Do You Really Need A Sourcing Agent in China Or Can You Do It Yourself?

If this is your first time importing items from China, you could be considering whether or not to work with a sourcing agency. I mean, it’s not that much of an effort, is it?

You can’t put all of your faith in your overseas office’s ability to search for suppliers on Global Sources or Alibaba.

You should devote at least one to three hours per day to the procurement and administration of your suppliers, and that amount of time should be spent on each supplier individually.

The components of this period are:

Finding new manufacturers that are capable of producing your items at a price that is within your price range and according to your specs

Through collaboration with these suppliers, we will develop original new products and designs.

Management of continuous connections with supply chain vendors (communication, quality control, shipments follow-up, crises if any)

If you do not believe that your team will be able to do this task on their own, you might consider hiring a third-party sourcing agent in Yiwu international trade city.

There are four different sourcing strategies that importers might use when dealing with China.

To determine which option is most appropriate for you, let’s take a closer look at each.

Buying It On Your Own

Approximately eighty percent of importers seek for this. They would like to take care of everything on their own rather than deal with commissions or intermediaries and would rather manage everything themselves. If you are well-organized enough to manage suppliers (as was mentioned above) and if you are able to satisfy the minimum order quantities (MOQs) of suppliers, then this is the best course of action for you to do.

Work with a commissioned sourcing agency.

This particular service provides a means of subsistence for thousands of individuals living in China. If they are already established in the relevant sector, tapping into their professional network might save you a significant amount of time and effort. They have the capability of acting as your representative in the country.

Sadly, more than 90 percent of them get a covert commission from the producer. According to a popular proverb, “business as usual” may be said of China. As a result, when issues develop, they choose to take the position of supporting the company.

Tips for Evaluating Sourcing Agents

Before employing a Yiwu market agent, I recommend asking the following questions.

• Who will pay them and how?
• Can you tour the facilities in advance of or while manufacturing is underway?
• Do they have references or testimonials from others who have used his services and purchased the same thing you are interested in? Don’t forget to double-check with two of them for confirmations.
• Are they responsible for their own quality checks? Or do they rely on an outside expert? Will there always be a report sent to you?
• Will you be provided with weekly updates on the progress of production?
• Have they considered giving you access to their management system? Ensure that they have established procedures. Most agents don’t stick to standard operating practises.
• In the event that a provider con you, what kind of assurance do they provide? When shipments are late, what may be the cause? What happens if your warehouse is stocked with defective goods?
• Are they in close proximity to the region from where your goods will originate? (Just by doing a fast search on globalsources.com, you can figure out where the bulk of your product category is made.)
• Will his prices go down after the initial purchase if you keep purchasing the same things from the same suppliers?

Buy from a wholesaler

This is a good choice to consider if the MOQs are too large for your early buy; this is particularly true if you are operating a company or are an entrepreneur. A trade company could contract the production of their goods or services out to a more nimble company that specialises in fulfilling smaller orders. Except in this specific instance, I do not think it would be a good idea to use a go-between.

Hire a service provider.

China is home to a sizable number of businesses that, for a fee, provide sourcing services. Nothing can be concealed at this point (names of suppliers, method used, etc.). Before production can begin, your company will have to invest money into it, but the investment can be justified if it is anticipated that there will be strong demand in the future.

Although I anticipate that such agents will continue to be found in relatively low numbers for the foreseeable future, I do anticipate that their prevalence will grow with the passage of time. The most efficient ones function as a procurement office and maintain a clean and organised environment.