Many buyers are unable to leave because of the outbreak. How to become the purchasing agent of overseas purchasers, or play the benefits of foreign trade businesses, for Made in China, especially those clients who need to inspect the factory but cannot come to China?
We discuss four points in this issue.
The dangers of buying from China’s advantages in manufacturing A sourcing agent’s job description The advantages of using a sourcing agent.
1. The Potential Dangers of Buying from China
Problems with quality It’s possible that the goods you receive is of bad quality.
Price and quantity However, you may not receive the huge reductions you expect unless you place a large order.
Scams It’s impossible to find dishonest vendors or counterfeit goods.
Middlemen Prices will be marked up by middlemen, so you will not get the greatest offer.
Regional variations Be cautious of geographical variations, especially when it comes to certain products. Some products may only be compliant with Chinese regulations.
Your sourcing representative can assist you. While shopping over the internet is very simple, finding things from unfamiliar foreign countries can be difficult, especially for those who have little experience with sourcing.
A sourcing agent or a foreign trade company might be extremely useful in this situation.
establishing payment terms
Organizing quality assurance checks
Making it easier for buyers and suppliers to communicate
Considering the documentation
Notes on contract signing
Make shipment arrangements.
2. The benefits of being manufactured in China
If you’re sourcing from China, a reputable sourcing agent or foreign trade company can assist you in a variety of ways.
They speak the native tongue, lowering your chances of getting lost in translation.
They know how China operates and can assist you in navigating the cultural barriers.
They concentrate on the items you want to purchase.
They are in China and can personally verify, monitor, and inspect your vendors.
Overall, shopping on the internet is simple. It is a really vital thing to perform with some due diligence and protections.
China has established itself as a low-cost national sourcing hub.
This trend allows you to find low-cost raw materials and/or finished goods. While many companies undertake their own product procurement, many others are unable to do it at a cheaper cost and with better products. Small and medium-sized businesses, in particular, are frequently unable to invest a significant amount of resources. They turn to foreign trade companies or sourcing agents in China in such instances.
3. What does a sourcing agent do?
In a nutshell, sourcing agents assist businesses in locating suppliers and products at reasonable pricing. Their mission is to save money for the businesses they work with.A reputable sourcing agent in China can guarantee this. They develop the following characteristics.
Good understanding of representing Made in China: Good sourcing agents are typically well-versed in product manufacturing.
Sourcing agencies in China, for example, have relationships at a variety of factories and manufacturers. They can inquire about the availability of raw materials and/or goods required by the company by contacting these contacts.
Even if negotiations with one manufacturer’s representative fail, the purchasing agent can look to other manufacturers for a good bargain.
Excellent communication abilities and fluency in multiple languages.
A top-notch sourcing agent is usually multilingual, speaking not only English but also a range of other languages. Companies from all around the world are flocking to China as the ‘factory of the world’ due to its lower labour and manufacturing costs.
A Chinese buying agent should also have great communication skills, which he can utilize to negotiate favourable terms for Western companies.Outstanding coordination abilities.Sourcing agents should have exceptional coordination abilities, since they will need to communicate with a variety of people from various backgrounds in order to strike effective deals. Sourcing agents that work with buyers from other nations should be able to communicate effectively with people of various personalities. It’s critical to keep a level head since the buyer’s agent must maintain open and good lines of contact with the buyers.
Inability to travel to China personally.Some of the world’s most well-known raw material and product producers and/or suppliers are based in China. This does not imply that, However, you are not required to supervise the sourcing process.
Many businesses now solely communicate with Chinese producers through virtual meetings. While this is totally OK, we do not recommend depending solely on virtual meetings due to the possibility of quality difficulties.
You should engage a sourcing agency in China if you are unable to visit the factory you are sourcing from in person. These in-person visits can be used by the agent to monitor and supervise the work of the manufacturer and/or supplier.
4. The advantages of using a sourcing agent
To appeal to international buyers, trading company websites are written in English. A tiny Chinese manufacturer may not even have a website, or if it does, it may be a simple website with poor Chinese and English translations, but larger manufacturers may have multiple websites.
This could be another indicator of the firm’s genuine identity.Intermediaries who work for the good of your company.The largest problem you’ll have if you approach manufacturers and/or suppliers through channels like the internet is dealing with middlemen.These middlemen will only be concerned with their personal interests and will try to make as much money as possible without considering the interests of your company.
This is not the case, however, with sourcing agents. Sourcing agents are intermediaries, but they aren’t like those who are simply concerned with themselves. They will charge you a price, but once you start working with them, everything they do will be for the benefit of your company.
Quality manufacturers and suppliers are available.When conducting market research on the best manufacturers and/or suppliers in China, it’s easy to become perplexed. This is due to the large number of vendors, all of whom claim to be trustworthy and high-quality.However, Chinese sourcing agencies already have a network of high-quality producers. Once you’ve hired a sourcing agent and given him your product specs, he’ll know who to approach.
This connects your company with reliable manufacturers and suppliers. There is no time wasted, and getting a decent deal takes a fraction of the time it would if you did everything yourself.
Contracts should be negotiated on your terms.If you deal directly with Chinese manufacturers and suppliers, your conversations are unlikely to go as easily as you would like.But, don’t you really want to bargain on your own terms? After all, what good is getting a goods from another country if it isn’t inexpensive?A Chinese sourcing agent can help you with this by simplifying contract discussions. Throughout the negotiation process, the agent will represent your interests and negotiate with the manufacturer on your behalf to ensure you receive the best possible pricing. This can only be credited to the sourcing agent’s expertise, as she has a great deal of experience and has learnt the laws of negotiating.
bridging the gap between cultures.The cultural gap between eastern and western businesses is significant. You would believe that a cultural gap like this would have little impact on business. But, trust us, it does.
If you try to negotiate directly with manufacturers and suppliers, the gap will be clear. When you assign bargaining to a credible sourcing agent, however, you may expect this cultural difference to be bridged.The best benefit is that Chinese sourcing agents can communicate in Mandarin, making them more trustworthy to Chinese manufacturers and suppliers. Bridging the culture difference is something that sourcing agents excel at, and it has significant long-term value.Product delivered on time and no inventory shortages.
There may be a lack of coordination if you opt to interact with manufacturers and suppliers in China yourself. This is due to the fact that you must also focus on various other aspects of your organization. You may expect fast product delivery if you hire a sourcing agent to handle the coordination. Most essential, the sourcing agent will evaluate your company’s supply requirements and ensure that you never run out. In the long term, this can help your company avoid inventory problems like product shortages.
So now you know everything there is to know about sourcing agents and the advantages of hiring one.
Remember that sourcing agents not only give you the ability to delegate responsibility for your company’s goods purchases. They are also well-liked in their own nation, which means they can make sure contract discussions run smoothly.They are experts in dealing with manufacturers and suppliers, which is why they are today’s most important asset. This is especially true for businesses that import goods from low-cost countries.
Finally, why can’t foreign trade businesses negotiate their business from the standpoint of a sourcing agency, thinking in terms of defending their customers’ interests, as they do with sourcing agents, those difficult customers?
All questions you could refer to our sourcing and procurement service.