Why Use a China Sourcing Agency Over Self-Sourcing?
When companies decide to buy directly or develop new products overseas, they face a crucial choice. Should they find a manufacturer on their own, or work with a China sourcing agency? The right agency can streamline the process and save them time and hassle.
At first, saving money by handling everything yourself seems like a good idea. This is especially true for entrepreneurs who face new and challenging tasks every day. However, those who choose this path often find the process harder and more expensive than they anticipated.
Chinese factories are notorious for being hard to work with for Western businesses. The language gap creates miscommunications about products, intentions, and timelines, while the cultural differences can leave both sides feeling taken advantage of. Additionally, hidden costs can quickly add up. Without experience, your landed products may end up costing much more than you originally negotiated.
But China sourcing agents can also be a mixed bag, so it’s important to choose a reputable company with many years of experience.
11 Benefits of Using a China Sourcing Agency
You can overcome the challenges in sourcing and manufacturing in China by tapping into a reliable and well-established sourcing agency like Sphere Resources. Learn what you can gain through such partnership.
1. Reduce the Financial Risks
Sourcing overseas by yourself comes with substantial risks. To meet the minimum quantity requirement of most Chinese factories, you’ll be investing thousands of dollars in products.
If the products arrive damaged due to improper packaging, you’ll face difficulties getting your money back. If the quality differs from your sample, you’ll have little recourse to resolve the issue.
A sourcing agent can help you perform thorough due diligence. This ensures you feel confident about your products at every step. If something goes wrong, the agent can be in the country to help resolve the issue. They will also fight for your interests.
2. More Time to Focus on Your Core Business
If you’ve ever been on Alibaba, you know just how long it can take to speak with one supplier. Talking with ten to twenty suppliers, doing due diligence, and negotiating can take up a lot of time.
On top of that, navigating logistics and troubleshooting issues can be time-consuming. All of this, combined with operating on China time, can distract you from focusing on what your business does best.
By using a sourcing agent, you’ll work with one person. They will gather the information they need and find a product that meets your specifications and price range.
3. Bridge Cultural & Language Gaps
Chinese manufacturers often rely on inaccurate online translation tools to speak with you. This can create major problems, especially when a typo or a misspelling could completely change the result of an automatic translation.
Additionally, Chinese business culture is about as different as you can get from standard Western practices. It’s common for those unfamiliar with the differences to have a deal to fall through without having any idea what happened.
Sourcing companies are often made up of Chinese people who have experience with Western culture and language. In the case of Sphere Resources, our company was founded and is run by an Australian. We also have English-speaking Chinese employees.
Because of this, our sourcing company can communicate with both sides in their native language. We can also work with them using cultural practices they are most comfortable with.
4. Perform Sample Checks by China Sourcing Agency
Ordering samples from China can quickly add up. It’s not uncommon for a single sample to cost around $50-300. Additionally, it often takes weeks for them to arrive from China.
Your chosen China sourcing agency can have samples shipped to their offices to check the quality and relay pictures and videos to you. Anything that doesn’t match your quality requirements will be rejected and then you’ll be able to decide what samples you want to have shipped to you for further inspection.
5. Save on Hidden Fees & Shipping
One common issue inexperienced sourcers have run into is an invoice that looks very different than what was previously agreed on, especially for the final payment when you’re already paid half. The factory might claim that these charges are standard and without experience or being in the country, it will be hard to argue.
Sourcing agents can protect you from these kinds of shady dealings by signing a legally binding Chinese contract with the factory when you originally agreed to the terms. Additionally, they will ensure that freight forwarders don’t overcharge you for shipping. Thus, helping you achieve seamless logistics solutions.
6. Negotiate Prices & Payment Terms
Along with saving you money on shipping and hidden fees, sourcing agents have years of experience negotiating with factories and can end up giving you a better price per item than if you had done it yourself. In addition, they know how to negotiate in a way that saves face with the factory which is important to maintain a long-term relationship.
Payment terms are also a very important part of these negotiations which can allow you to hold onto more of your money until the production process is complete.
7. Perform Regular Quality Control Checks
A reliable China sourcing agency can also perform quality control and factory inspections before and after production. This allows them to ensure the factory is able to do what they are promising and won’t outsource it to an unknown 3rd party as has been known to happen on Alibaba.
Additionally, they can inspect products and packaging at different stages to ensure the quality is in line with the contract they agreed to, along with sending you pictures and videos of its progress. This can save you thousands of dollars and weeks of time from making a trip to China and hiring a translator.
8. Find Factories that Aren’t Listed Online
Most factories don’t have any kind of online presence. They rely on sourcing agents and their contacts for continued business.
This means that using a sourcing agent opens you up to so many more suppliers than are listed on Alibaba making it more likely for you to find a supplier that will meet your price and quality requirements. You can also check if their business is listed in directory sites like fashionlistings.org – Clothing General Listings.
9. Expert Advice on Logistics from China Sourcing Agency
If you’re starting from scratch, every single part of the sourcing experience can be overwhelming. Often, articles don’t answer your exact question and finding experts willing to give you advice for free is impossible. While you won’t need to concern yourself with many of these tasks and questions when using a sourcing agent, there are still some major decisions you’ll need to make.
Your sourcing agent will be an asset to you as you consider what quantities to order, what method to use for shipping, whether to warehouse some products in China and when to place your order.
10. Legal Standing Inside China
If things do go seriously awry, you won’t be out of luck if you’re using a sourcing agent. They rely on their reputation for continued business and will go to bat for you to make the supplier fulfill the terms of the contract. Because their company is registered in China, they are much more likely to succeed in Chinese courts than a non-Chinese company.
11. Benefit from Support Services
Lastly, most sourcing companies like Sphere Resources offer a variety of services to meet your company’s offshoring needs. This includes project support, China office representation, factory audits, and much more. Sphere Resources offers the use of our design team and office space for ongoing projects free of charge among other things.
Why Choose Sphere Resources as Your China Sourcing Agency?
Sphere Resources has years of sourcing experience in a wide variety of industries. Headquartered in the heart of southern China manufacturing, our team is able to quickly deliver quotes based on your requirements and specifications.
Additionally, our founder and director of sales, Sam Clay, is an Australian who has been living in China for over 15 years. This means your needs and expectations for quality products and services will be better understood and met by our team
Contact us to get started on a free quote.
