The existence of traders and sourcing agents is simply because that we now have numerous manufacturers who vary within the capability of export, knowledge of the worldwide market, domestic business performances and foreign language skills, etc. The international market needs a role to bridge the space between international buyers and manufacturers. However, while there are numerous buyers (consciously or unconsciously) coping with trading companies, some buyers particularly those with specific technical requirement would rather hire China Sourcing Agent. How come they shift from traders to a sourcing agent or sometimes not even directly handle a manufacturer?
With an excellent sourcing agent, the buyer’s interests are fully enacted in a very controlled manner. Firstly, with someone getting deep to the factories, the customer has a better control of the development, delivery and after-sale service, and 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 the motivation to win your order or sell a particular product. Therefore, the customer is a lot more likely in order to find a more desirable product because he fails to get confused by the exaggerated as well as untrue descriptions from your trader or manufacturer.
The lack of professionalism in sourcing agents is a big concern for many global buyers, this has been a so controversial issue that folks have heated debate over the pros and cons of employing a sourcing agent. Numerous buying offices and sourcing agents themselves tend to accuse the conduct of taking kickbacks, and after doing this they shift the buyers’ awareness of their particular services and advertise that they can never make use of this unethical behavior. However, it ought to be admitted that all of them are basically agents, plus they are all prone to fall under this lapse, but couple of them shed much light on methods to this issue. The problem is simply due to human nature. For example, some of them may have mixed feelings when they provide you with the quotations for their clients, they may ask themselves, “I came across so amazing a supplier for my client, and they get so good price, shouldn’t I deserve some thing?” “The packaging and shipping cost me a great deal, and it also took me a quite a bit of effort in speaking with this supplier, do I benefit my clients just to make ends meet?”
A typical practice is the fact that some suppliers willingly give sourcing consultants or translators an amount of hidden commission to be able to win the order or even the latter asks for kickbacks from the suppliers, however, this practice is not merely unethical and unprofessional, but additionally practically unsustainable, because although unlikely in the future the suppliers could tell the truth for the buyer, the sourcing agent would find himself only a tool for your suppliers and, worse, turn out to be no long trusted by the client.
A sourcing agent can offer the buyer with full information on registration details, official documents, latest photos and written reports concerning 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 to the buyer or perhaps claim these are manufacturers of any product, while the fact is they might not be technically sound or have enough production capacity.
An excellent sourcing agent is actually a person with sound English fluency and understanding, general technical knowledge, business assessment, logistics, product design and global perspective. He could work perfectly on the part of the buyer to access suppliers, negotiate the cost and terms, do trouble-shooting, order follow-up, coordinate in urgent times, lastly, enhance the business relationship using the supplier.
To begin with, sourcing agents or representatives usually work in a smaller team or simply just work alone, while trading companies operate in bigger offices with multiple departments. The result is definitely the expenditures burdened by the latter are much heavier. However, a bigger reason is definitely the conflict of interests involving the trader and the buyer, the trader will never share the manufacturer’s information (contact, original price) using the buyers for fear that the buyer could skip the trader and deal directly using the original supplier, in every case, the trader strikes a deal using the buyers with a hidden and highest margin, while the China Buying Agent works best for the purchaser at a clear-set service fees. In conjunction with the cost factor, the cost the buyer could easily get coming from a trader is significantly more than the fees he must pay a sourcing agent.