Do you want to sell products under your own brand online? Are you having trouble finding trustworthy suppliers in China A China sourcing agent will save you time and money if this is the case.
A sourcing agent connects you to factories in China to manufacture your products. They can also assist you with…
Pack your products
Send your products
Quality control
Price negotiation
Good sourcing agents are usually located in China and act as your trusted advisor. They can help you find manufacturers you cannot find in directories such as Global Sources or Alibaba.
You can also access a network of reliable factories, freight forwarders, and inspection companies. This article will discuss the benefits and drawbacks of China sourcing agents and whether or not they are worth the investment.
How to Source from China
There are six steps that you should follow when importing products from China.
It is essential to know the exact product you are trying to sell.
It is important to find a Chinese supplier who can produce your products.
To create a perfect sample, you must collaborate with your supplier.
For your first bulk order, you must negotiate with your supplier about the cost.
For quality control, you will need to hire an inspector.
You will need to manage shipping logistics from your warehouse.
It is easy to manage all the above once you have found a reliable supplier. It can be daunting to source your first product in China when you’re just starting out.
The Options Available When Sourcing from China
There are four main ways to source Chinese private label products. These are your options.
Option 1: Locate Your Suppliers Through Tradeshows and Directories
Source products from China by finding your wholesale suppliers.
You can find factories that produce the products you are looking for quickly by using a directory such as Global Sources or Alibaba.
You can also use the Jungle Scout supplier directory to see which factories are being used by your competitors.
Here’s how it works. Every shipment arriving by sea to the US is recorded in the public record.
You can search the Jungle Scout supplier database to locate suppliers for any brand.
If you’re willing to travel, the Canton Fair is an excellent way to meet thousands and even more suppliers all at once.
Finding suppliers yourself is convenient and affordable, but you need to be knowledgeable.
You must, for example, learn how to negotiate the lowest price with a supplier. It is important to learn how to control quality and import products from China.
It is important to learn how you can manage your supply chain.
Option #2: Hire A Sourcing Agent
A sourcing agent connects you with trustworthy manufacturers. They help you find the right factory for your needs by pre-vetting suppliers.
Your sourcing agent can also act as your liaison with your supplier and negotiate for you. A majority of sourcing agents also have a list of trusted freight forwarders and customs officers to manage your entire supply chain.
A sourcing agent can save you time, but they also come at a cost.
China sourcing agents typically get paid either a flat rate or a percentage commission based upon the order’s cost.
Option 3: Buy from a Trading Company
A trading company works with multiple factories in the supply chain to offer you products to sell.
You have very limited customization options, and must only sell the items that are already in their catalogue.
If you have a tight budget or can’t afford to buy from a Chinese factory, a trading company might be an option.
Option 4: Use a Service Company
A service company is a business which specializes in helping customers find reliable suppliers, negotiate prices, manage quality control, and handle freight forwarding.
It is very similar to working with an individual sourcing agent, except that you will not be able to contact your factory through a service provider.
Service companies tend to keep their suppliers close to their chest because they see their network as the most valuable asset.
Service companies receive a commission on a percentage cost of each order, similar to a sourcing agent.
A commission is required to pay a China wholesale sourcing agent. However, this can help you save both time and money.
It is difficult to establish contact with a Chinese factory and build trust because many larger factories are reluctant to work with random buyers. First, you must build a relationship!
Good sourcing agents have strong relationships with many factories and can help you find manufacturers that are not normally available.
Additionally, you will not find many top-tier suppliers on Alibaba. Sometimes, it is necessary to contact a local China sourcing agent who has established relationships in order to access the top suppliers online.
These are the top benefits of using a China-sourcing agent. They can assist you…
To produce your products, pre-screen factories
Negotiate price on your behalf
If you don’t know Chinese, communicate with Chinese factories
Conduct quality control and inspections
Low cost freight forwarders can ship your goods
Even if your company already has reliable suppliers, it is important to constantly seek out new factories in order to ensure that you get the best possible prices.
In the event of product shortages or production problems, it is a good idea to have backup suppliers.
What is the Cost of a China Sourcing Agency?
China sourcing agents will charge a commission fee depending on how much your order costs. The percentage charged will decrease as you order increases in size.
Here are some examples of typical fees that a sourcing firm will charge.
Below $1000 – $100
$1 – $2k – 10%
$2 – $3k – 9%
$3 – $5k – 8.5%
$5 – $7k – 8%
$7 – $10k – 7.5%
$10 – $15k – 7%
$15 – $20k – 6.5%
$20 – $25k – 6%
$25 – $30k – 5.5%
Spend more than $30k and get 5%
All future orders must be placed through your sourcing agent after you have placed your first order. It is generally frowned upon to deal directly with the factory and not your agent, unless there are special terms.
Most factories won’t do business with you unless your agent is present. Many China sourcing agents will conceal the factory information.
Service companies are unlikely to reveal the name and address of your factory.
Although a sourcing fee of 5-10% may seem high at first, it is not. A sourcing agent can save you time and hassle, which can make it well worth the cost.
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