Blog Commercial agencies in Turkey: their importance and how to get them

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23 Feb 2022

Commercial agencies in Turkey: their importance and how to get them

The Turkish product, with its diversity and quality, has attracted major investors in the trade sector, that’s why we always find them seeking to acquire commercial agencies for a range of products that have been well received by the local and international markets.

For those interested in commercial agencies in Turkey, we offer a set of important information that revolves around this topic.

Table Of Contents

1. What are commercial agencies?
• Types of commercial agencies
• The importance of commercial agencies in Turkey
• Types of commercial agencies in Turkey
• How to get a commercial agency in Turkey?
• How does Necibe Company help you get a commercial agency in Turkey?

What are commercial agencies?

Commercial Agency: The agent's representation of the producing company in the distribution of goods and products, or offering them for sale or trading in return for its own price, profit or commission, or granting facilities to the agent of whatever nature.

In fact, commercial agencies include a wide range of agencies, such as commercial agencies for foodstuffs of all kinds, agencies related to manufacturing products, electrical equipment, and machines, or even land, sea, or air transport agencies, or tourism and travel agencies, services, and insurance, in addition to publications, etc.

Types of commercial agencies

The types of agencies differ in their broad concept according to what is intended for them, and we mention some of the types of agencies:

• Commission agent: In this case, it is the agent’s responsibility to communicate with the customers and receive their requests directly from them, then the agent, in turn, sends the request to the producing company.

Then, the company communicates with the customers directly to ensure the completion of the purchase process.

The name of the agent usually does not appear on the commodity or in the content of the contract, he does not bear any significant risk, and he has a commission according to what is agreed upon with the company in return for his role in promoting and marketing the commodity.

• Sales agent: Some may also call him a "distributor". The agent’s job here is to purchase the commodity at his own expense, transport the goods to his country or warehouse, store the goods, and then market and sell the goods at the price he deems appropriate or agreed upon with the company.

In this case, the agent bears additional responsibilities for marketing the goods at his expense and the surrounding facilities and guarantees and after-sales services such as providing spare parts and maintenance. For these reasons and the high level of risk in them, the commission of the selling agent is greater than the commission of the commission agent.

• Agent affiliated with the customer: It is a form of agency that is not widely spread and common, given the additional responsibilities that the agent bears here, as the agent bears the responsibility of receiving customers’ requests and paying the value of the goods to the company in the event the customer refrains from paying, and for this reason the commission of the joint agent is greater than the commission of the commission agent or the selling agent.

The importance of commercial agencies in Turkey

The importance of commercial agencies lies in preserving the rights of both parties: the agent and the producer, in order for each of them to secure their financial rights and control their obligations towards themselves in a form of understanding that organizes the work according to a precise and planned strategy.

Therefore, each company has its own system that controls the conditions of the agent, and the most important of these conditions are:

1. Availability of sufficient capital with the agent to bear the workload.
2. Experience and good knowledge of the product at the agent.
3. Availability of an integrated work team that is skilled in managing the work with expertise.
4. An administrative team that covers the marketing process of the product and manages its business.
5. Good knowledge of the country in which the agent wants to obtain the agency.
6. Selling points in the most important business centers in that country, with a certain number.
7. Availability of suitable storage places with specific specifications.

These conditions may differ radically according to the type of products and their supplies.

Types of commercial agencies in Turkey

The types of commercial agencies in Turkey vary, and their controls vary according to each agreement, but here we mention the most popular and most widely traded types of agencies in the Turkish market:

• Limited-term Agency: It is an agency designated for a specific date and is renewed by an agreement between the two parties.
• Agency with limited powers: It allows its owner to work and dispose of a specific product of the company’s multiple products, or a specified number of products or the agency is allocated on the basis of the sales and marketing market.
• Conditional agency with the withdrawal of a specific amount: where the company requires the agent to withdraw a monthly, quarterly, semi-annual, or even annual amount, and a specific amount agreed upon between the agent and the company.
• Exclusive agency: With wide powers for the agent, it often authorizes him to manage the entire marketing process, while limiting sales outlets to the owner of the agency, in general, or especially in a particular country or region.

How to get a commercial agency in Turkey?

The procedure starts with determining the type of product to be obtained by its agency, ascertaining its source, and the ability of the producer to meet your need with the required quantities and appropriate specifications, with a study of supply chains, shipping mechanisms and customs clearance of the goods.

Then the negotiation process begins between the agent and the company on a formula of understanding that satisfies both parties and achieves the agent's interest.

In order to get a commercial agency in Turkey, the matter is limited to the signing of an agreement between the two parties to the contract (the company and the agent) according to the terms codified in a legal form.

Accordingly, the contract includes all the agreed points, the validity period of the agency, its type, proof of identity, company information, and registration. This agreement is documented as a binding financial agreement for both parties to the contract.

How does Necibe Company help you get a commercial agency in Turkey?

Tebdaul company makes it easy for companies and businessmen to find what they require in the Turkish market of the best products, and it provides them, through its team and its integrated logistics services, with all the necessary support to get agencies with the products they need after a thorough study of the market and the feasibility of this agency.

At Tebdaul International Trade Company, we provide full support to our customers in everything related to the process of exporting Turkish goods, by selecting the best suppliers and manufacturers, and choosing the best resources. Then, negotiations are arranged to obtain the best prices and to secure commercial agencies in accordance with the principles in force in Turkey, while facilitating customs clearance and shipping operations.

Edited by NecibeInternational Trading Company©

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