It is essential to find a reliable manufacturer who can supply the right materials for your product if you are starting a business. The manufacturer you choose to work with is the foundation of your company. Your overall worthiness is a key component of how your customers perceive you. A good supplier will help you acquire high-quality products that will be appreciated by your customers and result in repeat business. A China buying agent is a good choice if you're considering buying products from China in bulk.
Globalization has opened up new avenues for businesses and broken-down geographical barriers. China is now a major source of sourcing for both the countries in Southeast Asia and the west. With a population of over 1.4 billion, the GPD of China was $14.1 trillion in 2019. The GPD of the country, with a population of 1.4 billion, was approximately $14.1 trillion in 2019. Importers worldwide can hire a procurement agent to source their supplies because of its vast market.
What is a buying agent?
A China buying agents helps companies find the best product at a reasonable price, which can create value by sourcing. It allows the company to save money during production. An agent of this nature can work with one company. An agent of this type can also be a business proprietor that serves other clients or enterprises.
You don't need to have a high level of education to become a buying agent. You do require, however:
• Good business sense
• The local language
• Great coordination skills
• Multilingualism is a huge bonus
• Knowledge of customs
What is the work of a buying agent?
Let's simplify this for you.
1. Consider a product idea. A product that you would like to sell.
2. Get in touch with a buying agent to describe your product.
3. Send a list of all your requirements to the agent
4. The agent will find Chinese manufacturers according to your information.
5. The agent will give you options. Choose the one that best suits your needs.
6. The buying agent becomes a communication channel between you and your supplier.
7. Finally, your product is made at the price you want
The buying agent is paid based on a commission percentage set by the company or third-party entity where they work.
What other services does the buying agent offer?
Well, yes! Yes! A buying agent can be more than a broker or third-party agent who finds you a great deal. They may also be able to:
• Negotiate the price with suppliers.
• Watch the manufacturing process
• Save your international freight cost
How can I filter out bad buying agents?
There are always good and bad things in life, as we all know. In China, buying agents can also be scammers. How can you filter them out and identify them?
• Do not hire a buying agent that the factory also pays. Why? Because they are likely to refer you to a hub of mediocre quality, if they get commission.
• If they offer quality inspection, the best Chinese buying agent won't work for commission. It is a key point to remember and is a key rule in the business.
• They won't need to spend years looking for suppliers. It will only take a few minutes to get a few references from China once you have shared your requirements with a good agent in China. This is how an experienced and well-coordinated buying agent work.
• This may seem simple, but it is crucial. In any transaction, communication is vital. It can lead to a huge failure if the message is not clear and understood.
How do you work with China buying agents?
Now it's time to move on to the final step: Selecting the buying agent and working closely with them.
It is a must-do. Do your research and be thorough before choosing the best buying agent in China. To make a sound decision, use every search engine, such as Google, Bing and Yahoo. You don't want to hire a buying agent if you are hesitant about using Alibaba or Global Sources. These online sourcing platforms have a rating system to see how reliable the suppliers are.
Word of mouth is a powerful tool: Expert sourcing specialists agree that the market has become saturated. It is best to travel to China to find the right agent. It may sound crazy, but it is the best way. Ask around for the best buying agent. You should pay attention to the one who gets the most referrals.
Ask the agent about their process. Any agent will take your information and compile a list of factories. Then, they'll approach you. After a long conversation, the agent will create a list. These factors will assist you in deciding on the supplier.
Next, the client (you) will give the agent a sample of what you require. The sourcing specialist will note the original specimen and remove any unimportant elements. The factory then receives the model for a pre-production sample (PP Sample).
Payment: Terms of payment depend on the type of relationship you have with an agent. If your relationship with an agent is more than one year, they will be flexible. Ask for a letter of credit transaction if you have a large payment. It will typically be between the banks. However, if you ask your agent the same question, it might help you make an informed decision.
Commission: Most experienced agents charge around 5-7% of the order's total cost. It might sound high. It may sound huge. However, the best Chinese buying agent can guarantee quality (such as working with SEDEX certified factories), Price and Delivery on Time (essential for this logistically complex industry).
How do you choose the best China buying agents?
Knowing what a China buying agency is and how they can help you, you're ready to learn some ways to select the right one. China's reputation is not perfect. There are many manufacturing scams and fraudulent buying agents. Although these agents may promise goods of high quality and low prices, they rarely meet buyers' expectations. You can avoid this if you do your research. To ensure your business' success, you must carefully potentially screen agents to find reliable buying agents in China.
Here are some tips for choosing a China buying agency:
1. Choose an experienced one
An experienced and trusted China buying agent could manage the entire sourcing project. Your buying agent must be able to accurately describe each step of the process, from getting price quotes from factory authorized factories to handling the shipment. Choose an agent with both an office in China and a state-side office. This agent can help you overcome cultural and linguistic barriers that may hinder your understanding of the supplier market.
2. Check credentials properly
It is important to check the credentials of any China buying agent that you are going to work with. There may be many choices when searching for buying agencies. Be cautious when choosing a buying agent. Not all agents have the necessary experience and knowledge to complete the process. It is important to take the time to investigate different buying agents in China.
When verifying the credentials and qualification of your buying agent, make sure to check the following:
• The location of the buying agent. You will benefit from an agent with a China setup and an office in the US.
• The time the office has been open in China.
• Refer to past clients of the agent.
• Ask the agent to assess their ability to handle quality issues.
• You can gauge the agent's level of linguistic proficiency. It is normal to expect fluency in Chinese and English.
3. Get samples from previous customers
There is a high chance that the products you get will be different from those you originally requested. You should request a sample from your agent before you sign the contract. It will help you avoid problems like this. While the first sample does not need to meet your requirements, you should insist on receiving a model before giving the go-ahead to production. You should let the manufacturer know if the products do not match.
You should be able to contact dedicated suppliers and manufacturers through the China buying agent you select. It is essential that the agent can bridge the communication gap. This will ensure that your requirements are understood, and the supplier manufactures the product you want. The agent must provide you with a sample and work with the manufacturer to modify it to your specifications.
4. Learn how quality control works
It is possible to come across Chinese buying agents who aren't familiar with quality control. It is the agent's job to ensure the quality of manufactured products. Therefore, you need to have as much knowledge as possible to find a buying agent who understands the importance and benefits of quality control.
• Learn how China's buying agents screen new suppliers and the factors that are taken into consideration.
• Find out how many factories visits your agent will make during production.
• Is your buying agent able to verify quality certificates issued from manufacturers?
• Be aware that your agent must provide you with a certificate confirming their ability to sell commodities overseas.
The above discussion shows that hiring a China buying agent can be incredibly beneficial in exploring China's vast business opportunities. These agents can simplify the process of sourcing for you and don't usually charge a lot. Hiring a China buying agent will help you reduce your business risk and provide recurring cost savings each year.