Risks Involved in Choosing a Sourcing Agent in China & How to Avoid It

In today’s competitive industrial world, almost all the small and medium scale companies look for sourcing agents. Though the concept of sourcing agents isn’t much popular in the western countries, countries like China and Vietnam look for sourcing agents to carry out various business negotiations. The primary job of China sourcing agents include negotiation with the suppliers, providing quality control assurance, looking into manufacturing processes and checking whether they meet the standards, etc. However, there are several risks involved in choosing a sourcing agent. To avoid such risks in China, you need to take the following precautions.

Ways to avoid risks:

• Buyers must look for loyal China sourcing agents and check their past records. The buyers in China mostly hire sourcing agents to negotiate with the suppliers. However, the sourcing agents often follow unethical practices in between negotiating processes. It often happens that the sourcing agents do not act as per instructions and goes on to make a profit for themselves, cheating both the buyers and the suppliers. Hence, the companies must hire agents with positive past records.

• The buyer (you) must offer a reasonable price to the sourcing agents. If unhappy with the price, the agents will follow unprofessional and unethical practices. And these practices would rob you of your money. Hence, treat your agents well and pay them the money they deserve.

• If possible, track the conversation happening between your agent and the suppliers. You must make sure that the agent is representing only you. Besides, you should also keep a track of the way the agent is negotiating with the suppliers.

• You need to reward your sourcing agents whenever necessary. The additional costs such as packing, shipping, etc. must be covered by you. Timely payment and a good communication between you and the sourcing agent could increase the latter’s loyalty to your company.

• While hiring the agent, you must look for the professionalism in his works. Check the works he has done, check the feedback from the buyers he had worked with, and look for any signs of negativity or faults in his work.

China sourcing agents are in much demand right now. As the manufacturing cost in western countries is much higher, the buyer looks for suppliers in countries like China. However, negotiating with the suppliers and coming to a mutual agreement is done by the sourcing agents. As these types of works are vital and plays a major role in the company’s future success, hiring reliable and expert agents is advised.

About the Author

This article is written by Nick Cunningham, who is a president at China2West. China 2 West is a western owned and managed Manufacturing & Vendor Management, Quality Control and Product Development Company based in mainland China. Established in 2005 as a manufacturing consultancy, we now have businesses in several countries and provide design, production, inspection, and testing and logistics service to companies that need a reliable supply of goods from China. Our dedicated and passionate team work tirelessly across our business sectors as we continue to grow and to seek out new investment opportunities.

China 2 West is a western owned and managed Manufacturing & Vendor Management, Quality Control and Product Development Company based in mainland China. Established in 2005 as a manufacturing consultancy,