Finding Chinese suppliers requires a huge commitment. It involves factory visits, sample requests, negotiations, ensuring compliance with European standards and good production monitoring. To face this difficult task, a sourcing agent China offers efficient solutions.
What is a sourcing agent China?
As a third-party service provider, a sourcing agent in China or procurement agent has the mission to connect Chinese suppliers with foreign companies. By definition, it is a company or an individual who looks for Chinese suppliers for its client. Today, a sourcing agent China does much more than that, he represents you in China and takes care of all the operations related to your importation from China. They are experts in import-export who master the Chinese market and have many partners in China.
Specifically, a China sourcing company or China sourcing agency is an agent that is supported by a team of on-site sourcing experts who visit factories to conduct factory audits or product inspections in China. Sourcing companies can more easily contact and negotiate with Chinese suppliers and meet the needs of many different buyers at the same time.
You should always try to work with international companies that have been established in China for a long time. Avoid young sourcing agents or those who offer goods at the lowest price.
Why work with a sourcing agent China?
You should consider using the services of a sourcing agent China if you are looking for products in China at low or even best prices. The China sourcing agent works with a network of Chinese manufacturers, meaning that he has access to the lowest prices available and negotiate the best deal for you.
This allows you to save money and focus on other aspects of running your business.
Some companies can afford to manage international purchasing in-house with their own sales and purchasing departments, while others are forced to have their buyers play multiple roles. Being able to manage all phases of a project is reassuring, however, some projects require special attention. Using a China sourcing agent does not mean losing control, as it sometimes happens when a task is outsourced… on the contrary, the China sourcing agent is a partner.
His experience and knowledge of the Chinese market allow the sourcing agent China to help you overcome the main challenges of importing:
Optimize costs: supplier selection, MOQ negotiation, Incoterms selection, transport optimization, price negotiation, etc. The sourcing agent China is the ideal partner to do this.
Ensure product quality: factory audit, supplier verification, prototype realization, compliance with specifications, product inspection, testing, container loading supervision, etc.
Minimize risks: communication with the supplier, control at each step of the supply chain, organization of shipping, etc.
Save time: communicating with a Chinese supplier from your country takes a lot of time due to the time lag. The China sourcing agent will do it for you and will keep you informed throughout the supply process.
Avoid misunderstandings due to cultural differences: the sourcing agent China will stand between you and the Chinese supplier in order to facilitate the exchanges and make sure that your requirements are understood. A sourcing agent China speaks Chinese and communicates and negotiates directly with the Chinese manufacturers, so the risk of misunderstanding is nil. More importantly, a chinese sourcing agent knows the business processes in China and especially the ways to negotiate.
Having access to a wide network of relationships: more than services, you pay a sourcing agent China for its experience and its large network of suppliers in China. Their experience allows them to have worked with many suppliers, they will know which one best suit your needs and requirements.
While it is true that a sourcing agent China involves an additional cost to use its services, if a company is not willing to invest significant resources abroad to oversee and manage its outsourced production, a sourcing company like Asiaction provides a better solution and helps protect the interests of buyers.
Sourcing Products from China
Develop Products – Product sourcing from China involves discussing with your team what you want. Put together the specifications like quality, quantity, budget, lead time videos, or photos of a similar product as a reference. Additionally, arrange for certifications if the country where you will sell the products needs any and get the license rights in the distribution countries.
Identify Trusted Partners
This is the most testing task, and procurement service providers can help you, especially if you do not speak Chinese. With their local language expertise and an efficient network, the professionals procure and share certifications, photos of the factory, and recommendations from former clients to help you verify suppliers. Reviewing business licenses, signing contracts, agreeing on payment terms, and knowing the place of jurisdiction in the case of legal disputes are integral to ensure a smooth partnership.
When suitable potential suppliers have been chosen, the sourcing service providers share your product specifications to check if the manufacturers can produce those products.
Negotiate
In China product sourcing, bargaining about the quantity, quality, price, and time of delivery is nothing out of the ordinary. A high minimum order quantity helps in closing the deals at the best price. Therefore, during the negotiation process, the sourcing experts use their proficiency to get you the best deal from the supplier.
Process of Production
Though sampling is the least complicated part of the entire procurement process, never skip it. Keep going back and forth in this process till you are happy with the result. You will only have to pay for the sample if you decide not to go ahead with an order. Otherwise, the sampling cost is deducted when you order in bulk.
The product sourcing service providers will keep sharing photos and regular updates with you to avoid production downtime arising out of poor communication. This helps in fixing problems during the manufacturing process and not at the end when it turns expensive.
Before shipping, the products are inspected for quality.
Whether you are only starting your business or looking to expand it, you must ensure that you can deliver high-quality products for your clients. If you want to be successful and establish your brand in a fast-paced environment such as in the e-commerce landscape, you have to be smart with your decisions regarding product sourcing.
You probably already know that many businesses source their products in China for good reasons. One of the most common reasons why business owners turn to Chinese manufacturers and suppliers is because of the low costs compared with other countries. Although many people believe that low costs equate to low quality, especially when talking about China-made products, this isn’t true at all. You can find great quality products as long as you know where to look for them.
However, unless you have prior experience with sourcing in China, this can be difficult for a beginner. But don’t be discouraged because there is a solution: get a sourcing agent.
A sourcing agent specializes in finding suppliers or manufacturers that can produce the items you have in mind. They represent you on your behalf and relay your specifications to the chosen manufacturer. It’s also part of their job to get you the best possible prices through negotiations. Since you are going to source products from a foreign country, it’s much more sensible to get a sourcing agent based in China.
Of course, small businesses might be hesitant of hiring someone to manage their supply chain and they have a right to feel that way. Sourcing in a foreign country comes with a lot of risks and it can be difficult to trust people to help you. However, if you want to keep up with the fast-paced environment of e-commerce, you need to have a seamless supply chain process to meet your customers’ demands and build credibility. Consumers expect businesses to deliver quality results and if they can’t establish that from the start, don’t expect the consumers to repeat their orders. This is why getting an experienced agent can help you achieve that. You just have to be careful and meticulous when it comes to evaluating the right agent for you because if you are able to find a reliable partner, the benefits will outweigh the risks in sourcing products in China.
If you are thinking of long-term, getting a China sourcing agent is beneficial for your business. Not only will you have a partner who will handle a huge chunk of your business, but you’ll also be able to connect with various suppliers that might be good options in the future. You never know if you will encounter problems with your current contract or if a new partner can accommodate your growing business better.
It’s role is to help companies find reliable suppliers capable of manufacturing their products in China. Some agents go further by offering factory audits, quality inspection and logistics, as your team does.
A sourcing agent China helps you to find manufacturers, to have competitive prices, to follow up the production and the order in general, to ensure the quality by carrying out controls directly in factory and to deliver your goods at destination.
Usually, sourcing companies in China offer you complete services to secure each step of your sourcing in China.
Supplier research or supplier sourcing / Factory audit or Chinese company audit
Negotiation of prices with suppliers, best payment terms, purchase conditions (after sales service, warranty, incoterm, sample fees, etc.)
Management of the supply chain
Quality control or inspection of the goods in China
By using a sourcing agent China, you save time and reduce the risks related to the import.
You should consider using the services of a sourcing agent China if you are looking for products in China at low or even best prices. The China sourcing agent works with a network of Chinese manufacturers, meaning that he has access to the lowest prices available and negotiate the best deal for you.
This allows you to save money and focus on other aspects of running your business.
Some companies can afford to manage international purchasing in-house with their own sales and purchasing departments, while others are forced to have their buyers play multiple roles. Being able to manage all phases of a project is reassuring, however, some projects require special attention. Using a China sourcing agent does not mean losing control, as it sometimes happens when a task is outsourced… on the contrary, the China sourcing agent is a partner.
His experience and knowledge of the Chinese market allow the sourcing agent China to help you overcome the main challenges of importing:
Optimize costs: supplier selection, MOQ negotiation, Incoterms selection, transport optimization, price negotiation, etc. The sourcing agent China is the ideal partner to do this.
Ensure product quality: factory audit, supplier verification, prototype realization, compliance with specifications, product inspection, testing, container loading supervision, etc.
Minimize risks: communication with the supplier, control at each step of the supply chain, organization of shipping, etc.
Save time: communicating with a Chinese supplier from your country takes a lot of time due to the time lag. The China sourcing agent will do it for you and will keep you informed throughout the supply process.
Avoid misunderstandings due to cultural differences: the sourcing agent China will stand between you and the Chinese supplier in order to facilitate the exchanges and make sure that your requirements are understood. A sourcing agent China speaks Chinese and communicates and negotiates directly with the Chinese manufacturers, so the risk of misunderstanding is nil. More importantly, a chinese sourcing agent knows the business processes in China and especially the ways to negotiate.
Having access to a wide network of relationships: more than services, you pay a sourcing agent China for its experience and its large network of suppliers in China. Their experience allows them to have worked with many suppliers, they will know which one best suit your needs and requirements.
While it is true that a sourcing agent China involves an additional cost to use its services, if a company is not willing to invest significant resources abroad to oversee and manage its outsourced production, a sourcing company provides a better solution and helps protect the interests of buyers.