What Is the Difference Between Direct and Indirect Exports? Exporting. Founder: Jennifer Unsworth. Indirect Export Modes Indirect export occurs when the exporting manufacturer uses independent organizations located in the producer's country There are five main entry modes of indirect exporting: 1. export buying agent 2. broker 3. export management company/export house 4. trading company 5. piggyback 5. That is to say, the company focuses on producing the goods and manages the business as it would with local clients and assigns the export process to the intermediary. But when they use indirect exporting, they offer their products through intermediaries who take the product directly to the markets. So indirect exporting is the least expensive entry approach available to such small businesses. The manufacturer exporter may not get first hand information as he . For VAT purposes, supplies of goods for export fall into two categories - direct and indirect. Active exporting takes place when the company makes a commitment to expand its exports to a . Licensing agreement. Merits of Indirect Exporting. Direct vs. Indirect Distribution: What's the Difference? Exporting: Advantages and Disadvantages | International Marketing In indirect exporting, a manufacturer turns international sales over to a third party, while in direct exporting, a manufacturer handles the export process itself. Another example of indirect exporting is piggyback exporting. The Direct or Indirect Exporting Decision in Agri-food Firms Direct exporting is when a company sells its goods directly to a customer in another country without using an importer, distributor or anyone else. Usually companies with a high turnover, export their . Export entry modes. There will be a number of factors that will influence your choice of .