Amazon product sourcing agent can help you in the process of sourcing products from China. They should help you in finding the supplier, negotiating the better prices, taking care of sampling procedure, quality control and shipping of products.
Sourcing agents are often the individuals and sometimes established agencies who help you find the suppliers and import products at lowest possible cost.
Pros of Amazon Product Sourcing Agent
Time Saving:
It takes lots of time to deal with suppliers in China specially when you are sitting across the globe in the United States. In such a case, difference of time zone makes things worse. Amazon sourcing agent will help you to do everything smoothly, they will explain all the steps and keep you updated throughout the sourcing process from finding of the supplier to manufacturing and shipping of the inventory. So, it does not make sense to spend lot of time in sourcing process of product while you can spend this on important tasks such as promoting Amazon products listing.
Lower Product Cost:
Suppliers found online on Alibaba or in trade shows are mostly the trading companies who add their profit margin in the factory prices. On the other hand sourcing agencies know where the nearest manufacturers of your products are located and they can get direct prices from the factory. These prices are often very low that it offset the service charges of the sourcing company. Another aspect to keep in mind is the recent news of increasing tariff by 10% on imports from China so you only sourcing agents can get you competitive pricing.
Check on Product Quality:
When it comes to quality control there’s nothing better than having a good sourcing company. It will not only help you find and final the supplier but it will also visit the manufacturing facility. That’s not all agent will keep an eye on the all stages of manufacturing process to save time and cost and final inspection is also their duty when consignment is ready for shipment. Without a sourcing agent you can’t just blindly trust on a supplier that could end up in a nightmare. By controlling the quality of the product at all stages of manufacturing, packaging and shipping you will create happy customers and keep the complaints at minimal.
Related: Guide on International Freight for The Amazon FBA Sellers
Cons of Amazon Product Sourcing Agent
Hidden Commissions:
Some agents have deals with the manufacturers to give them business and get commission, this makes them even worse than the trading companies. Hidden commissions are the major cause of the conflict of interest that might compromise the quality too. Unfortunately this has become very common in China that sourcing agents are making money from both parties in the form of services charges from the buyer and the kickbacks from the manufacturers.
You can eliminate this by paying some advance fee to the sourcing company, this will ensure that only buyer’s interest is the important. Most of the good sourcing companies work on this model and don’t take commission from the suppliers.
Keeps Supplier’s Contact:
Sourcing agents do not normally share the contact details of the manufacturers and shipping agents with the buyers. They will charge you a set percentage of commission on your every order for the same amount of work and still you won’t get any contact details of the manufacturer r shipping firm. And you can never eliminate the sourcing overhead should you wish to continue with the same manufacturer.
Tip: While hiring Amazon product sourcing agent from China you should thoroughly interview the agent before finalizing and always sign a contract to keep things clear. To successfully hire an agent read these tips to find right Amazon sourcing agent in China in order to save your precious time and money.