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Factors to Consider in Finding the Right Sourcing Agents

by Madeleine

China’s low production costs have made it a major player in the global manufacturing industry. Purchasing from China can be a wise choice if you want to save your company money. However, many international buyers are put off buying internationally due to a lack of familiarity with the language and local business customs and the overwhelming number of product options. In this situation, working with a sourcing agent can be extremely helpful.

In simplest terms, a sourcing agent is a third party that assists in locating suitable suppliers in a given country. Sourcing Agents typically know the ins and outs of doing business in the target country and may even be fluent in the local language. You can find several good sourcing agents online, but it is important to find the best.

Below are some of the vital factors you should consider.

Location

If you’re looking for a sourcing agent in China, you can do a Google search that returns a list of them. It is much simpler to conduct business with a foreign firm than with a domestic Chinese firm. Due to China’s internet restrictions, verifying the legitimacy of a Chinese sourcing agent can be challenging.

Ensure the overseas sourcing agency you go with has a sizable presence in China. It’s important to learn how long the China branch has been operating. Pick a source that has been successful in the past.

Experience

Business practices in China and the West are very different. Culture, customs, and mentalities are major contributors to the differences. Selecting a sourcing agent with prior experience in China is highly recommended. Someone with years of experience as a sourcing agent in China will have established relationships with numerous reliable contacts.

References

Find a sourcing agent with satisfied clients willing to vouch for them. Have a conversation with these people and look at their websites. Learn more about their experience working with the sourcing agent and the standard of their work. Inquire if they have any positive experiences with the sourcing agent.

License

In China, a business license is required for operation. Since Chinese law is so stringent, only those who have obtained the appropriate license can legally run businesses of a certain nature in the country. Ensure the sourcing agent has the proper licensing before you start dealing with them.

Expertise

Professionals in the sourcing industry specialize in various fields. Make sure your sourcing agent has experience locating the kinds of products you’re looking for. For more information, you can inquire about order history records or request references from previous customers from your agent. You might have trouble finding a sourcing agent specializing in just one product category. Thus, it is in your best interest to solicit references from other businesses in your industry that have recently made purchases.

Final Thoughts

Finding the right China sourcing agent is essential if you want to import goods from China. Businesses can benefit greatly from acquiring high-quality goods at fair prices and in a timely fashion. Choose your sourcing agent with care. Your company’s success in the future will depend on this.

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