Rotation Agency

Mail Rotation Agency (Rotation Agency) is a special arrangement in international trade agency agreements, where the principal (exporter or importer) designates multiple agents in turn to handle different batches or periods of business in a specific market, rather than entrusting a single agent for the long term. Its core purposes are to prevent a single agent from monopolizing the market, diversify risks, and encourage competition among agents. It is commonly used in the early stages of market development or when agents have limited capacity. For example, an exporter may agree with agents A and B to rotate responsibility for sales in a certain region on a quarterly basis. Precautions: the agency agreement must clearly specify rotation rules (such as timing and order allocation), commission calculation, customer ownership, and confidentiality obligations; otherwise, conflicts among agents or customer loss may easily occur. In contrast to Exclusive Agency, which grants a single agent exclusivity, and General Agency, which allows multiple agents simultaneously but has no rotation mechanism, Mail Rotation Agency emphasizes 'rotation' rather than 'coexistence,' usually alternating by mail or order batch, hence the name.