What exactly is a sourcing agent? What is their process like, and how much do they charge?
If you’re thinking about starting an import-export business and considering hiring a sourcing firm, you probably have a lot of questions.
Don’t be concerned!
We’ve spent a lot of time and effort putting together a list of all the important factors concerning finding agents for you (as a buyer). This post will walk you through all of the factors to consider while looking for the finest sourcing firm. No matter what you are going to import/export, whether it’s home decor items or eco-friendly products, a reliable sourcing firm can benefit you tremendously.
Whether using a sourcing agent or a corporation is more convenient for your business; and how to get the finest sourcing solution for your needs. We’ve established a checklist of what to look for in a sourcing agent based on our many years of professional sourcing experience.
Obtain A Business License
Asking for their license, particularly their license number, is the first step on our checklist. You’ll need to identify a registered or licensed sourcing agent, just like any other vendor. This means they have the legal authority to act as a sourcing company. Use the sourcing agent’s license number to check their track record and see if they’re now facing any legal concerns.
Experience And Specialization
Years of professional sourcing experience, particularly in your product sector, is just as crucial as obtaining a government license. The more experienced they are, the faster and more efficiently the entire procedure may be completed. Expect prompt service, high-quality products, and fair deals.
Testimonials
Positive feedback and great testimonials from previous customers are important. The easiest approach to identify a sourcing firm is through referrals and recommendations from coworkers. You want to work with vendors who are flexible and willing to collaborate.
When getting a pleased customer reference from a purchasing agent, avoid asking for consumers who have the same product and live in the same country as you. This is because it would jeopardize the privacy of the original client. You can request that the sourcing agent give you a customer case from the same country as yours, but dealing with a different product category.
Language
The ideal sourcing firm like matchsourcing.com is able to communicate effectively with both you and the manufacturer. As a result, you’ll need to hire someone who speaks English, the vernacular, and the language of your target market.
Location And Flexibility
In the case of China, professional sourcing firms are on the ground, operating close to industrial sites, factories, and warehouses. Not only does your vendor’s strategic location help you save money on travel, but the sourcing agent may also keep you informed right away.
Supplier Network
You contact a sourcing agent to acquire access to a large network of vendors. You should choose a sourcing agent who has a big list of accredited manufacturers and other expert contacts. Sourcing firms must be easily accessible and assist you in locating many suppliers.
Transparency
When looking for a sourcing company, the most important factor to consider is transparency. You don’t want any miscommunications in your working relationship, whether it’s about expenses, production, or anything else. Clients may count on a skilled sourcing agent to be completely honest with them. If you come across someone who refuses to communicate, they may not be as trustworthy or reputable as they appear.
How do you spot a shady sourcing agent?
When looking for a sourcing agent for your company, watch for some of the prominent red flags or warning indications.
Paid By The Factory
If a sourcing agency contacts you via a manufacturer referral, politely decline their offer. Some factories hire sourcing agents to locate potential customers. These agents, in turn, steer you to the factory without considering your goals or interests.
Frequently, there is a catch: the paying provider produces low-quality goods. The sourcing agent will assist you in hiring these manufacturers and will be compensated by both you and the factory. Unfortunately, you’re stuck with shoddy workmanship.
Offers Quality Inspections But Works On Commission
A red flag is sourcing agents who work on commission and urge you to inspect product quality on their behalf. Such sourcing brokers are paid only after the finished product has been delivered to the buyer. If the product is defective and the buyer refuses to accept it, the sourcing agency will not be paid.
Why would a sourcing agent hunt for product flaws only lose their commission in this case? This is why we advise you to stay away from such sourcing firms.
Unlicensed
A government license is, once again, essential for running a genuine business. It is critical to pick a sourcing firm that is legally permitted to work with international clients.
Takes Too Long To Find Suppliers
Good sourcing agents don’t waste time researching manufacturers. After all, time is valuable, therefore everything should be completed quickly. If the sourcing agency does not identify a supplier for you right away, your business could be put on hold.
Professional sourcing firms have a large network and have worked in your industry for years. So finding suppliers should not take weeks or months.
Poor Language Skills
Sourcing agencies serve as a link between you and the manufacturer, acting as a translator. Hiring a same-language-speaking sourcing agent is primarily intended to eliminate confusion and expedite the process.
Let’s say your sourcing agent is unresponsive or communicates poorly. It is preferable to look for someone else in that scenario. Additionally, locate an agent in your selected industrial town or city. It’s a positive sign that they can communicate in the language of your chosen destination.
Conclusion
You must be highly dedicated to your import business if you have read this far. This article contains some of our thoughts as a sourcing agency on how purchasers should select a sourcing firm; we hope you find it useful.
Please leave a comment if you have any questions about sourcing agents.
