The existence of traders and sourcing agents is because of the fact there are numerous manufacturers who vary within the capability of export, knowledge of the international market, domestic business performances and foreign language skills, etc. The global market demands a role to bridge the gap between international buyers and manufacturers. However, while there are countless buyers (consciously or unconsciously) dealing with trading companies, some buyers especially those with specific technical requirement prefer to hire China Buying Agent. Why do 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 into the factories, the customer includes a better control over the development, delivery and after-sale service, and he will make sure all the followup information he receives holds true and proved. Secondly and even more importantly, the sourcing agent can jointly or independently find out suppliers information and negotiate with all the suppliers without the motivation to win your order or sell a particular product. Therefore, the buyer is much more likely so that you can locate a more suitable product because he does not get confused by the exaggerated or even untrue descriptions from the trader or manufacturer.
The lack of professionalism in sourcing agents is a big concern for all global buyers, it really has been a so controversial issue that people have heated debate over the pros and cons of employing 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 will never resort to this unethical behavior. However, it ought to be admitted that all are basically agents, and they are generally all very likely to fall under this lapse, but few of them shed much light on answers to this problem. The issue is simply as a result of human nature. For example, many of them could have mixed feelings when they provide you with the quotations with their clients, they might ask themselves, “I found so amazing a supplier for my client, and they also get so excellent price, shouldn’t I deserve something more?” “The packaging and shipping cost me a lot, plus it took me a a large amount of effort in speaking to this supplier, should i 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 in order to win the order or the latter asks for kickbacks from your suppliers, however, this practice is not only unethical and unprofessional, but also practically unsustainable, because although unlikely some day the suppliers could tell the reality for the buyer, the sourcing agent would find himself only a tool for the suppliers and, a whole lot worse, become no long trusted by the client.
A sourcing agent can offer the buyer with full information 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 get into the factory’s qualifications, credibility, production capacity and technical expertise. But traders nmnwti send any data towards the buyer or even claim they may be manufacturers of the product, while the fact is they may not be technically sound or have adequate production capacity.
An excellent sourcing agent is a person with sound English fluency and understanding, general technical knowledge, business assessment, logistics, product design and global perspective. He could work perfectly on the part of the purchaser to get into suppliers, negotiate the cost and terms, do trouble-shooting, order follow-up, coordinate in urgent times, lastly, improve the business relationship with all the supplier.
In the first place, sourcing agents or representatives usually work in a smaller team or simply just work alone, while trading companies operate in bigger offices with multiple departments. The effect is the expenditures burdened through the latter tend to be heavier. However, a greater reason will be the conflict of interests in between the trader and the buyer, the trader will never share the manufacturer’s information (contact, original price) with the buyers for fear that the buyer could skip the trader and deal directly with the original supplier, in every case, the trader strikes an agreement using the buyers at a hidden and highest margin, as the China Buying Agent works best for the buyer in a clear-set service fees. In conjunction with the cost factor, the price the customer could easily get coming from a trader is a lot greater than the fees he has to pay a sourcing agent.