Month: April 2021

China Sourcing Agent

Elksourcing：What Make a China Sourcing Agent Outstanding?

Apr 20, 2021 , by 露露

Many importers know the importance of using a China sourcing agent but feel frustrated to find the right one. In this article, I want to share you the key factors which good sourcing agents commonly possess.

1) Local Office in China

Sourcing agents are expected to be your representatives in China – your boots on the ground and the reason you don’t need to fly to China regularly or spend time and money setting up an office there. An agent with a local presence will be able to quickly find you a reliable supplier. Their local staff will also negotiate prices with the local factory owners, resulting in better pricing.

China-based sourcing agents bring several other advantages. They will be able to steer you away from unreliable suppliers or scams. Once they help you finalize a supplier, they will take care of the documentation, draw up payment terms beneficial to you, help you assess and approve samples, conduct in-process quality checks and resolve problems that happen during production, do pre-shipment quality inspections. Again, to do all of this reliably and efficiently, they have to be present on the ground in China.

2) Excellent Communication Skills

Many stories have been posted on internet about the communication challenges western businesses face in China. These are not just related to the fact that China lies in a different time zone or that its people speak a different language, but also to its cultural quirks. A good sourcing agent will not only be familiar with Chinese, but also be acquainted with the country’s cultural differences, allowing them to guide you through the minefield that these differences can be for importers.

A good sourcing agent will anticipate that this may happen and spell out all your requirements to the supplier to ensure that they have completely understood your requirements.

3) Experience in China Sourcing

Experience is especially valuable in sourcing because of the risks involved. If you are a small to medium enterprise, sourcing from a country halfway across the world from you is a risk – with both your money and your reputation on the line. If your consignment is delayed, for instance, it will not only affect your inventory but also upset your customers, hurting your revenue and reputation in the long run.

Hiring an experienced sourcing agent – one who has been in the business for at least 10 years – will protect you against these risks. These agents have several advantages:

They will usually have a bank of reliable suppliers they have worked with before, allowing them to quickly identify a supplier who can give you exactly what you need when you want it.

They will be aware of the strengths and weaknesses of these suppliers. They will know, for instance, which supplier to pick in case your product needs further development, or which one to pick if it is imperative that your product has a super smooth finish.

They will know what you need to do to protect your IP rights in China.

They will be able to anticipate what can go wrong with lead times. They add extra days or weeks to lead times, for instance, because of local disruptions caused by festivals such as Chinese New Year.

They will know what HS codes to put on your consignment, protecting you from expensive and frustrating delays that incorrect shipping codes cause.

Such agents will also be able to tell you if your expectations, say, with regard to quality, are too high, or whether your design is too ambitious to fulfill technically. This knowledge will save you time and effort.

4) Know the Products You Want to Manufacture

There are millions of products you can source from China. It will be difficult if not impossible to find a sourcing agent who is an expert in all of these industries. But what you can do is find a sourcing agent who is an expert in the process used to manufacture your products.

For example, if you want to manufacture outdoor ovens, look for agents who specialize in these manufacturing processes and is familiar with stainless steel, aluminium and plastic materials. Also, the agents should have clear understanding about packaging regulations, if you are based in Europe, they should try to decrease the usage of non-recyclable plastic and use eco-friendly materials. These experts know the ins and outs of all related processes and be able to steer you away from potential problems.

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Elksourcing：What Can a China Sourcing Agent Do for You?

Apr 20, 2021 , by 露露

After frustrations of dealing with China factories directly, more and more importers realize it is necessary to use a China sourcing agent on the ground to many daily matters and make their life easier. What specifically can a China sourcing agent do for you? Here are some main areas.

1) Search suppliers

Many people know how to visit online sourcing platforms such as Alibaba, Global Sources and Made in China to search suppliers, however, it is very time-consuming work, there are hundreds of suppliers all claiming making the same products, but most of them are traders and some of them are not good. It’s a daunting job to communicate with the suppliers and find out the good one. 

This is exactly what a sourcing agent can help. The professionals have rich experience and solid sourcing background, so they can find out the best suitable direct manufacturers in the right area, with good quality and fair price.

2) Verify suppliers

‍Once a shortlist of suppliers is there, the sourcing agent needs to verify their credentials, including:

Whether they are indeed direct factories not traders.
Whether they have the technical expertise and production capability to deliver what they say they can deliver.
Whether they have good quality system.
Whether they own adequate capacity.
Whether they have healthy financial status.

3) Source products

A professional sourcing agent can source products based on real connections during their working experience, they only use verified direct manufacturers and keep everything transparent. The professional will try to find out products that are both affordable and high quality to meet your needs, they possess this kind of expertise to help you.

4) Make samples

When a supplier is selected and you want to proceed with a project, it is important to create samples or prototypes to prove the concept works and the quality is good. It is very risky to place an order without checking the samples.

In some cases, the samples do not meet your requirements, China suppliers usually will explain like “they are just samples, mass products will be good” and so on. Be cautious about the explanations and try to look deeper, it is better to get 2nd round of good samples before you invest lots of money. A good sourcing agent will monitor the sampling process and try to get good samples before they leave China, so as to save your time, and provide extra assurance to quality.

5) Arrange payments

Scheduling and coordinating payments are tricky tasks for people who are new to sourcing business in China. Also, it is time consuming and costly if you need to arrange multiple payments to various suppliers. Then, you can ask for help from a sourcing company, the organization can do multiple payments on behalf of you and handle all communication work to make the whole process in an effective and efficient manner. 

6) Do quality inspection

If you pay for quality goods, then you deserve to receive good quality products as promised by China suppliers. Therefore, quality inspections are crucial to your success. Some manufacturers cut corners when dealing with foreign firms if there are no 3-rd party inspectors to monitor them. Make sure you always emphasize to your suppliers that you will use a professional sourcing company to check the quality before production, during production, and before shipment.

7) Consolidate products

A good sourcing company has combination of product range and experience. When you need a variety of products, you need many suppliers, then, it is very difficult to manage the logistic because to collect the products from various areas (considering China is such as huge country!) and arrange sea shipment. But it is manageable for a sourcing company, as they have associated warehouses and networks to arrange land transportations, collect products from different factories, consolidate them and put in the same container. Lots cases prove that by doing this way, the clients can save much money, time and hassles.

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Elksourcing：Factory Audit and Quality Inspection

Apr 20, 2021 , by 露露

In the practices of sourcing from China, it is crucial to find good suppliers, and control the product quality. To achieve the goals, factory audit is needed to verify the suppliers, and quality inspection is necessary to assure product quality.

Factory audit refers to an onsite factory inspection that is carried out on behalf of an importer at the premises of the manufacturer before placing an order to a new manufacturer. Factory Audit is aimed at avoiding getting involved in a bind working with the wrong factory.

During the Factory Audit, the auditor records data and takes pictures of all the essential aspects for the importer’s reference for them to have an in-depth feeling and sense about the factory before any contract is signed.

Factory Audits are often the last step in the sourcing process. It usually takes place after screening a group of potential suppliers down to the serious ones. 

It is important to get to the factory to confirm if the key managers will be available on the desired date. Surprise audits can only be carried in certain situations.

Some are also known for child labor, degradation of the environment and poor working conditions. Thus, you need to research your manufacturer, pay a visit to their premises and ensure that they are checked out before entering into any business agreement.

Quality inspection refers to the measures that are targeted at checking, measuring and testing the various product characteristics and then relating the results to the requirements to comply with laid down regulations.

The process is usually conducted by specialized personnel and cannot be handled by production workers. Products that are not in line with the specifications are rejected or returned for improvement.

The three major purposes of quality inspection include:

Identification of the problem with the quality

Provision of information to managers

Removal of the problem by managers

There are two forms of quality inspection namely final inspection and in-process inspection. Final inspection is carried out at the end of the production process while in-process inspection is carried out during the process of production.

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Elksourcing：A Step by Step Guide for Buying from China

Apr 20, 2021 , by 露露

Buying from China has proven a successful tactic for many businesses. However, it is not an easy task, especially for the newbies. The importing process can be extremely complex, confusing, and costly. Expected gains can often be erased by long transit time, fluctuating shipping cost, unexpected delays, and quality issues.

1). Make sure you can legally import your chosen item

Most items will be allowed, but there are certain guidelines that must be followed for some types of items. The United States imposes stricter guidelines on agricultural products, for example. Additionally, Chinese laws may prohibit the export of certain items, like animal by-products or fake designer clothes and accessories. Check with the laws and regulations of both countries before making an order.

2. Identify the goods you want to import

You make money by selling products. Choosing the wrong products means you are losing time and money. If you’re going to be a successful importer, you need to choose the correct products for resell.

You’d better gather as much information as possible about the goods you intend to import. Obtain descriptive literature, product composition information and, whenever possible, product samples.

This information will be crucial when it comes time to determine the tariff classification. The tariff clarification number (HS Code) will be used to determine the rate of duty that will be applied to your goods.

3. Calculate the landed cost

The 10-digit tariff classification number and the Certificate of Origin are used to determine the rate of duty you must pay when importing. Then you can do the calculation for landed cost.

Pay attention to the Incoterms and calculate the total landed cost before you place your order. For example, FOB means adding the following three costs together: 
Product cost, 
Shipping cost, 
Customs clearance, duty & tax, land transport to your premises.

4. Find right suppliers in China 

You need to find the right supplier in China. Mostly commonly, you can visit B2B websites such as Alibaba, Global Sources to search the suppliers. Be aware that many traders pretend themselves as “manufacturers”, do background check and due diligence as much as possible. A reputable supplier should be able to provide you with client testimonials and references.

You can also visit trade fairs such as Canton Fair and HKTDC show. The good thing is you can personally feel the samples and have first impression about the supplier by face to face talk; negative things are travelling cost & time, also you have big chance to find trading companies than direct manufacturers.

If you don’t have much experience dealing directly with Chinese suppliers, another option is to seek the help of a commission-based China sourcing agent. The agent fee can range from 3 to 10% of the order amount.

5. Place an order

Request information regarding the experience of each factory in producing your particular product. You should also ask for samples of the product. Unless you will be manufacturing your own new product, the supplier should be able to provide you with samples of the product so that you can get a better idea of the quality and know ahead of time exactly what you are paying for.

Cost is not the only the consideration when choosing a supplier; quality may be just as important, and the manufacturer’s experience can be a good indication of the quality of work.

Place your order with the vendor and identify incoterms and shipping terms that will be used.

6. Do quality inspection

Quality is very important to your success; however, this is neglected by many importers, they assume product quality is assured by the manufacturer, but it usually is not the case. Most Chinese manufacturers are too busy in daily production, they are not available to do thorough quality inspections as the salesman claimed to. Also, they do not have incentive to do strict quality inspection as it increases cost to rework all issues – they usually classify them as “minor” issues.

So, it’s highly recommended to using a professional inspection company to do pre-shipment inspection for you. If the order is large or of high value, it’s also necessary to arrange an online inspection, so as to catch any issues before production is 100% completed, which means it’s too late to rectify.

7. Arrange cargo transportation

Once you have selected your supplier, request a packing list and a commercial invoice for your prospective purchases to include HS code, description, QTY, weights & CBM, and value per item. 

There are many costs associated with shipping goods, including container fees, packaging, terminal handling, and broker fees. In order to get a complete picture of shipping costs, each of these factors should be considered.

8. Obtain your shipment

Shipping goods internationally takes time. For example, goods shipped from China, on average, take around 20 days to reach the West Coast of United States or 30 days to reach the East Coast.

During the time, check your commercial invoice, packing list, the bill of lading, and other related freight documents. If problems arise that you need to troubleshoot, you should know the steps your goods go through when being cleared by customs of your country.

When the goods arrive, you should arrange for your customs broker to clear them through customs. If everything goes well, you will get your shipment, and hopefully do a successful selling.

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Elksourcing：Main Benefits of Buying Products Directly from China

Apr 19, 2021 , by 露露

Many people may hear that buy direct from China is the way to go, but do you really know what makes it the best choice? In this article, I’d like to share you the main benefits that you get by buying products directly from China.

1. Quality products at cheap price 

Who doesn’t want to buy quality products at reasonable rates? China offers a wide range of products which you can buy for relatively low prices, but you don’t have to comprise in quality. The huge immense wholesale industry in China and inexpensive manpower used for manufacturing are the two main factors that contribute to the low prices of products that you get from China. Regardless of what type of products that you’re looking forward to buy, you will always get them for a discounted price China. If you’re buying products in bulk, then you will get them for much lower prices.

2. Trending products

Since China is the manufacturing and wholesale giant of the world, almost all types of products are being available here. Any slight update in the particular trend starts here, with which you can avail those latest products directly from China. China conducts lot of trade fairs throughout the year where different manufacturers showcase and discuss their new products. By doing so, the whole market catches up with these new products, which you can buy directly from China. It’s the biggest advantage that you can get if you buy direct from China, since you can lay your hands on the products that are still not available in other countries.

3. Great Infrastructure

China has been developing the infrastructure exponentially which makes the business much easier. The number of highways, trains, and other transportation facilities have risen by leaps and bounds in the last twenty years. This phenomenon has led to the revolution in the way business is conducted in China. If you’re going to buy direct from China, the superior infrastructure helps you in getting your products shipped much faster. Not only the speed of delivery, you will also get your products much safer, thanks to the upgraded Chinese infrastructure.

I frequently hear the stories about importers who take high risks by not doing any quality control and end up with bad results. In my opinion, the most under-rated tool to reduce risks in China is certainly running a background check on potential suppliers. Also, it is recommended using a verified sourcing company to help you to do quality inspections on the ground.

China Sourcing Agent

Elksourcing：Main Benefits of Using Sourcing Agent

Apr 19, 2021 , by 露露

More and more importers realize the benefits of using sourcing agents, not only they stay away from sourcing frauds, but also, they save time and money. In this article, we will tell you more details.

1) Save Your Time

Buyers always hope to source products efficiently. Picking out satisfying suppliers from thousands of suppliers in Alibaba is time-consuming and inefficient. Also, buyers cannot verify the qualifications of these suppliers one by one. Some suppliers in Alibaba have no experience in international trade, some do not have good quality management, it is difficult for them to guarantee on-time delivery and assured quality. Compared with sourcing in Alibaba by yourself, finding a reliable sourcing agent can offer you sound sourcing suggestions according to your requirement. Sourcing agents are familiar with local markets. They can pick out right suppliers with a good reputation from thousands of suppliers to ensure you a good sourcing experience from China. Thus, you can save lots of time on sourcing and be more efficient.

2) Choose Good Suppliers for You

There are thousands of different suppliers in Alibaba. The barrier in the communication between buyers and suppliers is quite difficult to bridge. Besides, some online suppliers are not familiar with the international shipment, so shipping can take a very long time to reach you. In this circumstance, finding a sourcing agent from China will be helpful. They can verify the qualification of suppliers and pick out a reliable one. Besides, some online suppliers are traders instead of manufactures. Products from them are at a higher price. Sourcing agents have close contact with factory outlets. They can help you get a competitive price. All these service sourcing agents provide can also help you reduce the risk of supplier fraud.

3) Offer Product Inspection Service

Suppliers from Alibaba have no service for products inspection. If you need, they will do an internal quality inspection which is according to international standard and not independent, countless lessens tell us that 3rdparty quality inspection is very important. Qualifications of these inspectors are hard to verify. If you use a professional sourcing agent, you no need to worry about the sourcing progress. Sourcing agents not only make sound sourcing plan according to your need but also offer independent quality inspection service. They can help you control the quality of products and reduce the risk of customer claims.

4) Provide Product Consolidation Service

It’s difficult for buyers to ask for consolidating goods from different suppliers, which means buyers will cost too much on international shipment. An experienced sourcing agent can do product collection, warehousing, international freight and shipping for buyers is helpful. If the product quantity you need is small, sourcing agents can ship your good in less than container loads (LCL) to save your shipment time and handling cost.

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Elksourcing：Valuable Tips about Improving Amazon Ranking

Apr 19, 2021 by 露露

If you are an online retailer, you know the importance of product ranking. Amazon is a top online marketplace. The better that you rank, the more traffic and conversions you will get. How to improve your Amazon ranking? Pls read valuable tips as below.

1) Optimize keywords

On Amazon, keywords tell the search engine what your product is and what it is about.

If you want to rank higher on Amazon, you have to use the right keyword to gain relevancy to the search keywords. To use the right keywords, you need to understand what search term customers will use to search for certain products. It’s not an easy task to do it well. You need to do some research; you can use keywords tools to create keyword lists. There are various keyword tools, including the keyword tool, Jungle Scout, etc. Enter a certain keyword, and you will get a list of related keywords. Once you have your keywords, you have to optimize the backend keywords on Amazon. Place as many keywords as possible in the backend keyword field before adding keywords to your content. Make sure all your keywords get indexed but don’t exceed 249 bytes (including space). To maximize the power of keywords, you have to optimize their placement but keep customer experience and readability in mind when using keywords in the product content.

2) Improve product listing

You can improve the product listing for relevancy; optimize product title, product images, and description. 

a.    The Amazon algorithm uses keywords and indexes the product’s title, so it’s good practice to insert relevant keywords in the product title. Amazon limits the bullet points on each listing to 1000 bytes. Use relevant keywords but make them

b.    Use keywords in your product description but tell an engaging story, be compelling and use a call-to-action voice.

c.     Optimize product images. To help the customer, Amazon has a zoom function on product images. To ensure your images can use this function, use high-quality images with 1000 pixels or more. Great images attract customers and help you gain traffic and conversions.

3) Set a competitive price

How much you charge for impacts on your Amazon conversion rate and the possibility of winning the Amazon Buy Box. Amazon is a customer-focused platform and always seeks the supplier who offers the best quality at the best price. Price is the major factor in determining which item will show in the Amazon Buy Box. Typically, a product with a good rating and reasonable price will help you gain a higher ranking on Amazon.

Set a competitive price, and you are likely to gain a higher conversion rate, which leads to a higher Amazon product ranking. Make sure to monitor competitors both on and off the platform and set your price accordingly and competitively.

4) Increase sales

Products with the highest sales always stay on the top of the search result page. It’s easily concluded that the more you sell, the higher you will rank, and the more likely you are to win the Amazon Buy Box. There are several things you can do to increase sales.

a.    You can lower your product prices. If your product price is slightly lower than your competitors for a product of the same quality and function, you will gain a higher conversion rate. Keep a close eye on your ROI, and make sure you’re still profitable.

b.    Select unique products. If you are the only seller in the marketplace with a certain product, you will have little competition. This will make it easy for you to win the Amazon Buy Box. Figure out the ways to stand out on the marketplace.

5) Offer Prime

Amazon has over 63 million Prime members. The number is likely to exceed non-Prime Amazon users. There is a growing tendency on Amazon to use the subscription service and enjoy the privilege of being a Prime member.

To take advantage of this, sellers have to become Prime sellers.  If shoppers filter out the non-Prime items, your products will not show up.

Make sure you understand the specific rules on Amazon, follow them, and you will be rewarded with more visibility on Amazon.

6) Get more customer reviews

Customer reviews impact your business sales and rankings and are an important factor for the Amazon algorithm. Shoppers trust what previous customers say about the product and the seller. 

You must gain positive customer feedback and reviews about the product to help you gain a higher ranking, more traffic, and sales.

There are no shortcuts for getting more reviews, and there are strict rules imposed by Amazon to guard against falsifying. Use approved methods of getting feedback like sending follow up emails to purchasers.

7) Initiate advertising campaigns

Advertising will help you gain instant exposure and traffic. You can leverage the marketing options on Amazon and advertise to increase traffic and ranking. You can also advertise on other channels like Google AdWords and Facebook ads.

Multi-channel advertising will mean higher exposure and a higher ranking on the search result page.

8) Use Amazon FBA

Amazon gives privileges to FBA sellers and products with FBA shipments. If you are not an Amazon FBA seller, consider joining the program to increase your sales and product ranking.

Products sold by Amazon FBA sellers will rank higher than products listed by non-FBA sellers.  FBA sellers enjoy the Amazon Prime service and have the chance to win the Amazon Buy Box.

9) Offer fast speed for order processing and shipping

Response time is important for both sellers and customers. To ensure your customers are happy, offer high-speed order processing and shipping and delight them by getting their purchase to them quickly.

Make sure your order processing and fulfillment guidelines are streamlined. Give special training to your employees so that they understand how to fulfill orders quickly and accurately.

10) Improve customer satisfaction

Your customer satisfaction rate is made up of several factors and plays a part in your Amazon product ranking.

11) Keep a good inventory

If your products are running out of stock, they will get a lower ranking. The impact depends on how long you are out of stock and the measures you take to cope with the situation.  The longer you are out of stock, the further your ranking will drop.

China Sourcing Agent

Elksourcing：What Can China Sourcing Agents Do for You?

Apr 19, 2021 , by 露露

China has always been a key sourcing destination for countless businesses across the world. The country offers a world of benefits in terms of product manufacturing scale, efficiency, and cost-effectiveness. But do you know that the outcomes of your investments depend on the skill and expertise of China sourcing agents? Experienced agents from reputed sourcing companies are the real difference makers.

If you are a business owner aiming to make profits from the Chinese marketplace, finding a suitable agent is essential. Agents for China sourcing are equipped with extensive local knowledge about suppliers, prevailing market conditions, logistical options, and potential risks. What can China sourcing agents do for you?

1) Evaluating your requirements

One of the most important responsibilities of a sourcing agent is the analysis of client requirements. You will understand if China sourcing is indeed the right path in the first place, by consulting with suitable agents. Sourcing agency professionals direct their efforts into understanding what a business expects from investing in the Chinese market. Based on that, they form an idea regarding how to proceed.

2) Establishing a sourcing strategy

Agents use their expertise to create flexible strategies for businesses that intend to source from China. The extensive local knowledge and expertise of sourcing agents in China can be instrumental in creating the right plan of action. A strategy is created through the assessment of a client’s budget, market conditions, key expectations, and expected delivery timelines.

3) Finding suitable suppliers

Chinese marketplace offers a great number of supplier options for businesses across industry domains. Yet, shortlisting the right ones can be quite difficult for businesses who proceed without an agent. Almost all suppliers in China will make hefty promises to grab purchase orders, but only some can deliver upon them. Agents can locate and list the most valuable and competent suppliers for your sourcing requirements.

4) Verifying suppliers

Shortlisting several suppliers in China is only part of the equation, as verifying them is quite essential. A sourcing agent in China performs the important task of supplier verification. The methods they use include the inspection of individual suppliers and their credentials and performing audits on them. Supplier verification is quite a challenge without the help of a reputed sourcing agent, but a step that cannot be skipped.

5) Negotiating with suppliers

Decisions have to be taken to select from the top 2-3 suppliers that can be approached. Prior to this, a sourcing agency can take steps like ordering samples and having initial conversations. Then agents enter the phase of negotiations with these suppliers. Client requirements are addressed by agents, who try to negotiate the best possible deal. The decision of a supplier is finalized if the sourcing agent is confident of his choice.

6) Managing supply chain 

The supply chain is crucial when it comes to running successful sourcing operations. China sourcing agents utilize their supply chain management experience to ensure that sourcing processes are efficient. The range of responsibilities includes keeping tabs on raw material supply, labor resources, infrastructure demands, production activities, and much more. A sourcing agent carries the responsibility of monitoring all these aspects to ensure your investment does not waste.

7) Performing quality control

Maintaining product quality is critical at every stage of your sourcing process. This is yet another task that sourcing agents perform in order to help their clients. Agents can organize factory floor visits to glance upon operations and to ascertain if products comply with the specified standards. This is needed as even a single batch of substandard or faulty products can ruin a brand’s reputation among customers. Agents are in a position to demand accountability with suppliers for quality-related concerns.

8) Reducing logistical hurdles

Logistics is one of the key aspects of running a successful sourcing process. The logistical options determine how fast your products leave the factory floors and reach the market. A reliable sourcing agent is adept in dealing with issues related to import and export duties and tariffs, and other hassles. The expertise of your China sourcing agent can result in cost savings in logistics. More importantly, the presence of an agent ensures that your products reach you on time. 

The above-mentioned points highlight the roles and responsibilities of a sourcing agent in China, and why businesses should rely on them. Proceeding without a reliable agent can make it quite difficult for business owners to obtain the desired level of profitability.