Is it Worthy Relying on a Chinese Sourcing Agent for your Business?

Low-cost manufacturing, favorable tax rates, talented labor force and ultra-modern infrastructure are some of the main reasons that made China an ideal place to source products. Procuring products from China is the most cost-effective way to maximize the profit. But China product sourcing is a tough nut to crack especially, for the new business owners.

There are three types of suppliers one could find in China, such as-

  1. Factory / manufacturer: Produce and provide products directly.
  2. Trading company: Buy from factory and resell, provide additional services.
  3. Sourcing agent: Help customers to sourcing products in China and charged for their service, mostly from 3% to 10% of the goods value.

Wholesale importing from China is a tough task and wastes a lot of time and money. Getting a reliable sourcing agent is often one of the first approaches for starting up your importing venture. Finding a trusted Chinese supplier is the foundation of your business. Just like a real estate agent helps you find and purchase the best property, a sourcing agent assists in the process of importing goods from China to your country. China procurement agents have profound knowledge and connections with the Chinese manufacturing companies. They know where to find the best supplies and how to negotiate with them to secure deals at a discount level.

Chinese Sourcing Agent

Spotting Scams Quickly

Sourcing agents can immediately spot scams. By appointing a Chinese sourcing agent, a company can save money and time, and better use their resource on doing other important things. Chinese sourcing agents not only have lower service fees but are also efficient in finding factories that the sourcing agents based in other countries cannot find.

Advanced Quality Control

Quality control is the biggest issue with the Chinese products. A good procurement agent in China will keep an eye on all the stages of manufacturing process to make sure their clients are getting the finest product without any complaint. When the consignment is ready for shipping, they will responsibly conduct the final inspection.

Fewer Communication Barriers

If you don’t have an office to manage your operations in China, a sourcing agent can act like your local representative. They can also play a crucial part in new product development and building connectivity of your brand and company. The biggest advantage of appointing a sourcing agent is their efficiency in speaking the local language that means there will be fewer communication barriers. China sourcing experts advise that whenever you are appointing a deal with a Chinese sourcing agent or house, make sure there is a written contract. In case of any litigation, this written contract might prove highly valuable.

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