General Agent

To choose a distribution form that works for your business, it’s important to understand the difference between working with a trade agent and a reseller. In this article we explain the term general agent, so that you can make an informed decision on whether it’s the right choice for you.

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What is a general agent?

A general agent is a trade agent with exclusive rights to conduct business on behalf of a company in a certain geographical area. The general agent is not employed by the company who owns the rights to the product, but works on commission to find customers and establish contact to sign deals and agreements.

Pros and cons of using a general agent

The primary advantage of using a general agent is that the seller maintains control over how the product is marketed and sold. Because the general agent only established contact between customer and seller, and doesn’t sell any products on their own, the seller can decide the business terms that apply. The downside of using a general agent is that it can be more difficult to assess the income that might be generated, compared to when a reseller or wholesaler orders products in advance.

Enhance the customer experience using PostNord

Nowadays, customers don’t just have requirements on the product – to get them to return or recommend the company to others, how the product is delivered is equally important. As a business client of PostNord, it’s much easier to create a purchasing experience that is entirely tailored to the terms of the customer.

Our platform Portal Business has features that allow you to:

  • Create personalised messages that are automatically sent to customers, to give them delivery updates.
  • Integrate your web store with the portal, so that the customer can tailor their delivery based on their own schedule. The information is sent directly to us.
  • Schedule delivery to the customer or reseller online – you decide the date and time for when the products should be collected.

Want to learn more about similar subjects? Check out our Logistics page.

Frequently asked questions about general agents

What is a general agent?

A general agent is a company with exclusive rights to mediate a product in a specific region or country.

What does general agent mean?

A general agent is a part of the distribution chain, with exclusive right to mediate a product to resellers in a specific geographical area.

What’s the difference between an agent a distributor?

An agent works on mediating business on behalf of a company and gets commission on sales, while a distributor buys products to sell in their own name.