Looking to get your products from China? Take the first step by understanding the difference between a sourcing company and a sourcing agent
Unlike most of the world, sourcing products from China is an entirely different game. If you’re an eCommerce business importing regularly from China, it’s even more complicated. To find the best Chinese suppliers, businesses often look for a sourcing agent or sourcing company that has industry experience. So, should you look for an agent or a company? Keep reading to learn which is best for you.
What is a China sourcing company?
A China sourcing company is a business that has dedicated specialists to help you source from China. The sourcing specialists, sometimes called purchasing managers, have extensive knowledge of the market and long-term connections with various factories. Product sourcing companies are usually based near major Chinese manufacturing hubs like Shenzhen and Dongguan.
Advantages of using a China sourcing company
Better communication: The staff members are often bilinguals, speaking Chinese and English and being the point of contact between suppliers and buyers.
On-the-ground presence: Sourcing companies are based close to factories in China, allowing them to visit the facility, monitor production, or conduct face-to-face meetings to strike deals.
Favorable deals: Due to their long-term connections with suppliers and high volume of orders, sourcing companies offer better deals, lower prices, and even faster production times.
Low MOQ: Factories set a minimum order quantity for any purchase, but a China sourcing company can go around this by combining small orders from multiple buyers.
Additional services: A well-established sourcing company could offer value-added services such as quality control, trademark filing, and credit terms.
Trustworthiness: While this doesn’t apply to everyone, well-known sourcing companies care for their reputation and are more accountable. They’re more likely to deliver on promises, maintain transparency, and address issues promptly.
Disadvantages of using a sourcing company
Higher fees (sometimes): Compared to China sourcing agents, companies may have higher service fees. But at the same time, they often compensate for that by offering better deals with suppliers.
They don’t accept smaller, single orders: If you’re looking to place a single purchase or have a very low order volume, it can be difficult to find a sourcing company willing to handle your order. Most companies prioritize larger or recurring orders.
What is a China sourcing agent?
China sourcing agents do the same job as a company but on a much smaller scale. They typically work independently or with a small team, helping businesses find factories, negotiate with suppliers, and manage orders. China sourcing agents are found on freelancing platforms such as Upwork and Fiverr, but many of them may not be based in China.
Advantages of China sourcing agents
Low service fees: Since sourcing agents often work independently and may not operate from an office, they can sometimes offer lower fees.
They cater to smaller buyers: Some agents work with new businesses that have little to zero order volume.
Faster: Sourcing agents may not require formal contracts with buyers, so they can move swiftly through the sourcing process.
Disadvantages of China sourcing agents
Smaller scale: Due to their limited resources, many sourcing agents can’t handle large orders or post-sale support.
Less accountability: Since sourcing agents often operate independently, they may not provide the same level of accountability or reliability as Chinese sourcing companies.
Harder to verify: Agents often don’t operate under a registered company or have a website, which makes it challenging to verify their legitimacy and track record.
Limited services: Sourcing agents focus only on sourcing, so you can’t expect additional services such as quality control, freight forwarding, and product development.
High chance of getting scammed: The informal nature of many sourcing agents increases the risk of fraud, as they may not adhere to local laws or standard business practices.
China Sourcing company vs sourcing agent: Which is best?
Knowing the best option for your needs between a China sourcing company and a sourcing agent depends on several factors. If you’re an eCommerce business with recurring orders, a sourcing company is likely the better choice. Even for businesses operating on a smaller scale, working with a professional company is safer and simpler, as it requires no prior sourcing experience.
The case for China sourcing agents is a bit different. While they typically charge lower fees, they may not be able to secure favorable deals with suppliers. Working with agents is most suitable in specific situations, such as if you need to make a one-time purchase order or when dealing with a very low MOQ, like 100 units per month.
What about sourcing from China on your own?
Sourcing directly from China without the assistance of a company or agent can be challenging. China is not like other parts of the world – most people only speak Chinese, and their culture is entirely different. If you’re looking to source products on your own, you need to do extensive research, hire a translator, and even consider going to China to see factories and meet suppliers.
While China sourcing websites like Alibaba can make the process sound easy, it’s rarely the case. These websites have an abundance of fraudulent suppliers, and it’s hard to check their legitimacy or product quality before buying.
Tips for choosing the best China sourcing company for your business
Here are a few tips for finding a reliable sourcing company to get you started:
Decide what you need exactly: Clearly define your product requirements, including specifications, quality standards, and order volume.
Plan your budget: Create a realistic budget that includes not just the product costs but also any additional fees such as shipping and quality control.
Spend enough time on research: Take the time to research sourcing companies. Read client reviews to assess a company’s credibility and track record.
Request quotes from multiple companies: Don’t settle for the first quote you receive. Reach out to more sourcing companies to compare prices, services, and terms.
Lansil Global: Your gateway for China product sourcing
Finding quality products at a reasonable price is an integral part of your supply chain. Getting specifications wrong, facing production delays, or even a few faulty products can harm your brand’s reputation.
This is where we come in! At Lansil Global, China product sourcing has always been the core focus of our business. Operating from Shenzhen, we’ve spent 9+ years learning the ins and outs of product sourcing.
As a sourcing company, we understand how important it is for a brand to get the best possible deals. Here’s a glimpse at what our customers get from us:
- A network of 2,000 reliable suppliers.
- Better prices: we beat Alibaba prices by 10 – 15%.
- In-house quality control team.
- Warehouses and fulfillment centers in China and the US.
- Ability to ship to 171+ countries.
- A wide array of additional services to complete your supply chain.
Connect with our fulfillment experts today and request a quote to see yourself!
