The existence of traders and sourcing agents is simply because that 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 needs a role to bridge the gap between international buyers and manufacturers. However, while there are many buyers (consciously or unconsciously) dealing with trading companies, some buyers in particular those with specific technical requirement prefer to hire China Buying Agent. Why do they shift from traders to a sourcing agent or sometimes not even directly cope 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 to the factories, the purchaser features a better control of the production, delivery and after-sale service, and he can make sure all the followup information he receives is true and proved. Secondly and most importantly, the sourcing agent can jointly or independently discover suppliers information and negotiate with all the suppliers with no motivation to win a purchase or sell one particular product. Therefore, the buyer is much more likely to be able to look for a more suitable product because he will not get confused from the exaggerated or perhaps untrue descriptions from your trader or manufacturer.
Lacking professionalism in sourcing agents is a major concern for many global buyers, it has been a so controversial issue that individuals have heated debate over the pros and cons of getting a sourcing agent. Numerous buying offices and sourcing agents themselves tend to accuse the conduct of taking kickbacks, and after accomplishing this they shift the buyers’ attention to their own services and advertise that they will never resort to this unethical behavior. However, it ought to be admitted that all of them are in essence agents, and they are all prone to fall under this lapse, but couple of them shed much light on solutions to this problem. The difficulty is just due to human nature. For instance, a number of them could have mixed feelings when they provide the quotations for their clients, they could ask themselves, “I found so amazing a supplier for my client, and they also get so excellent price, shouldn’t I deserve some thing?” “The packaging and shipping cost me so much, and it also took me a quite a bit of effort in speaking to this supplier, do I work for my clients simply to make ends meet?”
A standard practice is that some suppliers willingly give sourcing consultants or translators an amount of hidden commission so that you can win the order or perhaps the latter asks for kickbacks from your 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 a mere tool for your suppliers and, worse, become no long trusted by the client.
A sourcing agent can provide the buyer 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 access the factory’s qualifications, credibility, production capacity and technical expertise. But traders nmnwti send any data to the buyer or even claim they are manufacturers of any product, while the truth is they will 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 can work perfectly for the buyer to get into suppliers, negotiate the price and terms, do trouble-shooting, order follow-up, coordinate in urgent times, and finally, improve the business relationship using the supplier.
To begin with, sourcing agents or representatives usually work in a smaller team or simply work alone, while trading companies function in bigger offices with multiple departments. The result is definitely the expenditures burdened by the latter are far heavier. However, a greater reason is the conflict of interests between the trader and the buyer, the trader will never share the manufacturer’s information (contact, original price) using the buyers for fear that this buyer could skip the trader and deal directly using the original supplier, in every case, the trader strikes a deal using the buyers in a hidden and highest margin, as the China Purchasing Agent works for the purchaser at a clear-set service fees. Along with the expense factor, the purchase price the purchaser could get from a trader is significantly greater than the fees he must pay a sourcing agent.