Getting started with import and export

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.

UK-wide
Guide summary

Choose between seven ways to sell abroad: agent, distributor, direct sales, e-commerce, licensing, joint venture, or setting up overseas. Each has different costs, control, and legal rules. Check if you need an EORI number, VAT compliance, or IP protection first.

  • Agents sell for commission - governed by Commercial Agents Regulations 1993
  • Distributors buy stock and resell - no statutory termination rights
  • Direct sales need skilled staff but give most control
  • E-commerce requires EORI number and VAT compliance
  • Licensing needs IP protection in each country first
  • Joint ventures need legal advice - can breach competition law
  • Subsidiaries limit liability but cost more than branches
  • Branches are simpler but make parent liable for all debts
  • Check if your product needs GDPR or distance selling rules
  • Marketplaces account for 59% of global e-commerce ($4.7tn)
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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.