4 Top Benefits of Cooperating With China Sourcing Agencies

4 Top Benefits of Cooperating With China Sourcing Agencies

Introduction

China is known as the land of FDI. Foreign Direct Investment is one of things that make its market go round and round, now more than ever.

Thus, it’s no surprise why an increasing number of companies are now looking to invest in China.

One may ask what makes China a haven for FDI. The answer lies in the Chinese market’s potential for growth. As China was able to attract emerging industries (namely, high-tech and service-oriented ones), it has become the perfect place for any company that seeks expansion.

However, before you can actually start looking into investing in China, there are things that you must carefully consider. For one thing, an FDI cannot be done on a whim.

There are several steps and procedures you need to follow in order for your investment to go smoothly and profitably. And these things can only be done by consultants who have the right knowledge and expertise in FDI.

Aside from knowing everything about China, which includes its culture, people and economic landscape, consultants are also aware of the market’s way of doing business.

As China is still at a developing stage, it involves various issues that may be unfamiliar to some companies. Thus, getting help from experts in this field is necessary.

With all these factors combined, it can be concluded that hiring an experienced China sourcing agency is best for your FDI. They are well-equipped to guide you through the intricacies of investing in China, so it’s smarter to contact them than go solo.

So, in this article, we will share our experience,including how to choose a reliable sourcing agency and the benefits of cooperating with China sourcing agencies.

What is a sourcing agent all about?

Chinese sourcing agent can be defined simply as someone who helps manufacturers find buyers, but the role of Chinese sourcing agents goes much deeper than that.

To understand what Chinese sourcing agents can do for you, it is necessary to understand what Chinese companies are looking for when they seek out new business opportunities.

Manufacturing companies tend to focus mainly on orders in large quantities, since Chinese factories are typically accustomed to producing larger numbers of products.

Manufacturers are also looking for long-term commitments from buyers, usually with a large deposit up front prior to production.

Factory owners are usually unwilling to produce small batches or prototype orders because they do not see much profit margin in them.

This is where sourcing agents step in. Chinese sourcing agents are paid by Chinese manufacturers to locate new clients, but sourcing agents must also be sensitive to the needs of Chinese factories.

Factory owners are usually unwilling to produce small batches or prototype orders because they do not see much profit margin in them.

Sourcing agents are responsible for finding buyers that meet manufacturers’ criteria in terms of quantity and cost-effectiveness, while working in a way that Chinese factory owners will accept.

Sourcing agents also assist Manufacturers in adapting to the needs and practices of foreign companies. They can help factories become more flexible in meeting the demands of companies from outside China by helping Chinese manufacturers understand what buyers are looking for when they place orders.

They also help manufacturers become more familiar with foreign countries’ product standards, laws and regulations, which can often be different from Chinese standards when it comes to things like labelling, packaging or delivery schedules.

Chinese sourcing agents are responsible for getting an entire production process off the ground smoothly by making introductions between Chinese manufacturers and foreign buyers.

With a wide variety of connections within manufacturing industry, including factory owners, purchasing managers and quality control staff, they serve as the middlemen who help Chinese manufacturers find foreign companies that they can do business with profitably, and Chinese buyers who place orders large enough to be worthwhile for Chinese factories to produce.

Sourcing agents also know what manufacturers are looking for when they place orders with other  companies. Sourcing agents use their connections and knowledge to match manufacturing companies that can meet buyers’ needs and requirements, and help Chinese factories become profitable without risk.

Chinese sourcing agents usually charge a one-time fee – which can be as high as ten percent of the total order value – as well as a commission on each  factory’s sales. Sourcing agents usually charge a one-time fee – which can be as high as ten percent of the total order value – as well as a commission on each Chinese factory’s sales.

 

How to Choose A Reliable Sourcing Agency

Every business owner understands how important it is to develop an efficient sourcing policy. However, not every company has enough knowledge and experience to design this policy on their own. It is even more difficult for small businesses that don’t have the time or the patience to look for suppliers themselves since they are most likely running out  of resources. If you are looking for a solution that will help you save time, money and nerves, then China sourcing agency is what you need.

– What to look for when choosing a reliable sourcing agency?

There are many things to watch out for when choosing a Chinese sourcing company because there are so many dishonest agents who have no real expertise  but are simply pretending to know better than their clients.

– First of all, you need to check how old the company is and what experiences it has in China .

– Check if they do business with some famous brands or companies that can be recognized by your target audience. That way you will get an idea about the quality of their work. It will also help you realize if the agency is well-known in China or not.

– Also, make sure to check what kind of culture they have because it will be easier for them to understand your business model and act accordingly.

– Don’t hesitate to ask about their support team! Check how many employees there are working on providing support for their clients.

– Also, make sure to check how does their support work since it shows if they are responsible about taking care of business matters or not.

– Two more things you need to know are whether the company is willing to provide references and case studies showing how they have done in the past. They should be able to provide you with a list of companies they have already helped.

– Last but not least, it is important to double check whether the company has any certifications or belongs to any organizations. That way you will get an idea about the quality of their work and experience that they can provide to you.

4 Benefits of China Sourcing Agencies

If you have a business that manufactures goods, then you have probably tried to source Chinese suppliers at some point in time. You may have found them on your own or through a Chinese sourcing agency. There are benefits to hiring an agency as opposed to finding Chinese suppliers independently. In this article we will discuss 4 different benefits of Chinese sourcing agency.

1)  Save you from Scammers

As with any industry, there are many Chinese suppliers who will attempt to scam you. Chinese suppliers can be very persistent and try to fool importers into believing that their product is of the highest quality.

Therefore it is often more successful for importers to work with Chinese sourcing agencies who have a clear understanding of Chinese suppliers. Chinese sourcing agencies understand Chinese supplier’s business practices and what they are prone to.

 

 

2) Have Greater Access to Suppliers

Another reason why it is beneficial for importers to work with Chinese sourcing agency, rather than Chinese suppliers on their own, is because Chinese sourcing agencies are able to have greater access to Chinese manufacturers.

Chinese supplier databases have many Chinese suppliers with similar names and it is sometimes difficult for importers to tell the difference between them.

Chinese sourcing agencies however will know which Chinese companies are reliable and which Chinese suppliers are not.

3)  Assist Chinese Product Development

Chinese sourcing agency is also advantageous for importers because Chinese sourcing agencies are often able to provide help with product development.

Chinese suppliers are increasingly improving their quality standards and Chinese sourcing agencies will know which Chinese manufacturers are capable of producing high-quality products.

Although, it is not the Chinese supplier’s responsibility to develop your product, Chinese sourcing agencies will be able to assist Chinese product development.

4) Assist with Product Inspection Before Shipping

An agency has greater access to Chinese suppliers as well as Chinese inspectors who are aware of Chinese manufacturers’ capabilities and limitations.

Chinese sourcing agency is therefore able to provide help for Chinese product inspection before shipping, which can save importers a lot of time and frustration.

Chinese product inspection is necessary to ensure that Chinese suppliers are delivering products that meet Chinese product standards and Chinese law.

Chinese sourcing agencies will also be able to provide the necessary documentation for Chinese customs clearance, which can save importers even more time and money.

In conclusion, working with Chinese sourcing agency has many benefits for importers. Chinese sourcing agency can help with Chinese product development as well as Chinese inspection before Chinese shipping.

Chinese sourcing agencies will be able to tell the difference between Chinese suppliers and provide assistance for Chinese product inspection before Chinese shipping. Chinese sourcing agencies also have greater access to Chinese suppliers than those who work independently.

Conclusion

As the world is becoming more diverse in terms of culture, language, and religions;

Companies are looking for new ways to keep up with changing demands.

This has led many organizations to start outsourcing their manufacturing process overseas. A sourcing agent’s job is to connect buyers like you with manufacturers that can produce your product or service at a competitive price point.

When choosing which sourcing agency would be best suited for your needs it’s important consider how they work with you on each step of the production process as well as what services they provide outside just finding suppliers.

We hope this blog post was helpful when considering these factors!