The existence of traders and sourcing agents is because of the fact that there are numerous manufacturers who vary in the capability of export, knowledge of the worldwide market, domestic business performances and foreign language skills, etc. The international market demands a role to bridge the space between international buyers and manufacturers. However, while there are countless buyers (consciously or unconsciously) coping with trading companies, some buyers especially those with specific technical requirement choose to hire China Purchasing 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 in to the factories, the buyer has a better control over the production, delivery and after-sale service, and he could make sure each of 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 without the motivation to win your order or sell a particular product. Therefore, the customer is a lot more likely so that you can look for a a lot better product as he will not get confused from the exaggerated or even untrue descriptions from your trader or manufacturer.
The lack of professionalism in sourcing agents is a big concern for those global buyers, it has been a so controversial issue that people have heated debate over the advantages and disadvantages 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’ attention to their very own services and advertise that they can never turn to this unethical behavior. However, it should be admitted that all of them are essentially agents, plus they are all prone to fall into this lapse, but couple of them shed much light on answers to this problem. The issue is just due to human nature. For instance, many of them might have mixed feelings whenever they provide you with the quotations to their clients, they may ask themselves, “I found so amazing a supplier for my client, and they also get so good price, shouldn’t I deserve something more?” “The packaging and shipping cost me a great deal, and it also took me a quite a bit of effort in speaking to this supplier, do you work for my clients simply to make ends meet?”
A common practice is that some suppliers willingly give sourcing consultants or translators an accumulation hidden commission so that you can win the transaction or perhaps 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 truth for the buyer, the sourcing agent would find himself merely a tool for that suppliers and, a whole lot worse, turn out to be no long trusted through the client.
A sourcing agent can offer the purchaser 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 towards the buyer or even claim these are manufacturers for any product, while the truth is they will not be technically sound or have sufficient production capacity.
A great sourcing agent is actually a person with sound English fluency and understanding, general technical knowledge, business assessment, logistics, product design and global perspective. He is able to work perfectly on the part of the customer to gain access to suppliers, negotiate the cost and terms, do trouble-shooting, order follow-up, coordinate in urgent times, and lastly, improve the business relationship with the supplier.
In the first place, sourcing agents or representatives usually work in a smaller team or simply work alone, while trading companies work in bigger offices with multiple departments. The result will be the expenditures burdened through the latter tend to be heavier. However, a greater reason will be the conflict of interests between the trader and also the buyer, the trader will never share the manufacturer’s information (contact, original price) with all the buyers for fear that this buyer could skip the trader and deal directly with all the original supplier, in all cases, the trader strikes an arrangement with all the buyers with a hidden and highest margin, as the China Sourcing Agent works well with the customer with a clear-set service fees. Along with the expense factor, the price the buyer could easily get coming from a trader is a lot higher than the fees he has to pay a sourcing agent.