Import from China：Do You Need a Sourcing Agent?

If you are getting ready to import from China, your first question will be: should I manage this myself?Do You Need a Chinese Sourcing Agent?

If your team is unable to spend 1-3 hours per day focusing on China, you may need a procurement agency that can handle these tasks:

Identify new suppliers of your products at the right price and quality level;

Assist to develop new products/new products with these suppliers;

Ongoing supplier relationship management (communication, quality control, cargo tracking, crisis, etc.).

You actually have four options:

1. Direct purchase

This is what 80% of the importers are trying to do. They want to control the process and avoid paying commissions to any middleman or agent.

If your organization is sufficient to manage the vendor and if you can meet the supplier's minimum order quantity (MOQ), this may be your best choice.

2. Use a proxy.

Thousands of Chinese are making a living by offering the service. If they come from the right industry, they can use their networks and save a lot of time. They can also serve as your domestic representative.

3.Buy from a trading company.

If you can't satisfy the minimum order, this is a good choice.

4.Use a service company.

Some agents provide services and charge fees. Everything is transparent (vendor name, process compliance... ). This will be your investment before production starts, but it's a good bet if you anticipate a lot of orders.

These agents were very rare before, but I believe it will become more and more common. The best people tend to work like a procurement office and are well organized.

Qualified agent

Before you hire, there are a few questions you need to consult a purchasing agent:

How will they get paid and who will bear it?

Can you visit the factory before/during production?

Can they provide recommendations or references from a satisfied customer? Do they use his services and buy products of the same type? Make sure to contact two of them and get confirmation.

Do they do quality checks themselves? Or do they resort to a third party? Do you get a report every time?

Will you update your production status weekly?

Can they share their management systems with you? You need to make sure they have the right process. Most agents do not follow any established procedures.

What guarantees do they offer to prevent suppliers from deceiving you? What if shipments fall behind schedule? If you get junk in the warehouse?

Are they located in your product area?

If you continuously order the same product from the same source, will you pay less for his services after the first order?