If you import goods and services from China to your country, you’ll likely hear about sourcing agents. In this post, we will discuss the use and importance of sourcing agents in China.
Imagine that you are an importer and looking for purchasing goods and products which you don’t have enough information about it and therefore need to know more details about. So, it’s time that the importance of sourcing agents in China is highlighted.
As china’s market is large with all kinds of products, it is very easy to find the product you want to buy. But the hard aspect is to find a reliable manufacturer or supplier who sells high-quality products. Finding the right manufacturers save you a lot of money and increase also the reputation of your business.
Buying products yourself is possible, but for the survival of your business, you should consider the challenges in this path. Sourcing agents are the representatives of your business in China mainland.
What is a sourcing agent?
Sourcing agents are third-party services that when you want to import goods from China, can hire them to find trusted suppliers or manufacturers who sell high-quality products. These agents buy the products on your behalf. Also, negotiate for the best prices, test the quality of the products, help to provide all the required, and solve the problems in customs and transporting.
What is the difference between sourcing agents and distributors? distributors point to the fact that sourcing agents are different from distributers. Distributer usually buy the products and reselling them in China, either to local retailers or consumers. In some cases, the distributor sells these products to other wholesalers who will then sell to local retailers or consumers.
Finally, here we will point to 10 top reasons that you need a sourcing agent in china. Keep reading.
10 reasons for needing sourcing agents in china
- Help find reliable suppliers with high-quality products
- Fill the cultural gap and help communication
- Reduce the risk involved in importing from china
- Control the quality of products
- Reduce payment risks
- Solve the problems and support at any stage
- Familiar with the local market
- Sign the legal contracts
- Your representative in china
- Know how factories work in china and the business environment
We will discuss each one.
Help find reliable suppliers with high high-quality products
As china’s market is so large, for importing products, you should consider several places not just finding a place and select it as a source shop or factory. In such cases, the sourcing agent knows exactly which region specializes in the product you are looking to purchase.
Although we could catch the initial information on the internet or via platforms like Alibaba, Global Source, Made in China, Ali express, and 1688.com, often it is somehow difficult to distinguish between manufacturers and brokers. The price that manufacturers are more reasonable than brokers who want just get a money by reselling their products. Doubtlessly, manufacturers preferred brokers.
The other important fact that you need to consider is the quality of the products. Sourcing agents can refer to factories, test the quality of the products, find the best prices and then try to purchase the goods. This way you save both your money and your time.
Fill the cultural gap and help communication
Cultural differences between China and other countries in the world are obvious. As a result, often there is an incoherence between the talking of the buyer and the seller.
In cases where the importer intends to buy the required products and goods from China, communicating is an important factor. When buying from other countries and also in China, everything must be obvious that leave no room for assumptions and misunderstanding. In these situations, the sourcing agent can review all the points and makes sure that there is no failure in the whole process that later will make a problem.
Reduce the risk involved in importing from china
A person who wants to import something is looking to receive profits. As many manufacturers and companies are in China, they offer competitive prices and this factor guarantees the growth of the business of the importer.
Working with a sourcing agent means that the whole process of importing products from China is safe and no risk threat to the safety of the business. These agents are in China and therefore, there is no need to trip to this country for testing the products. They aware of the required documents and also, done all paper works.
Control the quality of products
As an importer, it is very important for you that buy products with good qualities. As quality guarantees the survival of the business, you have to test the quality of products. Test the quality means spending lots of money; either you have to trip to China or ask the supplier or manufacturers to send the samples.
In these situations, as the source agent lives in China, can drive to the factory and depend on your requirements, analyze the quality of each and then report you. They are reliable and play a role as the representative of your business.
Reduce payment risks
When the relation is just starting and there is no trust, the importer must use tools such letters of credit or OEM agreements to pay the suppliers or manufacturers.
In these cases, the sourcing agent can pay the money on your behalf and decrease the associated risks. The difference here is that because the delivery address of the sourcing agent is in China, the receiver can reject the goods if they do not confirm the signed agreement.
Solve the problems and support at any stage
It is inevitable that face some problems in the way to importing products. As facing a problem slow down the process of receiving goods, it suggested working with a sourcing agent.
Source agents not only solve these problems but also anticipate them before they arise.
For example, imagine that you receive your first sample and it is not what you were expected. In these situations, the source agent can work both with you and the supplier to make sure that there is no failure.
Perhaps you need advice regarding customs duties, required documents, or import regulation. A sourcing agent can support you at any.
Familiar with the local market
Sourcing agents in China are familiar with the local markets. They have information about suppliers or manufacturers and know which ones produce better products with higher quality and lower prices.
When importing from china and hiring a sourcing agent, your time and money do not waste on tripping to this country and searching for a good supplier. As you know, time is a critical factor for companies and businesses.
Sign the legal contracts
As you are not proficient enough in the Chinese language, misunderstanding orders, ways of payment, and shipping can make a big problem.
The sourcing agent who is in china knows the local language of the country and therefore, they guarantee that there will be no misunderstanding in the whole process of signing the contract, shipping the products, and also in customs.
As a result, you do not have to worry about the contracts.
Your representative in china
When you are in one other country and wants to import goods and products from china, you have to ways:
First way: you could trip to this country, despite language barrier and unfamiliarity with the country and provinces, try to search for the ideal supplier or manufacturer {we waiver the future’s problems}.
Second way: working with a sourcing agent who knows everywhere and everything about the country, know the best manufacturers who provide products with best prices. When working with the agent you will be sure that he plays the role of your representative and help grow your business and save your time.
Obviously, the second way is suggested.
Know how factories work in china and the business environment
Have information about the cost, quality, and delivery time of products in China has a crucial influence on your business.
Sourcing agents who work in China have information about the working method of the factories in this country. They are some questions that only source agents can answer, such as how are suppliers handling your order.
Summary
In the way to import products and goods to your country, you face different obstacles and problems that could threaten the survival of the business. But the sourcing agent knows the source country and overall could help you with the steps required to importing goods.