • Register a branch in the UK within 1 month using Form OS IN01, fee £124
  • Choose a subsidiary for limited liability or a branch for lower setup costs
On this page

Related guides in International Trade

Buy a franchise

How to research, evaluate, and purchase a franchise in the UK. Includes costs, BFA verification, due diligence steps, …

UK exporters have seven main routes to access overseas markets, each with distinct advantages, legal frameworks, and suitability for different business situations.

Direct export sales

Selling directly to overseas customers without intermediaries. Best for high-value products with identifiable customer bases. Requires substantial investment in skilled personnel but offers highest control and margins. Use market research, LinkedIn networking, and trade missions to identify decision-makers.

Using an agent

Agents sell on your behalf for commission without holding stock. Simple, low-cost market introduction with great local knowledge. YOU retain pricing and marketing control. However, agents are governed by Commercial Agents Regulations 1993 and are entitled to compensation upon termination - cannot contract out of this statutory right.

Using a distributor

Most common for goods exporters. Distributors purchase in bulk, hold local stock, manage logistics, and resell. They absorb market risks but demand substantial discounts. Unlike agents, distributors have no statutory termination rights under English law - all terms negotiable (subject to Competition Act).

E-commerce and online marketplaces

Fast, low-risk entry with marketplaces projected to account for 59% of global e-commerce by 2027 (approximately $4.7 trillion of $8 trillion total e-commerce sales). Requires EORI number, VAT compliance, GDPR compliance, and understanding of distance selling regulations. UK's Digital Exporting Programme covers 30+ marketplaces with expert support.

Licensing intellectual property

Grant third parties rights to manufacture or sell using your IP for fees/royalties. Cost-effective rapid expansion but requires strong IP protection FIRST. UK protection only covers UK - must register in each export market under 'first to file' systems. Consider Madrid Protocol for trademarks (130+ countries) or PCT for patents (150+ countries).

Joint ventures and partnerships

Quick market entry by partnering with overseas company. Access local knowledge and share risks, but complex to structure and requires experienced legal advice from both home and target markets. Must comply with Competition Act - UK Competition and Markets Authority fined businesses £1.7 million for using JV to share markets.

Setting up overseas operations

Once demand is established, consider permanent local presence. Choice between subsidiary (separate legal entity, limited liability, higher costs) vs branch (extension of parent, unlimited liability, simpler structure). Tax treatment differs significantly.