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Highlights about the commission system

Many exporters from different parts of the world have shown interest in joining with us and in exporting their products to us.  Some time they do not understand the concept of commission system which is the most popular way of doing the fresh fruits and vegetables business in Dubai, Malaysia, Sri Lanka and many other countries. For the benefit of these prospective business partners we have listed the points of commission system as follows: 

  • The exporter will export the products purely on trust basis only and shall enter into a contract with us for selling the products on commission system. We do not make any advance payments for any Fresh Produce that will be sold by us on commission system
  • Once we sign the contract and mutually agree to do the business, the exporter shall be the SHIPPER and he shall export the products to us. Our company will be the CONSIGNEE in the Dubai. market
  • Once the shipment arrives a the Jebel Ali port in Dubai, we shall pay for the local charges for the clearance at port, local transportation and other charges as applicable like loading and unloading, local transport within the market, cold storage charges, disposal charges, cleaning of containers, etc.
  • We shall sell the products to few customers here at the best possible highest price as per the current market price prevailing when the product arrives at the market.
  • All products shall be sold in about 3-4 business days. This is purely based on market dynamics and demand supply situation of the said product. The whole intention is to sell faster and at the highest possible price.
  • We shall generate the sales statement for the consignment once all the products are sold.
  • Any damages or loss in Quantity will be intimated to the seller once we come to take note of it. Such loss in Quantity / Quality shall be deducted and will be reflected in the final Sales Statement.
  • All expenses related to the operation of our local business like staff salary, office expenses will be borne by us.

  • OUR COMMISSION : is 6% on the final SALES value at the market .
  • PAYMENT TIME : We have to sell on credit to the local buyers and they usually take about 3-5 days to check all accounts and make the payment. We will collect the money from the buyers and immediately remit / transfer to the exporters account
  • PROFIT OR LOSS : It depends on the current market prices and situation prevailing at the time the container reaches the market for selling. We cannot predict in advance about the final prices. Thus Profit or Loss totally depends on market prices when the product arrives for sale.
Disclaimer :

The commission system follows the market price at Dubai on the day of arrival of the goods. Prices can change daily . So, the exporter should be aware of the potential changes that can occur due to market dynamics. Prices usually drop due to surplus stock arriving at the market and each trader fighting with others to sell off the perishable goods faster than other traders. Prices can go up very fast when there is not enough products available . Sometimes Price fluctuations can occur due to change in government policies and several other reasons as well. The formula for success would be to keep continuously involved in the trade and average the Profit and Loss and not just quit after a few losses as it can lead to permanent losses.

This section explains about the expenses at Dubai market for 1 x 40 FCL  reefer container. 
All expenses are in AED the local currency  of UAE. 1 AED = 3.678 USD. 
This list does not include the commission , because commission is calculated based on the Final Sales invoice value

DescriptionAmount
Port to market3840
 Unloading charge: 375
Delivery charge:500
 Cont parking for 2 days 80
 Cont cleaning fee: 25
 Bank Fee 50
Total in AED ( Dirhams )4870

To know more about the process to be followed by first time exporter to Dubai market please click on the button below

Interested in joining us for commission system ?

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