Importing goods from China is not a novelty, moreover, it represents an opportunity for every sane entrepreneur to make a profit with as little effort as possible. Surely, the concept is far from a risk-free venture, thus, we recommend you read through the following lines and learn how to increase your chances of making the most of the trend. The whole endeavor would not be possible if there were not for the sourcing agents since they act as middlemen between the production companies and the entrepreneurs who launch specific merch on the market. Naturally, they do not work pro bono, so we feed you with every piece of info on the fees China sourcing agents charge we have in our stock and enlist it down below.
What do China Sourcing Agents do?
At the time speaking, China represents one of the fastest developing countries in the world and the chances of the trend shifting its direction any time soon are minor. Your job as an entrepreneur would be to squeeze the pig for its fat, which implies you must first get your hands on the pig. In other words, the market is full of all sorts of resources, and you should find means of connecting to their source in order to make a profit.
1. The Competence
Knowing the market and current trends would exclude the necessity of the sourcing agents from the equation, but a vast majority of entrepreneurs have either little or no knowledge at all about the ongoings in China. Thus, they hire middlemen to connect them to the source according to the instructions they provide, and they pay an agreed compensation for the service.
A professional sourcing agent would charge for their services according to the benefits they potentiate, thus, do not expect to earn a small fortune for a change. We do not say that you will not be able to earn unless you hire a professional, moreover, we intend on highlighting the probability of increasing your fortune by hiring qualified personnel.
2. The Percentage
A vast majority of sourcing agents work charge for their services on commission. Some of them work as free agents, while others work for specific companies, even though they would not speak about that publicly to protect their seemingly independent position. Your goal should be to assess whether the amount of money they would charge you for a specific deal would pay off or not.
Unquestionably, your financial interests should be one of your topmost priorities, so you should hire a middleman who would share your values. In a nutshell, there are several types of fees you would have to consider before you hire a sourcing agent, and they should speak about what they focus on while connecting you to your source.
3. Flat Rate
The flat rate is what you would pay to your middleman depending on how much the goods you are interested in cost in a specific factory. To make a long story short, you would be informed about the production cost and pay the man who organizes the trade according to the deal. Usually, the percentage the middleman takes goes from %1-, contingent on the terms and conditions you both agree on. To find more details on how China wholesale agents work, we recommend you consult JustChinaIt.
4. Blind Markup
Another strategy where you would hire a person to do the hard work for you without knowing the details of the arrangement but paying a fixed sum for the service is known as blind markup. Basically, if you would like the price tag of a particular product and be willing to pay for the pleasure, this would be the safest way to achieve your goals. On one hand, that would not imply you achieve the highest profit margin available, but on the other, it would guarantee you only pay as much as you feel comfortable with.
5. The Factory Fee
The factory commission would imply the factory you decide to work with takes care of the compensation for the man who handles the deal. Now, it might be hard to find this type of sourcing agent, since they would mostly base their efforts on finding the potentially interested entrepreneurs, not vice versa. In a nutshell, if they would reach you, the chances you will be better off with an alternative business partner are major, since their actions would reflect that they have to do their best to beat the competition.
6. The Challenges
Sourcing agents are necessary for numerous reasons, and you should do your best to assess whether an individual has the characteristics you require before you decide to put your trust in them. Namely, the language barrier is one of the most important obstacles to overcome when trading is in question, thus you must make sure your middleman has what it takes not to make things more complicated than they already are.
Additionally, you should determine your hire knows exactly your plans and how to answer to your wants and needs, otherwise, you would only waste your time. Skilled middlemen are aware of the potential deal-breakers, and will do their best to realize your plans. What you should pay additional attention to is whether they inform you about potential delivery expenses and peculiar customs services and how long they might last or they neglect the important procedures crucial for your financial gain.
Finally, you should try and figure out whether a mediator is a responsible professional or a professional hustler. Namely, they both might be taking the advantage of you and the source company you intend on working with, which would imply they overcharge for their services. Thus, try to find as many pieces of information about what you are paying for before agreeing to their terms and conditions.
Hopefully, the aforementioned pieces of information and suggestions will allow you to get in touch with your China-based source in the best possible way. The practice would not be feasible without qualified sourcing agents, thus, pay close attention to the characteristics we have discusses in the lines above and take your time until you find the right match. The sooner you find the right person for the job, the better, thus, do your homework and focus on what is important to realize your venture even though it might mean you spend a few bucks more now to enjoy a higher profit margin in the long run.