The 3 types of sourcing companies in China

In other cases, you need to make a choice between three types of China sourcing companies:

The commissioned agent

If you find someone that you can trust, and who already has deep experience in the product line you are looking for, this can be a good option.These agents are seldom professional enough to really manage production and to ensure good outcomes. Once the orders reach a certain size, it is much better to manage everything with your own team.

The trading company

One of the important differences between sourcing companies and trading companies is that trading companies will have a high level of expertise in a specific field.

If you purchase low quantities and if you don’t want to handle all the details of Chinaproduction, you probably need to work with a trading company. What bothers some importers is that the supply chain remains hidden. This is a valid concern. Even if you purchase from a trader, you should inspect the product quality — except if the trader pays for a famous third-party QC firm to do it, and shows you the reports.

China Manufacturers

Manufacturers are often seen as the best and only source for your goods. You can communicate your needs directly with them and, if they are the right factory for you, they will have a high level of expertise in the manufacturing process.Factories will make products to your specifications and within the tolerances you demand. The factory you choose will have probably been making similar goods for some time.

Which Type is Right for You?

This decision is unique to each importer and is based on several factors, such as:

  1. Experience importing from China.
  2. Understanding and knowledge of import regulations and processes.
  3. Understanding of compliance requirements in the country where the goods will be sold.
  4. Size of your order – the total order value, as well as order value per product and per supplier.
  5. Resources available to manage the import process.

Still not sure which of type of sourcing agent is the right one for you? Contact us. We would love talking to you about your projects in China.