"My factory can't complete the order on time, which means I will miss the best selling time. What should I do?"
"Before I placed the order, the quality of the samples I received was very good, but when I actually received the bulk samples, I found that the quality is much lower than the former sample, what should I do?"
"My products are ready and ready to be delivered to my destination. But the customs said I couldn't clear the customs due to the lack of some essential import and export certificate. What should I do?"
Every day, we find emails in our inboxes asking for help with similar problems. If you don’t know how to deal with these problems in advance, by the time they do happen, you may have the same headache as them, and then ask me in various ways what to do.
It sounds like a nightmare. To prevent nightmares, you need to be prepared for any problems that might occur.
You need a consultant who really knows how to import goods from China and has many years of purchasing experience.
As a result, more and more importers choose the services of professional sourcing agents (purchasing agents). They help you deal with the whole process of import from China to your country.
In this article, I’d like to share:
Here we go.
Chapter 1. What is a sourcing agent in China, and what they do？
The sourcing agent mainly assists the company in finding products and supplies at low prices, thereby saving their business costs.
The sourcing agent can be a freelancer for one person or a sourcing team for many people.
Their main job is to help importers overseas complete the whole import process from China to the destination country. And the profit is usually based on commission, which is a percentage of the value of the order.
Generally speaking, the service fee for a sourcing agent in China is ranging from 3% to 10%.
If you see some ads that say 1% or even 0 commission, be careful when you work with them. Because no one is going to work for nothing, they’re sure to scrape up at least a 3% profit from somewhere else.
Maybe that extra profit is at the expense of the quality of your product.
Sourcing agents in China have connections with many Chinese factories and know where to find a variety of products and where the products will have a better price advantage. They can negotiate with multiple potential suppliers and select the best suppliers under the same conditions.
Through sourcing agents, the cost of importing from China can be saved and long-term and valuable contracts can be established for importers and suppliers. Therefore, both sides have the motivation to cooperate with sourcing agents, and the cooperative relationship is more stable.
Chapter 2. 4 Reasons why you need sourcing agent to help import from China？
Let’s say, you want to buy a house or property, what is your first step? Looking for a reliable and professional real estate agent, right?
Real estate agents can help you find relevant properties according to your precise requirements, and can also help you complete the transaction, thus saving a lot of time, energy and trouble.
Just as a real estate agent can help you purchase the best real estate, a sourcing agent can also help you find the most appropriate product resources from China and take charge of the whole process of importing from China to your country. It makes the whole process efficient and easy.
Whether you are a beginner with 0 experience or a regular commodity importer, the services of a sourcing agent are essential if you want a quick and hassle-free process.
The following are 4 advantages of using sourcing agent services:
a). Help you find the best price and the highest quality supplier
If you are looking for products, many Chinese wholesale websites are sure to be your first stop.
For example, if you want to find a tumbler, when you search tumbler in Alibaba, you will find 250,000 tumblers on Alibaba and more than 2,000 suppliers.
So many products, so many suppliers, how do you choose? Contact more than 2000 suppliers by email?
No, it’s impossible and a waste of time.
At this time, a good procurement agent can help you with rich experience to quickly screen out high-quality candidate suppliers.
A sourcing agent can help you find many factories and suppliers that Alibaba cannot provide. Their prices are usually the lowest in China. But the factory suppliers do not speak English, so they can only sell their products to foreign importers through trading companies or sourcing agents.
b). Help you follow up production and save time
At the fair, you may find some suppliers through trial and error. You can easily establish a business relationship with them and send your order to them.
Once the order placed, the supplier will help you produce your products. The production process will last at least 1-2 months, and sometimes even longer, depending on the quantity of your order.
So in the meantime, are you staying in China until production is complete?
No, it’s obviously unwise and a waste of time.
Most people will choose to go straight home when the order is placed. Since you are located outside of China, following up with suppliers and ensuring production as planned may become tedious and the information provided by suppliers may not be entirely reliable.
At this time, a reliable sourcing agent can help you follow up on the production, check the quality of the goods and deliver them to your country. They can save you a lot of time to focus on marketing activities.
c). Help you control the quality and the production time
Many large importers tend to set up offices in the country of purchase. In this way, they can conduct business activities in the purchasing countries and effectively follow up on all aspects of the import process.
But setting up an office in China is expensive (Typically costing more than $60,000 a year). This is too expensive for small business owners.
In this case, sourcing agents will be a good choice for you.
He will be your eyes and hands in China. During the production, your sourcing agent can visit the factory to check whether the products can be finished on time and whether the products produced meet the quality standards and your requirements.
Once the goods are ready, the agent can check the quality again and then ship the goods to your country/region.
In addition, if quality problems occur before shipment, your sourcing agent can negotiate directly with the factory and ensure the quality of the final product. Agents can persuade factories to correct orders or offer alternative solutions.
If you ask a third-party inspection company, they can only tell you that the inspection results failed or passed.
d). Help you reduce the risk of importing from China to 0
A good sourcing agent has rich experience in product production, product safety, compliance certification, import & export process rules and international transportation.
Depending on the product you purchase, he will tell you what certificate you need to import the product into your country, which transportation method is the best, and whether there are any potential patent problems with the product.
A qualified sourcing agent is more like your personal advisor, who can help you solve all kinds of import and export-related problems.
Sometimes the real difficulty is not the whole import and export process, but the various policy and regulatory issues associated with it
Chapter 3. Are you dealing with qualified sourcing agent (purchasing agent)？
I have introduced 4 reasons why you need a sourcing agent. You may think that sourcing agents are a good idea. Or if you’re already in contact with a sourcing agent, you might be wondering, “What factors determine an excellent sourcing agent?”
a). Communication skills: fluent English, efficient
Smooth communication is the foundation for collaboration and seamless workflow. Therefore, a good sourcing agent must have strong written and spoken English, and be able to communicate with you smoothly by phone and E-mail.
If your sourcing agent is weak in English, it will be difficult for him to understand some of your requirements. You need to explain your requirements repeatedly until he understands them correctly. This is a very bad thing.
How can a sourcing agent who does not understand your requirements well transmit your requirements logically and methodically to a supplier who does not understand English?
In addition, a good sourcing agent must be efficient and responsive to E-mail, since there is a time difference between China and most countries/regions.
China is 12-15 hours ahead of the US and 7-8 hours ahead of Europe. Usually, your questions won’t be answered until the next day.
If your sourcing agent never responds to your emails and messages after work or on weekends, he is certainly not a good sourcing agent. You can just drop him.
b). Truly understand your requirements
In addition to English, it is important for sourcing agents to quickly understand the exact requirements of their customers.
For example, if the product is complex and you need to customize or redesign some parts, your sourcing agent must be able to understand your requirements in order to communicate them to the supplier.
They can contact the factory according to your product idea. If your sourcing agent does not have a clear understanding of your actual requirements, more time will be required to go back and forth to modify the product.
c). Help you control the quality and the production time
If your product is a very professional thing, such as mechanical products, chemical products. You also need to know if your sourcing agent has sufficient knowledge of the product and related expertise.
Customers after such products are professionals who have a comprehensive understanding of these products. The purchasing agent’s knowledge and experience should at least match the customer’s so that he can understand and deliver the customer’s needs.
Agents for a variety of products have an extensive network of cooperative factories and suppliers. Therefore, they can find the best supplier of the required products in a very short time.
If you are opening a supermarket in your own country and need hundreds or even thousands of different categories of products, purchasing management may be challenged.
In this case, your sourcing agent does not need strong expertise in the product. Because all you need is a few everyday things. A sourcing agent with rich import and export knowledge can help you very well.
d). Rich experience in Imp & Exp
Generally speaking, a good sourcing agent will have a lot of import and export experience.
These experiences have given them a good understanding of the legality and paperwork of imports and exports. It includes import and export procedures, certification and documentation requirements, licenses, etc.
At the same time, a sourcing agent should also know about international transportation.
They should know which products can be shipped by air, which products can only be shipped by ship, and which products cannot be shipped.
In addition, a sourcing agent should have patent knowledge to avoid potential inconvenience in importation. A sourcing agent with this experience can help you solve 95% of your import and export problems.
If your sourcing agent has the above four characteristics, then congratulations, your sourcing agent is excellent. The more you work together, the more you’ll get along. They can help you really optimize your supply chain in China and help your career move up a notch.
Chapter 4. China sourcing agent Vs Your local sourcing agent
Every country in the world has sourcing agent services, and your country is no exception. But not all countries have a strong manufacturing capacity.
I have to admit that it is easier to find a local sourcing agent in your country than in China. But the sourcing agent in China and your local purchasing agent have different advantages and disadvantages.
You can choose the most suitable purchasing agent according to their advantages and disadvantages.
LOCAL SOURCING AGENTS:
Pro:
- You can easily find it in your country.
- You have the same language, which makes communication the most efficient and barrier-free.
- You share the same culture. He can better understand your needs;
- Better understanding and familiarity with the local market is able to provide more targeted advice.
- Be more proficient in the policies and regulations of your country, so as to ensure that the problems of import can be solved.
- Lower risk for the first cooperation.
- More advantageous in local procurement.
Cons:
- If your country is not the country of purchase, a local sourcing agent needs to make the purchase across the country.
- The commission will be more expensive than the Chinese agent. Your local sourcing agents usually charge a fixed commission of 10% or more. It depends on how difficult the sourcing task is.
- Unable to follow up the supplier’s production schedule.
- Resources may not be the best supplier resources in the country (usually large traders), and it is difficult to have access to the real factory.
CHINA SOURCING AGENTS:
Pro:
- It is located in China and has abundant supplier resources, so there is no need to conduct cross-border procurement.
- Commissions are lower. Usually, the Chinese sourcing agent will charge a commission of 3-10%, depending on the amount you purchase. As long as the purchase amount can reach $2,000, you will receive a commission of less than 10%.
- The sourcing agent in China can help you follow up the production so that your plan will not be easily disrupted.
- With more abundant supplier resources, can meet your various procurement needs.
- Know more about the way Chinese suppliers, which is conducive to negotiations with suppliers, so as to obtain better quality product resources.
- According to your purchase requirements and quantity, help you find the most suitable supplier resources, even the factory.
- Take advantage of China’s cheap labor, provide packaging, labeling and other manual labor services (friendly to e-commerce players such as Amazon).
- Access to the supplier resources who can only speak Chinese. Usually, this part of the suppliers can provide better quality product resources.
Cons:
- Cultural differences can lead to inefficient communication.
- Jet lag is a common problem.
- The ability of different sourcing agents varies greatly. You need to carefully judge, looking for a better sourcing agent.
Chapter 5. Find china sourcing agent, the channels you need to know
a). Turn your product supplier into your sourcing agent (purchasing agent)
Many Chinese sourcing agents (purchasing agents), companies or individuals have started their sourcing agent business in this way. They only sell certain products at first. Once they establish a trust relationship with the customer, they will start buying other products for the customer.
You can also work with your old suppliers and convert them into your Chinese sourcing agent.
To do this, first, make sure your supplier is reliable and trustworthy. Second, your supplier should be a trading company better than a factory, because manufacturers prefer to sell their own products instead of looking for other products.
This strategy may work for some people, but it is not always recommended. Even if your supplier or trading company agrees to help you buy other products from other manufacturers and suppliers, they may not have experience dealing with these products.
Therefore, they may get the product at a higher price from the market, or charge a higher price from you to get a better profit. Either way, this approach may not be the most appropriate and cost-effective way to find a sourcing agent.
b). Search the Internet for China sourcing agents
You can start your Internet research with Google as a purchasing agent in China. Just type in the Chinese purchasing agent and browse the search results. Several purchasing agent sites will appear, and your next task will be to filter the results. Not all purchasing agents that appear on the Internet are trustworthy, so you must look at their expertise and evaluate them through their web sites.
In China, there are several large sourcing companies with more than 200 full-time employees. But it’s hard to find them on Google.
Because these companies have established a reputation in the market and have a large number of stable customers.They don’t usually do online marketing on Google. That’s why it’s hard to find them online.
Alibaba is another place to find sourcing agents. It is well known that the platform has many sourcing agents working on low commission. However, it is difficult to estimate the quality of service.
If you have the time and energy, use the services of different sourcing agents and compare them. But the risks involved are high, and you may end up wasting a lot of time. In addition, if the sourcing agent is not professional, you will be at risk of obtaining defective or inferior products.
Except Alibaba, there are other China Wholesale Websites that you can find a soourcing agent.
Upwork and Fiverr are free websites where you can find independent sourcing agents. Some of them are Chinese, some are not.
If you see a foreign independent purchasing agent, he will help you find the supplier and check the price on alibaba.com, and then provide you with the supplier’s price. Then, you need to contact the supplier yourself.
If you find an independent sourcing agent in China, he may be able to help you purchase goods in some wholesale markets in China or directly from the factory.
But these freelancers are private businesses. If you send them tens of thousands of dollars directly in cash transfers or western union, you risk becoming a victim of fraud.
c). Look for sourcing agents at the fair
You can find the Chinese sourcing company directly by attending the exhibition.
Some of the most popular fairs are the Canton Fair, Hong Kong fair and Yiwu international fair.
It should be noted that this approach is more suitable for large importers (such as supermarkets). These large importers spend millions of dollars on goods every year and need to import hundreds of different types of products.
If you are not such a large importer, small purchasing companies with 2-5 people will be more suitable for you than these large purchasing companies.
If you’re just a small or medium-sized importer buying tens of thousands of dollars a year, the fair may not be the best place to find suppliers.
d). Visit the large China wholesale markets for sourcing agents
In large China wholesale markets, such as Yiwu wholesale market, you can also find individual sourcing agents and sourcing agents company.
Sourcing agents companies often advertise to customers in the market. You will see their ads on elevators, staircases, poster walls, billboards, banners for sure.
The uniform feature of these ads is that they emphasize a very low commission, only 3%. Some are even free of commission for the first order. I’m not sure whether their AD message is true or not. You need to find the truth yourself.
The individual sourcing agents hang out in the Yiwu wholesale market. If they see you leaving after visiting a booth, they will offer to chat with you and sell their services. It is also hard to tell whether these agents are real or fake. You need to be very careful.
Now it's your turn!
Do you want to find a purchasing agent immediately? I hope this article has given you a better understanding of purchasing agents.
If you have any questions or confusion after reading this article, please comment. We will try our best to help you answer and solve the problem.
6 thoughts on “What is a China sourcing agent? And how to find them in China: A-Z Guide”
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