No matter what kind of business you are into there are numerous things when it comes to market research from suppliers to potential clients, the best raw material for manufacturing, taking care of the production, etc can be a tiresome process and it gets tougher if you are a newbie.
Sourcing agents come in handy especially when you are into the import/ export business. You can’t surely know everything about the country you are dealing with for trading.
A sourcing agent will help you with knowing the market over there, selecting the suppliers, do the product inspection, other legal paperwork within the trading country, and can help you in achieving a successful business.
If you are looking for a sourcing agent then here are a few tips that will help you with hiring them.
How to Select a Sourcing Agent for Your Business?
If you are a newcomer to the business and want to know every aspect that will affect your business then it is recommended to hire a sourcing agent that will help you with the same.
Now if you are wondering on what should you be selecting a sourcing agent for your business then be at ease, we have enlisted all the major selecting criteria for you;
If you are trading overseas then chances are you are not familiar with the market over there or how things work in that particular country and this is when you should contact a sourcing agent company for help.
Getting a sourcing agent from the same country you are trading with will help you largely because they know how the market works, what’s good or best, and how to get the work done on time without much hassle.
For example, China is one of the largest countries that exports goods and services globally and if you are willing to trade with China then it would be best for you to hire Chinese sourcing agents.
2. Requirements of the Business
Firstly, you have to decide what you are looking for and what services that you want from a sourcing agent. But before that do the research on your own about your business as much as possible.
So that you can easily decide in what certain sections you need the help of a sourcing agent.
Don’t get dependent on the sourcing agent for all the work, rather have the knowledge about the work that needs to be done by the agents so that they can’t fool you.
Once you know all the things that you require from a sourcing agent then set your budget. Surely, you can’t spend more on sourcing agents than you did on the trading.
And if you are a newbie and just establishing your business then your hand must be already tight on money. Hence, layout the budget accordingly.
4. Choose Sourcing Agency Precisely
Don’t hire the very first sourcing agent you deal with but take your time and only decide when you trust the agent. Do the research for different sourcing agencies and check their market value.
Is the agency a valid and reliable one? Can you blindly trust the agent once the paperwork gets done? How does the agent deal with different problems?
Ask the agent any query or questions you have before hiring because it’s the goodwill of your business that’s at stake.
Check whether the concerned sourcing agent has a good reputation amongst the other business persons or not. See the reviews on the internet and check how much experience the agent got.
Ask other business persons or amongst your contacts about the reference to a good sourcing agency, this way you get to know the in-hand review and can trust them.
Surely, once you search you all get numerous sourcing agencies in the market and when you reach out to anyone, they will sugar coat everything and will tell you they are the best ones you can hire.
But don’t get easily persuaded by them. Instead, do the research and reach out to several sourcing agencies and then compare their work and reputation in the market.
Then finally hire the one that suits your budget and qualifies the requirements.
7. License and Insurance
Ask the sourcing agents to provide a copy of the legal license that is issued by that country’s government which gives them the approval of intervening in such activities and how much are they allowed to intervene in countries.
The insurance will help in covering the damage if in case it happens. If your sourcing agent is not providing you the license or insurance then it’s a sign that the agent might be fraud or not qualified to do the required work.
The next step is to crack the deal with your sourcing agent. Try negotiating, after all that’s the first step of doing business. Try coming to a deal that will benefit you the most and within your budget.
9. Paper Work
Once the deal is sealed off, get the paperwork done for the deal. Include every minute detail in it, stating what are all the services that the sourcing agent will be providing. What are all the conditions that you agreed upon?
Also include the section that states the responsibility of the sourcing agent from manufacturing to shipping (air or sea shipping), every process where the sourcing agent will get involved, and how much the agent can intervene.
To make things easier for you, you can hire sourcing agents to do the mentioned work for you. They do the analytic research whether it is about the product, competitors, quality inspection, or clients they help you with everything saving your time and effort.
So make sure to keep the above-mentioned points in mind while hiring a sourcing agent.