Best 50 China Sourcing Agent Company to Help You Import from China

Question 1: Who is a Sourcing Agent?

A Sourcing Agent generally provides assistance for your company in tracking product sources.

You’ll get your products supplied at a cheap cost, thereby, saving on overall cost of production.

A China Sourcing agent or China sourcing company helps you in sourcing products from China suppliers.

A China sourcing Agent comes handy when you are taking part in overseas or international trade.

They may perform extra China sourcing services for their clients usually on special request.

When it comes to traditional trade, Sourcing Agents becomes important mainly for sourcing goods from China firms.

Your company may hire a Sourcing Agent in China for any of these services; mainly for choosing an appropriate supplier.

Others are negotiating for cheaper prices managing production, inspecting goods for quality, and engaging in logistics.

You see, the importance of a China Sourcing Agent when importing from China cannot be overemphasized.

Question 2: What Does a China Sourcing Agent Do?

The main task of a China Sourcing Agent is to help you locate the best Chinese manufacturers for your products.

They can also perform other services such as quality inspection depending on your agreement with the China Sourcing Agent.

Here are the services which a China Purchasing Agent can provide for their clients.

2.1 Sourcing Chinese Product Suppliers Free

This is the fundamental service of any China Sourcing Agent. You do not need to pay for this service.

They should be able to locate and choose the best supplier according to your (employer’s) demands.

China Product Sourcing Agents build up a list of these suppliers as part of their resources to help you import from China.

Your China Sourcing Agent having found the right product supplier will ascertain the necessary information on the production.

They would also bargain on your behalf with the supplier for the best prices on quality products.

After sourcing for suppliers, your agent can provide you with the contact of the supplier or not.

It all depends on the model of service of the China Sourcing Agent you are working with for your China sourcing.

It can depend equally on whether you are working with a single employee Sourcing Agent in China or China sourcing company.

2.2 Overseeing Production Process

After working with your China Sourcing Agent through the process of choosing suppliers, the production arrangement follows.

Your China Sourcing Agent or company will be available at this point to take the process to the next level.

They will help you to arrange with the supplier on how to proceed with the production of goods.

During the production process, they will stand by and monitor the entire process from start to finish.

The China Sourcing Agent representing you will make sure that the production of your goods meet with the deadline.

2.3 Inspecting Goods for Quality

After production, your China Sourcing Agent or Company will be there to check if your products are up to standard.

You do not require only the services of a China manufacturing agent most of the time to inspect quality.

Instead, you’ll also need to hire a quality inspection company that would work together with your sourcing agent in China.

A quality inspection company will help you examine the finished product to determine the standard of the product.

The essence of this is to reduce the rate of defection to the barest minimum prior to shipping.

Points to take: You may still decide to leave this entire service of quality inspection to your sourcing agent.

The reason most people decide to use a quality inspection company is to ensure trust.

Of course, a China sourcing agent may fail to report defects in order to get paid, since payment is commission based.

2.4 Managing the Shipping and Logistics

Shipping is the last step in the supply chain. This comes after the confirmation of the product quality.

Your China sourcing agent or company will negotiate on your behalf for the most competitive shipping fee.

Alongside this, they will provide you with other shipping-related information that will help ease the stress.

For example, they will tell you the product certificates and other documents you require for the custom.

If you have a China procurement agent, they will help you with the shipping process.

The conclusion of shipping usually marks the end of the services of a sourcing agent.

2.5 Providing Personal Product Labelling

This service is not among the standard services that a sourcing agent in China or company would offer you at first.

It is more like a side offer which you may choose according to your needs and product improvement.

Professional sourcing companies can help you in customizing your product to entice your final consumers.

They can also help in adapting your product packaging to suit your brand and business line.

They can also offer extra services such as product photography. This is usually a free service which is useful for e-commerce firms.

Points to take: While most sourcing agents or companies can provide all the services above, you may not need all of them.

Your requirements and wants are what determine the services that are available to you by these agents.

Certainly, you can reach an agreement with your sourcing agent to decide the services you may need.

Question 3: Is a China Sourcing Agent Different from a China Sourcing Company?

While a Sourcing Agent stands in for a single employer, a sourcing company does the same for multiple companies.

This means that when you hire a sourcing agent in China, he works solely for you until project completion.

Usually, a sourcing agent would comprise of a single individual. While some may have a website, most of them don’t.

You can hire a China procurement agent through many freelancing platforms such as Upwork and Fiverr.

Sourcing agents mostly gain their experience working with sourcing companies or a trading companies.

On the other hand, a sourcing company comprises of a group of persons who come together to offer sourcing services.

They do this more professionally and likely take it as a serious business compared to a single individual sourcing agent.

A sourcing company has the capacity to engage you and several other clients at the same time seeking suppliers in China.

You may also refer to them as sourcing agency. As a team of experts, sourcing companies offer you extra services.

They are likely more efficient when it comes to incorporating the resources of the supplier.

Points to take: A sourcing agent in China just like sourcing companies serve as a link between you and your supplier. They help you to source for products from China

The only difference lies in their capacity. Though, you can work with whichever you find more convenient.

Bear in mind that both terms are being used interchangeably, it depends on which comes to mind first.

Question 4: What are the Different Forms of Chinese Sourcing Services?

When you’re looking for Sourcing agent in China, there are basically two forms of sourcing agents you will encounter.

These forms of agents that helps you in sourcing from China include:

4.1 The Sourcing Agent Acting as the Supplier

Most of the Chinese sourcing companies or agencies belong to this category acting as the product supplier.

Usually, they get a hidden price margin on top of the supplier’s price which they profit from.

As a result, these sourcing companies won’t disclose the supplier’s information to you.

You should choose this form of sourcing agents when looking out for the following in your supply business:

• Convenience: If you place convenience above control in your product development process.
• Representation: If you need someone standing in for you in the search and during the production process.

Especially when it is included in their cost of service for suppliers in China.

• Full Reports: If you aren’t available to follow up on the process but would love to get the necessary business reports.

You can also gain extra benefit from this form of sourcing company when you choose to do business with them.

This is because they usually give technical experience that you may not get from direct communication with the supplier.

You can get very competitive prices from these sourcing companies as they source and accumulate their suppliers locally.

Hence, their list contains quality suppliers that you will not find on the B2B websites. Even while they still source their products from China.

Their charges usually base on a certain agreed percentage of the overall production cost.

Even as they won’t tell you the information about the supplier, they would still take you to the factory.

Although, certain conditions may apply which most of the times involve large orders from clients.

These China sourcing companies are less likely to take you to the factory when your order is small.

They do this when trying to convince you that the factory can handle your entire production without issues.

4.2 The Sourcing Agent Working Based on Fixed Price

This is where most of the individual product sourcing agents fall. They provide their services on a fixed fee.

As a result, they tend to be more transparent about the entire supply process and report accurately to you.

When you work with sourcing agents under this category, it is more like working with an assistant.

They will give you the information about the supplier that they source their products from China since you’re paying for their services.

Choose this form of sourcing agent when you need the following in your product development process:

• Control: If you need control over your supply system more than convenience.
• Transparency:If you want everything happening under your check and open to you.
• Professional Checks:If you want to go through background checks and factory audits.

That is to say if you want to examine the entire process of sourcing products from China.

• Pay a Fixed Price:If you wish to pay a determined amount for sourcing a quality supplier.

This is instead of paying for a margin on the supplier’s cost.

• Negotiate Cost by Yourself:If you wish to go about the price of production with the supplier.

You’ll also need to be available when needed if you decide to work with this form of sourcing companies.

They will report to you to take the necessary decisions. Getting all this information would likely reduce importing business risks for you.

Question 5: When Do You Need a China Sourcing Agent?

5.1 When You’re New to Importation from China

If you’re starting out with importation business, then you’re likely to need the services of a China Sourcing company.

Of course, the process of overseas importation involves several cumbersome activities that can confuse a first timer importer.

A China buying agent will help you greatly on your first importation journey by making sourcing products from China easier for you.

They will help in choosing the right supplier, oversee production, check for quality, and engage in shipping.

Also, they will advise you accordingly in case you prepare for your next importation.

5.2 When You’re Sourcing for More than One Product Kind

If you want suppliers for wide range of products from China, then you’re likely to need a Sourcing Agent.

You’ll contact more than 10 suppliers for assessment when you need just 2 for a particular product.

Likewise, imagine you have about 10 wide range products, then you’ll need to reach over 100 suppliers in China.

This tedious job can be made very easy and faster with a sourcing agent or company.

As part of their services to clients, they will also integrate all the products you need into a whole for easy control.

5.3 When You Lack Adequate Experience of the Overseas Market

You’ll also require the services of a sourcing agent if you’re not familiar with the overseas market.

When seeking a product supplier in China market, you’ll need a Chinese Sourcing  Agent or China sourcing Company.

This is because they have a better experience in sourcing products from China. Locating quality suppliers will be very much easier for them.

They share the same location with most of these suppliers, hence, they know better their capacity.

5.4 If You want a Marketing Solution, Not Only Products

A China sourcing agent or China sourcing company also provides marketing solutions. This is apart from assisting in their clients’ production process.

They can help advise you about your target audience and how to follow them up for proper marketing.

Also, they provide other technical experience that your supplier may not provide to you which can help you greatly.

Therefore, if you need insight into your business, you likely require the services of a China sourcing agent or company.

5.5 When You’re Sourcing for Specialized Products

Some specialized products require you to choose among the best sourcing companies to locate their supplier.

In the China market, chemical or medicine related commodities rarely come for exhibition nor are available online.

Hence, it is very difficult for you to locate their Chinese suppliers. This is why you and other potential clients need the services of a China Sourcing Agent or Company.

There are many other special products that require the services of sourcing companies who specialize in them.  An example is building materials.

The availability of these wide range products suppliers differs from those of the common day-to-day commodities.

Question 6: Why is the Role of a China Sourcing Agent Important?

Using a reliable China Sourcing Agent or Company will benefit your business in the following ways:

6.1 China Sourcing Agents Saves You Time Overall

When you review the roles of sourcing companies in the supply process, you’ll know it takes time and experience. Then, imagine doing it by yourself.

At first, you’ll have to research on the processes involved when importing from China, then proceed to how to go about them.

This may just be the beginning as you’ll also learn to do them effectively to achieve good business results.

Hiring a China sourcing agent or a China sourcing company cuts all these processes saving you time, energy, and money.

They do not just help clients purchase products, instead, their experiences which they share matter also.

6.2 China Sourcing Agents Saves You Costs

Working with a China sourcing agent or company will save you much cost than when they are not available.

As part of their business, they will help you find several quality suppliers with competitive prices.

You may not find some of these suppliers on your own due to the nature of their services.

A good reason is they are not present online and may not appear during exhibition.

Moreover, sourcing agents have the capacity to negotiate cheaper prices with suppliers than you do.

You will benefit in prices using a China sourcing agent or company for your China sourcing services.

6.3 China Sourcing Agents Provides Convenience

Instead of being available all the time responding to your supplier, you can have a sourcing agent in China do the job.

This gives you a deserved convenience in your business. You’ll also be flexible to control every aspect of your business.

You’ll have the time to focus on other aspects of your business that calls for your attention.

Then, letting a China sourcing agent handle the product supply process from the start of production to shipping.

6.4 China Sourcing Agents Minimizes Importation Risks

When you find a China sourcing agent, they will handle all processes from product manufacturing to shipping.

Your sourcing agent in China will eliminate the importation of defective products as a result manufacturing mistakes. This improves clients’ overall best sourcing experience.

They were there to monitor the production process and perform a quality inspection which is absolutely necessary.

Since they will advise you on product certification, you will surely be ready to meet the custom requirements.

You will also learn the rules of importation and exportation business from your China sourcing agent.

6.5 A China Sourcing Agent will Help You Overcome Language Barrier

If you’re sourcing overseas where the language is different, a sourcing agent in China will help you with communication.

Let’s say you want to purchase wide range products from China, you do not need to learn Mandarin to proceed.

The Chinese sourcing agent you will employ will deliver your messages in the English language if you speak English.

This simplifies the sourcing of goods in China for potential clients as language is no more a barrier to the process.

Question 7: What are the Qualities of The Best China Sourcing Agent?

The best Sourcing Agent in China would portray the following characteristics:

7.1 Ability to Locate Suppliers that Have the Capacity to Meet Your Needs

Manufacturing industries have different capacities. This usually bases on their talent, skills, and equipment.

A Good sourcing agent should only link you to suppliers that match your business’ needs to show they understand your industry.

And the best sourcing agent should have a great talent in sourcing Chinese suppliers in your industry better than other sourcing companies. Then let you choose the best for your business.

7.2 Offer All the Services of a Sourcing Agent

The best sourcing agent or company should give you the opportunity to choose from the several services they offer.

This shows that he has experience working as a sourcing agent. You can reference the roles of a good sourcing agent above to help you crosscheck.

7.3 Specializes in a Particular Products

There are wide range product types such as consumer products and industrial products that a China purchasing agent would specialize in.

The best sourcing agent would either specialize in consumer products or industrial products. This is a sign of dedication.

7.4 Works with Quality Factories that Abides by Ethics

Before a good sourcing agent introduces you to a supplier, he should have performed a factory audit.

This involves checking for safe working conditions and employees’ treatment. A good factory would also treat its employees fairly and the best sourcing agency should know this.

7.5 Does Not Have Financial Affiliations with the Suppliers

Some sourcing agent accepts commissions or kickbacks from the factories that they select for you.

Whether this is legal or illegal, it can defeat your aim of hiring their services in the first place.

The best sourcing agent doesn’t have such ties with the manufacturers. They perform their duties diligently and get paid duly.

7.6 Must Agree to Sign a Non-Disclosure Agreement (NDA)

If you’re working on a new product, your sourcing agent in China needs to sign a Non-Disclosure Agreement for you.

Doing this proves him responsible enough to handle your production ideas and other processes involved.

This should come before giving out any detailed information about your product to keep safe your intellectual property.

A good sourcing agent won’t hesitate to sign this business agreement which after you can tell him all that is.

Question 8: How Can You Choose a Reliable China Sourcing Agent?

You are now aware of what qualities to expect from the China best sourcing agent or company.

Therefore, it is important that you also learn the practical steps to choose one for your business without guessing.

Here are the steps you need to follow:

8.1 Step 1: Search for China Sourcing Agent or Company with Respect to Your Product

A reliable sourcing agent for China products should have a strong knowledge of your product type.

This comes from experience dealing in that particular product type for a long time.

Thus, when looking to import consumer goods, you should look for a sourcing agent with experience in consumer goods.

On the other hand, if your specialty lies in industrial products, then search for a sourcing agent in the field.

This first step ensures that you’re dealing with a sourcing agent that have experience in your product type.

Certainly, specialized sourcing agent in China must have gathered several quality suppliers in your field.

Hence, they would be ready to offer you best sourcing advice on production and shipping.

8.2 Step 2: Narrow Down Your Search Results to Sourcing Agents Located Near the Industry Cluster

An industrial cluster comprises of related factories located within a defined boundary. This arrangement is found in every country to help you find the best sourcing location..

When importing from China, you should familiarize yourself with the location of the clusters for wide range products.

For instance, Shenzhen China is the home of electronics and digital devices in China.

Finding a sourcing agent or company located near Shenzhen gives you an added advantage when importing electronics.

The benefits include exposure to many factories, reduction in freight cost, and better production supervision.

If you’re looking to import from China market, here is a list of industrial clusters for various product types.

This list would be very handy when visiting the China market to source for products.

Industrial Cluster

Product Type

• Shenzhen

Electronic and Technological Devices

• Guangzhou

Cosmetic and Textile products

• Yiwu

Wide range Daily use products and Gifting materials

• Tongxiang

Home Textiles and Kitchenware

• Guangdong, Jimo, Zhili

Clothing for Children

• Foshan

Home Décor

• Yongkang

Hardware products

• Wenzhou, Cangnan

Packaging products

• Shaoxing

Textile products

• Chaozhou

Kitchenware

• Nantong

Home Textiles

• Yuyao (product), Dongguan (facing)

Raw materials and Primary products

8.3 Step 3: Check the Experience Level of the Sourcing Agent or Company

A sourcing agent sourcing goods from Chinese suppliers for a longer period may tend to be more reliable.

Take for instance a sourcing agent in China in business for 6 years and another that is just running for 6 months.

The former will not only be more reliable but also more resourceful due to the amount of time.

You should also see it this way, if the sourcing agent isn’t performing, it wouldn’t be running for that long.

More so, the length of service can serve as a proof of good business with their employers.

The experience level of a sourcing agent or company comes handy during factory audits, quality checks, and logistics.

8.4 Step 4: Review the Customer Feedbacks of the Sourcing Agent or Company

If you get a good sourcing agent in China, his customers would obviously be happy doing business with him.

This will reflect in their positive feedbacks to the sourcing agent or company.

Feedbacks from customers would usually appear on the website of the China sourcing agent or China sourcing company.

A typical example is the Dongsourcing feedback section where customers talk about their experiences with Dongsourcing.

Whereby you cannot access the customers’ feedback yourself, you can demand from the sourcing agent.

He would be happy to provide you with the contact of satisfied customers. You can now make your inquiries.

Points to take: The four steps above when followed will get you a reliable sourcing agent.

However, you should also look out for other traits that won’t work for you in a potential sourcing agent.

For instance, a sourcing agent may pass these steps but currently facing challenges that would hinder progress.

Hence, if you find a red flag, you’re always free to reconsider and go for another sourcing agent.

Question 9: Is it Better to Choose Sourcing Agent in China (Production Country) or Sourcing Agents in Other Countries?

Let us consider the country that produces the highest consumer goods in the world, China.

This is the reason there is an increase in the popularity of the Chinese Sourcing Agents.

Let’s compare having a sourcing agent in China and having a sourcing agent in another country.

This comparison is valid assuming that you are sourcing products from China. Hence, that

China is your production or product sourcing country.

9.1 Choosing a Sourcing Agent in China, What to Expect

The China market has so many active sourcing agents or sourcing companies in operation that can help you with product sourcing.

You’ll definitely find China buying agents with lower commissions and profit base compared to some others. Especially compared to non-Chinese based sourcing agents.

China sourcing agents tend to be more professional than others. This is because of the competition in the market.

As you can find professional sourcing agents in China, you can also find quality suppliers for your wide range products.

The only problem with hiring a Chinese Sourcing agent is usually language difference which can make communication difficult.

Although, this is no longer a major problem as any sourcing agent in China that you find would likely be bilingual.

However, they may not be as fluent as a native sourcing agent in your home country.

9.2 Choosing a Sourcing Agent in Other Countries (Non-Chinese), what to expect

Sourcing agents based in other countries usually operate as Sourcing Companies since they would have many employees.

This is because they usually have offices in their home country and in the production country usually China.

These sourcing agents have no issues with language since they are natives of your home country.

Communication in general would be fluent and agreeable since there is also no cultural barrier.

Sourcing agents based in your country would mainly service buyers with large orders and not small quantity buyers.

Therefore, if you have large orders, you may likely go with your local sourcing agents if you can afford them.

The problem of cost usually occurs with sourcing agents based in other countries and not China.

Their service commissions and profit base would definitely be higher compared to sourcing agents in China.

As a result of this, they are usually not the best option for small and growing businesses.

Question 10: Where Can You Find a Sourcing Agent in China?

When looking for a sourcing agent in China, take a look at the following places:

10.1  Search Engines

Google is the most popular search engine people resort to when searching for things.

The good thing is that you’ll always get answers. Just open your search engine and type in “sourcing agents in China”.

This is of course if you’re looking for sourcing agents based in China and you’re intending to purchase from China.

Your result page would contain lists of sourcing agents in China or sourcing companies in China. Feel free to check out as many as possible.

When checking out a China sourcing company’s website, lookout for vital information that describes them before choosing a sourcing partner.

These may include the quality of content, contact information, and company photos of the purchasing agent.

Others are year of establishment, customer reviews and feedback, and so on. If the information is complete, then you are secure enough.

This is because it takes a whole lot of resources to achieve a professional online presence.

10.2 Freelance Websites

Many freelance websites such as Upwork and Fiverr host individual sourcing agents in China.

You can just open their website and search for China sourcing agents. You’ll get suggestions of several individual agents.

You can also view the profile of these Chinese sourcing agents and read their client’s feedback.

Most sourcing agents gotten from freelance platforms do not serve for long-term. They usually base on a fixed price.

Hence, you should be cautious while paying fees because as easy as they appear, they also disappear.

Their job would mostly be to help you find suppliers by giving you their contact and company details.

From there, you can contact the supplier, price for the products, and follow up on the process.

10.3 Trade Fairs

You can also find a China sourcing agent or China sourcing company in trade fairs. China has several trade fairs you can visit to help you find a sourcing agent.

Chinese trade fairs are Canton Fair, Yiwu Fair, Hong Kong Electronics Fair, East China Fair, China Hi-Tech Fair, etc.

While you can find a sourcing agent in trade fairs, he would likely attend to you if you’re a large importer.

That is to say, if you have only a small or medium-sized order, the suppliers may not accept to be your sourcing partner.

They may refer you to another China sourcing agent not up to their capacity as a backup action to help you.

Question 11: What is Sourcing Overseas?

Sourcing Overseas involves finding an international Sourcing Agent for your products. In this case, they help you with custom duties, taxes, and tariffs.

In cases where language might be a barrier, an overseas Sourcing Agent would stand-in for you.

If you’re in the U.S. and chooses a sourcing agent in China, this is a typical example of overseas sourcing.

Check out what to expect when you choose a sourcing agent in China as we already discussed.

The duties of an overseas sourcing agent include all the normal and expected duties of sourcing agents.

They can also address concerns with ethics such as pollution concerns or unfair labor treatment with the manufacturing company.

Using international sourcing agents where business negotiations seem complex will help you cut through red tapes.

This lessens the time you would spend and makes your transactions more efficient.

Question 12: How Does a China Sourcing Agent Get Paid?

A Sourcing Agent in China usually gets paid on commission. You do not need to pay a Chinese Sourcing Agent any extra fee to carry out his job.

You can check out Dongsourcing service fees for the best obtainable sourcing agent service fees.

12.1 How Does Commission Payment Work?

Commission payment comes in the form of a certain percentage charged on the value of the entire order.

This method of charging is very common as a good sourcing agent may offer several services to facilitate your supply process.

It would only be reasonable to place their service fees as a defined percentage of the production cost.

For made in China sourcing, you’ll get service fees ranging from 3% to 10% of the production cost.

Factors affecting service fees include the value of the order and the type of product.

If you place an order with a value of up to $1 million, the service charge would be on the lower side.

You can get 3% of the value of your order or even lower. It all depend on your agreement with the China buying agent.

Also, when you order special products with competitive price such as building materials, you’ll get a lower charge.

For daily consumer goods, you’ll get service charges from 5% of the order value and above.

Due to the competition in the sourcing agents in China, you may also get lesser fees with consumer goods.

However, while you may be tempted to accept lesser charges for consumer goods, be sure you’re not being lured.

Some sourcing agents in China may entice you with low fees only to deliver very high-cost suppliers. Or, sometimes, they’ll deliver very low-quality products.

This is after sampling a perfect one in the beginning and claiming they did quality check.

12.2 Are There Other Ways a China Sourcing Agent Can Get Paid?

Apart from getting paid through commission, purchasing agents in China can charge fixed price fees.

This is possible depending on the services they offer. Also, there is a price difference charge method.

Of course, there is no standard method of charging as every sourcing agent or company is in competition.

Each sourcing agent in China trying to beat the other through pricing.

12.2.1 How Does the Fixed Price Payment Method Work?

A fixed price payment can come in the form of charge per product or a fixed weekly/monthly charge.

Fixed price charges can be as low as $20 to $50 per product. The sourcing agent also provides you with the contact of the supplier.

You can therefore establish communication and build a business relationship with them.

On the other hand, you can hire a full-time sourcing agent in China and pay a fixed amount per week/month.

The sourcing agent in China would serve as an assistant to help you find solutions to small tasks.

They can help you find suppliers, translate between languages, and supervise your production process.

This sourcing agent in China would work for only you at a time and continues with another when your contract ends.

You can get a full-time sourcing agent in China market for about $600 to $1000 per month.

Most independent sourcing agents that you’ll find fall into the fixed price payment category.

12.2.2 How Does the Price Difference Charge Method Work?

In this method of charging, the sourcing agent benefits from the difference in the competitive price. There is no extra charge involved.

The sourcing agent or sourcing company takes it upon themselves to find good suppliers with very competitive prices.

Most times, these suppliers are not available on B2B websites or any other standard sources.

Of course, if you could find such suppliers by yourself, you won’t be needing the sourcing agent.

Points to take: The charging method depends on the policy of the sourcing agent or sourcing company.

It should therefore not affect the quality of services delivered. If the method of charging reduces the overall cost of production for you, why not?

Question 13: What Illegal Money Do Bad Sourcing Agents in China Collect?

Most buyers who have had bad experiences with a China sourcing agent in the past reported illegal collection of fees.

These fees would likely come as kickbacks or bribe from suppliers to link more buyers to them.

If a sourcing agent or company accepts kickbacks or bribes from suppliers, they would likely deliver poor service.

This is because the suppliers tend to influence the decisions of the sourcing agent in China with the kickbacks.

Hence, there won’t be honesty, and you know what they say “when there is no honesty…”

13.1 What are the Secrets Behind Kickbacks and Bribes?

You expect transparency and honesty on the details of the suppliers from any Chinese procurement agent you hire.

If they agree to be open to you but later collect kickbacks from suppliers, then it is an illegal charge.

You are the employer of your sourcing agent in China and you pay for his services. This means he should report to you and not even the supplier.

However, some greedy sourcing agents would love to make a profit off you and the supplier altogether.

This leads to them asking for kickbacks from suppliers not minding the consequences of such actions.

13.1.1 How Kickbacks works

The most common form of kickback or bribe comes when more than one supplier offers the same production price.

Your China product sourcing company may decide to collect kickback from one supplier and choose him.

This can happen irrespective of the supplier’s product quality which can be good or bad.

13.1.2 What Happens When Your Sourcing Agent in China Collects Kickback or Bribe?

If the sourcing agent you hire collects kickbacks, you would likely experience the following:

• A Double-sided Representation: This manifest wholly when a conflict arises between you and the supplier.

A sourcing agent in meant to stand by your side would obviously be defending the supplier.

At most, he won’t side anyone and would likely declare unavailable.

• Poor Quality Check: If your sourcing agent collects kickbacks from suppliers, they would overlook obvious product defects.

This happens even while they tell you that they conducted quality checks.

• Product Not Compliant with Your Market Requirement: A sourcing agent that accepts kickbacks will deliver products that don’t comply with your local market certification.

This means that you can’t import or sell such products since it is illegal.

• Sourcing Agent Disappearance: When your sourcing agent collects kickbacks, he may even disappear in the middle of your contract.

This leaves only you and your supplier. You may decide to hire another one at your cost.

While you may not experience any of the above even while your sourcing agent accepts kickbacks, it happens still.

Except a problem arises with the products that you ordered; you may not realize that the agent collected kickback.

Some buying agents in China would usually only accept kickbacks for large orders where it is safer for them.

Hence, for small orders, most of them would not even bother since it involves a certain level of risk.

13.2 What is the Recent Trend in Kickbacks and Bribery?

Of recent, the rate of kickbacks in product development has reduced drastically. This is as a result of the recent surge in the online presence of many suppliers.

You can now find suppliers through several sources such as B2B websites that can handle all your sourcing needs.

This direct contact with the suppliers will save you from any hidden agenda of a sourcing agent.

A few years back, things weren’t this easy, hence, the reason kickbacks were common among individual sourcing agents.

You can now easily compare production costs among various suppliers and check the consistency with a China buying agent.

A reputable China sourcing company would not likely accept kickbacks since it will leave a bad name for them.

More so, they won’t like to lose in a business they have invested so much in.

This may not be the same with individual sourcing agents who engage in the business part-time.

You are now more secure engaging with the Chinese sourcing services than before when kickbacks were on the high.

Question 14: In What Currency Would a Sourcing Agent in China Carry Out His Transactions?

Some sourcing agents in China will most likely perform their transactions in the U.S. Dollar to accommodate international buyers.

Price quotations in U.S. Dollars save foreign buyers time and cost resulting from currency conversion.

However, this is not always the standard as you can always make your payments in the Renminbi (RMB). RMB is the official name of the Chinese currency.

Ensure to agree with your sourcing agent on the currency you want your transactions to be in.

On the other hand, the means of payment can also determine the currency for price quotations.

Payments can be done through the following means:

• Telegraphic Transfer(TT)
• Credit Cards
• Western Union
• Letter of Credit
• PayPal
• Online Escrow
• Cash Payment

Always lookout for the best exchange rate for whichever payment method you choose. The global financial market is prone to fluctuations.

This can lead to a difference in the exchange rate on the day of agreement and the day of making payments.

Seek the advice of your local financial institution on exchange rates. They would be in the best position to help.

Question 15: What is the Minimum Order Quantity Acceptable by a Chinese Sourcing Agent?

The Minimum Order Quantity (MOQ) differs with China sourcing agents or companies and with the product type.

By rough estimate, the MOQ of Sourcing Agents in the China market would range from $200 to $5,000.

However, bear in mind that only very few sourcing agents would have their MOQ below $1,000.

There are also purchasing agents in China that calculate their MOQ based on product quantity.

For instance, the minimum purchase can be 100 pieces of a particular product. The suppliers’ terms also play a major role in the determination of the MOQ.

To be sure of what you’re dealing with, you should adequately sort things out with your sourcing agent.

Question 16: Can a China Procurement Agent Help You Find Any Kind of Product?

Different sourcing agents specialize in different product kinds. You can find agents for products such as Electronic and Technological Devices.

Other products include Cosmetics, Textile, Hardware, Kitchenware, Gifts, Home decoration, etc.

Before choosing sourcing agents in China make sure to confirm the products that they specialize in through their website.

China product Sourcing agents for daily use products are common and quite easy to find.

However, you might take a little more effort to find sourcing agent for special products.

Examples of products under this category include building materials, pharmaceutical products, chemical products, etc.

Only a few sourcing agents specialize in products of this kind, hence, the scarcity of agents.

Searching in Google is a good way to go, however, be more specific when searching for special products.

Type in keywords like “Building Materials Sourcing Agents in China” in the Google search box.

Question 17: What is the Difference Between China Sourcing Agent and Quality Provider?

A Quality Provider’s focal point is exclusively on product quality. They help you conduct product inspection, audits, and testing.

The services of a Quality Provider usually come at the end of the supply chain. A Sourcing Agent in China is present throughout the entire process.

The role of a Chinese sourcing agent is higher when it come to importation than a quality provider.

They supervise production and manage the procedure for their customers. Their job also includes quality checks and more.

Question 18: Do You Need a China Buying Agent or a Trading Company?

Whether you choose a China purchasing agent or a trading company depends on what you want.

We know there are so many benefits working with a sourcing agent, but are they always the right choice?

Your preferences and buyer level matter so much when making a decision as this.

As China purchasing agents have their benefits in the supply chain, so does trading companies.

Let us therefore take a look at the advantages and disadvantages of Sourcing agents and Trading Companies.

This comparison will help you to know who you need!

18.1.1 Advantages of Sourcing Agents Compared to Trading Companies

• A sourcing agent can get you a lower product price than trading companies when you’re looking to import from China. This price difference can be up to 40%.

If you are looking for lower product price, you should go for a sourcing agent in China.

• Sourcing agents are transparent about their activities. This means that working with them will help you learn more about the supply chain.

However, trading companies would mostly hide the supplier’s information.

If you wish to have more information, then what you need is a China product sourcing agent.

18.1.2 Disadvantages of  Sourcing Agents Compared to Trading Companies

• Chinese Sourcing agents most of the times would not provide you with a catalog.

But a trading company have a complete catalog to provide you with making it easier for you.

If you’re looking for ready-made list of products, then trading companies should be your go-to.

• A sourcing agent will take time to up to 7 days to do survey and provide you with a price quotation.

For trading companies, this would usually take less than 24 hours.

Thus, if you need a speedy quote processing, then, you should go for a trading company.

18.1.3. Sourcing Agent or Trading Company? Let’s Decide

When you’re just starting up and still deciding on the products you want, a trading company becomes a better option.

This is because they have made ready a catalog that you can work with. Thus, feel free to contact a trading company to help you find products when you’re still deciding.

On the other hand, when you’re sure of what products you need, then a sourcing agent becomes a better option.

This is because the China product sourcing agent will find a better manufacturer with cheaper rates.

Of course, this is when you already provided enough product details and order quantity for the agent.

18.2 Is it Better to Work Directly with the Manufacturer than a Sourcing Agent in China?

We stated that having the opportunity to meet the manufacturer is an advantage of working with a sourcing agent.

You may therefore think “why not work with the manufacturer directly?”, since they handle your goods firsthand.

In the supply chain the services of a China buying agent services are unavoidable especially for your small business.

Except the company can render those services, you would benefit greatly from a Chinese sourcing agent.

18.2.1 Let us see why you may consider working directly with the manufacturer at first.

• You will have the chance to eliminate the sourcing agent’s fees. This fee usually ranges from 3 – 10% of the total cost of production.

While you may be trying to save cost on your side, remember you’ll have to put in extra work.

Certainly, the gap created by eliminating sourcing agent from the supply must be filled.

18.2.2 As a result, you’ll face the following responsibilities to keep up.

• You will need to spare more time to follow-up the production process to cover up for supervision.

Except you want the company to work without supervision. This might lead to several factory faults on products.

• If anything goes wrong with the production and supply, the entire risk is on you.

This is because you oversee the whole process, hence bearing the risk that results from it.

• You must be ready to deal with a higher quantity of minimum order so that manufacturers will prioritize you.

The China manufacturing company would not accept less order quantity from you.

18.2.3 Sourcing Agent or the Manufacturer? Let’s Decide

Working directly with your product manufacturer is not entirely impossible. It all depends on your experience level in importation.

If you have a good experience in the supply industry, you’re good to go. This also works together with time.

Therefore, making out about 2 hours each day to manage your supplies would go a long way.

On a special note, your manufacturer may have personnel overseeing the supply chain.

In this case, it will be a lot more easier trying to work directly with the manufacturing company.

You already know what to expect when working with a China purchasing agent that is the merits and demerits.

You can be able to get a cheaper price, a lesser minimum order quantity, and save yourself time.

However, you’ll be paying commission for these. It is now left for you to know which one that favors you more.

If you are choosing a China sourcing agent or company, it is better to go for a professional one.

18.3. Is It Better to Work with Alibaba or a China Sourcing Agent?

Importing from China? Then, Alibaba is a common name. With Alibaba, you can find quick suppliers.

You may wonder, if this is so, then why are many importers still trying to find Sourcing Agents in China?

Well, every side has its merits over the other. It is all left for you to set your priorities right and choose which works for you especially when you have a small business.

Let us therefore see the merits and demerits of Alibaba and China product Sourcing agents over each other.

18.3.1. Why Choose Alibaba Over Sourcing Agent in China?

• The main benefit of Alibaba is saving the sourcing agent fees. This fee is up to 10% of the order cost.
• Also, with Alibaba you purchase is secured with Trade Assurance. This means that you won’t fall into fraud.
• With Alibaba, product search is very easy and quick. You can save time navigating through the products that you need.

So, if Alibaba offers this much, why would you still consider a sourcing agent?

18.3.2. What Could Go Wrong with Alibaba?

Here are the downsides of Alibaba that can make you consider using a Chinese Sourcing Agent instead.

• Many of the suppliers you find in Alibaba are just middlemen.

These middlemen are not the true manufacturers, instead, they just pose to be.

• While you’ll save the sourcing agent fees with Alibaba, you’ll still pay 2% service charge.

This charge is however when you pay using the Alibaba Trade Assurance.

• Alibaba doesn’t ensure high quality check on delivered goods. The trade assurance can only make sure your goods are delivered.

However, the quality delivered is something it doesn’t cover entirely if a disagreement is to come up.

• With Alibaba, if dispute arises due to poor quality products, then you have to appeal for fair hearing.

A China buying agent would identify a product defect. As a result, they would not let you pay for substandard goods.

18.3.3. Sourcing Agent in China or Alibaba? Let’s Decide

Alibaba would be okay for you when you’re still starting out with importation business and product sourcing.

You are not sure about the products and the specifications. Hence, Alibaba can help to put you through.

Note that anytime you decide to find a supplier through Alibaba, ensure to make your payments with Trade Insurance.

A sourcing agent would be best if you have a knowledge of the products that you want.

Also, if your order cost surpasses $1,000 consider using a sourcing agent for a better management.

They will help you with China manufacturing sourcing, that is, find direct and trusted manufacturers.

As a result, the trade risk involved for bulk purchases in the supply chain would be reduced.

18.4. Is It Better to Work with a Freight Forwarder or a Sourcing Agent?

The job of a freight forwarder is almost similar to that of a sourcing Agent. They don’t own ships, but can plan your logistics.

How is a freight forwarder then different from a sourcing agent you’ll find in China? Their difference is their role in the supply chain.

A freight forwarder specifically helps you to plan and ship your goods. They are present at the end of the supply chain.

A sourcing agent in China is available from the start to the finish of the supply chain supervising the activities.

Are you ready to ship your goods? Are you considering using a freight forwarder or a sourcing agent in China?

Let’s now see the roles of a freight forwarder and why you might need them in your supply chain.

18.4.1. What Can a Freight Forwarder Do for You?

Freight forwarders work with shipping companies to ship goods to various countries around the world.

They tend to get an advantage with shipping companies on specific routes and locations where they make profits.

A freight forwarder who has several importers shipping to a specific location can get a cheaper shipping rate.

Of course, he can bargain for a fair price considering the shipping volume to a particular shipping route.

This means that a freight forwarder without interest in your location would less likely obtain a competitive price.

18.4.2 How Do China Purchasing Agents Manage Shipping Costs and Logistics?

When it comes to shipping, a sourcing agent manages logistics costs the same way as they source for suppliers.

The importance placed on various variables helps them to do this. Shipping route conditions tend to change every two weeks.

Some of these variables are weight limits, number of transits, transport time, and price per cubic meter etc.

This is why standard sourcing agents in China would make a comparison of over 10 logistics options.

By so doing, they can get competitive costs, lead time, and secure shipping company. So, who would handle you shipping process?

18.4.3. Freight Forwarder or China Sourcing Agent? Let’s Decide

When it comes to shipping, the most important thing is that your goods reach you safely at the best rate.

Either a freight forwarder or a sourcing agent in China can make this happen through their various means.

The only difference between a freight forwarder and a sourcing agent is the method of approach.

And, no approach is better than the other. As a result, deciding who ships your goods is in your hands.

You just have to simply put into due consideration their logistics solutions. Make your decision based on which you feel most comfortable about.

Although, it is best if you see the both as equal logistics solution provider which you can work with any.

Question 19: Why Is Guangzhou, Ningbo, Shenzhen, and Yiwu the Most common Names for Sourcing Services in China?

When sourcing from China, Guangzhou, Ningbo, Shenzhen, and Yiwu China is the most common name in the industry.

This is because these locations are industrial clusters with the highest number of sourcing agents in operation.

You’ll see the China industrial clusters in “Question 8” above. However, here are more things to know about these 3 China cities.

19.1. What China Sourcing Services Would You Find in Guangzhou City?

Guangzhou City is a great choice when searching for China product manufacturers in various fields.

Here are the popular activities that take place in Guangzhou.

• The Canton Fair takes place in Guangzhou 2 times in a year.
• This location is a host to several wholesale markets.
• Guangzhou deals in many products.

The popular ones are Building materials, Clothing, Jewelries, Bags and Luggage, and Fashion (Shoes and wigs).

Others are Auto Parts, and Hotels and Restaurant supplies.

• You’ll also find these industrial clusters in/near Guangzhou:

– LongJiang cluster (Furniture)

– Zhongshan cluster (Office furniture and Lighting)

– Dongguan cluster (Plastic and Rubber products, Machinery)

– Yunfu cluster (Stones)

19.2. What China Sourcing Services Would You Find in Shenzhen City?

The Shenzhen City is popular for Chinese electronics and technological products sourcing.

Here are the popular activities that take place in Shenzhen.

• Shenzhen hosts the China Hi-Tech Fair once a year at the Convention and Exhibition Center.
• The famous wholesale market Huaqiangbei is in this location.
• Shenzhen is near Hong Kong.
• You’ll find almost any electronics and electrical engineering products in Shenzhen.

Some of these products include Mobile Phones and Accessories, Smart Devices, Electric Motor, Batteries, PCB, etc.

• The popular Industrial Cluster in/near Shenzhen is:

– Dongguan cluster (Plastic and Rubber products, Machinery)

19.3. What China Sourcing Services Would You Find in Yiwu China?

Are you looking for daily-use products and gifts? Yiwu China is your go-to city for any product you’ll need for your daily activities.

Here are some of the popular activities that take place in Yiwu China.

• Yiwu China is the popular International Trade City.
• The China Cultural Products Trade Fair takes place yearly in Yiwu.
• Yiwu is popular for the supply of small gift items.
• Some of the products that you can source from Yiwu includes Jewelries, clothingaccessories, and toys.

Others are sports equipment, hardware, stationeries, umbrellas, locks, etc.

• The Industrial clusters found in/near Yiwu China are:

– Taizhou cluster (Christmas gift items)

– Ningbo cluster (Die Casting Mould)

– Zhuji cluster (Socks)

– Yongkang cluster (Power Tools)

19.4. What China Sourcing Services Would You Find in Ningbo City?

Ningbo is the biggest port city in China. The city is near Shanghai giving it more popularity.

This means that you can get many products ranging from Chinese electrical and consumer goods. You can also find kitchenware and homeware.

The freight cost from Ningbo tends to be cheaper. However, this can also depend on your location.

Here are some of the popular activities that take place in Ningbo:

• Ningbo is the popular port city.
• The China International Consumer Goods Fair (CICGF) takes place at mid-year in Ningbo.
• Some products you can source from Ningbo include household supplies, bathroom supplies, and kitchen supplies.

Others are stationeries, utensils, wines, electronics, automobiles, etc.

• The Industrial Clusters found in/near Ningbo are:

– Ningbo cluster (Die Casting Mould, Automobile Manufacturing, Electric Appliances, Plastic Products)

19.5. Are These 4 China Cities the Only Place You Can Source for Products in China?

No! these are just the 3 most popular cities when it comes to sourcing high quality products from China.

There are several other commercial cities that you can get a sourcing partner from in China that are not as popular.

Good examples are Tongxiang, Guangdong, Foshan, Yongkang, Wenzhou, Shaoxing, Chaozhou, Nantong, etc.

You can find the various products sourced from these places in (8.2.) above. Please refer back for more information.

Question 20: What Should You Do When a China Buying Agent Fails to Deliver His Services as Agreed?

Failure to Deliver is a situation where a party in a trading contract fails to hold up to their obligations.

This situation occurs mostly between you (the buyer) and the manufacturer (the seller).

It is rare that a sourcing agent in China who is a middleman would fail to deliver his duties.

This is because the sourcing agent represents you in the supply chain. Moreover, they don’t get paid if the trade is not successful.

You can also prevent any failure to deliver by not paying sourcing agents before the completion of their assignments.

This is not to say that sourcing agents don’t have flaws at all. Certainly, some dubious sourcing agents that collect kickbacks can make you lose.

However, you should not worry as the rate of kickbacks have reduced to the barest minimum in the recent times.

There is now competition which makes most Chinese Sourcing agents want to perform their duties diligently.

20.1. Is It Important to Physically Contact a China Sourcing Agent?

Depending on your plans and schedule, you can make out time meet with your sourcing agent.

The sourcing agent in turn should take you to the manufacturer. While this is not necessary, it will help build trust.

And, also to ensure that the information you have about your sourcing agent is correct.

Many Chinese sourcing agents have most of their information on their websites for easy and quick access.

Therefore, you can get to know as much as you want by going through their websites.

You can make your personal research about the China product sourcing agent to learn more about their services.

Whois.com is a website that can help you check information about your sourcing agent.

Question 8 on this page directs you how to choose a reliable Chinese buying agent.

Thus, follow the steps and you’ll get a good sourcing agent in China that will help you with product sourcing.

20.2. Can You Take Legal Actions Against Your China Sourcing Agent in Case of Failure?

In every contractual agreement, a legal action can be taken as a means of dispute resolution.

However, it is less likely that a dispute between you and your sourcing agent will reach the level of legal action.

This is because they don’t mostly get paid until the end of the manufacturing process.

At this point, even quality check has been done. Then, they can collect their commission.

Most China purchasing agents are bound to remain committed to their duties with commission payment.

More so, there are better means to settle disputes in the supply chain than going to court.

Contact Dongsourcing Today

Dongsourcing understand that you want the best for your company.

That is why we presented you with a comprehensive guide to choosing a Sourcing Agent.

Now that you’re aware of the key roles of a Sourcing Agent, you can make the most use of it.

If you need any help with sourcing agent, please contact Dongsourcing on +86-15057403797 (WeChat/WhatsApp) or email: [email protected]