The existence of traders and sourcing agents is due to the fact there are numerous manufacturers who vary in the capability of export, understanding of the international 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 in particular those with specific technical requirement would rather hire China Purchasing Agent. Why do they shift from traders to a sourcing agent or sometimes not even directly cope with a manufacturer?
With a good 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 of the production, delivery and after-sale service, and then he could make sure each of the followup information he receives is valid and proved. Secondly and even more importantly, the sourcing agent can jointly or independently discover suppliers information and negotiate using the suppliers with no motivation to win your order or sell a particular product. Therefore, the purchaser is more likely so that you can locate a more desirable product because he fails to get confused through the exaggerated or perhaps untrue descriptions from your trader or manufacturer.
Lacking professionalism in sourcing agents is a huge concern for many global buyers, it has been a so controversial issue that people have heated debate over the advantages and disadvantages of getting a sourcing agent. Numerous buying offices and sourcing agents themselves have a tendency to accuse the conduct of taking kickbacks, and after accomplishing this they shift the buyers’ attention to their own services and advertise that they may never make use of this unethical behavior. However, it needs to be admitted that all are in essence agents, and they are generally all likely to belong to this lapse, but few of them shed much light on methods to this matter. The issue is just due to human nature. For example, a number of them may have mixed feelings when they offer the quotations for their clients, they may ask themselves, “I came across so amazing a supplier for my client, and they also get so good price, shouldn’t I deserve some thing?” “The packaging and shipping cost me a great deal, and it also took us a quite a bit of effort in talking to this supplier, do you benefit my clients only to make ends meet?”
A standard practice is the fact that some suppliers willingly give sourcing consultants or translators an accumulation hidden commission to be able to win an order or even the latter asks for kickbacks through the suppliers, however, this practice is not only unethical and unprofessional, but also practically unsustainable, because although unlikely some day the suppliers could tell the truth to the buyer, the sourcing agent would find himself only a tool for your suppliers and, a whole lot worse, turn out to be no long trusted through the client.
A sourcing agent can provide the purchaser with full info on registration details, official documents, latest photos and written reports about 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 towards the buyer as well as claim they are manufacturers of any product, while the reality is they may 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 behalf of the purchaser to gain access to suppliers, negotiate the purchase price and terms, do trouble-shooting, order follow-up, coordinate in urgent times, and lastly, enhance the business relationship with 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 through the latter are much heavier. However, a bigger reason is definitely the conflict of interests involving the trader and also the buyer, the trader will never share the manufacturer’s information (contact, original price) with the buyers for fear the buyer could skip the trader and deal directly with all the original supplier, in every case, the trader strikes an arrangement with all the buyers with a hidden and highest margin, whilst the China Sourcing Agent works for the purchaser in a clear-set service fees. In conjunction with the cost factor, the cost the purchaser could get from the trader is much greater than the fees he must pay a sourcing agent.