Sourcing Agent — The Ultimate Guide of 2023

It is a common question: “Do I need to hire a sourcing agent in China? “The question of whether or not to buy direct from China is often asked by people who plan to do so. As a matter of fact, China sourcing websites like Alibaba enable you to source products from suppliers and have them delivered to your doorstep at the click of a mouse. Do you really need to hire a sourcing agent when you can find suppliers on your own?

Take this into consideration.  Despite having a large purchasing department in China, Wal-Mart still employs purchasing agents. Professional buyers are aware that hiring a buying agent is not a waste of money, but a wise investment.

Buyers can benefit greatly from the services of a professional China sourcing agent.  We help you:

  • Find the best manufacturer for your products
  • Free up your time to run your business
  • Reduce mistakes in the purchasing process
  • Bring you a great competitive advantage
It is the responsibility of a sourcing agent to assist clients in finding the products they require

Our purchase team is always hard at work

It is the responsibility of a sourcing agent to assist clients in finding the products they require

  • Help you quickly find the best manufacturer

The process of finding a manufacturer is straightforward. The process of finding the right one can be challenging. Even more difficult is finding a manufacturer you can trust. In the vast country of China, finding a good manufacturer can be as challenging as finding a needle in a haystack.

  • What is the purpose of seeking out the best manufacturer possible?
  • Manufacturers who provide high-quality products are likely to have loyal customers, rave reviews, and a large number of orders. A bad manufacturer can result in poor quality goods, unhappy customers, negative reviews, returns, and a poor reputation.

    You will eventually lose your business, which is the worst possible outcome.

Choosing the right manufacturer for your business is the most important step in the purchasing process. The search results on sites such as Alibaba may be limited if you choose to search independently. The results provided by many of these manufacturers are only mediocre.

The sourcing company knows which suppliers are the best and which suppliers should be avoided. As a result, the time it takes to identify a quality supplier is reduced.

It is important to note that experienced product sourcing companies have a large database of trusted manufacturers and are able to select a manufacturer according to your specific needs from this database. Having worked with reliable manufacturers for many years, these sourcing companies have a great deal of experience and knowledge.  Additionally, after years of cooperation, they have developed a list of manufacturers who are tried and tested.

It is the responsibility of buying agents to maintain relationships with quality manufacturers across a variety of industries.  Agents find the best products to meet the needs of buyers.

Many good factories do not register on platforms such as Alibaba (click here to learn why).  Agents assist you in finding manufacturers that cannot be found in directories such as Alibaba or Global Sources.

Your direct competitors will not be able to match this competitive advantage.

Manufacturers with over 30 years’ experience in the trading industry have customers around the globe. Clients from Europe and the United States generally have very high standards. As manufacturers who have worked with these clients in the past, they are aware of the quality they need to match and deliver a consistent product over time.

  • The main focus of AR China Export is to build relationships with some of the best suppliers and factories. Our recommended suppliers are verified and trustworthy, so you can rest assured that you are working with a reputable company.

  • Take advantage of your vast network.

China’s supply chain is well understood by better sourcing companies. It is important for a product sourcing company to have strong connections within a wide range of industries. Purchasing agents also establish relationships with freight forwarders, customs, third-party inspection companies, and warehousing service providers – all for the benefit of you and your product order.

  • If you choose to use a buying agent service, you will be paying for their extensive experience and industry connections.

  • Save you time by handling details for you.

By using a sourcing agent, you will be able to save time in maintaining your business. The sourcing agent is responsible for finding a manufacturer, controlling product quality, and ensuring delivery on time. In the meantime, you devote your attention to other aspects of your business.

It is easy to streamline business processes. It is your responsibility to ensure that everything runs smoothly and that your customers receive the best possible service. In addition, you do not have to worry about spending more money than necessary. As a result of the efforts of your agent, you are able to find the most competitive manufacturer at the best price.

A sourcing agent handles the workload on the other side of the world while you focus on other aspects of the business. Your global supply chain will be streamlined and minimized red tape if you work with a quality procurement agent.

It is the sourcing agent’s hard work that makes your work easy.

  • Ensures the correct design files are submitted for production.

Inexperienced business owners are unaware of the value of standardized product requirements documents for their procurement operations.

It is common for novice business owners to express their needs in piecemeal fashion. In some cases, they may submit some requirements via an online form, deliver other requirements via email and Whatsapp, and then supplement other requirements by phone. In addition to creating headaches for manufacturers, this also leaves room for error.

All of your requirements are compiled into a PRD document by the product sourcing agency.  A copy of this document is sent to the manufacturer after it has been supplemented with additional information. The level of attention paid to the PRD minimizes the possibility of production errors.

  • Visit the manufacturing site for you

In order to monitor the quality of the product and the progress of production, purchasing agents visit the production site on behalf of buyers.

A Chinese sourcing agent will ensure that the manufacturer you choose takes your agreement more seriously and adheres to it more strictly.

For greater profit, many Chinese manufacturers act as middlemen. They receive orders from overseas customers and outsource production to smaller manufacturers. The equipment used by third-party manufacturers is often old and outdated, which can result in hidden product quality dangers.

With the assistance of a sourcing agent in China, you can be certain that your order is being placed with the actual manufacturer and not with a third party supplier. It is the responsibility of product sourcing companies to visit manufacturers frequently and report any problems to buyers in a timely manner.

  • The choice of a purchasing agent near the manufacturer is particularly important. The Yiwu purchasing agent should not travel to Guangdong to supervise the manufacturer’s production line. The distance between Zhejiang and Guangdong is 1,000 kilometers (620 miles). Logistically, this is not feasible for you or the purchasing agent.

  • Obtain samples from different factories

In view of the fact that the purchasing agent collaborates with different manufacturers, the procurement agent collects samples from each manufacturer, combines them into a single package, and sends them to you. It is easy to select the best factory if the sourcing agent labels the samples correctly.

By combining samples, a sourcing agent can reduce the cost of air freight. If you do not have a sourcing agent who bundles your samples, you are responsible for the shipping costs. As each sample order is shipped separately, shipping costs can add up when you request samples from several manufacturers at the same time.

Before placing an order, experienced buyers inspect samples personally.

You should order samples first.  When you are satisfied, purchase small quantities to check reproducibility and consistency.

You should only order large quantities after you have gained the trust of the buying agent and manufacturer.

  • There are many people who are unaware of this important fact. The use of manufacturer images as a means of judging the quality of a product is unreliable in B2B business. There is a lack of clarity and detail in the product photos prepared by leading manufacturers. Instead, middlemen (such as trading companies and distributors) provide detailed photographs of the products.

  • Negotiate the best possible price

Buying agents have been working with manufacturers for years, and they understand how manufacturers set prices for their products. By researching supplier perceptions, you will maintain the balance of power between buyers and manufacturers, and you will form strategic partnerships that will benefit both parties.

Bargaining is primarily about working with suppliers to reduce costs by reducing waste, and not exploiting the manufacturer’s profits.

Cooperation is based on integrity.  Neither buyers nor manufacturers should achieve their goals through deception.

  • Identify illegal suppliers

The development of e-commerce has resulted in an increase in dishonesty. Some manufacturers, for instance, steal pictures of other companies’ products and claim that they are their own. Furthermore, some manufacturers falsely claim to be OEMs of a certain large brand. There are other manufacturers who offer fake certificates. It is always the responsibility of sourcing agents to verify the legitimacy of manufacturers. A sourcing agent greatly reduces the chances of being cheated by a bad supplier.

  • The bridge between culture and communication

The cultural and linguistic barriers are a significant obstacle to global sourcing. It is not uncommon for us to find that what the buyer says does not correspond with what the supplier understands. It is not intentional – cultural and linguistic differences are to blame. Whenever possible, we assist the buyer in writing down all the information about their products.  As a result, no assumptions can be made.  There are no mistakes caused by a lack of communication between you and your supplier.

The cultural gap associated with Chinese New Year is the largest of all. During this time, purchasing agents monitor the production lines.  As part of your responsibilities, you continue to attend to other important business matters.

Before Chinese New Year, we always ask buyers to place additional orders.  You will be able to maintain product quality during the shutdown period, as well as have stock on hand.

  • Reduce payment risk

Imagine paying a large sum of money to a factory in China only to find out later that it has filed for bankruptcy. Getting your money back from a bankrupt Chinese company is almost impossible.

During the pandemic, China closed millions of businesses.

You may be able to alleviate this problem by contracting a sourcing agent.  By visiting the factory regularly, sourcing agents keep an eye on the factory’s health.

As a result of other sudden crises, insufficient supplies are also available or production is halted.

A large number of small and medium-sized manufacturers were unable to meet their production needs due to the sudden Chinese power shortage in 2021.  There are only a few leading manufacturers who have been given priority to remain open.

It is nearly impossible for Western buyers to identify which manufacturers are affected by such a crisis.  A sourcing agent who is familiar with the local supply chain can provide accurate information about any closures.

  • Reduce import risk

China import agents are familiar with the legalities of importing and exporting.  Your documents, permits, and other legal paperwork are taken care of by them. As a result, they are able to anticipate mistakes that may cause delays.

Under the supervision of experts, you can relax and enjoy peace of mind

It is inevitable that problems will arise during the procurement process, especially if foreign suppliers are involved.

The role of a good purchasing agent is not only to resolve impending problems, but also to anticipate potential problems before they arise. The agency has years of experience in sourcing products and working with suppliers, which allows it to have an in-depth understanding of the most common obstacles.

Purchasing agents provide buyers with a “firewall of safety.”   A buying agent oversees every aspect of the production process to ensure that all of your guidelines are followed correctly. It is the responsibility of the purchasing agents to ensure that the product is made from high quality material and that the quantity is correct. Each order is inspected by purchasing agents prior to shipping.  As a result, you will receive 100% quality assurance. In the event that something goes wrong, the sourcing agents correct the issue before the goods leave China.

Business owners can benefit from the assistance of a purchasing agent.

Interested in finding a sourcing agent?

The hiring of a sourcing agent is not a waste of money, but rather a great investment. By working with an agent, you will be able to improve a large part of your business process. You should always hire an agency with considerable experience.

Check out AR China Export if you are looking for agents in Guangdong and Shenzhen to source your products. We take care of your products while you concentrate on your business.

AR China Export works only with the highest quality Chinese manufacturers, and never with mediocre ones. We also provide services such as warehousing, quality control, product photography, shipping, pre-shipment inspection and Amazon FBA preparation.

With us, you can rest assured that your business is in good hands.

Greetings and welcome to our purchasing department!