With the popularity of global sourcing, purchasing agents play an increasingly important role in the international supply chain. However, many buyers are still waiting to see if they need a purchasing agent. To a large extent, the reason is that they don't understand the purchasing agent. And the massive amount of outdated information on the Internet makes it impossible to make accurate judgments about the purchasing agent.
The article will introduce China's sourcing agent in detail from a neutral perspective. If you are interested in importing products from China, then this article will be helpful to you, especially in terms of how to choose a reliable purchasing agent.
It mainly includes the following aspects:
1. What is a China sourcing agent
2. What can China Sourcing agents do?
3. What kind of company is suitable for choosing a sourcing agent
4. Subdivision types of sourcing agents
5. How the sourcing agent collects commissions
6. The advantages and disadvantages of hiring a sourcing agent
7. How to distinguish between professional sourcing agents and bad sourcing agents
8. How to find a China sourcing agent
9. China sourcing agent VS Factory VS Wholesale website
1. What is a China Sourcing Agent
In the traditional sense, individuals or companies that search for products and suppliers for the buyer in the country of manufacture are collectively referred to as purchasing agents. In fact, in addition to finding suitable suppliers, today's sourcing agent services in China also include factory audits, price negotiations with suppliers, follow up production, regular inspections to ensure product quality, transportation management, processing import and export documents, product customization, etc.
For example, Sellers Union which has many years of experience, can help you handle all the import processes from China. If you want to know more purchasing agent list, you can read the article: Top 20 China Purchasing Agents.
2. What Can China Sourcing Agents Do
-Looking for Products and Suppliers in China
Generally this sourcing service can be done all over China. Some China purchasing agents also provide assembly services for your products. Professional sourcing agents can accurately review the situation of suppliers and find the best suppliers and products for buyers. And they will negotiate with suppliers in the name of customers, obtain better terms.
-Quality Control
The purchasing agent in China will help you follow up production and check the products you ordered. From the beginning of production to delivery to the port, ensure that the quality is the same as sample, the integrity of the packaging and everything else. You can also konw everything in real time through photos and videos from a reliable China sourcing agent.
-Cargo Transportation and Warehousing Services
Many sourcing companies in China can provide cargo transportation and warehousing services, but in reality they may not have their warehouses. All they can do is contact relevant industry personnel. For buyers who need to order a large number of products and then consolidate goods and shipped, choosing a China sourcing company who have their own warehouse will be a better choice, because some sourcing companies will provide free storage for a period of time.
-Handling Import and Export Documents
Chinese purchasing agents can help deal with any documents that customers need, such as contracts, commercial invoices, packing lists, original certificates, PORMA, price lists, etc.
-Import and Export Customs Clearance Service
Handle all import and export declarations of your goods and keep in touch with the local customs department, ensure that the goods reach your country safely and quickly.
The above are the basic services that almost all Chinese sourcing companies can provide, but some larger sourcing companies can provide more complete service to customers, such as:
-Market Research and Analysis
In order to better meet the needs of customers and improve their market competitiveness, some China sourcing agents will provide market research and analysis, let customers know about this year's hot products and new products.
-Customized Private Label Products
Some clients have some customized requirements, such as private packaging, labeling or product design. In order to adapt to the market, many sourcing companies are gradually expanding this services, because other outsourcing design teams can't always obtain satisfactory results.
-Special Service
Many China purchasing agents also provide some special services, such as ticket booking, accommodation arrangements, airport pick-up services, market guidance, translation, etc.
If you want more intuitive understanding of one-stop service, you can refer to: China Sourcing Agent Work Video.
3. What Kind of Company is Suitable for Choosing a Sourcing Agent
-Need to Buy a Variety of Products or Product Customization
In fact, many wholesalers, retailers or supermarket have stable cooperative Chinese purchasing agents. Like Wal-Mart, DOLLAR TREE, etc. Why would they choose to cooperate with purchasing agents? Because they need a lot of products, and some need customized products, they need to entrust a purchasing agent to help them complete the import business, save time and cost and focus on their own business.
-Lack Import Experience
Many buyers want to import products from China, but they haven't experience. This type of buyer usually just started their business. I would like to regret to tell you that even though we are very careful to make a procurement strategy for you, the actual experience is still very important. Importing products from China is very complicated, which stems from a large number of suppliers and products, complicated transportation rules and the inability to follow up production in real time. Therefore, if you have no import experience, it's easy to have an error. Choose a China sourcing agent suitable for your business to help you, which can greatly reduce the risk of importing.
-Can't Come to China to Purchase in Person
Buyers who can't come to China in person are always worried about the progress and quality of their goods, and miss many of the latest products. Maybe they have a wealth of purchasing experience, but in the case of not being able to come to China, they will worry about a lot of problems. So many clients will hire a purchasing agent to handle everything for them in China. Even if they have a fixed manufacturer, they also need a trusted person to review the information of the supplier and pay attention to the progress of the product and arrange the delivery.
4. Sourcing Agent Type
Some people may think that purchasing agents are all the same, they just help them buy products. But in fact, we also mentioned that nowadays, due to the diversification of purchasing models and the requirements of different clients, purchasing agents can also be subdivided into many types, mainly including the following:
-1688 Sourcing Agent
1688 agent is specifically aimed at buyers who want to purchase on 1688, and can help them purchase goods and then transport them to the buyer's country. The same product may get a better quotation than alibaba. The shipping and purchase costs may be calculated more than directly ordering on alibaba. In addition, because there are many factories that aren't good at English and international trade rules, the number of factories registered in 1688 is also higher than that of alibaba. Because 1688 haven't English version, so if you want to sourcing products above, hire a procurement agent more convenient.
-Amazon FBA Purchasing Agent
Many Amazon sellers buy from China! Amazon sourcing agents help Amazon sellers find products in China, and complete sorting and packaging in China, and provide delivery to Amazon warehouses.
-China Wholesale Market Purchasing Agent
There are many wholesale markets in China, some are specialized wholesale markets, and some are integrated markets. Among them, Yiwu market is the best place for most clients to purchase products. As we all know, Yiwu Market is the largest wholesale market in the world, with a complete range of products. You can find all the products you need here. Many Yiwu sourcing agents will develop their business around the Yiwu market.
Guangdong produces many kinds of products, and there are also many wholesale markets, which are mainly famous for clothing, jewelry, and luggage. Baiyun Market / Guangzhou Shisanhang / Shahe Market area are all good choices for imported women's/children's wear. Shenzhen has the well-known Huaqiangbei Market, which is an excellent place for importing various electronic components.
-Factory Direct Purchase
Experienced Chinese purchasing agents generally have extensive supplier resources and can more easily obtain the latest products. If it is a large-scale sourcing company, it will have more advantages in this regard. Due to the large number of employees, the accumulated supplier resources will be much higher than that of small-scale sourcing companies, and the cooperation between them and the factory will be closer.
Although there are subdivided sourcing agents, many experienced sourcing companies are comprehensive and can cover all the above types.
5. How Purchasing Agents Charge Commissions
-Hourly System / Monthly System
Personal purchasing agents often adopt such charging methods. They act as buyers' agents in China, handle purchase matters for buyers and communicate with suppliers.
Advantages: All matters are included during working hours! You don't need to pay extra fees to ask the agent to complete those cumbersome documents and matters for you, and the price is clearly marked, you don't have to worry about your quotation with hidden prices in it.
Disadvantages: People are not machines, you can't guarantee that they are working at full speed every hour, and because of remote employment, you can't guarantee that employees are always working, but you can also tell by their work progress.
-A Fixed Fee is Charged for Each Item
A fixed fee is charged separately for each service, such as a product survey fee of US$100, a purchase fee of US$300, and the like.
Advantages: The quotation is transparent and it is easier to calculate the cost. The quantity of your product does not affect the amount you have to pay.
Disadvantages: You don't know if they will fulfill their obligations seriously. This is the risk. Any investment has risks.
-Free Quotation + Percentage of Order Amount
This type of purchasing agent pays more attention to customer development, usually a sourcing agent company. They are willing to do some free services for you to attract you to cooperate with them, and they charge part of the order amount as a service fee.
Advantages: When you aren't sure whether you want to start a business imported from China, you can ask them for many product quotation to decide whether to start a business.
Disadvantages: part of the order amount can be more or less. If you encounter a purchasing agent with bad conduct, you cannot be sure that the amount they quote you is a good percentage, and the actual price of the product may be lower.
-Prepaid + Percentage of Order Amount
A part of the price needs to be paid first, and on top of this, a percentage of the order amount will be charged as a handling fee in the order.
Advantages: Due to the prepayment, the buyer may be able to receive more detailed and detailed quotations and services, because the buyer’s purchase intention has been confirmed, the sourcing agent will provide more sincere services, and since a part of the fee has been paid, buy The quotation received by the home may be lower than the free quotation.
Disadvantages: The buyer may not be interested in the quotation after the advance payment, but the advance payment is non-refundable, which may cause some losses.
6. What Does Hiring a Sourcing Agent Bring?
Any business activity is accompanied by risks, and it is not surprising to hire a purchasing agent. You may hire unreliable and inexperienced Chinese sourcing company. This is what worries buyers the most. This self-proclaimed "purchasing agent" from China may defraud precious funds. But if it is just because of this risk, if you give up the way of cooperating with a purchasing agent, it is indeed a small loss. After all, the benefits that a professional purchasing agent can bring to the seller far outweigh the costs, such as:
Find reliable suppliers for buyers. (About how to find reliable suppliers I have talked about it in detail in the previous articles, for reference).
Provide a more competitive price and MOQ than the factory. Especially large-scale China sourcing companies. Through their connections and reputation accumulated over the years, can usually get a better price and MOQ than the sellers themselves.
Save a lot of time for clients. When you save a lot of time in these links, you have more time for market research/marketing model research, and your products can sell better.
Reduce communication barriers. Not all factories can communicate with customers in fluent English, but purchasing agents can basically.
Ensure the quality of the goods. As the buyer's avatar in China, sourcing agents will immediately care about whether the quality of the product meets the sample standard for the buyer.
We mentioned what a professional purchasing agent can bring. So, in all cases, is it good to choose a purchasing agent? When you encounter bad purchasing agents, buyers also need to pay attention to the following situations:
1. Fancy words and unprofessional services
A bad purchasing agent may go along with the buyer’s conditions. No matter what the conditions are acceptable, they provide unprofessional services to the buyer. The products provided to the buyer may undergo false processing, which actually fails to reach the buyer requirements.
2. Receiving kickbacks from suppliers/accepting bribes from suppliers
When a bad purchasing agent accepts a kickback or bribe from a supplier, he will not be obsessed with finding the best product for the buyer, but how much he gains, and the buyer cannot get the product that suits his wishes, or Have to pay more to buy.
7. How to Distinguish Between Professional Or Bad Sourcing Agents
A: Through a Few Questions
What kind of business does the company excel at? Where are the company's coordinates? How long have they been working as an purchasing agent?
Each company is good at different business. Some companies will set up offices in different locations as they expand. The answer given by a small sourcing company or individual may be a single product category, while a medium and large company may give multiple product categories. No matter which one is, it is unlikely to jump out of the industrial cluster in the region too much.
Can I Check the Status of the Ordering Factory?
Professional sourcing agents will definitely agree, but bad purchasing agents rarely agree to this requirement.
How to Control the Quality?
Professional purchasing agents are familiar with product knowledge and market trends, and can give many detailed answers. This is also a good way to distinguish between professional and unprofessional. Unprofessional purchasing agents are always at a loss for professional issues.
What if I find that the quantity is less after receiving the goods?
What if I find a defect after receiving the goods?
What if I receive an item that is damaged in transit?
Ask professional after-sales service questions. This step can help you to distinguish whether the purchasing agent you are talking about is responsible. During the conversation, evaluate the language ability of the other party to ensure that he is proficient in both Chinese and English.
8. How to Find a China Sourcing Agent
1. Google
Google is usually the first choice to find a purchasing agent online. When choosing a purchasing agent on google, you need to compare more than 5 purchasing agents. Generally speaking, sourcing companies with larger scale and more experienced will post company videos or cooperative customer photos on their website. You can search for words such as: yiwu agent, china sourcing agent, yiwu market agent and so on. You will find a lot of options.
2. Social Media
In order to better develop new customers, more and more purchasing agents will post some company or products posts on social media. You can pay attention to relevant information when browsing social media daily, or use the above Google search terms to search. You can also search their company information on Google if they don't have the company website marked on their social accounts.
3. China Fair
If you come to China in person, you can participate in China Fairs such as the Canton Fair and Yiwu Fair. You will find that there are a large number of purchasing agents gathered here, so that you can communicate with multiple agent face to face and easily get a preliminary understanding.
4. China Wholesale Market
One of the most common services of Chinese purchasing agents is to act as a market guide for customers, so you can meet many sourcing agents in the China wholesale market, they may be leading customers to find products. You can go to have a simple conversation with them and ask for contact information of purchasing agents, so that you can contact them later.
9. China Sourcing Agent VS Factory
One of the advantages of purchasing agents includes getting better quotations from the factory. Is this true? Why would it be more favorable when an additional process is added?
Cooperating directly with the factory can save the purchase agency fee, which may be 3%-7% of the order value, but at the same time you need to directly connect with many factories and bear the risk alone, especially when your product isn't a regular product. And you may need a bigger MOQ.
Recommendation: For companies that have a large order volume and a dedicated person who can take time to pay attention to production every day, cooperation with multiple factories may be a more appropriate choice. Preferably someone who can understand Chinese, because some factories can't speak English, it is very inconvenient to communicate.
10. China Sourcing Agent VS China Wholesale Website
Purchasing agent: lower products price / wider product range / more transparent supply chain / save your time / Quality can be more guaranteed
Wholesale website: save the service cost of the sourcing agent in China/ simple operation / possibility of false content / quality disputes are not protected / difficult to control the quality of shipments.
Recommendation: For customers who don’t know much about the products, you can browse the Chinese wholesale websites such as 1688 or alibaba to get a general understanding of the product: market price/product regulations/materials, etc, and then ask the purchasing agent to find it on this basis Factory production. But be careful! The quotation you see on the wholesale website may not be a real quotation, but an quotation that attracts you. So don't take the ultra-low quotation on the wholesale website as the capital for negotiating with the purchasing agent.
11. China Sourcing Case Scenario
Two suppliers can offer quotations for the same product, but one of them offers a price much higher than the other. Therefore, the key to comparing rates is to compare prices and specifications.
The clients wants to order outdoor camping chairs. They provide photos and size, and then ask for prices from two purchasing agents.
Purchasing agent A:
Purchasing agent A (a single agent) is quoted at $10. The outdoor camping chair uses a steel tube frame made of 1 mm thick pipe, and the fabric used in the chair is very thin. Because the products are manufactured at the lowest price, the quality of outdoor camping chairs is insufficient, having a big problem with sales.
Purchasing agent B:
The price of Purchasing Agent B is very cheap, and they only charge a 2% commission as a standard fee. They won't spend a lot of time negotiating price and specifications with manufacturers.
End
Regarding whether a sourcing agent is required, it is entirely up to the buyer's personal choice. Sourcing products in China isn't a simple matter. Even clients who have many years of purchasing experience may encounter various situations: the suppliers who concealed the situation, delayed delivery time, and lost the logistics of the certificate.
Purchasing agents are like a buyer's partner in China. The purpose of their existence is to provide customers with a better purchasing experience, operate all import procedures for buyers, save buyers' time and costs, and improve safety.
For buyers who want to import products from China, we recommend Yiwu's largest sourcing agent-Sellers Union, with more than 1,200 employees. As a Chinese agent with 23 years of foreign trade experience, we can guarantee the stability of transactions to the greatest extent.
Thank you very much for reading. If you have any doubts about any content, you can comment below the article or contact us at any time.
Post time: Apr-30-2021