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Do You Really Need a Sourcing Agent in China?

Do You Really Need a Sourcing Agent in China?

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global sourcing china

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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

sourcing agent in china

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

china sourcing agent

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.

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