Need a Sourcing Agent? Here’s a Complete Guide for 2023
What’s a sourcing agent? How do they work, and how much do they charge?
If you are planning to import from China and considering getting help from a sourcing company, you must have tons of questions.
Don’t worry. We’ve spent the entire week writing down all the critical points about sourcing agents for you (as a buyer).
You can take a look at the following table of contents to find your interested chapters.
A sourcing agent is an individual or company representing a buyer in finding a suitable product or supplier in an overseas country where the goods are manufactured.
Sourcing (buying/purchasing) agents can be dated back to the nineteenth century when they were known as compradors, a local contract supplier or local manager working for a foreign company in East Asia.
Buying agents held important positions in southern China, buying and selling tea, silk, cotton, and yarn for foreign companies.
Judging by the name of the sourcing agent, it seems they are only responsible for sourcing, but in fact, today’s sourcing agent’s services include all aspects of the supply chain.
🔸Supplier verification
While Alibaba has made finding suppliers easier than ever, buyers still inevitably encounter supplier scams and illegitimate companies. One of the key services of sourcing agents is supplier verification, as they usually have local teams in countries of origin such as China and know how to verify Chinese companies.
🔸Product sourcing
Sourcing agents can help you find the best prices in low-cost countries, as long as the buyer provides the specification and requirements, sometimes even a picture of the product is enough.
Product sourcing is an essential service provided by all sourcing agents, whether they are freelance sourcing agents or professional sourcing agencies.
🔸Supplier sourcing
Finding the right supplier for the buyer is one of the main services of a sourcing agent. In many cases, the buyer needs to develop a new product and needs a reliable factory with sufficient capacity rather than an off-the-shelf product.
🔸Negotiate with supplier
There is never a one-size-fits-all approach to negotiating with suppliers, and even harder to deal with overseas suppliers.
That’s why a local sourcing agent can maximize the benefits for the buyer – after all, they speak the language and know the culture.
🔸Follow up order
What you define as acceptable and what Chinese factories consider acceptable are sometimes two different standards, either because of cultural differences or the factory’s quality system.
Therefore, a sourcing agent will often act as your local office, monitor production standards, and ensure on-time delivery.
🔸Arrange payment
Not all Chinese suppliers accept payment in US dollars; for these suppliers, buyers can pay the sourcing agent in US dollars, and the sourcing agent will pay the supplier in RMB.
🔸Quality control
Some sourcing agents are also responsible for quality control, but their expertise varies a lot. It is essential to ask them exactly how they inspect the goods before working with them.
🔸Arrange shipment
After the goods have been produced and checked for quality, your agent will arrange the most suitable transportation, which may be by sea, air or land, depending on the size and weight of the goods and your budget.
🔸Other services that sourcing agents may provide
In addition to the above regular services, some sourcing agents also offer shipping consolidation, product testing & certification, customs clearance in your country, warehousing, etc.
But is the more services an agent offers, the better? Obviously not, there are some services that a sourcing agent is simply not good at, such as product photography.
It would be best if you remembered that the most crucial benefit of working with a sourcing agent is to get a more competitive price and reduce supply chain risk.
In addition to locating suppliers, today’s sourcing agents also play different roles depending on importers’ needs.
1688 agent
What is a 1688 agent? They are purchasing agents in China who buy goods from 1688.com on behalf of the buyer and ship them to the designated country.
1688.com is the Chinese version of alibaba.com, the Alibaba Group owns both sites, and you can usually find better prices for the same product on 1688.com.
There are many buyers from other countries who want to buy products from this site, but they don’t speak Chinese, and the suppliers don’t know English, so there is no way for them to communicate with each other. And 1688.com only accepts payment in RMB.
FBA sourcing agent
FBA sourcing agent is a sourcing agent who specializes in finding suppliers for Amazon FBA (Fulfillment by Amazon) sellers, inspecting the quality of goods, packaging products according to Amazon’s requirements, before delivering them to Amazon FBA center.
Wholesale market guide
Many cities in China are famous for their wholesale markets, such as Guangzhou and Yiwu.
Wholesale market guides are individual sourcing agents or sourcing companies that provide services to foreign buyers such as interpreting, placing orders, and shipping from China to other countries.
Export agent
Export agents help buyers purchase goods from factories that do not have export licenses and arrange supply chain procedures such as export declarations and shipping.
But why do some buyers want to buy from a supplier who does not have an export license?
Because they usually offer lower prices for the same product quality, and all the procedures are legal with the assistance of an export agent.
Dropshipping agent
A dropshipping agent helps retail sellers buy products in bulk from the factory, custom product packaging, store them in fulfillment warehouses, and ship them to retail customers.
Many importers have their own sourcing agent to take care of the importing process overseas, but is using sourcing agents a good fit for your situation?
4.1 What kinds of businesses will use a sourcing agent, and why?
There are many reasons why importers use sourcing agents, and the needs of different importers vary.
Let’s take a look at what types of companies are using sourcing agents and why they decide to do so.
🔸Supermarkets chains or global brands
Some of you may think that usually, only small and medium-sized companies need a sourcing agent and that large companies deal directly with the factory. Is this really the case?
What if I told you that the following companies also work with sourcing agents? They are.
Walmart, Kohl’s, Sears, Macy’s, Disney and Tommy Hilfiger.
Actually, the list could go on.
The major sourcing agent they work with is Li & Fung Group, a trading company established in Guangzhou in 1906.
Why are these Fortune 500 companies willing to work with a middleman instead of ordering directly from the factory to get a lower price?
That’s a good question. The answer is that a good sourcing agent can reduce a customer’s supply chain risk and delivery time and provide better costs than the factory through raw material and processing control.
🔸Individuals or families without an import license
Many people want to import from overseas but do not have an import license, they may be looking to start their own import business, or simply want to import building materials from China for home renovation, usually these small buyers will look for a sourcing agent.
🔸Startup or small business with no import experience
Lots of things can go wrong when people manufacture their products overseas. Scammers, product quality, shipping risks, etc., any one of these can wipe out a small business owner’s life savings.
That’s why most newbie importers will look for a sourcing agent to take care of the supply chain.
🔸Buyers who can’t come to China in person
Although e-commerce has now become our lifestyle, B2B is still mainly conducted in the traditional way.
After all, the buyer cannot place an order just by looking at product pictures, and there is no way to judge the reliability of the suppliers from their websites.
Buyers often find a local agent to act as their eyes and ears to verify what the supplier claims and keep a close eye on new product trends from the manufacturing side.
🔸Buyers who deal with many different types of products
To find the best price for a product, you may need to contact more than 20 suppliers:
- 5 of them don’t match the product requirement
- 2 of them never reply
- 4 of them had a history of late deliveries
- 6 of them are not sure if they can produce it
- Finally, you can choose the best offer from the 3 quotes.
It does take time, but that sounds like a plan, doesn’t it?
However, what if you’re dealing with dozens of different categories of products?
Different categories of products are usually manufactured with different processes and in various industrial cluster locations.
Therefore, most companies operating in multiple product categories will appoint a sourcing agent in China.
🔸Buyers who are currently importing through trading companies
Some buyers already have experience importing from overseas, but most of their suppliers are actually trading companies.
For the same product, if you work directly with the factory through a sourcing agent, you will be able to save 15-40% of the cost, even considering the sourcing agent’s fee.
But a sourcing agent is not necessarily better than a trading company, and it depends on your situation, which I will explain in detail in the following section
🔸Buyers who need to place orders with different suppliers and ship together
If a buyer purchases goods from several different suppliers and ships them in one container. The following problems will arise.
- It is difficult to separate customs declarations from several suppliers.
- Multiple loading locations tend to incur overtime charges for trailers.
- If goods are concentrated at one supplier and then loaded into containers, there is a risk of missing cargo.
That’s why buyers usually hire sourcing companies to consolidate shipments, check the quality of goods, and supervise the container loading.
4.2 Do you really need a sourcing agent?
Many people choose to work with a sourcing agent, but that doesn’t mean you should do the same.
There are 20 questions you can ask yourself to decide if you should engage a sourcing agent in your supply chain.
Answer all questions with a “yes” or “no”, follow your first instinct, and count the number of “yes” and “no” answers when you are done.
Experience
- Have you ever visited the country where you plan to outsource the production of your product?
- Do you have any experience importing from overseas?
- Are you aware of the potential risks of importing from other countries?
- Do you know how to fix these problems if they occur?
Time
- Does your company have a dedicated person for supply chain management?
- If you are the main person in charge of the company, do you plan to spend more time on the supply chain than marketing in the next 12 months?
- If you are importing for profit, is it acceptable for you that the project does not break even 12 months after it begins?
- Do you have time to travel twice a year for a 1-week stay each time in the country where your product is manufactured?
Resource
- Do you have contacts in the countries where your products are manufactured that you can trust 100%?
- Do you have connections in customs that can handle the problems that may arise with declaring goods and clearing them?
- Do you have any reliable supplier connections that are referred by someone you know?
- Do you have any reliable shipping company connections that are referred by someone you know?
Language
- Do you speak the local language of the country where the product is manufactured?
- Do you have any employee who speak the local language of the country where the product is manufactured?
- If an overseas manufacturer A has an office in your country, but their pricing is 30% higher than other foreign suppliers for the same product quality, would you prefer to work with company A?
- Are you able to ensure that your factory understands 100% of your requirements?
Skill
- Are you familiar with other methods of finding reliable suppliers besides the internet?
- Do you know how to tell if a supplier is a factory or a trading company?
- Do you know how to deal with supplier delays in delivery?
- Do you know what to look for in a product inspection?
Have you completed the quiz?
Here are your supply chain risk assessment criteria:
If you answered “yes” to 18 or more of these 20 questions, then your supply chain risk isn’t very high, and you’re completely fine without the help of a sourcing agent.
If you answered “yes” to fewer than 12 of the 20 questions, then your supply chain risk is relatively high and you should consider seeking the assistance of a sourcing agent.
4.3 What are the benefits of using a sourcing agent?
A good sourcing agent or sourcing company is actually your overseas branch.
A sourcing agent can empower your supply chain in 5 main aspects, and you can consider these benefits when deciding whether to work with a sourcing agency and who you should work with.
🔸 Get the factory direct price
If you have a decent order quantity, working with a factory is the next step in growing your company. A sourcing agent can help you distinguish between trading companies and factories and find a matching industrial cluster.
🔸 Reduce the risk of being scammed
Risks such as supplier fraud, low-quality goods, delivery delays, non-compliant goods, etc. need to be avoided by having someone deep in the supply chain. This is an essential function of a sourcing agent to reduce the risk to the customer.
🔸 Save your time.
Doing everything yourself is sometimes the main reason why businesses fail to grow, and outsourcing some of the work allows you to spend more time on sales and marketing.
🔸 Reduce communication barriers
In China, trading companies usually have salespeople who speak English, but factories only communicate in Chinese, and a local agent can ensure that the factory manufactures products exactly in the way the customer wants.
🔸 Make sure you get the quality you paid for
By failing to prepare, you are preparing to fail.
Never take it for granted that the product you receive will be what you expect. Inform the supplier that you’ll have a third party inspect the product before making the final payment.
Your sourcing agent can inspect the goods on your behalf to prevent you from receiving a container of substandard products.
4.4 Which is better for you: sourcing agent vs. trading company?
With so many benefits to buyers working with a sourcing agent, is it always better to work with a sourcing agency than a trading company?
The answer is, it depends.
It depends on the stage you’re at as a buyer and your preferences. Both have their advantages and disadvantages.
Let’s take a look at the pros and cons of sourcing agents and trading companies.
Advantages of working with a sourcing agent over a trading company:
- If you work with a sourcing agent, you can get a lower price than working with a trading company. The price difference usually will be 15-40%.
- If you work with a sourcing agent, you’ll learn more about your supply chain. Trading companies often hide information about their manufacturers.
Disadvantages of working with a sourcing agent rather than a trading company:
- If you work with a trading company, you can get a complete catalog quickly. Sourcing agents usually don’t have any.
- If you’re working with a trading company, you may be able to get a quote in less than a day. If you work with a sourcing agent, you may have to wait 3-7 days.
Conclusion of sourcing agent vs. trading company
If you’re a startup and haven’t decided what products you want to deal with, you can contact some trading companies to find out more about the product category you’re interested in.
However, if you already have a clear idea of what products you want, with detailed product specifications and estimated order quantities, a sourcing agent will be more helpful to you.
4.5 Which is better for you: sourcing agent vs. factory?
If the most significant advantage of working with a sourcing agent is that you can work with the factory, is it better to work directly with the factory without going through a sourcing agent if you can?
This is also a question that should be looked at from both sides.
Advantages of working directly with a factory without a sourcing agent:
- By working directly with the factory, you can save sourcing agent’s service fees ranging from 3-7% of the order value.
Disadvantages of working directly with the factory without a sourcing agent:
- Working directly with a factory, you need to spend more time on follow-up.
- Working directly with the factory, you’ll face any risks alone.
- Factories have higher minimum order quantities.
Conclusion of the factory vs. sourcing agent
Suppose your company has professional staff in charge of the supply chain, or you have a lot of import experience and can spend 1-2 hours a day on supplier management. In that case, I suggest you try working directly with the factory.
You can compare your A-values with your B-values to determine whether you should work directly with the factory or through a sourcing agent:
A = Order amount* sourcing agent commission percentage
B= The monetary value of your time + the risk arising rate of working directly with a factory * the amount of money that could be lost due to potential risks
If your B value is greater than your A value, it’s better to have a professional sourcing company to manage your supply chain.
4.6 Which is better for you: sourcing agent vs. alibaba.com?
If you are importing from China or have plans to do so, you must know about alibaba.com, where you can quickly find suppliers.
But why are there still many buyers working with sourcing agents even though alibaba.com is so convenient?
Let’s look at the advantages and disadvantages of sourcing agents vs. alibaba.com from a buyer’s perspective.
Advantages of using Alibaba without a sourcing agent:
- By using alibaba.com, you can save sourcing agent’s service fees ranging from 3-7% of the order value.
- At alibaba.com, you can easily search and find any product you want
- Alibaba.com’s trade assurance can protect buyers from scams
Disadvantages of using Alibaba without a sourcing agent:
- Most of the suppliers you find on alibaba.com are middlemen instead of real manufacturers.
- Alibaba will charge a 2% service fee if payment is made through alibaba.com trade assurance.
- Trade assurance can ensure that the seller will deliver the goods, but cannot guarantee that the buyer will be 100% protected in the case of a quality dispute.
- alibaba.com is not responsible for product inspection, its mechanism is to manage risk passively, i.e., a quality issue occurs, and you can go to appeal for a fair judgment. While sourcing agents work in a way that proactively identifies problems and prevents you from paying for substandard products.
Conclusion of sourcing agent vs. alibaba.com
If you don’t know anything about the product at all, you can learn the basic product specification through alibaba.com.
If you found a supplier at alibaba.com, make sure to pay with trade assurance.
When your order quantity is more than $1000, consider working with a sourcing agent to find the original factory and reduce supply chain risk.
4.7 Which is better for you: sourcing agent vs. freight forwarder?
Both sourcing agents and freight forwarders can arrange the logistics for you, and none of them own ships.
So what’s the difference between them?
How freight forwarding works and how can they get good shipping rates
Whether it’s an air or ocean freight forwarder, they usually have advantages on certain routes while carrying other routes with so-so prices.
Only when the forwarder has many customers shipping to a certain country, they can use the shipping volume to bargain with the shipping company to get a good price for that particular shipping route.
Therefore, a forwarder that is not focused on your country route is unlikely to offer you competitive prices.
How sourcing agents control logistics and shipping costs
On the other hand, sourcing agents control logistics costs very similar to the method used to source suppliers.
Based on the priority of different variables, such as transport time, unit price per cubic meter, number of transits, weight limits, etc.
Because shipping route conditions change every half month, a professional sourcing agent needs to compare and analyze more than 10 logistics options to ensure that cost, lead time, and safety are the best.
Conclusions of the sourcing agent vs. freight forwarder
As a buyer, there is no standard answer as to whether you should ship your goods with a freight forwarder or a sourcing agent.
In shipping arrangements, a freight forwarder’s solution is not necessarily better than a sourcing agent’s solution.
It is in your best interest to consider both as equal logistics solution providers and compare their logistics solutions in advance before making a decision.
A good sourcing agent can add value to your supply chain, but a bad one can increase your costs and be of no help to you.
As a buyer, you should know how to identify these bad sourcing agents and prevent them from hurting your business.
Bad sourcing agents get kickbacks from suppliers.
Sourcing agents work for the buyer, and all behavior should be in the buyer’s best interest.
However, some bad sourcing agents ask for kickbacks from suppliers, and they select suppliers based not on the quality and price of their products, but on the amount of bribes they offer.
Some sourcing agents won’t let you know about the factory.
Some sourcing agents operate as trading companies, and they hide information about real manufacturers and use various excuses to prevent buyers from visiting factories.
There is no standardized fee structure for different sourcing agents. The specific costs are related to their charging model and how much they charge for a particular product category.
Hourly or monthly rates
Sourcing agents who charge an hourly or monthly fee are usually individual freelancers or one-person companies.
They often act as virtual assistants to buyers and handle day-to-day communication with suppliers.
Typically freelance sourcing agents in China have an hourly rate of $10-25 and a monthly salary of around $700-1500.
The benefits to buyers of being charged by the hour
The advantage of freelance sourcing agents is that they can take care of the buyer’s tedious tasks, such as calling suppliers, translating product descriptions, and so on.
The downsides for buyers of being charged by the hour
The primary debate on whether or not to hire an individual sourcing agent is that just because they work long hours doesn’t mean they’re producing a lot of value for you, but you have to pay them for it.
And because they work remotely, oftentimes employers can’t guarantee that the employee is spending all of their billable hours on the project.
Fixed fee per project or task
Some purchasing agents quote their clients a fixed price for each of their services before working together.
For example, some companies charge $199 for supplier screening services and $350 for visiting suppliers on your behalf.
The benefits of a fixed fee structure for buyers are:
- Service costs are easy to calculate
- Unlike a fee structure based on a percentage of the order value, customers with large orders will not be charged more for the service.
The downsides of fixed fee structures for buyers
- Buyers need to pay for the sourcing service upfront, but the quality of service is not guaranteed
Charge a percentage of the order amount (Free Quote)
Charging a percentage of the buyer’s order amount is common for sourcing companies to charge for their services.
How sourcing agents operate under the commission rate model
Under a percentage commission charging structure, the sourcing agent does not charge for product sourcing services before working.
However, they quote the product price to the customer and receives a percentage commission for supply chain management only after the customer approves the sample and quotation.
How to choose the best sourcing agent with a commission rate model
When choosing a sourcing company, look not only at which one charges a competitive rate, but also at what services they offer and how they will perform those services.
For example, if a candidate sourcing agency’s commission rate includes quality control services, you might ask them how they control quality with questions like:
- Number of samples taken
- What to look for in a product inspection
- What to do if you find a defective product
If the candidate sourcing company gives you a vague response, even if you get a good feeling from their website, think twice about choosing them.
Initial fee + percentage of order amount
Some sourcing companies charge an initial fee before searching for a product and then charge a percentage of the order amount after the order confirmed.
Why does the upfront fee + order amount percentage structure exist?
Since 2017, purchasing agents in China are increasingly shifting to a free-quote model, charging a service fee only if the customer approves the product’s price.
But there is a downside to this fee model for sourcing agents, as the free quote model attracts many buyers who are not yet ready to import.
Even though the sourcing agents have quoted competitive prices, the buyers did not place any order because of their own reasons.
This results in a lot of wasted manpower for the sourcing company, especially for those who spend a lot of time and are serious about finding suppliers for their buyers.
That’s why some Western management sourcing companies have pioneered the upfront fee + percentage model to attract buyers who are 100% committed to starting their import business.
Upfront Cost + Percentage vs. Free Quote + Percentage
It’s not a good idea for buyers to blindly walk away from a sourcing agent that charges an upfront fee, as they may be able to offer you a better price than a free-quote agent.
Putting a markup on products
Some agents do not charge a flat fee for their services, nor do they charge a percentage of the order value. Their profit is included in the price quoted to the buyer.
Such agents are actually trading companies, but you can get them to find the product you want.
In most cases, there is no point for buyers to work with such trading company agents because they don’t focus on a particular product category, their supply chain is not transparent, and most of the prices they offer are not competitive.
6.2 what is the normal sourcing agent commission rate
The commission percentage charged by Chinese sourcing agents is usually 3 – 10% of the order amount.
How to Calculate Sourcing Agent Commission Percentage Service Fee
Air and sea freight charges are usually not counted as part of the order amount and your payment amount is calculated as follows.
The total amount you pay to the purchasing agent = order amount * commission percentage + shipping costs
The commission percentage varies slightly depending on the agent’s industry of expertise and their level of specialization.
Watch out for commission percentages that are too good to be true
Some agents claim to offer 0% commission or 1% commission, but this does not mean that you, as a buyer, will end up paying less.
The truth is, if the agent doesn’t make money from commissions, they will make money from you in other ways.
A reliable sourcing agent can reduce your sourcing costs and allow you to focus on growing your business, but how do you find a sourcing agent you can trust?
7.1 What should you check when looking for a sourcing agent?
🔸 Domain name
whois.com— Whois is a famous website where you can look up information about domain name holders and their contact details.
For those of you who are looking for a sourcing agent via the Internet, whois.com can help you know when the domain name of the sourcing agent’s website was registered.
Why is this information important? Because many sourcing agents claim to have years of experience, the truth is that they may be a new company that has just started and you have no way to verify it.
The most effective way to find out when their company started is to look at their domain registration date. You can look up any domain name directly by using the following URL:
https://www.whois.com/whois/
🔸Company Location
If you have a candidate sourcing agent, you want to know what products they specialize in. What can you do?
Yeah, ask them.
But they’ll probably mention a massive list of product categories, which is not a very honest answer. Nobody’s good at everything, but everybody is good at something.
One of the best ways to find out what products a sourcing agent specializes in is to see what city their company is located in.
Why?
Because of the advantages of Made in China come from industrial clusters.
🔸 What is an industrial cluster?
An industrial cluster is a city or town that concentrates on the production of a specific type of product and gathers raw material suppliers, processing plants, trading companies, industry associations, and other related institutions.
So the products from industrial clusters are usually available in more styles, better quality, and lower prices.
So what products do sourcing agents in different cities specialize in? I will explain further in Chapter 8.
🔸 Main products sourced
Before you work with a sourcing agent, confirm not only where they are located, but also what products they have sourced.
Because there may be multiple industry clusters in a city, an agent may only focus on some of these categories.
The following methods will help you find out if the candidate sourcing agent has experience in an industry:
🔸 Read the experience sharing blog posts on their website
If there are many articles on their website about the same type of product, it proves that the sourcing agent is quite knowledgeable about the product.
You will usually get a more reliable answer this way than if you ask them directly about their main products.
🔸 See if there are any pictures of them inspecting the goods at the factory
Product images are not always trustworthy, as they can be downloaded anywhere online, but product inspection images with their staff faces or company logos are usually the best proof that they have solid experience.
🔸 Experience of exporting to your country
If a sourcing agent has exported to your country, they will likely have a better understanding of your country’s customs and product certification requirements.
For example, importing wood furniture from China to the United States will be subject to anti-dumping duties, and an experienced sourcing agent will know how to avoid them.
You can ask your candidate sourcing agent what to look out for when exporting to your country.
You can also look at their previous export bills of lading and certificates of origin documents. These are details that prove they have experience in exporting to your country.
🔸 Customer reference
When you’re interviewing candidate sourcing agents, their descriptions of themselves may be exaggerated or not entirely accurate.
The best way to get to know them is to talk to the clients they’ve worked with.
When you ask a purchasing agent for a satisfied customer reference, avoid requesting customers who have the same product and country as you.
Because this would compromise the privacy of the original customer, you can ask the sourcing agent to provide a customer case from the same country like yours, but deals with a different product category.
🔸 Transparency in the supply chain
Transparency in the supply chain is the main difference between a sourcing agent and a trading company.
Transparency in the supply chain can be seen in the following questions:
- As a buyer, do you know the manufacturer’s information?
- As a buyer, can you visit the factory before you place an order?
- As a buyer, do you see the breakdown of the costs incurred in the supply chain?
If the answer to all three of these questions is “no,” then your sourcing agent is actually operating as a trading company.
🔸 After-sale Policy
Your purchasing agent is your representative in the country where the goods are produced, and the qualifications of the suppliers they find are directly related to the quality of the product.
Before working together, you need to make sure that you understand how your sourcing agent will handle any problems that arise.
- What if I receive a shipment and find that the quantity is low?
- What if I receive a shipment and find it to be defective?
- What if I receive goods that are damaged in transit?
These questions will give you an idea of how different sourcing agents will handle a problem when it arises; after all, it’s when the problem arises that you need their help the most.
Most sourcing agents in China are based in three cities: Guangzhou, Yiwu and Shenzhen.
How should you select a sourcing agent from these three cities?
Let’s take a look at the highlights of these three cities:
Guangzhou
- There are many wholesale markets.
- The Canton Fair is held here twice a year.
- Major products in Guangzhou:
- Clothing
- Jewelry
- Building Material
- Bags and Luggage
- Fabric
- Hotel & Restaurant Supplies
- Auto Parts
- Wigs
- Shoes
- Industry clusters in Guangdong (Near Guangzhou):
- Longjiang – Furniture
- Zhongshan – Lighting, office furniture
- Yunfu – Stone
- Dongguan – Machinery, rubber and plastic product
Yiwu
- There is the famous Yiwu International Trade City
- The go-to place for small gifts
- Products you can buy in Yiwu:
- Jewelry & Accessories
- Hardware Tools
- Stationeries
- Socks, Gloves, and Hats
- Toys
- Locks
- Umbrellas
- Sporting Goods
- Industry clusters in Zhejiang(Near Yiwu):
- Yongkang – Power Tools
- Ningbo – Die Casting Mold
- Taizhou – Christmas Gifts
- Zhuji – Socks
Shenzhen
- There is a famous Huaqiangbei wholesale market
- It’s close to Hong Kong.
- Major products in Shenzhen:
- PCB Development
- Batteries
- SMD LEDs
- Various sensor elements
- Electric motor
- Mobile phones and components
- Smart device
- Prototyping
- Industry clusters in Guangdong (Near Shenzhen):
- Dongguan – Machinery, rubber and plastic product
When you’re looking for a sourcing company, you’ll find that some are based in China, some in the US, Australia, or other countries.
How should you choose between sourcing agencies in different countries?
Sourcing agent in your (the buyer’s or importer’s) country
Sourcing agents in the importer’s country usually have the following advantages:
- They can communicate with you better than a sourcing agent in a foreign country.
- Compared to sourcing agents in other countries, they are more familiar with your country’s import requirements.
If you read to the end
If you can read this far, you must be very committed to your import business.
This article is some of our views as a sourcing agent on how buyers can choose a sourcing company, we hope you find it helpful.
If you have any questions about sourcing agents, feel free to leave a comment for me, I will reply when I have time.
By the way, HUACI SOURCING is one of the leading sourcing companies in Guangzhou, if you want to import from China, feel free to talk to us.