The Beginner Guide: Everything You Need to Know Products Sourcing Agency

China is the largest manufacturing country in the world.

 

China is your RIGHT place. You can source any product.

 

For example, if you have an idea, you would like to find a manufacturer to bring your idea into reality.

 

How to find it? A products sourcing agency can make it happen.

 

A products sourcing agency is a bridge between you and your suppliers. It plays a vital role in international trade.

The service of products sourcing agency supplied is quite simple in the beginning.

 

Now, products sourcing agency service is more diverse and personalized.

 

It included marketing research, supplier selection, price negotiation, quality inspection, supplier financial checks, warehouse storage, shipping, and other services.

 

This article will be very valuable if you are from one of the following. 

 

  • Small and medium enterprise (SME)
  • Start-up company
  • Buyers who have notproducts sourcing experience d in China before

 

Who are the products sourcing agency?

 

Why do we need the products sourcing agency?

 

What do the products sourcing agency offer?

 

These questions are always confusing. 

 

After reading this article, I believe you will understand the products sourcing agency roles and responsibilities.

 

This guide will help you to avoid many risks when you source products in China.

 

Now let’s get started!

Contents

Chapter 1: Why we need the products sourcing agency

In this section, you will learn why to need a products sourcing agency and what they can support.

 

If you learn more, let’s continue.

 

Because the products sourcing agency know the local culture and marketing, they will support your business in growth.

 

Their service is diverse, including searching for suppliers, negotiation, order handling, warehouse storage, shipping, etc. 

 

For example, you need to source products A from China.

 

You searched supplier by keyword “china products sourcing agency” from Google. Finally, you found your potential vendor.

 

You ordered a plane ticket and booked a hotel. You arrived in China.

 

The taxi will deliver you to the factory. Unfortunately, the responsible guy at the factory had a business trip because of an unexpected happened.

 

The guy forgot to inform you in advance. You had to return to the hotel and book a new visit with the guy.

 

After a few days, you met and sat down to negotiate business. Because your value was different, you had to look for a new supplier again.

 

Fortunately, you finally found the right supplier to purchase your products. If you hire a products sourcing agency, you do not need to go through this process.

No one wants to source products from bad suppliers.

 

A products sourcing agency can help you verify the supplier’s reputation on the government’s official website.

 

If you are a buyer without any products sourcing experience in China, it will be challenging for products sourcing from China.

 

It includes supplier selection, negotiation, order handling, shipment, inspection, and others.

 

Because of different cultures, languages, and times, it is a challenging task.

 

If you have a products sourcing agency, it avoids potential risk and helps you do many things for you.

 

For example, many items need sourcing with different vendors. You will spend a lot of time communicating with various vendors. It is a huge job.

 

Not all suppliers are good at English.

 

You can imagine how much work it is. So it is necessary to hire a products sourcing agency.

 

You tell the products sourcing agency what you need. He will communicate with different suppliers and significantly save you time.

 

You sit back, and you don’t have to do anything.

 

The products sourcing agency will regularly update the status of the project. OR you can spend your time on marketing and brand building instead of handling orders.

 

She will coordinate with different suppliers and forwarders to consolidate all your items to ship out together.

 

The shipping costs will be much lower than if you were to ship separately from each supplier. The logistics and communication costs will be much lower as well.

Chapter 2: Who needs sourcing agents

If you are a start-up company,

 

If you have no products sourcing experience in China,

 

If you do not have time to search for suppliers,

 

If you learn more, let’s continue.

If you are from below, you can consider hiring a products sourcing agency.

 

  • Start-up company
  • No products sourcing experience in China
  • Source many items from different vendors
  • No time to search for suppliers, order management, and others.

When you search suppliers by keywords on the B2B platform, you will find tons of suppliers.

 

If you have no products sourcing experience, you will be mad to find the right supplier from them.

 

For example, you search “water bottles” suppliers on the B2B platform.

 

When you enter the keyword “water bottles,” there are thousands of suppliers. You will be mad to find the right supplier from them.

 

If you are lucky, you will find it soon. If you are unlucky, you can not find the right supplier after a long time of communication. It will be an awful experience.

 

If you hire a products sourcing agency, he will support to find the right supplier for your review.

For example, your business is a gift catalog. In general, you will source all gifts from different suppliers. The process from searching for suppliers to the final shipment will exhaust you.

 

If you hire a products sourcing agency, you send the list of gifts with the specification. The products sourcing agency will communicate with different vendors and order follow-up. 

 

You only contact products sourcing agency instead of many suppliers. It will save you time.

 

If you plan to spend more time on marketing, R&D, and other vital parts, it is wise to hire a products sourcing agency.

 

They will handle many things with your suppliers, and you can focus on more important things.

Chapter 3: What do the products sourcing agency offer

Now, the products sourcing agency service scope differs from the beginning.

 

If you learn more, let’s continue.

In short, the products sourcing agency help you find the right suppliers in China.

 

In the beginning, the products sourcing agency service is simple. It is to source suppliers, simple order items, and communication services.

 

Nowadays, the products sourcing agency can supply one-stop products sourcing solutions.

 

Its service is a wide scope. It includes marketing research, finding suppliers, negotiation, and others.

 

The specific service needs to be discussed with the products sourcing agency.

Who is the products sourcing agency?

 

  • Individual person

You can find them on freelance, social media, and B2B platforms. 

 

They have many years of products sourcing experience in this field. Their fee will be cheaper than the products sourcing company.

 

  • Specialized products sourcing company

 

They have more resources, such as their warehouse, quality inspection team, transportation team, and others. Its fee is very high because they have a high operation cost.

Chapter 4: How much is products sourcing agency fee

We have talked a lot of information about products sourcing agency. You will probably ask how to charge.

If you learn more, let’s continue.

Products sourcing agency fee is your biggest concern.

 

To hire a products sourcing agency with lots of benefits, how does it charge?

 

Usually, there are two models to charge products sourcing agency fees. It is the Invoice services fee and commission fee.

Invoice services fee

The service fee will be negotiated on the product’s value, typically 3% – 10% of the value of the goods. The exact price depends on the amount of service scope, order value, quantity, and frequency.

 

The service fee percentage will be higher if your order amount is small.

 

For example, if your order is only USD1000, probably products sourcing agency service fee will be 10%, even more.

 

For example, if your order is USD100,000, probably products sourcing agency service fee will be 3%.

 

Anyway, it is necessary to negotiate the products sourcing agency service fee before making a decision.

.

Commission fee

The commission fee will be negotiated on the value of the goods. For example, products sourcing agency have good resources to get better prices, and you can consider using this model.

 

Anyway, it is necessary to negotiate the products sourcing agency service fee before making a decision.

Here are tips before signing the agreement with the products sourcing agency.

 

  • Some products sourcing agencyare not responsible for inspection. You need to find a third-party check. But some products sourcing agency will help you go to the factory to inspect the goods. You can communicate in advance and provide an inspection list.

 

  • The agreement needs to be specific as possible. Otherwise, it is possible to get a surprise finally. Your products sourcing agencywill inform you have to pay extra cost. It excludes the agreement.

 

  • You need to review if your project is one-time or long-term. You will probably get a better price and service if it is a long-term project.

 

  • A reliable products sourcing agencycan help to find a good supplier. You can get a good quality product at a low price. Your profits will be high even if you pay the products sourcing agency service fee.

Chapter 5: Where do you find the products sourcing agency

It is easy to discover products sourcing agency. I list several ways to find them.

 

If you learn more, let’s continue.

You can use these ways to find products sourcing agency.

 

  • Google Search
  • Social Media
  • Freelance Platform
  • Trade Show
  • Friends Recommendation

Goole Search

You can enter the keyword China sourcing agents in google. You can find lots of companies and people.

Social Media

There are many products sourcing agency on social media and freelance platforms. 

 

You can enter the keyword China sourcing agents on the social media platform such as LinkedIn. You can find lots of companies and people. You can contact them.

Freelance Platform

You can enter the keyword China sourcing agents on freelance platforms such as Upwork.

 

You can find lots of companies and people.

Trade show

Some products sourcing agency companies will join the trade show. You can connect to know their business scope.

Friends recommendation

If your friend has worked with products sourcing agency before, You can ask your friends to recommend them.

Chapter 6: What characteristics are reliable products sourcing agency

Reliability is the most precious competence in this world. A reliable products sourcing agencycan help your business grow.

 

If you learn more, let’s continue.

A reliable products sourcing agency should be accountable, have the expertise, be a problem solver, be an excellent communicator, and be highly efficient.

High Rich Experience

It is important to hire a highly rich experienced products sourcing agency.

 

The guy with solid experience is more efficient and easily communicates with each other. They will evaluate supplier competence from different angles.

Supply Chain Management Competence

 It is better if the guy should have strong supply chain management competence. 

 

The guy knows the whole procedure. He can supply valuable proposals to save your operation cost and time. If you need it, the guy can offer a one-stop products sourcing solution.

Familiar with Chinese B2B Platforms

Different platforms have different features and languages. Supplier quality is different accordingly.

 

Communicate with the products sourcing agency if they are familiar with Chinese B2B platforms such as 1688.com, Taobao, Alibaba sourcing, etc.

Similar Experiences in Your Industries

It is better if the products sourcing agency handled your product categories in the past. Such as packaging, toys, clothing, household, etc.

Recommendation Letter from Previous Customers

Ask the products sourcing agency if they can supply a recommendation letter what it was from their previous customers.

Transparency

Everything should be transparent.

Confirm with the products sourcing agency if you trade directly with the supplier.

 

If you want to visit the factory or see the factory work through, they should support you and provide the factory address and contact person. Everything should be transparent.

 

The products sourcing agency should allow you to deliver a third-party inspection company to audit the factory and inspect the goods. Transparency is very important.

 

An accountable products sourcing agency should let you know the services fee structure. 

Reasonable Service

 Today price concerns you, and quality affects you every day. If the products sourcing agency service fee is very cheap, you should be careful.

Conclusion

The products sourcing agency is your eyes in China. He is a bridge between you and your Chinese suppliers.

 

If satisfied with his service, you can work in depth for the long term.

 

If you are a new buyer with no products sourcing experience, it is smart to hire a products sourcing agency.

 

Now you should know everything about China products sourcing agency. I hope it will help you.

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