How Product Sourcing Companies in China Can Help Your Save Money?



Like the majority of business owners, you also want to get the best deal on your purchases. You should be aware at this point that the quoted price is almost never the final price.

It is time to start seriously negotiating to iron out the last few aspects, most particularly the price, once you have reduced your list of suppliers to a select few (3 to 8 is a fair amount).

Negotiations are expected and considered standard practise in Chinese society. Be aware, however, that certain product sourcing companies in China have years, if not decades, of bargaining expertise, especially when working with Chinese factories.

Your one-stop shop for managing your demands for an international supply chain is a China sourcing agent. Whether your organisation is new to importing Chinese products or you need to bulk order specialist goods, a good sourcing agent will significantly simplify your life.

The most important thing that every business company wants to know is how to find a reliable product supplier in China. One of the most crucial choices you are likely to make for your company, because the improper supplier and subpar products can drastically harm your standing and potential customer relationships.

It takes expertise, awareness, and a lot of research to choose the right product sourcing companies in China. Let us discuss in this post, how a presence of certain Chinese sourcing service can make a difference.

What are China sourcing agents?

In order to deliver products that are suitable for the demands of the consumer, a sourcing agency or corporation seeks for reliable partners and suppliers.

These can be products with a focus on low price and trustworthy quality that may not meet the highest standards, or they might be high-grade expensive goods.

Agents in China can execute a range of tasks, from associating the Western clients with Chinese suppliers to buying on behalf of the clients' company.

The list of supplementary services typically includes negotiating price, maintaining quality control, compliance with international rules, factory audits, logistics, or any other tasks desired by the buyer.


How to find a good source in China?

1. Do your research

You can create a shortlist by beginning your search on Google or sourcing websites like Alibaba, but keep in mind that these searches typically turn up resellers rather than manufacturers.

Additionally, platforms like Alibaba let merchants to purchase premium status, which enhances their credibility on the website.

2. Select a supplier as per your exact needs

We advise locating the company you want and sourcing from them directly or through any product sourcing companies in China if you are looking for products with special technical specifications.

You can (eventually) go to trade shows and expos to see the goods in person and speak with suppliers.

3. Check their credentials

Once you have chosen a few providers, it is time to determine if they can fulfil their promises. You need to conduct the following to verify their legitimacy:

  • Request for their audited accounts

  • Valid certifications

  • Product samples

  • Their Chinese name, location

  • References from their clients.

4. You will get exactly what you pay for

For products that give their businesses an advantage through cheaper production costs, most people consider China as such source. But keep in mind that cost and quality are mutually exclusive.

Avoid any supplier who offers products for less than base cost; chances are, the quality will suffer significantly, which could have an impact on lead times, the success of your brand, and ultimately, your reputation.

In China you will get both "cheap and bad" and "expensive and excellent" goods. Hence, make a wise choice.

5. Communicate clearly

By making sure every contact you have with your supplier is as clear as possible, you may prevent expensive errors and delays.

Most supply issues can be linked to communication issues, whether as a result of language barriers or cultural miscommunications.

Most of the time, you may comprehend the words, but not the message that the speaker meant. Write everything down as precisely and completely as you can. Make no assumptions at all!

6. Quality control

The greatest approach to guarantee a high-quality product is through routine inspections. The cost of problems discovered later in the production process is always higher.

Since it is practically impossible to send back a damaged shipment, it is crucial to implement strict quality controls in China both during and after production (a few days before shipment).

Most of the time, you may check the products' production quality while they are still in the plant. Checking the first things finished is one of the best ways to find problems. The factory can then correct any flaws before they cause major, expensive problems.

To prevent any quality mishaps before the products ship, final random inspections are also a fantastic idea. But if the issues are severe, it might already be too late.

How a sourcing agent in China can help you?

The presence of any product sourcing companies in China can be useful to you in the following ways.

1. Help you to know the real price

You ought to have a good understanding of the item's actual manufacturers' price after building your list of prospective suppliers. You must learn as much as you can about a subject in order to succeed. Understanding a product's true cost comprises:

  • How much each customization will cost

  • Expected price for your quantity orders

  • The manufacturing process of your item


A sourcing agent can assist you in understanding the price range being given and determining what you ought to be paying for your product. You can source your product with confidence if you have more information.

2. Contact multiple factories

The more factories you speak to when sourcing, the more likely you are to identify the ideal one. You should have more options and be able to compare different manufacturing quotations after this stage.

Knowing the names of the several factories that are producing the goods you are looking for requires extensive market knowledge. To help you with this, your sourcing agent is the best person to turn to.

3. Don’t forget shipping

International shipping cost can be very high, sometimes even exceeding the cost of the merchandise. The goods are delivered to the export port under different shipping conditions, such as FOB, which will cover some shipping routes but have a higher quoted price from your supplier.

Your sourcing representative can discuss shipping conditions with your vendors and obtain quotes from freight forwarders.

4. Negotiate in the local currency

You must understand Chinese exchange rates and how to pay a supplier to make things even simpler, you can use your sourcing agent's services to open a bank account in China.

Just because you have done something a certain way for a long time does not mean it is right. An experienced agent in China can assist you with pricing negotiations.

5. Save time and money and increase efficiency

In business, time is the most valuable resource. You may always use it to produce additional value and income. Don't waste it! Yes, sourcing companies from China charge for their services.

However, with their knowledge, you may avoid time- and money-consuming mistakes. Their extensive partner network and comprehension of the Chinese sourcing business can be advantageous to you.

They are based in mainland China and regularly travel between the major commercial hubs, making it easy for them to visit potential manufacturers or sourcing partners for your needs.

They must bargain on your behalf, which is usually in their best interests because it regularly affects their salary (commission).

6. Avoid misunderstandings because of cultural differences

Fluent in Chinese, sourcing agents may speak and bargain with potential producers and companies without the need of a translator.

This reduces misunderstandings, which are frequently experienced, particularly in China and among Chinese people, as a result of the pronounced linguistic and cultural disparities.

However, more significantly, any sourcing agent from China is quite familiar with Chinese business etiquette, particularly how to conduct negotiations.

Then you might imagine, there are a lot more traps. Similar to that, sourcing representatives can provide you with proposals and product information in your native language and are fluent in English.

Hire a professional product sourcing company in China

There is nothing wrong with asking for assistance, even if you are secure in your own abilities. Hiring certain product sourcing companies in China to assist you may be a smart option if this is your first-time directly sourcing from China.

Sorting out the specifics of where to obtain your product could take you hours, if not days or weeks. You could be better off engaging a partner to assist you with sourcing when your time is valuable.

Spending less time on sourcing means less time building up your new business or product. Working with a professional will relieve you of one significant worry and let you to concentrate on.

Even though there are a few trustworthy businesses, make sure the one you choose has a transparent business plan and does not rely on commission. You must locate one who will inform you at each stage.

You probably already have enough on your plate hiring a reputable sourcing firm will ensure that everything goes as planned and that you don't overpay for subpar goods.

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