WHY CHOOSE US?
You have decided to test the waters of the sourcing world and you think the process is straightforward and simple; know your product, find a supplier, import, and sell. But in reality, the process is a lot more complex than that. Sourcing good quality products at good prices and good profit margins involves research and a lot of trial and error.
In this comprehensive guide, we look at what product sourcing is, each stage of the product sourcing journey, types of product sourcing strategies, and finally, how to evaluate and sell your products once you’ve sourced and supplied them.
What is product sourcing?
Product sourcing is the process of finding good quality products to sell from reputable suppliers at good prices. Within that process, there are a number of different stages, such as researching the chosen product, calculating the price and cost of the product, and then negotiating with suppliers in order to achieve the best deal. Ultimately, the goal of product sourcing is to locate the best products from the best suppliers with prices reasonable enough that they allow a good profit margin.
Product sourcing may sound simple, but it can be a minefield with unreliable suppliers, hidden costs, and low-quality products. To have an edge over your competitors, it is important to take the time to learn effective product-sourcing strategies to maximize your potential profit from each sale. Hiring a product sourcing agent is one way to make this process much more efficient, by relying on their expertise and knowledge of various suppliers and niches.
Who is a product sourcing agent?
A product sourcing agent, or sourcing supplier, is someone who has several years of experience working either in or alongside a sourcing or trading company. Most of the time, product sourcing agents come with an already established contact book full of reliable suppliers whom they have already formed good relationships with.
Product sourcing agents act as your representative and can help you identify genuine and reliable suppliers, negotiate prices, oversee production processes, sign off any required documentation, undertake quality control procedures for your product, and most importantly, ensure that you receive your products at the agreed shipping time.
Whilst product sourcing agents are a good resource to use at any given time, they are particularly beneficial if you are sourcing your product from overseas in low-cost, multiple-factory regions such as China or Taiwan.
What to look for in a product sourcing agent
Just like the product sourcing process, identifying a product sourcing agent requires similar levels of research! Key things to look for include:- A business license, experience and expertise, strong communication etc.
Business licenses
All credible sourcing agents should be licensed, which means they have the legal authority to conduct their work. It’s also a layer of protection for your business – if anything negative was to happen, you could use their business license number to track and then subsequently get in touch with them.
Experience and industry expertise
It goes without saying that your agent should have proven levels of expertise, but specialization in your chosen niche is just as important. If an agent has a good level of general knowledge in sourcing but has very little experience sourcing your product, it may be worth continuing your search for an agent who has more specialised experience sourcing products like yours, as they’re more likely to have a better network of suppliers and cost understanding.
Communication
Communication is vital in any relationship, but it is even more important when sourcing products from abroad. Your agent should be always available to answer queries and should keep you well-informed of every stage of their work. Miscommunication around the product, shipping time, or pricing can quickly become a big problem and is something to be avoided at all times. So, if your agent is slow to respond, or avoids certain conversations altogether, it’s best to avoid them.
