Why a China Sourcing Agent is Your Key to Import Success
2. Sourcing Agent Vs. Sourcing Company What’s the difference?
3. Why use a sourcing company?
4. You can look for a suitable supplier yourself.
5. Advantages of sourcing agent
6. The risks of working with sourcing agents
7. Sourcing agent services process
9. Which types of sourcing agents?
10. How to find the Right buying office or purchasing agent in china?
11. What are some common tricks of purchasing agents?
What is a sourcing agent?
China sourcing agent companies play a vital role in the international market. Simply put, a sourcing agent’s job is to find Chinese manufacturers for the sellers.
Product sourcing means finding a supplier in China for the products you want to sell. They are third-party service providers and help you in getting the right source.
The need for such third-party agents is high, especially in global trade.
So, the ideal country is China for finding the right product at a price. Almost all products are manufactured and available here at a lower price than in any other country.
So, the sourcing agent must communicate with the local suppliers in their language, and they must also be familiar with the local customs.
Purchasing agent
A purchasing agent or office helps you procure the products you seek.
Both sourcing and purchasing agents do similar jobs, but the sourcing agent takes commissions, and the purchasing agent does the job of a trader.
He purchases the items from local vendors at low prices and sells them to the buyer adding profit. Buying from a purchasing agent is suitable if the purchasing quantity is less.
Sourcing Agent Vs. Sourcing Company What’s the difference?
In the international market, people often use both sourcing agents and companies in a single meaning.
For example, if anyone needs to find suppliers in China, they say find me a sourcing agent or a souring company.
However, it is not the right thing to do because there are many differences between these two entities. So, let us understand what those are.
Sourcing Agent
A sourcing agent can be a person who helps you source the product full-time.
Usually, sourcing agents are individual, and they work individually or with the help of another assistant. They work in small offices or use their home as an office. Many people may have experience working for sourcing companies or trading companies.
You can easily find these types of China sourcing agents on a freelance basis on popular freelancing websites such as Upwork, Fiverr, Freelancer, etc.; you can even find some sourcing websites through their websites.
Sourcing Companies
The sourcing companies, also known as sourcing agencies, assist in sourcing, quality inspecting, shipping, and warehousing.
It is backed by a team of experts who know how to handle all these activities with efficiency. These companies are more efficient and provide services for different customers simultaneously.
These sourcing companies are usually located in industrial areas. You can find sourcing companies in Guangzhou, Yiwu, and Shenzhen in China.
Why use a sourcing company?
There are several reasons for choosing a sourcing company.
Since many online platforms need products from several sources, a sourcing company can help you acquire the products you seek in a particular area.
The below reasons tell you why you need a sourcing company.
Briefings
Language doesn’t hinder your transactions if you choose a reputed sourcing company.
When you need to negotiate, the sourcing companies’ experts help you brief every specification or the product you want to buy from a supplier.
They also assist in verifying everything is included in the product.
To save time
The main reason to hire a sourcing company is to save precious time. The sourcing companies help you find suppliers and finish things on time.
Sourcing companies help you start things immediately and in the right way. You don’t need to negotiate and brief about your requirements; the sourcing company will do that on your behalf.
Easy to verify certificates
If you choose a supplier in China for your products, you must check and verify the certificates and licenses. It ensures that they are performing the business in the right manner and as per the local laws.
Since these certificates will usually be in the native languages, you can’t do all these things. Sourcing companies help you verify these details and prevent working with scammers who do business on fake agencies’ licenses and names.
Hence, if you choose a sourcing company, you can easily mitigate the risk of getting scammed.
Easy to negotiate
The most difficult job for foreigners in China or any other unknown country is making negotiations. But this will be easily handled by the local sourcing companies who will be well aware of the common practices and customs of the locality.
After knowing the right price and negotiation techniques, they can help you get the products at lower prices without compromising the specifications you are looking for.
Great network and experience
There is no substitute for experience. If you hire a sourcing company, you can get sourcing agents with vast experience and a wider network.
In the past, they may have worked with several manufacturers and will be aware of where to look for the products you are looking for.
Hence, through their extensive experience in the market and awareness about the manufacturers, they help you find manufacturers in China.
You can look for a suitable supplier yourself.
Yes, numerous ways exist to find the right supplier per your needs.
You can find them through freelance servicing websites such as Fiverr, Upwork, and Freelancer.com, or you can google them and get the right one.
Many companies have their websites, and you can connect through websites and get the things you need.
Advantages of China sourcing agent
Selection of the right supplier as per your needs
You can find thousands of manufacturers in China, and for new people, it becomes challenging to select the right supplier.
The main barrier is communication; the sourcing agent helps you fill this bridge. Adding to the communication gap, many suppliers are unfamiliar with the shipment, which may take longer than expected.
But the right sourcing agent helps you in all these aspects. They can verify the supplier’s authenticity and help you pick the right one.
Additionally, there are many people you can find online; they can call themselves suppliers, but they are mediators. They buy from other manufacturers and sell to the buyers by adding their profit.
But sourcing agents help you by picking the products from the factory outlet. It ensures you get the products from the factory itself.
Provides inspection services
The main problem in international trade is you cannot be able to inspect everything by yourself. Many manufacturers offer inspection services from third parties, but those inspectors may not know your requirements, and sometimes the inspectors are not fully qualified.
Hiring a China sourcing agent is the ideal solution to overcome all these challenges. They help reduce the loss by inspecting the qualified people, plus their experience helps you pick the right supplier from the variety of options available to you.
Save You Time
Buyers always look forward to the best products from the sellers. However, picking the best out of thousands of suppliers is not easy. It needs a lot of expertise and is also a time-consuming one. Every supplier claims to be a genuine supplier and provides quality products.
However, verifying every supplier from the thousands of available suppliers is humanly impossible. So, you need to select a reliable supplier, and they must deliver the products on time.
A reliable China sourcing agent able to provide deliver the products on time. The Chinese purchasing agent knows what to do at every step and the right way to do that.
Putting It All Together
If you plan to deal with the supplier directly, the suppliers will take care of only production and shipment. But this is not enough for many international buyers since there are numerous other things to take care of.
Hence, a sourcing agent provides all the services a buyer needs in a single platform. The services consist of visiting the market, placing the orders on your behalf, collecting the products, customs clearance, shipment, and many others.
These services help the buyers reduce the total cost of the product, and importantly, they help you save time.
Gives product gathering services
If you are a buyer, it becomes challenging to gather the products from various sources and ship them. That means you need to spend more on gathering the products.
However, the sourcing agents will have a wide network, and some work for multiple buyers simultaneously.
Hence, they can transport and gather the products at a minimal cost. They can perform multiple tasks such as product gathering, warehousing, shipping, and international freight, helping the buyers immensely.
If your requirement is less, sourcing agents ship the products more quickly than many container services.
Better connection with suppliers
Since the sourcing agents are from the same locality, they speak the native language and effectively navigate the culture.
Hence, they can easily connect and bag a good deal for you.
Since they have a good connection with the suppliers, they may provide the products at a lower price.
Give You Greater Flexibility
The China sourcing agent provides greater flexibility in choosing, procuring, and receiving the products.
The sourcing agents’ services can be customized per your needs and charge only for that portion of the work.
So, you can perform the things you can and leave the harder tasks to the experts.
Immediately spot scams
The most common thing in international trade is scams.
When it comes to choosing the product, you must check the license and certificates of the supplier. Most of these certificates will be in Chinese; you can’t read what is written there.
Their extensive experience in these jobs allows them to easily tell who the authentic supplier is and gauge whether the product is genuine.
Better Pricing
It is common in every country to charge higher if they see a buyer from another country. But if you go through the sourcing agents, you can save money easily.
The experienced professionals procure the products at reasonable prices and sell them to you after changing their commission.
Reduce Overall Expenses & risk
The services of a sourcing agent are enormous, and they help you reduce the risk to a greater extent.
Since they undertake different jobs, you can get peace of mind since you just need to hire the right sourcing agent, and they take care of all other worries on your behalf.
It includes Quality Control/reducing the risk of bad quality of your desired product.
Sourcing – procurement compliance services
Another vital thing is to transact per local and international rules and regulations.
You can handle the receiving entity’s compliance but require an expert sourcing agent to deal with China’s compliance.
Since they have worked in the same profession for years, they help you meet all the compliance standards.
The risks of working with a China sourcing agent
Even though the sourcing agents provide many services to the buyer, they are not free from the drawbacks.
The points below will explain the risks of working with the sourcing agents.
- Since, in most cases, the sourcing agent is responsible for finding the supplier to ship to the buyers, they may become too lazy and delay the process. Many sourcing agents work independently, lack professionalism, and are too disorganized.
- If they have personal contact with product manufacturers, they usually choose them by ignoring all the competence and other factors. For example, if anyone from their family produces certain products, they will procure that even other suppliers are better.
- Every sourcing agent portrays themselves as honest and hardworking, but it is known that they will get a commission of 50 to 10 percent from the factories.
- Since they are taking money from the factory, in most cases, they defend the factory rather than protecting your interest if something goes wrong.
- Some sourcing agents will inspect the product by themselves even if they are not qualified to. And if they discover any product defect, they won’t tell you.
Import China sourcing agent
Import sourcing agents take care of the importing and other associated compliance parts.
They are also responsible for checking the product quality, your specified specifications, and many other important business aspects related to import international trade.
What does a sourcing agent do?
Sourcing product
As the name says, a sourcing agent’s primary job is to source a buyer’s product.
They verify and choose the right supplier who provides everything a buyer wants.
They do the briefing and negotiation to get the right products at the right price for a buyer.
Audit factory
Another important service a sourcing agent provides is auditing the factory.
By doing this, they verify the trustworthiness and legality of the suppliers’ business entities.
Order follow-up
Once the right supplier is identified, the next step is to follow up with the products’ producer.
They will monitor the production process and ensure manufacturing units produce the products on time per the specifications described before.
Quality control
The sourcing agents also reduce the chances of receiving faulty products with their quality inspections before shipping.
The sourcing agents can conduct the quality check at various times per the buyer’s needs.
Arrange shipment & logistics
Once the production and quality checks have been done, the next step will be checking the most important shipping process.
In this step, souring agents work with the shipping companies and quickly select the one that offers more affordable and quality logistics services.
Other Value-added Services
Apart from the key services mentioned so far, a China sourcing agent offers private labeling, customizing the product, labels, or packaging, and free product photography to upload on e-commerce sites.
Sourcing agent services process
Certification compliance
The main problem with many domestic small-scale producers is non-compliance with local rules.
But it is not easy to find out by yourself, so sourcing agents’ skills and specializations come into play.
They check the supplier’s compliance and ensure everything from manufacturing to shipping happens as per the regulations of the land.
Product specification compliance
The quality of the product depends on the manufacturing process followed by the producer.
Before placing the order with a supplier, sourcing agents provide the instructions or convey your instructions to the supplier.
During the manufacturing or product picking, they check whether all the specifications are included per the prior discussions and agreements.
Pricing
Pricing is the vital thing that decides the profitability or success of your business.
If you can get the products at lower prices, it is easier to service in the market.
The China sourcing agent is familiar with these processes, and they can easily strike a good deal for you.
Product sample costs
Before selecting the right supplier, one must thoroughly check the different samples offered by different producers.
The sourcing agent usually covers all the product sampling costs and concludes.
Production time
once you agree on the product and brief the specifications, the manufacturer delivers on the spot if the products are in stock.
Still, if your products need to be designed specially, it takes more time, and during this process, the sourcing agent takes care of all other activities such as process monitoring, quality checks, etc.
Quality Management System Procedures
When it comes to marketing, the quality of the products plays a vital role.
Hence, a sourcing agent or company makes numerous inspections at different product life cycle stages.
Pre-shipment inspection
Before shipping the products, the sourcing agent must check the product’s quality and ensure all the specifications briefed before are met.
If any defects or shortcomings are identified, they must stop the shipment.
This is the normal routine many sourcing agents do.
Customs clearance
Another important thing to take is customs clearance. This is where many manufacturers fail to provide speedy shipping since the containers fail to clear customs.
However, the sourcing agent is experienced in this process, and they make all the necessary arrangements to clear the customs without any delays.
Product sourcing agent agreement
The agreement between the buyer and the souring agents is necessary to clarify the duties and responsibilities. It will help in avoiding conflicts.
Product sourcing agent
Alibaba sourcing agent
Alibaba is one of the main sourcing agents in China.
They are familiar with local customs and what types of products must be sold in most e-commerce stores.
Amazon FBA sourcing agent
Amazon sourcing agent is more popular when it comes to international trading.
If you search for a sourcing agent for Amazon, you will find numerous sourcing agents in China.
Sourcing agent for drop shipping
Drop shipping is becoming famous since it can solve storage and other problems.
The dropship sourcing agents take your orders and directly ship them to the end customer.
Who needs a sourcing agent?
- People have less time.
- Buyers with little experience in the Chinese local market.
- Buyers who don’t know about local practices and customs.
- Non-Chinese speakers.
Which types of sourcing agents?
- Single sourcing agents – These sourcing agents work independently without forming a company or office.
- Sourcing agencies – Sourcing agencies are backed by a team of sourcing agents who take care of multiple tasks and serve many customers at once.
- Sourcing and logistics companies are a large association of many industry experts; they handle everything from sourcing the products to shipping them.
What is a product sourcing agent?
A product sourcing agent is a person or institution responsible for all the activities associated with product procurement and shipping.
The right China product sourcing agent helps you fulfill all your needs; you can find the best one in the agent sourcing directory.
Many souring agents specialize in different products, and you can get dedicated sourcing agents in the below fields.
- Furniture sourcing agent in China
- Fabric sourcing agent
- Apparel sourcing agent
- Electronics sourcing agent
- Toys sourcing agent
- Jewelry sourcing agent in China
- Lighting sourcing agent
- Footwear sourcing agent
- Home textile sourcing agent
How do sourcing agents work?
- The first step is obtaining the buyer’s task description, product concept & design.
- Then, they Contact the manufacturer.
- The sourcing agents make Factory visits & audits before selecting the supplier.
- Once the supplier is decided, the next step is Price Negotiation & contracts.
- The deal is foxed with the supplier; they Request a quote and other specifications.
- Once the sample is confirmed, they confirm with the supplier to produce the reaming with the same quality.
- Product follow-up is necessary since manufacturing is a lengthy process, and sourcing agents handle this.
- Quality control is required in the manufacturing process, and they hire experts to inspect the quality at different stages—detailed product inspection helps avoid the risks.
- Goods consolidation is conducted once the products are ready for Shipping & logistics.
- Once all the above tasks are completed, the sourcing agent ensures Labeling & packaging are checked.
- Pre-shipment inspection and customs clearance are done to make the shipping process hassle-free.
How much do sourcing agents charge?
The sourcing agent fee is charged differently by different companies and agents.
All agents follow anyone from the below methods.
Commission
The commission is not fixed since it varies based on different factors, including quantity, frequency, order value, etc.
The smaller the order, the more one has to pay. It usually varies from 5 to 10%.
Hourly Rate
In this method, the agents charge on an hourly basis. So, whatever the order value, size doesn’t matter, but agents can delay getting more payment.
Flat Fee
Under this method, the agents charge a flat rate based on the agreement before entering the deal.
Mixed Payment Structure
If you choose this method, you must pay a flat fee until the fixed amount.
Once the limit is reached, you must pay a commission or an hourly rate.
Where to find an outsourcing agent?
- Outsourcing platforms, Fiverr, Upwork,
- Fair
Tips for choosing sourcing agent on Alibaba
- Always look for Established agents since they know how everything works.
- Look for the Supplier Index; the higher the index, the more quality services you can get.
- Look for Ratings & Reviews online and take feedback from fellow buyers.
- The sourcing agent must have a valid Business License; if not, even if they are offering low prices, don’t enter the trade.
How to find the Right buying office or purchasing agent in China?
Are you looking for an Experienced sourcing agent in China? Then, you must select the established companies or agents.
You can follow the below steps to get a good sourcing agent.
- Visit the sourcing agent’s website.
- Get References from other traders and online.
- To minimize the cost, choose an Agent Near Your Manufacturing Base.
- Make sure they are experts in Communication and Language.
- Different souring agents are in the market for different industries, choosing the best agent to Get Industry Expertise.
- To avoid all conflicts and other complications, Document exactly what you need.
- Define what you need in quantity, specifications, size, and every detail.
- Set Your Budget and select the sourcing agent as per your budget.
- Choose a Sourcing company that is an expert and reliable in the industry.
- Get the quotes from different sourcing agents before selecting research & Compare.
- Get Different Offers & Ask For Business Licenses before agreeing.
- You need to Negotiate Payments since sourcing agents always quote high initially, and they will be ready to reduce the commission if you negotiate properly.
- Once you have completed every step mentioned above and are satisfied, then only Sign a sourcing agent agreement
What are some common tricks of purchasing agents?
Kickbacks, bribes, and taking commissions from factories are common tricks purchasing agents use.
You need to research in detail before selecting your purchasing agent.
Huntersourcing
Sourcing agent in Haining, Zhejiang province – Huntersourcing helps you hunt the right supplier in the industrial clusters, including Zhejiang and Haining provinces.
It assists you in getting the right products as per your requirements at reasonable prices.
This agency operates near Yiwu, Hangzhou, Suzhou, Ningbo, Shanghai, and other important industrial areas.
One-Stop Solution – If you choose Huntersourcing, you can spend the rest of the buying process with peace of mind.
The reason is it takes care of almost everything that you need.
It helps choose the right supplier to deliver the product to your address.
Free offer quote and sample – At Huntersourcing, you do not need to pay anything to get the sample or estimate product sourcing.
You can visit and ask for free quotes, and if you are happy with the quotes, you can proceed with further proceedings.
Delivery in time – Every minute matters in business, and we know how difficult it is to fulfill your customers’ requirements on time.
So, if you want to become free from this issue, you can opt for the services of Huntersourcing.
They deliver on or before the agreed time.
Warehouse storage & packaging – Huntersourcing takes care of storing the products and packing your products with utmost care.
Transparent, no kickbacks – The main drawback in international trade is the dishonest agents who take the profits from both the buyer and the factory.
However, Huntersourcing is honest, provides the breakdown for every expense, and takes only the agreed commission.
Some more.
Sourcing agent commission rate reasonable – Huntersourcing provides quality services at reasonable prices.
The commission of the sourcing service is reasonable, and it is below most competitors. You can check the prices by visiting us.
120-day Satisfaction Guarantee – At Huntersourcing, the buyer and sourcing agent’s relationship doesn’t end once the products are delivered.
It provides a guarantee for 120 days, and if you are not satisfied with the products, you can contact customer care, and based on your issues, the appropriate actions will be taken.
Different sourcing agents and agencies operate in China, and choosing the best becomes challenging.
Also, many fake agencies are scamming buyers and making international trade difficult for foreign buyers.
Hence, you need a reliable and trustworthy souring agency, and one of them is Huntersourcing.
Conclusion
The role of a sourcing agent or sourcing company is huge in international trade.
However, the selection of the sourcing agent decides the success or failure of your business.
Hence, a buyer must be very cautious in selecting the right sourcing agents.
If you want one such trading partner, you can choose Huntersourcing and become tension-free.
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