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How Sourcing Agent Can Help You Import from China 2022

If you want to start a business, you must find a reliable sourcing agent that can supply the right materials for your products. The sourcing agent you choose to work with is the foundation of your company. Your overall value is a key component of how customers perceive you. A good supplier will help you get high-quality products that will be appreciated by your customers and lead to repeat business. If you are thinking of buying products in bulk from China, a China sourcing agent is a good choice.

Globalization opens up new avenues for business and breaks down geographic barriers. China is now a major source of sourcing for Southeast Asian and Western countries. China, with a population of more than 1.4 billion, had a 2019 GPD of $14.1 trillion. The country of 1.4 billion had a 2019 GPD of about $14.1 trillion. Global importers can hire purchasing agents to source their supplies because of their vast market.

sourcing agent

What is a Sourcing Agent?

Purchasing agents in China help companies find the best products at reasonable prices and create value through purchasing. It allows companies to save money during production. An agent of this nature can work with a company. This type of agent can also be a business owner serving other clients or businesses.

You don’t need a high education to become a sourcing agent. However, you do need:

  • Good business sense
  • local language
  • Excellent coordination skills
  • Multilingualism is a huge benefit
  • Customs knowledge

What is the Job of a Purchasing Agent?

Let us simplify it for you.

  1. Consider product ideas. Products you want to sell.
  2. Contact a purchasing agent to describe your product.
  3. Send a list of all your requirements to the agent
  4.  The agent will look for a Chinese sourcing agent based on your information.
  5. The agent will give you choices. Choose the one that best suits your needs.
  6. The purchasing agent becomes the communication channel between you and the supplier.
  7. Finally, your product is produced at the price you want

Buying agents are paid based on a commission percentage set by the company or third-party entity they work for.

What did Other Services Do Purchasing Agents provide?

  • Negotiate prices with suppliers.
  • Watch the manufacturing process
  • Save on your international shipping

How to Filter Bad Purchasing Agents?

As we all know, there are always good and bad things in life. How do you filter and identify them?

  • Do not hire purchasing agents who also pay for the factory. Why? Because if they get a commission, they are likely to refer you to a center of average quality.
  • The best Chinese sourcing agents don’t charge a commission if they provide a quality inspection. This is a key point to remember and a key rule in business.
  • They don’t need to spend years looking for suppliers. Once you have shared your requirements with a good agent in China, it only takes a few minutes to get some testimonials from China. This is how an experienced and well-coordinated purchasing agent works.
  • This may seem simple, but it is critical. In any transaction, communication is critical. If the information is not clear and not understood, it can lead to huge failures.

How Do You Work with Chinese Sourcing Agents?

Now it’s time for the final step: choosing purchasing agents and working closely with them.This must be done. Do your research and do a thorough investigation before choosing the best sourcing agent in China. To make an informed decision, use all search engines such as Google, Bing, and Yahoo. If you’re hesitant to use Alibaba or Global Sources, you don’t want to hire a sourcing agent. These online purchasing platforms have a rating system that looks at the reliability of suppliers.

Word of mouth is a powerful tool: Procurement experts agree that the market is saturated. It is better to go to China to find a suitable agent. It might sound crazy, but it’s the best way to do it. Look around for the best purchasing agent. You should pay attention to who gets the most referrals.

Ask the agent about their process. Any agent will take your information and compile a factory list. Then they will approach you. After a long conversation, the agent will create a list. These factors will help you decide on a supplier.

Next, the customer will provide the agent with the samples you need. Procurement specialists will document the original samples and remove any unimportant elements. The factory then receives the model as a pre-production sample (PP sample).

Payment: Payment terms depend on the type of relationship you have with the agent. They will be flexible if you have been in a relationship with a surrogate for more than a year. If you have a large payment, make a credit transaction. It’s usually between banks. However, if you ask your agent the same question, it may help you make an informed decision.

Commission: Most experienced sourcing agents charge around 5-7% of the total cost of an order. It might sound high. It might sound huge. However, the best Chinese sourcing agents can guarantee quality (such as working with SEDEX-certified factories), price, and on-time delivery (critical in this logistically complex industry).

How Do You Choose the Best China Sourcing Agent?

Learn what a Chinese sourcing agency is and how they can help you, and you can learn a few ways to choose the right one. China’s reputation is not perfect. There are many manufacturing scams and fraudulent purchasing agents. While these agents may promise great deals at affordable prices, they rarely meet buyers’ expectations. You can avoid this if you do your research. To ensure the success of your business, you must carefully screen potential agents to find reliable sourcing agents in China.

Here are some tips for choosing a Chinese sourcing agency:

Choose an Experienced

Experienced and trusted Chinese purchasing agents can manage the entire purchasing project. Your purchasing agent must be able to accurately describe every step of the process, from obtaining a quote from a factory-authorized factory to handling the shipment. Choose an agent who has both an office and a country office in China. The agent can help you overcome cultural and language barriers that may prevent you from understanding your supplier’s market.

Properly Check Credentials—Sourcing Agent

It is important to check the certificates of any Chinese sourcing agents you will be working with. There may be many options when looking for a purchasing agent. Be careful when choosing a purchasing agent. Not all agents have the experience and knowledge required to complete the process. It is important to take the time to research the different sourcing agents in China.

When verifying your purchasing agent’s credentials and qualifications, be sure to check the following:

  • The location of the purchasing agent. You will benefit from agents with offices in China and offices in the United States.
  • Office hours in China.
  • Mention the agency’s past clients.
  • Ask agents to assess their ability to deal with quality issues.
  • You can measure an agent’s language proficiency. Fluency in Chinese and English is normal.

Understand How Quality Control Works—Sourcing Agent

May encounter Chinese purchasing agents who are not familiar with quality control. It is the agent’s job to ensure the quality of manufactured products. Therefore, you need to have as much knowledge as possible to find a purchasing agent who understands the importance and benefits of quality control.

Conclusion

The above discussion shows that hiring a Chinese sourcing agent is very beneficial for exploring the huge business opportunities in China. These agents can simplify the purchasing process for you and usually don’t charge a lot. Hiring a Chinese sourcing agent will help you reduce business risk and save recurring costs every year.

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