Importing goods from China has been popular for many years. China products are of high quality, but low price and have always had the advantage of high-cost performance. Importing from China is an excellent opportunity for businesses.

The latest market analysis shows that China’s exports have grown for many years and have more significant economic influence in many countries. However, importing from China is not easy, especially if you have no experience.

To make the best communication during the process of product sourcing and to control product quality, it is necessary for you to find a reliable sourcing agent.

What is a Sourcing Agent?

A sourcing agent is an individual or a company who has established a long-term relationship with buyers and helps them to purchase various products in other countries (such as China, India, or Vietnam) and provides other services such as goods inspecting, warehousing, shipping, etc.

Sourcing agents can find and visit different suppliers in their country to confirm whether they meet the buyer’s requirements on cost, quality, and delivery issues.

Sourcing agents focus on every aspect of the sourcing process. From contract negotiation to goods quality inspection, they are always your right-hand man. Buyers always want to get products with high-quality but low prices, and it’s just not that easy.

You have to contact dozens of suppliers to make sure their product qualities and prices match your expectations. By using a sourcing agent, you could save your time and money and significantly reduce your risks, because their experience and expertise can narrow down your options and ensure you work with suppliers who can enhance your business.

Ideally, your sourcing agent should be located geographically close to the country of manufacture and potential suppliers. They speak the country’s language and even the local dialect to ensure good communication with suppliers.

Why do You Need to Get a Sourcing Agent?

In a country you may not be familiar with, you will have to find suppliers, assess whether they can manufacture your product, and verify whether they are actual manufacturers or just a middleman.

You must also evaluate offers from suppliers, check samples, control qualities, manage lead times, and ensure products arrive on time. It isn’t easy, and you will need to do all these things in another country thousands of miles away from the land of manufacture.

You will be dealing with suppliers in your country, speaking different languages, in different time zones.

You will have two options:

You can find the right supplier yourself or delegate this job to someone good at it. That is where sourcing agents come in! Sourcing agents work locally as your representative and take care of your orders.

They help you find reliable suppliers, negotiate the best prices, handle documentation, supervise production, inspect goods quantities, fix problems during production, and ensure that products are delivered to you within the promised time.

• Sourcing agents help buyers to find reliable suppliers and get the best prices.

Finding suitable suppliers in China is challenging because China is too big! A good sourcing agent knows where exactly the products you need are distributed.

Although we could preliminary search on platforms such as Alibaba, Global Sources, etc., it is often tough to check whether the suppliers you find on these sites are actual manufacturers or middlemen.

A good sourcing agent usually has a list of reliable suppliers to contact. A good sourcing agent can get you the best price compared to negotiating on your own.

• Sourcing agents help bridge communication and cultural gaps.

There are significant differences in languages and cultures between China and Western countries. There is often an inconsistency between what buyers mean and what suppliers understand.

The situation is precisely due to their language and cultural differences. Therefore, buyers and suppliers should be very clear when communicating. You must write down all the information and details about the product and the contract terms so that your supplier knows precisely what you want.

Even so, you or your agent must follow up on the production process to ensure that every detail is correct.

Sourcing agents are experts in product sourcing, and they have been doing this all the time. They know English and other languages well and always take care of your interests. They ensure that you and your team members don’t have to travel long and expensive to China.

Especially during the epidemic, China bans tourists and short-term business travelers outright, and most foreigners cannot enter China now.

A good sourcing agent will arrange production according to various Chinese holidays so that your products can be shipped in time before the Holidays;

They will also suggest you increase order quantities a few months before the holidays so there will be no shortage of stocks before the next production.

An experienced agent will let buyers know in time according to the rising trend of some raw materials, to arrange production and delivery of the goods as soon as possible, and save money for buyers.

Here are some friendly tips when you are looking for a sourcing agent in China:

• Is he an individual agent or from a sourcing company?  It is essential to know because when you make a payment, you have to know you are paying a person or a company.  It is riskier to make payment to a single person as you could never find him once he runs away.
• How many years have they been in sourcing jobs?  Do they have an office in China?  How many employees do they have?  It will show their experience.  They might not be the best company to work with if they are new and have been a sourcing agent for less than three years.
• Will they provide you with direct contact with the factory?  Please remember that if they don’t share factory information with you, you cannot control how and where your product is made.
  What products do they specifically source?  Are these products the ones you are looking for?
• Do they have a business license in China?  You need to make sure that they are a legitimate business in China.  Because buyers mostly make payments through their agent, it is a must to ensure that the sourcing agent is honest and authentic.
• Are they proficient in English or your language?
• How do they get paid for their work?  Up-front fee or commission?  A good sourcing agent should not get a commission from suppliers as it shows that they are subject to the factory’s will and that this factory is not the best choice to place orders.

What do Sourcing Agents do?

Sourcing agents help buyers to find products and suppliers.
Services offered by sourcing agents vary. Below are standard services provided by sourcing agents:

Choose the right supplier

A sourcing agent’s first and most important service is selecting the right supplier for buyers.

Buyers shall inform their agents of all details of products, quantities, materials, etc.; the sourcing agent uses this information to search for the best supplier.

This could be very easy for sourcing agents as they are always located where buyers want to get their products.

Negotiate Prices

Sourcing agents are also responsible for negotiating prices on behalf of buyers. This is very important because buyers are usually away or unable to access suppliers, so their agents have to offer the best product at the best price.

Follow-up on Production

After the deal with suppliers is concluded, the sourcing company’s job is to follow up the production and ensure everything goes smoothly.

Quality Control, Products Test

After production, sourcing agents will handle all product compliance and testing procedures. This is to ensure all products arrive in perfect condition.

If there is a problem, buyers will not contact the supplier but their agent, so sourcing agents must ensure that the product meets the buyer’s requirements before shipping.

Shipping and logistics

A sourcing agent looks after the matter of shipping and logistics. After the products are sourced, the task is to choose the right logistic service that is reliable and affordable is the duty of the sourcing agent. Hence, the sourcing agent arranges everything from scratch, and the responsibility of having everything delivered at the right place and at the right time is also equally important.

Best 40 China Sourcing Agent

How Much does a Sourcing Agent Cost?

Sourcing agents charge a specific percentage of the total order as a purchasing fee. This percentage varies by agency, product type, and order volume.

Some agents will charge less if the order is significant, while others charge a flat fee for a fixed period of one week or one month.

Qualities of the Right Sourcing Agent

When choosing a sourcing agent, there are certain qualities that you must look into, and some of these include the following:

• Trustworthiness is the foremost quality of a sourcing agent, which can never be compromised. Hence, working with an honest sourcing agent helps you get better products and prices.
• The right sourcing agent will always strive for quality, so when it comes to looking for the sourcing agent, make sure they conduct very deep research and assess the quality of the products. They should have well-developed standards against which they match the product quality and then finalize the deal.
• The sourcing agent is also limited in terms of service to the extent of just creating and executing the deal. Unless and until the products are received, the responsibility of the sourcing agent remains intact. Moreover, the sourcing agent must also be there for post-sales services in case there is any problem, or any return and exchange is needed.
• The decision-making should be on the buyer and not on the sourcing agent. The sourcing agent would search for suppliers and the right products. However, he must not make decisions on his own and rather should discuss every detail with the buyer and only, upon his consent, execute the deal.
• The role of a sourcing agent is significant in creating a healthy relationship between the buyer and the supplier. The sourcing agent must move forward to enhance this relationship so that the business ties get more robust and the two parties can deal with one another in the long run.
• The buyer’s confidentiality is a massive responsibility of the sourcing agent, which cannot be compromised. So, any business secrets regarding the buyer that a sourcing agent is aware of must be kept confidential and must not be shared anywhere with anyone. The sharing of business secrets may end up leaking to the competitors, which may later on cause trouble for the buyer.

Pros & Cons of Using a Sourcing Agent

Importing from China involves many complex things. For buyers, you need to find a good and reliable supplier to control the production process, test samples, arrange shipment, etc.

For buyers with no experience in goods importing or for the first time importing, and those buyers with very rich product categories (such as running supermarkets), we highly recommend using a sourcing agent as they could significantly reduce your work.

Pros

Reduce risks

One of the enormous benefits is to reduce risks. You will encounter many problems when importing from China, and professional sourcing agents are familiar with all processes, rules, and international deliveries. With the help of an experienced sourcing agent, your business is safe.

To leverage their vast network

Professional and reliable sourcing agents focused on connecting with some of the best suppliers and manufacturers. Their connections are not limited to websites like Alibaba; they could introduce you to great factories that aren’t available on Alibaba, even factories outside of China. This can be a substantial competitive advantage.

Most favorable prices

Negotiating with suppliers is a skill, and a good sourcing agent is very good at negotiating. You may find it very difficult for buyers to get the best price. But sourcing agents know how to communicate effectively with suppliers to close a deal.

To identify legitimate suppliers

(Sourcing agents know suppliers better and can spot scams immediately)

As e-commerce booms in China, so does the list of fake suppliers. If you don’t know how to identify a reliable supplier or manufacturer, you are taking a considerable risk or going in the wrong direction. And an experienced purchasing agent can judge whether a supplier is legitimate to reduce your risks.

To bridge the language gap

Sourcing agents speak the same language as the supplier and understand the supplier’s culture, reducing communication barriers.

While sourcing products from China is exciting, it does come with huge risks. One of the biggest is the language gap between you and the supplier.

While effective negotiation is critical to successful product sourcing, negotiations could fail if you and the supplier have difficulty understanding each other.

A good sourcing agent helps you to bridge the language gap. They know your supplier’s culture and help you express a language your supplier can understand to reach a mutually satisfying deal.

Easy get samples from different factories

Usually, when buyers ask for samples from suppliers, buyers must bear the air freight of samples. When you ask for samples from multiple suppliers, air freight costs increase.

If you work with a sourcing agent, they can provide samples from other manufacturers and courier them to you since the agents work with different manufacturers.

You could evaluate the quality of products you received simultaneously and determine which supplier you would like to choose.

Cons

Risk of secret commissions

Finding a reliable and reputable sourcing agent can be as challenging as finding the right supplier. If you use the wrong sourcing agent, you risk paying a markup for your products.

Sometimes, a lousy purchasing agent deals with suppliers in exchange for a secret commission so they can benefit from both you and your suppliers.

Sourcing agents control contact with manufacturers

(buyers lose direct communication channels)

Since the agent controls all the communication and develops a good relationship with manufacturers, you lose the direct communication channel with suppliers because you hand everything over to your agent.

If you work with a single person, not a sourcing company, you will be in big trouble once your agent goes missing. Some harmful agents don’t even reveal details on suppliers’ information, in which case you don’t even know where your products are made!

Change suppliers without letting you know

There are still many sourcing agents who lack professionalism. If you rely solely on a sourcing agent to do all of your work, once they find a supplier with a higher commission, they are likely to switch out of your original choice without letting you know.

When this happens, the quality of your products suffers. It would be best if you worked with a trusted agent to prevent this from happening.

China Best 7 Wholesale Website

• Alibaba

Alibaba is the international business-to-business platform of Alibaba Group. It connects businesses with global manufacturers. Using Alibaba, businesses can find manufacturers to produce bulk products and import them into their countries.

In many ways, Alibaba is Amazon’s sister site, as many of Amazon’s merchants buy from Alibaba.

• DHGate

DHgate.com is an online trading platform for a range of consumer goods made of plastic, metal, glass, silicone, and more. These products are sourced directly from manufacturers, factories, and sellers, eliminating middlemen and saving manufacturers and buyers a lot of time, effort and money.

• 1688

1688 is an online buying and selling platform that was founded by Jack Ma in 1999, the predecessor of Alibaba.
It is China’s leading e-commerce platform for small business domestic trade.
1688 has covered 16 major industries such as raw materials, industrial products, clothing and apparel, household goods, and small commodities, providing a series of supply services from raw material procurement – production, and processing – to spot wholesale.
The difference between 1688 and Alibaba is that 1688.com is mainly used in the Chinese domestic market, while Alibaba is more focused on targeting international trade. This is the main difference.
Another difference is the domestic payment method, 1688 offers a payment option in RMB instead of USD. This makes international trade between Chinese suppliers and overseas buyers easier without paying high fees or buying exchange rates.

• Global Sources

Global Sources were founded by Merle A. Hinrichs and C. Joseph Bendy in November 1970. It is a business-to-business (B2B) media company headquartered in Hong Kong. The company provides sourcing information to bulk buyers and integrated marketing services to suppliers.
Both Global Sources and Alibaba have a common goal: to be a one-stop product sourcing platform. Neither sells products themselves; instead, they are both used as sales platforms. In fact, these two platforms are the largest B2B platforms in the world, mainly promoting various products made in China.

• Made in China

Made-in-China is a large B2B trading platform headquartered in China. It brings together Chinese products, faces global buyers, and provides efficient and reliable information exchange and trade services.
Made-in-China.com supplies more than 3,500 items, supports 11 languages, and has more than 1 million suppliers who can register for free.

• HKTDC

The Hong Kong Trade Development Council is a statutory body established in 1966 as international marketing dedicated to creating opportunities for Hong Kong’s businesses. The organization has 50 offices worldwide, including 13 on the Chinese mainland. With more than 50 years of experience, its mission is to explore opportunities for Hong Kong companies, especially small and medium-sized enterprises, and connect them with business partners worldwide.

• Chinagoods.com

Chinagoods.com is the official website of Yiwu Small Commodity City. Relying on the resources of more than 75,000 physical stores in the small commodity market, the platform serves 2.1 million small, medium and micro enterprises upstream of the industrial chain, and meets the needs of both supply and demand in manufacturing, display transactions, warehousing and logistics, financial credit, market management and other links to achieve effective market resources. precise configuration, and build a B2B platform for comprehensive digital trade services.

• Aliexpress

AliExpress is a popular online store for buying products at much lower prices than Amazon and other similar platforms. The store was founded in 2010 and is owned by Alibaba, a massive Chinese multinational company focusing on e-commerce and computing and is one of the world’s largest internet companies.