Who is a China Purchasing Agent?

A China purchasing agent is a person employed by a company or working as a freelancer supporting businesses overseas to import from China.

A China purchasing agent brings skills work power and skills to a whole team.

They also bring a fresh and new look to a company’s supply chain in the local place like in China and the efficiency.

Supply chain management

What is the Role of a China Purchasing Agent?

A China purchasing agent is tasked with handling different activities to ensure that an importer/buyer gets their products.

Below are the roles of a purchasing agent:

• Managing logistics and shipping
• Perform quality control and factory inspections
• Draft amendments and managing negotiations
• Auditing suppliers
• Finding suppliers and new products

What is the Difference Between China Sourcing Agent and China Purchasing Agent?

While both China purchasing and sourcing agents help businesses import products from China, they share some differences.

A China purchasing agent is an individual working as a freelancer or employed by a company to support businesses abroad to import products from China.

A sourcing agent is a qualified person/company/agency who/that reaches out a variety of suppliers/manufacturers, sources the merchandise a client needs then makes a commission from the sale.

Sourcing agents in China

As compared to China purchasing agents, sourcing agents lack expertise in product safety regulations in the foreign markets.

Is China Purchasing Agent the same as China Buying Agent?

A purchasing agent is not the same as a buying agent even though they both purchase the best products at the lowest possible prices for their companies.

Purchasing agents buy the materials and parts that help make the goods.

Buying agents, on the other hand, purchase finished goods such as furniture or clothes.

They research the suppliers, review their history and determine their quality.

The suppliers are chosen based on three main factors:

• Availability
• Quality
• Price

Once the purchasing and buying agents locate the suppliers, they place bids.

They give suppliers a list of what they want and prompt them to give a written document of the estimated cost.

Buyers then sign a contract with the supplier once a price is agreed.

The agents continue monitoring the contracts to ensure that the terms of agreements are met.

Why use a China Purchasing Agent?

Importers/buyers who are serious about controlling their product quality and finding high-quality suppliers often find that purchasing agent is the best choice.

One should use a China purchasing agent because of the following:

They can find the best and high-quality products efficiently and quickly.

All they do is obtaining purchased items through forwarding orders to suppliers then monitoring and expediting them.

China purchasing agents verify the purchase requisitions then compare the items requested to master list.

Further, they clarify the unclear items before recommending alternatives.

They keep the organization’s inventory of raw materials and finished products or key services.

They find the best suppliers thus eliminating the risk you experience in finding a new factory or all the work involved in finding reliable suppliers.

What are the benefits of China Purchasing Agents?

Majority of importers often outsource the services of purchasing agents when looking for products from China.

They use purchasing agents because of the benefits they gain from the services.

Below are the benefits of China purchasing agents:

Improved Efficiency

Since the purchasing agent is already in China, he/she gathers all the information on how to enhance/build a supply chain.

Companies buying in China benefit from the huge supplier networks and databases via their purchasing agents.

One, therefore, saves on costs as they do not have to pay for warehousing space to store their different shipments sourced from various manufacturers/suppliers.

Purchasing agents can determine any non-truths/inconsistencies very early during the sourcing process through utilizing their own filtering systems.

There is faster access to information, and this saves on costs.

Purchasing agents are proficient in English and other languages hence they can accurately articulate limitations, potential opportunities, pitfalls and gains with a more pro-active attitude.

Such communication efficiency minimizes risks as well as generates time savings.

One can easily get their products without having to travel to China at just 3-8% commission

There is Well-managed Purchasing in China that Boosts Savings

Typically, there is a long success with a combination of right processes and sources.

Having a purchasing agent in China brings a fresh look at a supply chain in China as well as efficiency.

The agent also brings work power and skills to your team.

They use a supply chain that utilizes the right safeguards, vendors and processes thus guaranteeing long-term growth.

With a purchasing agent in China, you can consolidate goods and information.

The information is consolidated in a single place and passed on to the other workers who work towards achieving efficiency in their typical daily interactions.

The consolidation of goods results in great savings. Purchasing agents deals with the problems involving complex delivery points and multiple vendors.

Purchasing agents address these problems through enforcing packaging consistency and shipping schedules.

The purchasing agents also enforce safety and quality standards apart from efficiency, savings and costs.

What can go Wrong without a China Purchasing Agent?

 Supply chain

A lot can go wrong without a purchasing agent handling your goods when you are in a different location.

Below are some of the things that can go wrong:

• There is likely to be several errors with the orders such the size, different types and quality of products among others.
• There will be problematic suppliers. Suppliers may give bad/poor quality goods and buyers may not reach them for returns/exchange.
• Fraud from potential suppliers. A buyer may pay for products to non-reliable suppliers who run away with their money without giving goods.
• Damaged merchandise/goods. A supplier may send a buyer damaged goods because there is no way the buyer will make confirmations before shipping.
• Poor organization. If there is no one on the ground to ensure that the goods are manufactured, are of high quality, meet the certification and quality requirements and are shipped then the buyer suffers serious losses.

How much do Purchasing Agents in China Charge?

Since there is no standard pay, purchasing agents are paid around 5% – 10% of the order costs.

The percentage depends on the type of product and size of the order.

It could be high or low depending on these factors.

Some purchasing agents can charge a specific fee/cost for a certain period or project.

A buyer can hire a China purchasing agent for around $800 on a permanent basis/project.

Note: a purchasing agent with lower cost often more likely to give products of poor quality.

It is, therefore, important to properly check the agent profile and their costs.

What skills should a Good China Purchasing Agent have?

Every buyer should have an access to a good purchasing agent who handles their shipment.

A good China purchasing agent should have the following skills:

• Have a license to trade. A buyer cannot allow a purchasing agent to handle their shipment if they do not have a license to trade in China.
• Proper documentation depicting their knowledge of the procurement and shipping process
• Should have references from other businesses they have been in service with
• Have experience in China to show that they can effectively work in the Chinese market
• An agent should not accept sub-standard quality issues
• Have experience in sourcing different products. Since buyers deal in different types of products, it is only better that the agent they choose has knowledge and skills in sourcing different products.
• Have experience in organizing and sourcing products
• Have good command of written and spoken English language. A buyer is usually from a foreign nation so they do not speak Mandarin/local Chinese languages. To avoid any language barrier or communication problems, a purchasing agent should be proficient in English and other foreign languages.

What is the Importance of Finding a Good China Purchasing Agent?

If you want to import the best products for your company, you have to find the best China purchasing agent.

A good purchasing agent will relieve the buyer from the stress of the procurement and sourcing process.

A good China purchasing agent means that:

• You have a reliable local representative
• The purchasing agent helps and assists in drafting negotiations so one does not have to learn the Chinese laws and regulations
• Purchasing agents are English and other languages proficient thus communicating effectively with the clients/suppliers
• They know a lot about the Chinese import and export market, and this is due to their strategic location in China
• A good China purchasing agent has a large database of manufacturers, factories and suppliers

Is Location and having a Physical Office Important when Choosing a China Purchasing Agent?

Of course, yes.

For transparency and accountability, a purchasing agent should have a physical office.

If a client has any concerns, they can always visit the physical office to resolve the disputes.

Besides, most clients are more content with a purchasing agent if they have a physical office.

They feel that purchasing agents are more professional and trustworthy.

Note: a qualified purchasing agent must have a registered company and an office in China and other nations.

This is an indication that the purchasing agent is more reliable and well established.

Are there any Downsides to using a China Purchasing Agent?

There are a few downsides to using a China purchasing agent:

i. A China purchasing agent does not necessarily have to disclose to a client who a supplier is.

It is up to your sourcing agent to find you the best suppliers they can get.

There are times they tell the clients the product and price details only.

As a result, a client does not know who the supplier is.

Shipping companies, therefore, explain difficulty due to this.

ii. China purchasing agents can sometimes delay shipping

There can be shipping delays and this occurs because a shipping company has to meet a purchasing agent before getting to suppliers.

Normally, a shipping company contacts suppliers for product information and pricing which is not the case here.

Besides, purchasing agents may not have the right knowledge about the things a shipping company needs so get in a back and forth which takes time.

iii. Blind mark-up

China purchasing agents are like middlemen.

They are the connection between the suppliers and the clients.

It, therefore, feels as though the purchasing agent is the supplier.

All the prices that a client gets is what the purchasing agent gives after throwing in a little commission.

A client does not understand whether they have a good price or not.

When should you Consider a China Purchasing Agent?

China purchasing agent

You should consider a China purchasing agent when you are new to the importing business.

If you are a start-up company and you have to import products yet do not know the Chinese market, you may need a local purchasing agent.

A client may want to import products from China but they have no information of how to do it.

They, therefore, look for a purchasing agent to help them access goods from suppliers in China.

Sometimes it is hard to find the right suppliers for your products from platforms such as Alibaba.

Hence, you have to get a China purchasing agent.

How do you Conduct a China Purchasing Agent Review?

A China purchasing agent review involves:

• Checking customer reviews if they have a website
• Determine if they deal with small or large businesses
• Their pricing threshold
• Their services threshold
• Checking if an agent offers customized services

Should you Work with a Foreign Purchasing Agent when Importing from China?

You can work with a foreign purchasing agent when shipping from China.

However, it is best if you work with purchasing agents from China.

They have good knowledge of the Chinese market as well as experience with the suppliers in this market.

You may even get a good pricing on your products from China.

Foreign purchasing agents are only a better option if they are located in China and have record experience.

They will be better because they are very English language proficient, understands new importers and can be easily traced incase of disputes.

Do China Purchasing Agents provide Documentation as Part of the Shipping Process?

Yes, they do.

They provide a number of documents ranging from a detailed packing list, Fumigation Certificate, Certificate of Origin, and the Bill of Lading.

Packing list is often attached to the packages for delivery.

It contains all of the details of the contents of the package.

 Packing list

Fumigation Certificate is a pest-control certificate for when you ship your products.

A purchasing agent must provide this document if they are shipping to show that a wooden packing material used for goods has been fumigated.

Certificate of Origin shows that the package is from China.

Certificate of origin

A purchasing agent must ensure that they attach this document to the package.

Bill of Lading is a contract between a freight carrier and shipper.

In this case, the purchasing agent provides this document as they handle the shipment from China.

Copies of these documents are then given to the shipping companies to easily track the products.

Are China Purchasing Agents able to Identify Inconsistencies in the Sourcing Process?

Focus on how they are able to do this.

Filtering systems they use.

Are there China Purchasing Agents that can Collect, and Consolidate Orders Before Shipping to you?

Yes, there are.

Some China purchasing agents collects the products from the suppliers/manufacturers and consolidate them before shipping to clients.

They, then repackage the orders before rendering them ready for shipment.

After all, packaging is part of their responsibilities.

Purchasing agents then use the services of freight forwarders to ship the orders to the client in a different country.

Can a China Purchasing Agent Divulge your Business Information to Competitors?

A China purchasing agent can or cannot divulge your business information to competitors.

It all depends on the reliability or level of trustworthiness of your purchasing agent.

If the purchasing agent is trusted and professional, they cannot share your business information with competitors.

In fact, they sign a Non-Disclosure contract preventing them from sharing the contents of a business.

If you hire an unprofessional purchasing agent then the information will definitely be shared with competitors.

They may sell the information to gain financial benefits.

What is the Importance of Non-disclosures when Dealing with China Purchasing Agents?

It is important to have Non-disclosure agreements when dealing with China purchasing agents.

This contract prevents the purchasing agents from selling your ideas/product information with your competitors.

Non-professional China purchasing agents will likely sell these secrets to competitors because they are not legally bound by a contract.

Note: only a professional purchasing agent will not sell any information regarding your brand.

Otherwise, an NDA is still important.

Which criteria do China Purchasing Agents use when Selecting Suppliers?

As a purchasing agent, you have to find the right suppliers for your buyer/importer otherwise you will not get any more businesses.

Also, they strive to find high-quality and reliable suppliers as indicated by the importers.

Purchasing agents can, therefore, use the following criteria when selecting suppliers:

Relationship based selection; a purchasing agent selects a supplier based on the recommendation from friends and relatives.

Some purchasing agents select suppliers based on who pays the largest kickback.

Kickback is a commission/fee offered by a supplier to a purchasing agent as incentive for the purchasing agent to select a specific supplier.

The quality of products of the suppliers; purchasing agents select suppliers who have a reputation for high quality products.

They focus on how long a supplier has been producing high quality products without any/limited complaints.

Some purchasing agents select their suppliers based on their low prices. With lower prices, they can save on costs.

Established supplier network; a purchasing agent selects a supplier based on existing network of suppliers.

These purchasing agents do not want to work with suppliers outside of their network of suppliers.

A purchasing agent can pick a supplier who is qualified to give a product in compliance with your certification and quality requirements.

Some countries do not allow products that do not comply with their quality and certifications requirements to pass through their country.

Rather than having your goods blocked at the border, it is better to choose a supplier who helps prevent this obstacle.

Advanced method-based selection relies customer specific needs.

To be successful, a purchasing agent must understand the technical specifications of a product.

The latter must also understand how to assess the supplier’s ability to manufacture the product.

How long do China Purchasing Agents take to Source and Deliver Products to Customers?

There is no standard time taken to source and deliver products to customers.

The exact time for products to reach a customer depends on the following factors:

• The distance from a customer’s location to China. The time taken to ship a product from China to US is different from that of Germany and others.
• Change in government policies/natural calamities determine whether there is a delay in delivery.

The sourcing process is likely to delay, especially for electronics if there are new regulations.

Also, sanctions on a country may cause delay in sourcing process.

• Mode of transportation for delivery such as sea/air freight. Shipping through air is fast while through sea takes long.
• Getting the right shipping company. There those companies that organizes shipment as soon as they get the goods
• Total time it takes to source products from different suppliers/manufacturers/factories
• The expertise, experience and ability of the purchasing agent will determine the time for the whole process

Do China Purchasing Agents have Minimum Order Requirements (MOQ)?

Absolutely, yes. Purchasing agents can set their MOQ based on the value of the products or the number of items one chooses to buy.

Every purchasing agent has a minimum order requirement.

Usually, they allow a limited MOQ.

The MOQ could be $200 – 5000 or more in monetary terms.

If in terms of numbers, it could be based on the factory requirements/supplier abilities.

For instance, when sourcing TV screens, the MOQ could be at least 200 pieces.

Note: only when you discuss with your purchasing agent can you know the MOQ.

Where can you Find Reliable China Purchasing Agent?

Finding a reliable China purchasing agent requires hard work.

There are several ways of finding these reliable China purchasing agents.

Below are some of the ways:

Google to Find a China Purchasing Agent

First, you go online and search for an agent on google.

You will find several recommendations of purchasing agents.

Send an inquiry to the agents to them to test.

You can do this by putting small orders.

At the end of it all, you will remain with two excellent purchasing agents.

Put them to further test to determine who offers the best and quality services.

Watch for the agent who cares for your business and provides quality products.

Online Marketplace to Find Purchase Agent in China

There is an e-commerce platform known as online marketplace that enable you to interact with different purchasing agents.

Through this, you can find a purchasing agent that meets your expectations.

Fiverr and Upwork are good freelancing websites where you can find the best purchasing agents.

Even though they may be working part time, the agents find the right suppliers and give a report.

A buyer then contacts the suppliers and handles the process by themselves.

Recommendations

You can rely on the recommendations by other businesses/peers on who are the best China purchasing agents.

Recommendations can be from your fellow importers.

Home/Physical Offices

You can find a reliable China purchasing agent through visiting physical home offices in China and interacting with the agents.

There are purchasing agents with companies/agencies in China where they operate from.

Visiting these locations is always one way of finding reliable/qualified agents.

Trade Exhibitions/Shows

You can visit trade shows and fairs to find reliable China purchasing agents.

Such events offer you the opportunity to closely interact with different purchasing agents.

These events take place during different seasons of the year.

There are trade fairs such as Hong Kong fair, Canton fair and the Yiwu international fair among others.

Buyers with large imports can visit fairs to find agents.

These buyers often spend millions of dollars in purchases annually and import thousands if not hundreds of products.

Medium or small-sized importers are often avoided by purchasing agents in trade fairs because of their small orders.

Alibaba/AliExpress

You can use AliExpress or Alibaba to find reliable China purchasing agents.

This online platform connects potential customers with potential purchasing agents in China.

To understand just how reliable it is, whenever you have a dispute with your purchasing agent, the site can resolve the dispute.

How do China Purchasing Agents help you Save Money?

Purchasing agents can help you save on costs.

They reduce the risk and headache of procurement for the buyers.

They find the buyer reduced prices for their products.

Rather than paying high costs for products, a purchasing agent does price negotiation.

A buyer saves on the costs of paying other intermediaries to handle their products at different procurement, sourcing and shipping stages.

A purchasing agent handles all the activities that a customs broker/shipper could have handled at a single pay hence cutting on costs.

They help a buyer find the best suppliers who provide high quality products hence they do not suffer any losses when it comes to damages/product returns.

What is the Easiest way to Communicate with a China Purchasing Agent?

The easiest way to communicate with a China purchasing agent is through emails.

Since purchasing agents are English language proficient, they can easily read the mails and give the buyers feedback.

Which Payment methods can you use to pay China Purchasing Agents?

When a foreign buyer/client buys products from China through a purchasing agent, they are required to use payment methods which are more convenient.

Below are the payment methods you can use to pay China purchasing agents:

• Paypal
• Online Escrow
• Letter of Credit
• Credit Cards
• Cash (not recommended though unless you are sure)
• Telegraphic Transfer
• Western Union

Is it Possible to Dropship from using China Purchasing Agents?

 Dropshipping process

Yes, it is possible.

You can drop ship from China using purchasing agents just as some do use drop shippers.

The purchasing agents receive orders, source the products and ship to the clients.

Note: purchasing agents are more reliable than drop shippers, especially if dealing with professional purchasing agents.

Are there China Purchasing Agents who specialize in HAZMAT?

Of course, yes.

Purchasing agents provide several types of goods for their clients.

There are purchasing agents who mainly specialize in HAZMAT.

These could be chemical, agricultural or dangerous products that require special care.

HAZMAT Symbols

Can China Purchasing Agents Assist in Breaking Bulk Shipments?

Of course, yes.

Rather than a client spending high costs shipping bulk shipments, a purchasing agent can opt to break the bulk shipment into smaller sizes before shipping to the client.

Shipping products in small shipments is more affordable for clients.

A purchasing agent liaises with freight forwarder/shipping company to prepare the shipment in small quantities before shipping them to the client.

Do China Purchasing Agent Services include Product Packaging?

Absolutely, yes.

In addition to all the primary duties shown above, purchasing agents have to package the goods using special materials.

The packaging is to protect the goods from any potential damages during the shipping process.

The buyer eventually covers the packaging costs even though purchasing agent offers this service.

How do you Purchasing Agents ensure Quality Products?

 Total quality control

One of the many roles of a purchasing agent is quality inspection and verification of the products.

As such, purchasing agents ensure quality products through:

They regularly visit the manufacturers at the factories to ensure that the products meet the different quality standards.

They work with the third parties to verify the quality of the products

They check the manufacturing company’s quality certifications and registration

Research about the manufacturing company to determine if they had any complaints/controversies

Audit the general performance of the manufacturing company

They regularly inspect the products before, during and after the manufacturing process.

This process entails review, correction and verification.

What China Purchasing Agent Tricks should be Wary of?

While purchasing agents are known for their excellent roles, there is a dark side to them.

Below are some of the purchasing agent tricks you should be wary of:

Kickbacks

Some purchasing agents like receiving kickbacks from suppliers.

A kickback may be branded as corruption in other parts of the world but not in China.

Kickbacks often involve large orders of tens of thousands of dollars.

They avoid small orders because clients can easily compare prices of products on sites such as Made in China and Alibaba.

Kickbacks can however ruin one’s business because:

A purchasing agent sides with a supplier when there are disputes.

A purchasing agent selects the supplier paying the largest kickback even if they are not the best.

A supplier compensates the kickback using a higher price.

As a result, the buyer foots the excess bill.

Note: it is unethical for a purchasing agent to ask for a kickback from a supplier.

It is a serious problem, especially after the agent and buyer have agreed on supplier information transparency and on product price at the beginning of the cooperation.

Bribe

A purchasing agent can engage in bribery, especially when looking for a supplier.

A bribe can happen to a purchasing agency company or individual purchasing agent.

Purchasing agents often take large bribes on big orders.

Although they can take bribes on small orders, it is not a common practice.

How do you Choose Incoterms when Working with China Purchasing Agent?

When working with a purchasing agent, you choose incoterms depending on if they are shown by the parties in the agreement or indicated in sales agreement.

Also, an incoterm is chosen if the purchasing agent is mandated to bring the products to the port, clear them and loaded on the ship indicated by the client.

Some of the chosen incoterms are:

Free on Board (FOB); a seller is responsible for the products up till they are loaded onto a shipping vessel.

This time, all the liabilities are transformed to the buyer.

Purchasing agents is equally responsible for a buyer’s products until they are loaded on a shipping vessel.

Ex Works (EXW); a seller makes a product available at a set location and the buyer covers the transportation costs.

In this case, the purchasing agent makes the goods available at a designated location then the buyer goes for them.

Do you need a Customs Broker when Working with a China Purchasing Agent?

When working with a China purchasing agent you do not need a customs broker to get your products through the customs.

Purchasing agents have special relationship with freight forwarders and officials at the border who help them get their products through the border.

Having a customs broker makes the shipping process less stressful but still a purchasing agent often has an agreement with a shipping company and client.

What is the Standard Procurement Process for China Purchasing Agents?

While different China purchasing agents follow their procurement styles.

There is a standard procurement process for all Purchasing agents in China.

Below is the step-by-step process:

• A purchasing agent confirms that all the certification requirements and product specifications are met.
• Begins sourcing for the right supplier. Sourcing for suppliers involves the use of different methods ranging from kickback style, their product prices to relying on existing relationships.
• Does an initial research for the merchandise price, selection of qualified suppliers and sample orders. A purchasing agent picks the qualified suppliers, determine the cost of their products and check if they give sample orders.
• Conduct the initial price negotiation. Once a purchasing agent knows the price offered by a supplier, they begin price negotiations so they have favorable pricing for their clients.
• Conduct an audit of all of the qualified suppliers. An audit of the suppliers has to be done to ensure that one is working with professional and trustworthy companies.
• Select the suppliers. A purchasing agent makes the final decision of the suppliers who will provide products for the buyer.
• Write a sales agreement. A purchasing agent on behalf of the client writes and signs the sales agreement where they agree on different issues concerning the orders.
• Begin the production and quality control. Suppliers then begin the production of the goods while ensuring that they produce goods of high quality. Purchasing agents are required to visit the factories during and after production to ensure that the products meet the required certification and quality requirements.
• Ship the products to the client. A purchasing agent liaises with a shipping company/freight forwarder to ensure that the goods reach the client.

Do China Purchasing Agents Manage the Procurement Process ‘In-house’ or Do they ‘Outsource’?

 Procurement management process

China purchasing agents can either manage the procurement process in-house or outsource.

There those who manage only some parts of the procurement process in-house then the rest they outsource.

Outsourcing gives the purchasing agent staffing flexibility.

They can delegate work to the staff and are done according to their requirements.

Outsourcing saves on costs as the purchasing agent does not have to spend more money on training the staff.

The third-party has staff working for them and they possess the required skills.

How do China Purchasing Agents deal with Potential Quality Issues?

There are some purchasing agents with in-house quality inspectors.

They use the services of these agents to conduct quality control so as to root out any potential quality issues during the production process.

They conduct research to determine the cause of potential quality issues then control them to prevent their occurrence.

Purchasing agents can demand samples from the manufacturers so they have an idea of what they are dealing with.

Through the samples, they can inform the manufacturers of what to correct or add to the products.

Charge the manufacturers/suppliers for any defective products as this improves supplier accountability.

It has to be done in advance after an agreement between the supplier and the purchasing agent.

At Link Trading, we’ll make the entire process of sourcing for products, and shipping products easily.

Our team of experts strive to reduce the cost of importing while ensuring quality conformity and compliance.

Contact us now for all you product sourcing needs from China.