Foreigners often search for factories on Alibaba, and more knowledgeable ones might explore websites like Made-in-China or Global Sources. Some may even attend trade shows. What they may not realize is that, apart from Alibaba, China has its own platforms, such as 1688 and Baidu AiCaiGou (Love Procurement). Compared to Alibaba, 1688 offers more direct access to goods and better price competitiveness. Many strong and genuine factories focus on domestic trade rather than foreign trade. Due to language differences, this is where professional China sourcing agent come into play.

Foreigners trying to determine if a factory is genuine through websites may face difficulties. Some companies claim to have their factories and even display pictures of factory entrances on their introduction pages, making them appear like genuine factories. However, due to the language barrier, foreigners may not realize that the Chinese characters on the factory nameplate are incorrect or may be absent altogether. These tricks can be easily detected by a team of China sourcing agents.

In addition to 1688, some factories simply do not engage with the internet at all. They rely on traditional marketing channels and word of mouth, such as Yellow Pages or orders obtained through government-business relationships. There are numerous such genuine factories in China that foreigners are unlikely to find without the assistance of Chinese procurement agents. Therefore, China-based procurement agents with strong local relationships can discover factories that are not accessible on the internet.

Regarding trade shows, statistics indicate that over 75% of Chinese factories do not participate in these events. Considering the high costs associated with trade shows, many factory owners are hesitant to participate or cannot afford to attend every year. Relying on trade shows to obtain seller information is limited. On the other hand, by entrusting China sourcing agent to handle this, buyers can also save on trade show-related expenses. With the development of the internet, 5G networks, and VR technology, more and more people are trying virtual exhibitions.

Verifying factories is a technical task. Many Chinese sellers are quite savvy and may prepare in advance when foreign buyers come to inspect their qualifications. For example, they may hide inferior products so that foreign buyers only see high-quality ones. In terms of social responsibility, if a factory employs child labor, they may arrange for the child workers to take time off. If it’s a trading company or individual pretending to be a factory, they may have already coordinated with a real factory, and even the factory owner may be a relative or friend. In such cases, the factory will cooperate with them, even going so far as to add a new company logo. Language barriers make it difficult for foreign buyers to discern such deception. Even with a translator, translators often overlook these issues. Chinese translators may choose to turn a blind eye because they don’t want to offend anyone. In the face of competing interests, human nature tends to prioritize self-interest. This is a human weakness, and we cannot blame translators for their lack of honesty. Working with third-party inspection agencies also carries risks, as some may have friendly relationships with the factories they inspect and may deceive clients for kickbacks, thus providing inaccurate verification reports.

However, if you engage a local China sourcing agent, they can circumvent these disadvantages. China sourcing agent speak Chinese and can better advocate for your interests. They understand the local context and can penetrate the factory’s inner workings more effectively. By building rapport with factory workers, chatting with them, and even sharing a few cigarettes, they can gain valuable insights into the factory’s operations. They can assess factors like the employees’ happiness, work conditions, sense of responsibility, working hours, overtime policies, employee motivation, and the factory’s ability to recruit workers. All of these factors can impact product quality and timely delivery. A well-structured work system, comprehensive overtime policies, and fair employee benefits in a factory imply that they are more likely to complete production tasks on time. Even in the event of unforeseen circumstances, such factories can efficiently organize their workforce to ensure timely delivery. The quality of factory personnel can also affect product quality. For example, in the case of mechanical products, the balance of a simple metal part may depend entirely on the skill and dedication of a frontline worker. In a culture of rigor and responsibility, employees will continuously refine the part to ensure balance. In an irresponsible environment or with lower-skilled workers, slight imbalances may be accepted, as employees may not strive for perfection.

Did you know that all products on Alibaba are eligible for a 13% tax refund? China has an economic policy of a 13% export tax refund to encourage foreign trade and accumulate more foreign exchange reserves in US dollars. This means that nearly all sellers on Alibaba can apply for a 13% tax refund after selling their goods and receiving US dollars. So, even if you think you’ve negotiated the lowest price, factory owners can still make a profit with the 13% national tax refund. Therefore, there is still room for negotiation, and this is where local Chinese procurement agents come in handy. While you may have hundreds or even thousands of factories to choose from on Alibaba, it can still be challenging to obtain a reasonable price. During price negotiations, many factors can influence the factory’s quote. For example, from the factory’s perspective, they may consider the authenticity of the buyer’s purchase and the buyer’s own quality standards. They may also assess who is making the inquiry – whether it’s the owner, manager, an employee, or even a new employee who just started the job. For foreign buyers, determining the identity of the person providing the quote can be a challenge.

As a foreign buyer, you might also need to consider the cost of time and effort. You might only inquire with a few companies and compare a dozen different quotes at most. However, this may not be sufficient, and you still need a professional procurement manager to assist you. Professional procurement agent companies, such as SourcingYuan, use the TARGET PRICE SETTING MODULE (TPSM) method to evaluate prices. TPSM takes into

• Account historical purchase prices,
• Competitor prices,
• Initial vendor quotes,
• Market reference prices,
• And cost analysis prices.

Each price indicator is given a weight, and then the most reasonable price is calculated. Based on this fair price, a challenge price is set to negotiate with suppliers. This requires extensive work and research within the factory. Since the pricing of procurement agents is generally transparent, considering their 5%-10% commission, their procurement prices may still be more competitive than yours because they are better at obtaining the most competitive prices.

Once prices are negotiated and contracts are signed, the production phase begins. For some buyers who purchase components, quality inspections during production are crucial, especially for customized and non-standard items with high-quality requirements. Quality inspection should not be left until the last minute, just before shipping, as issues might not be resolvable at that point.

So, what can you do? You can rely on a local China sourcing agent like SourcingYuan to help you. Their headquarters are located in Xinyang, Henan, near Wuhan in central China, which is an ideal geographic location to access various industry clusters in southeastern, western, and eastern China. They also have team members distributed in coastal cities like Shanghai and Guangzhou, known for industrial hubs. These types of procurement agent companies can replace your frequent factory visits to ensure that quality meets your standards from the beginning to the end of production and that deliveries are made on time. This can save you from the inconvenience of long distances or concerns about the quality of temporary inspection staff you hire.

For goods that do not require component inspection during production, many buyers prefer to conduct quality inspections after production but before shipping. If a foreigner attempts to inspect product quality in the factory personally, language issues can lead to incomplete inspections. For instance, if your product is glass bottles, and you want to conduct a sampling inspection, you may arrive at the workshop and see stacks of products piled up. Apart from you and your translator (if you have hired one), everyone else in the factory is a factory employee. You may want to inspect the 5th row, 8th box of packaging, but by chance, there is an issue with it, and the worker notices. At this point, the worker may bring you nearby boxes to inspect, and you may be surrounded by many people. Consequently, you may not end up inspecting the 5th row, 8th box of packaging. Even if you later discover the issue, the factory owner might explain that they didn’t understand or heard wrong due to language barriers. This is where a local Chinese procurement agent can assist you. They speak Chinese and can confidently advocate for your interests. Procurement agent companies are on your side as allies, working to protect your interests.

For technical products, if there are minor technical issues with your product, you might need to inquire about technical details during quality inspection. Everyone in the factory, from the owner to the workers, might be aware of these minor issues. However, since the machines are running without major problems, and you are present for only a short time, these issues may not be immediately apparent to you. A professional China local sourcing agent can help you in such cases. They have no language barriers and can engage with technical personnel directly, bridging the gap in communication and potentially extracting technical details.

In conclusion, these are the reasons why you need a local Chinese procurement agent when sourcing products from China. Beyond the changes mentioned above, local procurement companies can also assist you with tasks that you cannot easily do yourself or that are inconvenient to manage, such as:

• Taking product photos and videos before shipping.
• Re-packaging for irregular or custom products.
• Adding or adjusting components in your packaging and re-packaging.
• Handling private labeling if you’re selling on Amazon.
• Managing warehousing in China if you need storage for various products from different suppliers.
• Coordinating 3PL services for warehouse customization, as well as handling inbound, inventory management, and outbound logistics.
• These tasks further demonstrate the value of local Chinese procurement agents. After all, navigating the complex world of international shipping, customs clearance, and logistics is essential for successful procurement.

If you’re considering sourcing goods from China and are looking for a reliable local procurement agent but don’t know which one to choose among hundreds of options, consider checking out this article on how to select the most suitable Chinese TOP 10 procurement agent companies for your needs.