I understand the phenomenon of internal competition among China sourcing agents. Still, when quoting prices, experienced Chinese sourcing agents usually wait to reveal their bottom line, especially in communication with foreign traders. However, it is not ruled out that some sourcing agents from China may quote unbelievably low prices to compete for business. However, low prices may result in the supplier either delaying delivery for unjustified reasons after receiving the order or providing substandard goods.

Compared to stable quality and reliable service, which element ultimately influences your decisions? Let’s no hurry – we will take you through a different angle than other sourcing agents have never said.

Changes Brought by the Internet to Sourcing Industry

I have hosted many foreign clients, and they believe more in finding the best suppliers and prices through their efforts. However, let’s review their entire process and the time they spend. If we put ourselves in their shoes, would you be willing to invest a lot of time and money, for example, attending multiple trade shows in China, visiting factories at various times, and having numerous phone or video conferences?

It must be said that entrepreneurs in the past did this out of necessity because, compared to now, China’s internet environment was not as developed. At that time, most people relied mainly on attending trade shows and making phone calls to do business with foreign traders.

In that case, the sourcing agent or trading company can only be viewed as an intermediary, a factor that affects the overall cost. As a result, many customers have preferred to believe in their own ability to source products directly. Sadly, not all business people succeed in finding reliable Chinese suppliers or manufacturers on their own. Alternatively, many have either failed or struggled when cooperating with Chinese suppliers, often taking on significant risks in the process.

For a startup brand, you might think it’s easy to change the business direction if you couldn’t find your dream suppliers or factories in the end. However, for a brand that has already operated to a certain extent, hastily changing suppliers or encountering problems with quality and service can be highly fatal. So, let me ask you a question now: whether the sourcing agents or trading companies are still alive today, why are they?

You don’t need to answer me now; let’s look at some data here. China has a population of 1.3 billion, and as of June 2023, statistics show that there are at least 1.079 billion internet users, with an internet penetration rate of 76.4%. This is just China’s data, while the global number of internet users reached to 5.3 billion. This significant growth in numbers has directly impacted the foreign trade industry. Business owners are becoming increasingly younger. Even if they do not need to visit China personally, they can easily find suitable suppliers. With just a click of the mouse, they can find professional factory audit and quality inspection teams to help them conduct background checks on suppliers, and the reports issued by professional teams are very comprehensive and detailed.

What did you discover about these changes? The Internet provides all the information you want to know. Most importantly, compared to attending trade shows and travelling to China, the costs of internet sourcing can reduce your investment to less than one-tenth of the original time and money. In fact, internet sourcing is often free!

Whether You Need A China Sourcing Agent?

The above text shows that the development of the Internet fundamentally changed business owners’ trade habits. Many people are no longer willing to attend trade shows, and even if they do, it is only to meet with suppliers they regularly cooperate with. They focus more on marketing and brand building, while the supply chain’s supervision, management, and upgrading gradually rely on professional agents and purchasing teams.

If you are fortunate enough to read this article, I would like to take you through a few self-examinations:

1. After you purchase a product online, would you prefer to check the instructions first, only to find that some aspects of the content need to be more detailed? When you try to consult online customer service, do you see that their replies are very slow, which you cannot tolerate?
2. You are good at searching, and there is no fragmentation of information. You can easily integrate various details, but for some areas that require manual work, you may need more patience to face them individually and even consider it a waste of your life.
3. You may speak Chinese or even some Chinese dialects, but you find that no matter how you tell some jokes that you think are good to liven up the atmosphere, Chinese people do not understand, making the atmosphere even colder.
4. You find that people in China’s business, except for newly hired employees who may be relatively simple, are too clever and even always maintain a kind of attitude that keeps others at a distance, making you uncomfortable.
5. You find that although the education level of Chinese people is constantly improving, in pure English communication, they always seem a bit slow. It is somewhat unacceptable to you that they are the opposite in principle regarding their work efficiency.

After considering these points, if anyone resonates with you, then you are a person who prioritizes efficiency above all else. There is a saying in China that “leave professional matters to professionals.” So, building a quick-response team and involving as many responsible people as possible can save you the most time.

Imagine this: If you need to find a specific product, you can just send a photo or the product name to a sourcing agent. They will quickly get back to you with accurate specializations and costs and find you the best supplier or manufacturer that can produce your desired products at a highly competitive price. They can even help you source the shipping forwarder to provide door-to-door or secure shipment options, such as by train, sea or air.

Although these China sourcing agents earn a specific profit deducted from your margin, compared to the time and money you would need to spend yourself, is this kind of investment still worthwhile? It is self-evident by now.

How to Select a China Sourcing Agent?

In business development, teamwork is an indispensable and essential factor if we hope to avoid detours and setbacks as much as possible. My Facebook post covers many aspects of why you need a sourcing agent. But many people should be seeing this article for the first time. I still need to summarize these points to help you quickly find qualified sourcing agents:

1. Professional knowledge and experience: A qualified purchasing agent should have affluent industry knowledge and expertise. They should deeply understand supply chain management, market trends, product quality standards, etc. With their professional knowledge, they can provide accurate market analysis and supplier evaluations to ensure that you select suitable suppliers.
2. Reliable supplier network: A good purchasing agent should have a comprehensive and reliable network. They should be able to establish stable cooperation with various types of suppliers and provide you with a diverse range of product choices. They should be able to find the most suitable suppliers for you according to your needs and requirements and ensure the reliability and quality of the suppliers.
3. Negotiation and contract management skills: Purchasing agents should have good negotiation and contract management skills. They should be able to negotiate effectively with suppliers on your behalf and strive for the most favourable prices and terms. At the same time, they should also be able to manage and supervise the execution of contracts to ensure that suppliers fulfil their obligations according to the contract.
4. Focus on your interests: An excellent purchasing agent should always prioritize your interests. They should be able to strive for the best purchasing conditions for you and ensure that your needs are met. They should be able to maintain good communication with you and promptly report and resolve any issues.
5. Excellent communication and coordination skills: Purchasing agents should have excellent communication and coordination skills. They need to communicate and coordinate effectively with suppliers, logistics companies, customs, and other parties to ensure the smooth progress of the procurement process. They should be able to solve problems promptly and ensure timely delivery and smooth operation of the supply chain.
6. Transparent fee structure: A qualified purchasing agent should provide a transparent fee structure. They should clearly explain their fee structure and calculation methods to avoid hidden or additional charges. You should be able to understand their service fees clearly and assess their reasonableness.
7. Reliable project management skills: Purchasing agents should have reliable project management skills. They should be able to develop detailed procurement plans and effectively organize and manage all aspects of procurement projects. They should be able to schedule time and resources reasonably, ensure that the procurement process is completed on time, and maintain high efficiency and accuracy.
8. Flexibility and adaptability: A good purchasing agent should have flexibility and adaptability. They should be able to adjust according to your needs and changing market conditions and provide timely solutions. They should be able to deal with different challenges and problems and flexibly apply their professional knowledge and experience.

Finally, are the requirements for a sourcing agent too high? If they have such abilities, they can build their brand. Why do they still come to do the difficult and thankless job of sourcing agents? This is related to everyone’s outlook on life and values. Like me, I like to communicate with different people and find my sense of value and achievement in solving problems continuously. Every time I satisfy a customer, I feel thrilled. This sense of accomplishment is incomparable when each problem is solved or even recorded to avoid reencountering them later.

Conclusion

Through this discussion, I aim to help you better understand the sourcing industry and how things have changed. It’s difficult to explain in detail in a single post why you may need a sourcing agent. However, to help reduce your investments of time and money, relying on a reliable China sourcing agent is an option worth considering.

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