The existence of traders and sourcing agents is because of the fact there are numerous manufacturers who vary within the ability of export, understanding of the international market, domestic business performances and foreign language skills, etc. The worldwide market demands a role to bridge the space between international buyers and manufacturers. However, while there are numerous buyers (consciously or unconsciously) dealing with trading companies, some buyers particularly those with specific technical requirement would rather hire China Purchasing Agent. So why do they shift from traders to a sourcing agent or sometimes not even directly cope with a manufacturer?
With a great sourcing agent, the buyer’s interests are fully enacted in a very controlled manner. Firstly, with someone getting deep in to the factories, the customer includes a better charge of the production, delivery and after-sale service, and then he will make sure all of the followup information he receives holds true and proved. Secondly and most importantly, the sourcing agent can jointly or independently discover suppliers information and negotiate using the suppliers without any motivation to win a purchase or sell one specific product. Therefore, the customer is more likely in order to locate a more desirable product as he will not get confused from the exaggerated or perhaps untrue descriptions from the trader or manufacturer.
The absence of professionalism in sourcing agents is a huge concern for all global buyers, it has been a so controversial issue that people have heated debate over the pros and cons of getting a sourcing agent. Numerous buying offices and sourcing agents themselves often accuse the conduct of taking kickbacks, and after doing so they shift the buyers’ focus on their particular services and advertise that they will never turn to this unethical behavior. However, it should be admitted that all are essentially agents, plus they are all likely to fall under this lapse, but few of them shed much light on methods to this problem. The difficulty is simply as a result of human nature. As an example, a number of them might have mixed feelings when they provide the quotations for their clients, they could ask themselves, “I found so amazing a supplier for my client, plus they get so excellent price, shouldn’t I deserve something more?” “The packaging and shipping cost me so much, plus it took us a quite a bit of effort in speaking to this supplier, should i work with my clients simply to make ends meet?”
A typical practice is that some suppliers willingly give sourcing consultants or translators an accumulation hidden commission in order to win an order or the latter asks for kickbacks from your suppliers, however, this practice is not only unethical and unprofessional, but also practically unsustainable, because although unlikely in the future the suppliers could tell the reality to the buyer, the sourcing agent would find himself only a tool for the suppliers and, a whole lot worse, become no long trusted from the client.
A sourcing agent can provide the customer with full information about registration details, official documents, latest photos and written reports regarding the factory including offices, production lines, warehouses, quality control station, lab equipment, etc to access the factory’s qualifications, credibility, production capacity and technical expertise. But traders nmnwti send any data for the buyer or perhaps claim they may be manufacturers of the product, while the fact is they might not be technically sound or have adequate production capacity.
A great sourcing agent is really a person with sound English fluency and understanding, general technical knowledge, business assessment, logistics, product design and global perspective. He is able to work perfectly on the part of the buyer to get into suppliers, negotiate the purchase price and terms, do trouble-shooting, order follow-up, coordinate in urgent times, and finally, improve the business relationship with the supplier.
In the first place, sourcing agents or representatives usually work in a smaller team or simply work alone, while trading companies operate in bigger offices with multiple departments. The result will be the expenditures burdened from the latter are far heavier. However, a larger reason is the conflict of interests in between the trader and also the buyer, the trader will never share the manufacturer’s information (contact, original price) with all the buyers for fear the buyer could skip the trader and deal directly with all the original supplier, in every case, the trader strikes a deal using the buyers at a hidden and highest margin, while the China Sourcing Agent works best for the buyer in a clear-set service fees. Coupled with the cost factor, the price the customer might get from a trader is a lot more than the fees he needs to pay a sourcing agent.