Solutions Offered by China Sourcing Agent in Asian Wholesale Markets



Your wholesale business can be highly profitable if you prefer to import low-cost products from a certain Asian country like China. Many of you must have not done any business with any Chinese company, hence it may appear to be quite complicated and risky.

However, those who have already crossed the bridge will know that it can be quite easy. You are able to leverage many benefits by sourcing products in China.

It may require a little time and patience to find the right supplier, then negotiate the price, and at last finalize a profitable deal.

Finding a supplier can be challenging for many companies. When they discover that the delivered products often do not meet the specifications of the claims made by the vendors, the situation becomes even more difficult.

You will require enough knowledge of the Chinese market to be able to prevent these events. It is crucial that you are aware of how to interact with these suppliers.

This is why most businesses seek for a knowledgeable China buying agent to facilitate and profit from sourcing from this Asian wholesale market.

How to set up your wholesale business?

You should take the following steps to set up your wholesale business.

1. Get your wholesale license

There may not be a need for a wholesale licence for the commodities you intend to import from China. Then why should you submit a license application?

Every state has a sales tax, and you would not like to pay taxes on your purchases both at the manufacturer and at the point of sale to local customers.

You can purchase goods in large quantities with the purpose of reselling them without paying taxes if you have a wholesale licence. A sales tax licence may also be required for your company. 

2. How to apply for a wholesale license?

You can start by visiting the US Customs website to learn more about what is needed to obtain a wholesale licence. The licence requirements may vary from state to state.

For instance, you might need to comply with FDA rules if you import skincare or hair care products from China.


The following are the steps you need to follow to obtain your wholesale license:

  • Log in to your local official website

  • Understand the requirements of wholesale license

  • Set up your business

  • Apply for your sales tax ID

  • Submit your application

3. What does the wholesale license cost?

Various states have different requirements for obtaining a wholesale licence. As a result, the price of a wholesale licence may vary between states.

4. Find the right China wholesale suppliers

Finding the correct wholesale suppliers in China is the most crucial step in starting a wholesale business there.

You have two options:

  • Take the subsequent flight to China and begin looking for the ideal producers and suppliers

  • Choose the second-best course of action i.e., hiring a product sourcing agent.

What is a sourcing agent?

As we indicated at the beginning, a China sourcing agent works closely with you to look for, discover, and negotiate with any wholesale suppliers and manufacturers in China.

Additionally, China sourcing agents may also assist you with your:

A good China sourcing agent will have the following attributes:

  • Fluent in both English and Mandarin

  • Has in-depth knowledge of the culture of Chinese business        

  • Has extensive understanding of handling Chinese suppliers

  • Experienced in quality control

  • Experienced in both audit and logistics

A total game changer for your company can be a partnership with the proper sourcing agent and any Chinese suppliers. A qualified China sourcing agency may assist you in finding high-quality goods at incredibly low costs, improving the cost-effectiveness of your company.


How can you expand your China wholesale business?

You must find the appropriate products in China from the appropriate providers. If you are new to this Asian wholesale market, it is recommended to start small. The following phase is to expand your wholesale operation in China.

The supply chain can be merged to increase profitability. Traditionally, you would buy products from China in bulk and resell them to merchants, and subsequently resell them to customers.

By avoiding middlemen and selling directly to the customer, you might be able to expand your business.

An efficient pricing strategy will be very beneficial to your China wholesale business. The ideal sourcing agent can find the suppliers who can provide the goods at a competitive price.

You must adjust your pricing strategy, if you want to expand your business and customer base. By properly pricing your goods, you may recover costs while still offering your customer a high-quality item at a competitive price.

The products' low prices and high quality are China's biggest selling point. The price you pay is strongly related to the calibre of your goods.

You may face legal repercussions if you source any product that does not adhere to laws and standards, which will end up costing you money in the long run.

When establishing a sales agreement with Chinese vendors, you should exercise caution. To ensure that you only receive high-quality products, make sure to provide crucial details like product specifications, quality assurance, and return policies.

Risks associated with buying from this Asian wholesale supplier can be reduced by working with competent personnel and paying attention to the small print. In the end, the advantages of sourcing goods from China outweigh the drawbacks.

Professional sourcing agents in China act as a middleman between foreign buyers and Chinese vendors.

In a country like China, where there are many of suppliers accessible and prepared to work and where product quality and compliance with international standards are frequently criticised, they play a significant part in the entire buyer-supplier paradigm.

The following are some benefits of using experienced sourcing agents in China:

1. They can check the product details

The sourcing agents will review the product information, which includes the following:

  • Product information

  • Product photos

  • Materials

  • Sizes

  • Quantity

  • Packing

Based on the vital inquiry specifics, this information aids the China sourcing agent in locating the appropriate supplier for the clients. Suppliers can provide you their best and lowest pricing in this manner.

2. Find qualified Chinese manufacturer

Chinese sourcing agents work on your behalf to find a qualified Chinese manufacturers.  One of the most important steps in your business is this.

It is advisable to hire a sourcing agency with experience in your sector, if you are an overseas buyer who is unfamiliar with the local language or business norms, etiquette, and transactions.

3. Visit the manufacturer

These representatives are independent contractors. They could be a Chinese-based business, an individual, or a group of people. As a result, they can go to the wholesaler's go-down or the manufacturer's plants as needed.

4. Negotiate with your manufacturer

They also aid in negotiations with the manufacturer. Additionally, they assist with the creation and conclusion of agreements and negotiations, the management of the supply chain, and the preparation of documents for product distribution.

They will work like a part of your firm with your best interests in mind from starting to end, that is, from looking for the best manufacturer to making sure that high quality items are sent out of China.

5. Track your order

The contracted China purchasing agent will continue to monitor the status of the orders after the client places confirmed purchase orders.

In this manner, the agent may guarantee timely lead generation, delivery, quality, and quantity, as well as inform clients of the most recent tracking status.

6. Do quality control

Quality control is really important. Foreign businesses who purchase goods from China are unable to visit the continent and assess the quality prior to delivery.

The clients' task is made simpler by purchasing agents. To ensure that the promised goods would be delivered, they verify the quality.

On your behalf, they will perform audits, in process quality inspections, and quality control checks. They are able to guarantee that the goods produced and delivered in response to a buyer's order are of the highest quality and adhere to the required requirements. 

7. Provide warehouse facilities

It goes without saying that an agency will have a warehouse when an agent is working with it. The customers will have full access to the warehouse's amenities. It facilitates China sourcing for foreign businesses that don't have a warehouse there.

8. Inspect container loading

Large and heavy things are loaded first on the floor against the front wall of the container by experienced agents. To make sure everything is in order, they will also carefully verify the container loading.

9. Work on China custom clearance

The agency will provide China customs with the necessary documentation regarding the originating goods. This action is necessary to follow the law in the nation. 

10. Arrange shipping

Once the loading has been done, the sourcing agents will then send the containers to the respective loading ports for shipping.

Therefore, to conduct successful business with China suppliers, a sourcing agent plays a very important role.

Recent Blogs
Want to speak with our key account manager?
We speak your language.

Our Features