How to look for purchasing agent in China?

What is a China purchasing agent and why do you need one?

The Procurement Agent is a freelancer, or part of a larger organisation, arranging various aspects of the trade between China and the buyers around the world.

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Below I list a few examples of what a purchasing agent can help out with:
 Supplier Identification & Price Research
 Sample & Prototype Development
 Quality Assurance & Quality Inspections
 Social Compliance Audits
 Product Compliance Consulting & Product Testing
 Shipping & Logistics
 Customs Procedures & VAT

How to Evaluate a Procurement and Purchasing Agency in China?

  1. Product Expertise Knowledge about a product and industry is a decisive factor. First, and an insider has a much more comprehensive product expertise, which is required to understand what makes good quality (and price) for a certain product.
  2. Offered Services Some offer more of a ‘one stop shop’ solution while others are strictly specialized, only performing specific functions.
  3. Procedures However, identifying industry leading, and in relative terms, reliable, suppliers is a whole different thing.

What the standard procurement process?

the standard procurement process should look something like this:

1.) Confirmation of product specifications and certification requirements

2.) Supplier sourcing

3.) Initial price research, sample order and selection of qualified suppliers

4.) Initial price negotiation

5.) Audit of qualified suppliers

6.) Final supplier selection

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How to work with a purchasing agent?

Our Recommendation:
1. Use a specialized Sourcing Agency or manage the process yourself. You must know which suppliers you’re going to work with, and on what merits they are selected. Vetting ten to twenty suppliers at once is a lot of work, so you better have a specialized partner for this. Suitable for customized products that takestime to develop before they are ready for mass production. As you pay a fixed service fee, the agent has no incentive to cut corners to speed up the process,or convince you to place large initial orders.
2. You are the product expert. Submit specifications and communicate your quality requirements directly with the manufacturer. Otherwise, important details may be lost in translation. In addition, having a middleman between you and the supplier is not only risky, it’s also inefficient.
o a. Find a local, or China based, Compliance Consultant that can help you assess which regulations and labeling requirements apply to your products, in your market.
o b. Submit reference samples to a China-based testing company, for example, Asiainspection or SGS.
3. Use a specialized Quality Assurance agency, for example, Sofest Limited.
4. Use a local Freight Forwarder, with a presence in China. It’s critical that they know local customs procedures and tax regulations.

Have a quote? Visit our site:China Sourcing– http://china-sourcing.com

3 Secrets to Successfully Sourcing From Chinese Suppliers

You are dealing with people halfway around the world, with cultural and language differences, negotiating over your investment of potentially thousands of dollars in inventory with people you likely just met on the internet.Figuring out how to find a supplier to partner with, how to structure the negotiation, payment, and quality control is a critical step to successfully launching your China sourcing business.
3 Secrets to Successfully Sourcing From Chinese Suppliers:

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#1 Choose The Right Supplier

1. Sourcing: Tricks of the trade • Chinese cultural and value differences: It’s a relationship business • Supplier Selection Strategy • Negotiations: You get what you pay for • Quality control: The Neverending Story • Best practices and bonuses
2.Chinese culture and values are not the same • What is “Guan Xi”? 关系 • Trust • Respect • Face • Time invested

When finding potential suppliers, Alibaba is the behemoth that you should look to first. As the largest online marketplace in China, it has the most quantity of suppliers, but not necessarily high quality.

China Sourcing is another option for finding suppliers. There is less quantity, but each supplier must pre-qualify, so the quality of supplier is possibly better.

In addition to these online marketplaces, going to trade shows is a great place to find suppliers. The Canton Fair is the largest, held twice a year in China. However, there are industry-specific trade shows in the US and Europe where you can meet Chinesesuppliers in person and build Guan Xi, or your business relationship.
As a result, suppliers will be more responsive to your requests, will offer more favorable pricing and payment terms, and be more accommodating in fixing problems as they arise. In order to protect yourself against that fate as much as possible, you have to be extremely vigilant about protecting your product and brand.

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#2 Negotiate With Your Supplier

The implication here is that there are more at play in a negotiation besides just the final price. For example, you are also negotiating the quality of product, the payment terms, the delivery times, and your relationship with the supplier.

Moreover, every supplier does have a “price floor” below which they can’t go below. So if you strong arm a supplier and force them to go below their price floor, there may be negative consequences. This could be cutting corners with cheaper materials, less quality in manufacturing, shoddier packaging, or any number of other things. The main takeaway is to build a long-term relationship.

Remember, negotiating with Chinese suppliers is an ongoing process. It is a common thing, and even expected, in Chinese culture and business. If you do it at the factory in China, or even an international trade show, you are more likely to speak with the factory owner or executive management. This means that problems and challenges can be solved with greater ease, because you are dealing directly with decision makers, and not sales reps.
1. Negotiations • 一分钱一分货 • Translation: “You get what you pay for” • Price is not the only factor
2. When do I negotiate? • Initially: Shortlisted suppliers • As volumes grow: Higher volumes = Lower per unit price • External factors • When problems occur and supplier is at fault
3. Pricing: How much? • Cost-based approach • Wide net then deep sea fishing to gauge the factory price
4. How do I negotiate? • Strategy – Always play the long game, remember guanxi • How will this grow your business relationship together? • Communications: Face-to-face > Phone call/Skype > Email

#3 Monitor Your Quality Control:

Quality control in the production process is critical to success. Problems may occur for any number of reasons, but you protect yourself if you are able to get an agreement in writing. Do your best to specify materials, measurements, packaging, product quality, and any other specifications in writing. If a problem occurs, and the supplier is at fault, you can refer back to this written agreement for an appropriate refund or credit on future orders. Additionally, request a sample from the supplier before you make any supplier decisions.
In order to maintain the highest level of production quality, you want to keep your suppliers accountable through the whole process. Get everything in writing by using a Purchase Order. The important thing to note here is that you still have leverage before you have sent the final portion of your payment. If there are aspects of the order quality that do not meet what was specified in the agreement, the supplier is more willing and likely to take corrective action if they have not received full payment.
1. Quality Control: Supplier selection • BEST PRACTICE: Country test to initially gauge quality and experience • Get Samples to do a hands on test • At the same time, gauge their customer service
2. Quality Control: Placing order • GOAL: Make sure that factory understands and agrees to your requirements • Get it in writing on the Purchase Order
3. Quality Control: During production • GOAL: Catch problems as early as possible • Monitor production by asking for photos, videos, and samples • Expect factory to be passive, YOU MUST BE PROACTIVE
4. Quality Control: After production • Arrange an inspection before releasing balance of payment • Third party inspection agency • Especially when working with a new supplier or product • Tricks of the trade: Self-inspection
5. Quality Control: After shipment is delivered • Watch for defects • BEST PRACTICE: If factory is at fault: • Negotiate for compensation • Corrective Action Plan (CAP) • Put it in writing in the Purchase Order • But don’t burn any bridges, remember Guanxi • Rinse and repeat

What to import from China?

China is still the world’s workshop,it is still the default go to when sourcing or outsourcing manufacturing,China Sourcing is still very popular.Chinese import s represent 9.6% of total global import s which totaled $16.473 trillion one year earlier in 2015.

China is the factory of the world and every product you can imagine can be sourced in China .Here is the top 10 list of product categories value for 2015.They’ll always be in demand, they’re easily marketed and there’s a good profit margin. Although this is an expansive category and the possibilities are endless, we’ve curated a few ideas to start you off!

Top 11 list of product categories

  • Electronic equipment: US$431.6 billion (25.7% of total Chinese imports)
  • Electrical machinery, equipment: US$414.3 billion (26.1% of total imports)
  • Mineral fuels including oil: $175.8 billion (11.1%)
  • Machinery including computers: $147.8 billion (9.3%)
  • Ores, slag, ash: $93.2 billion (5.9%)
  • Optical, technical, medical apparatus: $92.6 billion (5.8%)
  • Vehicles : $71.5 billion (4.5%)
  • Plastics, plastic articles: $61 billion (3.8%)
  • Organic chemicals: $43.9 billion (2.8%)
  • Oil seeds: $38.3 billion (2.4%)
  • Copper: $33.2 billion (2.1%)

These items are for leisure and hobbies. Some may be more suited to a niche; if you can identify and work with the markets, however, you can strike gold. If you aren’t familiar with the target audience and marketing to them would be a challenge, it would generally be a better idea to avoid these products however.

Tips for finding a good product to sell:

These product ideas are merely the first step; you’ll need to decide which product is going to be the best one for your business.  There are many ways that you can do this, but we’ve shared a few of the methods that we’d recommend.

  1. Hot Products and Bestsellers. On sites like eBay and Amazon, there are often widgets telling you what the best-selling products are – this helps you to identify what goods are selling well and whether there’s a market demand for your product.
  2. Product Specifications. There are certain product qualities that help to determine whether or not a product is a worthwhile business investment.StartUpBros summarized a few key factors perfectly in their post Step By Step Guide On How To Find A Profitable Product To Sell:
    – Small and light enough to be easily picked up,
    – Specific, niche products (usually)
    – Selling to consumers for $10-200
    – Consistent stream of buyers
    – Selling for twice as much as your buy price