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Four eCommerce Sourcing Options

Hiring a China sourcing agent benefits companies

China sourcing agent benefits

Finding a China Sourcing Agent

In 2013, China became the world’s top trader. This Asian behemoth overtook the U.S. a decade ago. China sold $2.59 trillion in goods in 2020. They’re the top source of raw materials and ready-to-sell goods for worldwide eCommerce companies. Buying from China might be difficult without a sourcing agent.

A simple Google search won’t guarantee quality products beyond the language barrier. Most eCommerce businesses use China sourcing agents to verify product quality.

Finding the proper things at a competitive price from trusted vendors requires sourcing agents. They’re crucial to the global supply chain. Hiring a China sourcing agency is expensive. Getting specialist help is worth the cost.

This article discusses employing a China sourcing agent, including the benefits, cons, and recruiting considerations.

Four eCommerce Sourcing Options

Importers from China have four purchase choices. Each has pros and cons. There’s no one-size-fits-all approach to sourcing.

Direct-purchase

80% of importers buy directly from manufacturers and suppliers because it is the cheapest option, howeveEighty percent (80%) of importers get their goods straight from producers and suppliers. Although it is the most economical option, there are criteria and difficulties with this procedure. Retailers who have access to suppliers directly have a wealth of expertise working with them. They know who to buy from because they are in contact with a few trustworthy suppliers.

Commissioned sourcing Agent

A reputable China sourcing agent helps merchants find suppliers and manufacturers. Local liaisons help retailers find and negotiate. They make commission off the transaction.

Working with a Trading Firm

A trading business can help organizations buy from Chinese suppliers without meeting the minimum order size.

Service company selection

Similar to using sourcing agents, partnering with a service provider enables eCommerce enterprises to connect with supplier contacts by utilizing the connections of the provider. You pay them a flat rate rather than on a commission basis.

Hiring a China sourcing agent benefits companies

Outsourcing procurement benefits all eCommerce businesses. Some operations benefit from a China sourcing agent:

eCommerce Startups

Chinese imports are often priced competitively. New players can struggle without a China sourcing agency. Chinese import companies can be stressful. Recruiters guarantee nothing is lost in translation.

Rapid-growth companies

Contrary to popular perception, a merchant might suffer from quick expansion and growth. Particularly if a business is unable to meet the need The reputation of an operation can suffer greatly from receiving too many orders. A business owner’s burden of sourcing products from them might be reduced through sourcing agents. Business executives can concentrate on controlling the growth of the company after they are freed from this time-consuming process.

Multiple-product retailers

Retailers must contact ten possible suppliers for each item to acquire the best deals. If an internet store wants to sell ten products, that’s 100 suppliers.

China sourcing agent benefits

Many start-ups and emerging eCommerce businesses are hesitant to collaborate with local sourcing brokers. There are horrifying tales of thieves, losses, and dishonest brokers. It’s interesting that these occurrences are isolated. Retailers shouldn’t be discouraged from working with sourcing agents because there are several advantages to doing so:

Price-competitive

There is a reason China is the world’s largest importer and exporter of products. Since the majority of manufacturing businesses are there, suppliers from China may offer merchants products at incredibly low costs. With that, a sourcing agency can identify the top producers to meet retailer demands.

Customization

Few retailers work with Chinese manufacturers. Retailers are often frustrated by product customizations. Distance and linguistic barrier hurt. Purchasing agents can help. They’re proficient in Chinese and experienced with local suppliers. This technology lets retailers acquire what they want with minimum risks.

Quality Control

An on-site quality checker is a major benefit of outsourcing procurement. Most sourcing agents represent retailers locally. They can tell the supplier about quality difficulties.

Finding a China Sourcing Agent

Different sourcing agents have different strengths. To fully gain from them, find respectable liaisons. Cheap Chinese imports are risky.

To meet retailer requirements, work with an expert sourcing agent. Before signing a deal, check a sourcing agent’s credentials. Check their location, operating years, and Chinese and English skills. If feasible, interview the sourcing agent.

Retailers can buy goods themselves. This option can disfavor eCommerce stores, especially newer ones. A sourcing agent can get your organization the best prices on trustworthy goods. They eliminate business risks.

Interested in the global supply chain? Contact Fulfillmen to offer your firm an edge in eCommerce.

In a typical dropshipping business, the manufacturer ships the customer’s order. Since packages sometimes include an invoice, clients may see sensitive information.

If you’re a reseller and a customer orders light bulbs from you, your supplier ships the order. It includes the original invoice and supplier’s name. The invoice is for less than the consumer paid. Your customer may prefer to order from your provider directly next time, bypassing you.

So how do you address this issue? Blind shipment, a dropshipping best practice, protects the identity of your supplier. Continue reading to discover more about blind shipping.

What Is Blind Shipment

Blind shipment is a sort of dropshipping where orders are sent straight from the manufacturer to the client while concealing the name and identity of your supplier. The client will believe it originated from you because of this.

There is no branding or labeling that indicates who your source is, similar to white label services. The shipment must be paid for in advance, and the request to ship blind must be made before shipping. The bill of lading (BOL) is then transported to its final destination without the shipper’s (your supplier’s) name and contact information on it.

Purpose of Blind Shipment in Retail

The purpose of blind shipment in retail.

By keeping your supplier’s identity a secret, blind shipping is a popular supply chain management approach that safeguards your company (and possible profits or recurring revenue). This helps you retain your job as the middleman rather than losing clients to your supplier, encouraging your consumers to place orders from you again rather than directly from the source. Blind shipping decreases the possibility that your business’s suppliers may become known to rivals.

Advantages of Blind Shipping

There are various advantages to blind shipping when dropshipping orders that can safeguard your company and lower the danger of problems with the retail supply chain.

1. Securing the supply chain

Blind shipping lowers the chance that customers will buy directly from the supplier and enables retailers to maintain a consistent supply chain. In this method, you continue to act as a middleman, protecting your company from losing clients. Note: Dropshipping might result in a lack of control over product quality and shipping delays. Blind shipping can assist safeguard your supply chain.

2. Preserve your competitive edge

Your suppliers’ information is protected from competitors by blind shipping. If you have a good working connection with your supplier and they provide you with the greatest items and/or a fantastic pricing, your rivals may learn about this and consider partnering with your supplier to provide clients with the same high-quality products at a price they can afford.

3. Continue to take a passive attitude

Dropshipping blind offers a hands-off method for managing and safeguarding your online store. Your supplier handles shipping orders for you while remaining anonymous, saving you the hassle of having to keep and maintain inventory yourself. Although this is a cost-effective logistics strategy, a lot of e-commerce companies opt to store goods with a third-party logistics (3PL) partner for increased control, faster transit times, and fewer hassles.

What is the process for blind shipping for e-commerce orders?

When delivering goods from the manufacturer to the customer directly through an online store, blind shipping is employed. The steps involved in blind shipping are as follows:

1. The supplier substitutes your company’s name for theirs on the BOL.

2. The BOL is delivered to the recipient without disclosing the supplier details.

3. The carrier is then issued the BOL, which is subsequently dispatched straight to your consumer.

Does blind shipping fit your needs?

Only if you were dropshipping orders as an online retailer would you think about blind shipment. Despite the fact that some ecommerce companies are successful with dropshipping, it’s crucial to remember that this is a very different logistics model than using a 3PL. In contrast to dropshipping, outsourcing fulfillment to a 3PL can help you improve supply chain optimization, regain control, and improve customer service.

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