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Reasons Why Businesses Must Engage a Sourcing Agent When Dealing with Suppliers in China

The existence of merchants and sourcing agents is mainly due to the fact that there are numerous sellers out there who vary in the capability of export, understanding the International market, domestic business performances along with expertise in foreign languages, etc.

The International market requires a crucial role to bridge the gap between International buyers and sellers. On the other hand, as there are numerous buyers out there dealing with trading companies, some of them, particularly the ones with certain technical requirements prefer hiring local sourcing agents. Why do they switch from traders to sourcing agents or oftentimes not even directly prefer dealing with a manufacturer while they plan on importing products from China?

Below are vital reasons why businesses prefer engaging a sourcing agent while dealing with suppliers in China

With a professional sourcing agent, the interests of the buyer get fully enacted in a controlled environment. First and foremost, with someone who has deep insight into the factories, the buyer enjoys better control of production, product delivery, and after-sale services. He can ensure that all the follow-up details being provided are true and authentic. Secondly, the sourcing agent can independently or jointly look for supplier details and also negotiate with the suppliers without any motivation to win an order or sell particular products. Hence, the buyer is more likely to be able to find a more suitable product as he does not get confused by unauthentic or exaggerated product descriptions from the manufacturer or traders.

A sourcing agent provides the buyer will complete information on registration details, latest photos, official documentation and written reports about the manufacturer including their offices, warehouses, production lines, lab equipment, quality control stations etc to access where the seller actually stands, their credibility, technical expertise and production capacity.

A professional sourcing agent is someone with language proficiency and understands technical details, can do a business assessment, product design, logistics, and International perspective. Such people work well on behalf of the buyer to access the suppliers in China, negotiate the terms and price, does all the trouble-shooting, keep a follow-up, coordinate well, and eventually, enhance a business relationship with the supplier. Learn more at leelinesourcing

A sourcing agent basically works in a smaller setting, while the trading companies work in offices with several departments. The result is that the costs burdened by the latter are a lot more. Nevertheless, a bigger reason is the conflict if interests that prevails between the buyer and the traders, the trader is never going to share the manufacturer’s details with the buyers for fear that they may skip the agent and deal directly with the supplier, in all scenarios, the agent strikes a deal with the traders at highest and hidden profit, whereas the agents work for the buyer at a pre-defined service charges. Considering the cost factor, the price a buyer gets from a trader is much higher than what a sourcing agent offers.

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