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Benefits of Working with a China Sourcing Agent

Are you interested in selling private label products online Are you having difficulty finding reliable suppliers in China A China wholesale sourcing agent is a great way to save time and money.
A sourcing agent can be a specialist who connects you with factories in China for the production of your products. They can also assist with…

Packaging your products
Shipping your products
Quality control
Price negotiation

A trusted advisor on the ground, a good sourcing agent is usually based in China. They will help you find manufacturers that are not listed on directories like Global Sources and Alibaba.

A strong network of factories, freight forwarders, inspection companies and trusted factories is available for you to review. This article will cover the pros and cons associated with using a China sourcing agency and whether it is worth the cost.

How to source from China

These are the 6 steps to follow when you import products from China.

You need to be able to identify the product that you wish sell.
You need to identify a Chinese supplier capable of manufacturing your products.
For a golden sample to be created, you need to work closely with your supplier.
Your supplier must be negotiated on the costs of your first bulk order.
Quality control requires that you hire an inspector.
You are responsible for shipping your goods to your warehouse.

Once you’ve found reliable suppliers, it is simple to manage everything. However, it can be difficult to source your first product from China when you are just starting out.
You have many options when purchasing from China

There are four main options for sourcing private label products from China. Here are some options.
Option #1: Find your own suppliers with directories and tradeshows

It is the most cost-effective way to source products in China by creating your own wholesale suppliers.

You can quickly find factories to make the products that you want to market by searching a directory like Global Sources or Alibaba.

You can also access the Jungle Scout supplier list to discover which factories your competition uses.

Here are the details. Every shipment shipped by sea to the US will be recorded on the public records.

These records can be searched through the Jungle Scout supplier directory to locate suppliers for any manufacturer.

Final note: If you’re open to traveling, the Canton Fair can be a great place to meet thousands of suppliers.

Although it is easy and cost-effective to find your own suppliers, it is important that you know what you are doing.

Learn how to approach suppliers and negotiate the best price. It is essential to know how to import from China and perform quality control.

Learn how to manage your supply chain.
Option #2: Hire A Sourcing Agent

A sourcing agent helps you connect with reliable manufacturers. They will pre-screen your suppliers and find the best factory to meet your specific needs.

As a liaison between your supplier and you, a sourcing agent will negotiate on your behalf. Many sourcing agents have a network of reliable freight forwarders to help manage your supply chain.

Although sourcing agents can save you time, their services come at a cost.

China sourcing agents usually get paid a flat fee or a percentage commission depending on the value of your order.
Option #3: Buy from A Trading Company

A trading company is a middleman who works with many factories along the entire supply chain to bring you products to market.

However, there are limited customization options available and you must sell only what is already in the catalog.

A trading company can be a great option if you are on a strict budget or cannot afford the minimum order quantities required by a factory in China.
Option #4: Use a Service Company

A service business is one that helps you find reliable suppliers, negotiate costs, control quality, and manage freight forwarding.

A service company can be used as a sourcing agent for individuals. However, service companies will typically not provide contact information for your factory.

Most service companies will keep their supplier contacts close to their chest, as their network is their main value-add.

Like a sourcing agency, service companies get a commission based upon a percentage of the total order cost.

Although you will have to pay a commission to a China-sourcing agent based on the inventory cost, they can save you time and money.

It can be difficult to build trust and establish contact with a Chinese manufacturer because they aren’t willing to work directly with anyone. It is important to establish a rapport first!

A good sourcing agent has strong ties with many factories, and can locate you factories that might not be available to you.

You will not also find top-tier suppliers on Alibaba. Some suppliers can only be found online by native China sourcing agents with established connections.

Here are some of the key benefits to using a China sourcing agency. They can help you…

You can pre-screen factories before they produce your product
Negotiate prices for you
If you don’t speak Chinese, you can communicate with Chinese factories
Inspect and perform quality control
To ship your goods, find low-cost freight forwarders

Even if you have trusted suppliers, you should still reach out to new factories periodically to ensure you are receiving the best prices.

It is also a good idea if you have suppliers to back up your production in the event of production delays or product shortages.

How Much Does a China Sourcing Agent Charge?

China sourcing agents charge a commission fee that is based on your order’s cost. The percentage charged usually decreases with increasing order sizes.

These are just a few examples of the fees that sourcing companies will typically charge.

Below $1000-100
$1 – $2k – 10%
$2 – $3k – 9%
$3 – $5k – 8.5%
$5 – $7k – 8%
$7 – $10k – 7.5%
$10 – $15k – 7%
$15 – $20k – 6.5%
$20 – $25k – 6%
$25 – $30k – 5.5%
More than $30k – 5%

Once you have placed your initial order, all subsequent orders must be made with your sourcing agency. Unless you have negotiated special terms, it is not recommended to directly work with the factory.

In reality, many factories won’t do business without an agent. Some China sourcing agencies will conceal information about factories from you.

Many service companies won’t reveal the name or address of your factory.

It may sound high-priced at first. The time and headache that a sourcing agent saves you can be worth it.