The presence of traders and sourcing agents is due to the fact there are numerous manufacturers who vary in the capability of export, knowledge of the international market, domestic business performances and foreign language skills, etc. The global market requires a role to bridge the gap between international buyers and manufacturers. However, while there are numerous buyers (consciously or unconsciously) working with trading companies, some buyers especially those with specific technical requirement would rather hire China Sourcing Agent. So why do they shift from traders to a sourcing agent or sometimes not even directly deal with a manufacturer?
With an excellent 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 has a better control over the development, delivery and after-sale service, and then he will make sure all of the followup information he receives is valid and proved. Secondly and even more importantly, the sourcing agent can jointly or independently learn suppliers information and negotiate with all the suppliers without the motivation to win your order or sell a particular product. Therefore, the purchaser is much more likely to be able to find a more suitable product because he does not get confused by the exaggerated or even untrue descriptions through the trader or manufacturer.
The absence of professionalism in sourcing agents is a big concern for many global buyers, it has been a so controversial issue that people have heated debate over the pros and cons of employing a sourcing agent. Numerous buying offices and sourcing agents themselves have a tendency to accuse the conduct of taking kickbacks, and after doing this they shift the buyers’ attention to their very own services and advertise that they may never make use of this unethical behavior. However, it needs to be admitted that all of them are in essence agents, plus they are all likely to fall into this lapse, but couple of them shed much light on solutions to this problem. The difficulty is simply due to human nature. For example, many of them might have mixed feelings when they provide you with the quotations to their clients, they could ask themselves, “I came across so amazing a supplier for my client, and they also get so excellent price, shouldn’t I deserve something more?” “The packaging and shipping cost me so much, and it took us a a substantial amount of effort in talking to this supplier, should i work for my clients simply to make ends meet?”
A common practice is the fact that some suppliers willingly give sourcing consultants or translators an amount of hidden commission in order to win the transaction or even the latter asks for kickbacks through 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 facts towards the buyer, the sourcing agent would find himself merely a tool for your suppliers and, worse, turn out to be no long trusted by the client.
A sourcing agent can provide the purchaser with full information on registration details, official documents, latest photos and written reports regarding the factory including offices, production lines, warehouses, quality control station, lab equipment, etc to gain access to the factory’s qualifications, credibility, production capacity and technical expertise. But traders nmnwti send any data towards the buyer or perhaps claim these are manufacturers of any product, while the truth is they may not be technically sound or have sufficient production capacity.
A great sourcing agent is a person with sound English fluency and understanding, general technical knowledge, business assessment, logistics, product design and global perspective. He could work perfectly on behalf of the customer to access suppliers, negotiate the purchase price and terms, do trouble-shooting, order follow-up, coordinate in urgent times, lastly, boost the business relationship using the supplier.
To begin with, sourcing agents or representatives usually work in a smaller team or just work alone, while trading companies work in bigger offices with multiple departments. The effect is the expenditures burdened from the latter are far heavier. However, a bigger reason will be 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 the buyers for fear that this buyer could skip the trader and deal directly with the original supplier, in all cases, the trader strikes an agreement with the buyers in a hidden and highest margin, while the China Buying Agent works for the buyer with a clear-set service fees. Coupled with the expense factor, the purchase price the purchaser could get from the trader is significantly more than the fees he has to pay a sourcing agent.