7 Common Tips For Dealing With China Sourcing Agents

We know China has become one of the world’s leaders in the production of many things – from plastics to electronics. In addition, China is a very competitive market that offers not only a variety of products but also very affordable prices – and it is no wonder that many companies are cooperating with Chinese suppliers. Of course, most companies that import goods from China have to find adequate suppliers and sourcing agents.

Why Are Sourcing Agents In China Important For Your Company?

If you want to import Chinese goods, whether you are a business owner or a supplier, you will have to do your best. We already know that the Chinese production market is very competitive – so there are many of those who decide to buy quality Chinese goods at affordable prices. Of course, all traders make money on margins, so it is very important to find the best products at the best prices. Very often, we cannot do it alone. Many traders who face this problem are wondering if the goods they ordered are exactly as they should be – and if the entire business is worth the risk at all. That is why many traders are turning to sourcing agents in China.

The Importance Of Getting A Good Agent In China

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When you find an excellent agent in China, you will make your job much easier. Namely, many will decide to leave the entire procurement procedure to their Chinese agent. This includes many processes, such as finding reliable manufacturers, getting offers – and shipping goods to the desired warehouse. Of course, for such a thing you have to choose a reliable and very experienced Chinese agent whom you can trust. Your agent must be very well versed in local business, laws, and, of course, he must know the language as well as all dialects – because you don’t know whether you may need it. Well, here we also come to the most complex question, and that is: How to find such an associate? Of course, for a job like this, you need to resort to a sourcing company in China in order to connect with agents who have the experience in this business. Here are 7 tips on how you can deal with sourcing agents from China.

1. Find out which industry is the main niche that the agent deals with

This is one of the basic criteria you need to follow when sourcing agents from China. You need to know if a particular agent specializes in certain products. For example, a machine and parts procurement agent differs from an agent that deals with finding and buying toys or textiles. So, according to JustChinaIt, it would be ideal to find a buying agent who already has experience in the area that interests you.

2. Does the agent work individually or has a team?

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You should ask this question because there are many instant agencies, which are created overnight. Many of them are just individual agents. Don’t get this wrong, but still be careful. These people work hard to satisfy the customer because it is their source of income. The problem that can arise here is that such agents can disappear even faster than they appear – along with your money, of course. So, if you work with one person as a purchasing agent, you have to be very careful.

3. Experience your agent have in this type of job

This question builds in part on the previous one. Would you rather work with a China buying agent who has been working for 15 years or with an agency that has only been in business for 12 months? This person would be well-informed, resourceful, and connected than someone that has just started this business.

4. The way of charging agent services

Does your agent charge a one-time service fee or a percentage of the value of the purchase order? If you wish to develop a long-term partnership – a percentage of the value of your order may be a better option. If you wish for someone who will provide services for you only once – then, it is probably better to consider a flat fee. So, depending on your needs, you can negotiate the terms of payment for mediation services.

5. Does your agent perform quality control, or do you have to hire someone specifically for that?

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This is important primarily because of your costs. Namely, there are agents who include product quality control in their services – but there are also those who deal only with procurement. So, you must know this in advance so that you don’t find yourself in the unenviable situation that the goods you ordered are standing somewhere on the border because they do not meet the criteria set by quality control. On the other hand, if you are going to hire a third party to perform the control – then this, along with the services of purchasing and ordering goods, can cost you a lot more.

6. Provide the agent with a list of your technical requirements

This is in direct relation to the things we mentioned above. So, in order for someone to perform quality control, he must have a list of technological requirements – including the quality criteria of the goods you import. Therefore, your agent in China must be well-informed in advance – so that you don’t face the situation where the ordered goods do not meet the quality standards in your country. Therefore, it is essential that you have good communication with your agent in China, and that you eliminate all possible doubts in time.

7. Check the credibility of the agent’s services

A reliable agent who provides value to his clients besides services will not have problems with this. Moreover, a good agent will be happy to provide you with a reference contact. If you find yourself in a situation where the agent is avoiding something like this – then this is the red flag for you. Of course, you already know you need to be very careful when choosing an agent in China.