Amazon Product Sourcing Agent Based In China

Amazon Sourcing Agent: The Ultimate FAQ Guide

If you’re looking for an Amazon sourcing agent in China, read this guide.

It has all information you need about Amazon sourcing agent – from what they do, why you need them to their benefits, among other critical aspects.

Keep reading to learn more about Amazon sourcing agent.

Who is an Amazon Sourcing Agent?

This is an individual or an established agency that helps you find suppliers and products from manufacturers overseas.

They work as freelancers hired either on fixed fees or a commission.

Sourcing agents link Amazon sellers to manufacturers for products at a low price.

Do I need a Sourcing Agent for your Amazon FBA orders?

Amazon Fulfilment

Not really.

Amazon stores your products at the FBA warehouse. Once an order is placed, they pick the product, pack it, and ship them to you.

They even offer customer care services such as trucking, 24/7 customer services, cost of shipping goods to their destination, etc.

All these services come at a price including storage and fulfilment fee.

Amazon handles more or less everything within FBA; you don’t have to hire a sourcing agent.

However, if you are extra and you need more services such as product and supplier sourcing, quality check, supervision during container loading, reduce shipping risks, etc., consider hiring a sourcing agent.

What Services do Amazon Sourcing Agents Provide?

Amazon Sourcing agents provide the following services:

• Source the best products and suppliers in the market for you.
• Negotiate better prices for your import products.
• Check the quality of products and ensure they meet your standards.
• Sample products before sending them to you.
• May inspect your products during the process of manufacturing and before shipping.
• Arrange payment of goods.
• Provide you with product updates and follow-up on orders.
• Organize the storage of your commodities.
• Ship cargo to your destination and handle all the logistics.
• Offer custom clearance services.

China sourcing agents or agencies may perform all the above tasks.

Moreover, they charge for all these services.

What are the Advantages of Hiring an Amazon Sourcing Agent?

Below are some of the benefits of hiring a sourcing agent:

• They help you save time and the hustle of negotiating with different companies especially if you are a sole proprietor.
• Experience sharpens skills. These agents have experience in purchasing products from different factories that you can rely on.
• They have established good relationships with factories hence can easily get good deals; like getting high-quality products at a low cost. Equally, they can introduce you to factories that are not present on Alibaba.
• While trading most people deal with different suppliers. Agents may compile all samples, put them on a parcel and send them to you. You don’t have to send multiple samples from different factories.
• They may inspect the manufacturing process on your behalf.
• They provide you with shipping services such as shipping samples at a good price
• Quality is key. They check the quality of your products to ensure it meets your standards.
• They communicate effectively and bridge the language barrier gap between you and your supplier.
• They protect you from suppliers who are scammers by verifying their certificates.

What are the Pitfalls of Amazon Sourcing Agents?

Everything that has advantages has disadvantages as well.

Below are some of the cons of hiring an Amazon sourcing agent:

• When working with an agent, you don’t have that direct contact or communication with your factory.

You lose the relationship because the agent is in control of everything.

• Sourcing agents may switch suppliers and go for companies selling the same product at a cheaper price. This may affect the quality of your products in the long run
• In case you experience any problems with your products, you may not contact the manufacturer directly. Instead, you will pass through the agent.
• If you leave all the work to the agent, they may give you a higher price than the cost price of the product and pocket the margin
• Over depending on one agent may be a problem in case they go missing, go for a holiday or if something happens to them you will have no one to contact and ask for updates.
• Hidden commission- This is a major issue with agents. They are getting paid by the manufactures and buyer in terms of kickbacks and service charges respectively but they can’t admit it. This may affect the quality of your products.

What Kinds of Products can an Amazon Sourcing Agent help me source?

Am glad you asked.

First thing first, as a trader you must study the market before consulting an agent.

There are no perfect products, however, there are those that do well Amazon.

The success or failure of Amazon businesses mostly depends on the products you sell.

Before settling with products, consider the level of competition, product margin, availability, seasons, the demand of the product, etc.

Agents may help you source products that do well on Amazon such as

• Health and personal care products.
• Video games and toys.
• Beauty products.
• Kitchen and home goods.
• Books
• Clothes, shoes, and jewelers.

Here is a full list of best-selling goods on Amazon.

Note the list keeps being updated; keep checking often.

What is the Process of Sourcing Goods to Amazon?

There are various ways you can attain products to sell on Amazon.

They may include:

• Creating your own. It can be expensive and time-consuming but you will have total control over your product.
• Retail arbitrage- You can buy goods at a retail store and sell them on Amazon at a profit.
• Online arbitrage- Buy products online and resell at a profit.
• Dropshipping- You can buy goods from wholesalers or retailers and sell them directly to customers.
• Wholesale-Buy goods on large scale from manufacturers and resell them on Amazon.
• Buy goods from B2B market places like Alibaba in bulk from various manufacturers at a discounted price and resell on Amazon.
• Go to auction thrift stores to get goods.
• Private label-Buy generic goods from manufacturers like China attach your label and resell as your brand.

Each method mentioned above has its pros and cons.

Research more to find out which one suit you best.

What are Some Tips to Finding the Right Amazon Sourcing Agent?

Finding a great Amazon Sourcing Agent is very crucial in E-Commerce.

Below are some of the tips you can implement while looking for an agent that suits you:

• Do thorough research on Alibaba in terms of quality, prices, features, manufacturers’ location, etc.
• Ensure they fully specialized in the product you intend to buy. If they understand the product, they can check before sending them to you.
• Ensure the agent is located near the factory. You will pay a lower cost; on the other hand, he/she can easily sort issues in case of an emergency.
• Select an agent that can communicate in English or the language of your market. They should bridge the language barrier between you and your supplier.
• Interview them via skype or any other social media platform. Ask them how often they will visit the factory and after how long they will be updating you on the proceedings.
• Get to know whether the agent is one man or a company.
• Enquire their level of experience preferably 3 years. You can go to an extent of asking for reviews. This will reveal their identity easily.
• Ask them for a direct relationship with the factory so that you are in control of your business just in case something happens.
• Enquire their payment method whether commission or upfront fee. Find out the amount you will pay and the scope of work it will cover.
• Choose a transparent agent. One that comes clean with everything and doesn’t avoid any kind of conversation with you.
• Enquire the process of vetting for a factory and whether they have a pre-existing relationship with the factory.
• Look for an agent that is licensed. If they go missing, you can easily track them using their license number.
• Lastly, ensure you sign a written contract; it may protect your interest in case products are not delivered as agreed.

What Modes of Payment do Amazon Sourcing Agents Accept?

Payment Methods

Sourcing agents accept the following methods of payment:

• Hourly/monthly Rates-This is common with individual agents.

In China, for example, the hourly rates are $10-25 and $700-1500 per month.

The agent is paid for every single task they do.

Moreover, some may take too long to make more money.

On the other hand, time doesn’t guarantee the quality of the services they are offering.

• Fixed/flat fee- Here agents or agencies quote their fixed rates before they start the business.

It a straightforward method and customers are not charged according to the volume of their goods.

On the downfall, the buyer is expected to pay the fee upfront.

• Commission- sourcing agent may charge a certain percentage of buyer’s orders.

It’s a good payment method; agents are only paid for what they have done.

For instance, if goods don’t pass the quality threshold, you may not pay them that percentage of the commission.

• Some agents charge an initial fee before sourcing for products; they then charge a percentage of the order after an order has been confirmed.

The upfront fee is meant to protect agents from suppliers who are not willing to import goods.

There are several payment methods acceptable to Amazon Sourcing agents in China.

You can in cash or via credit card, Telegraphic transfers, cheques etc.

Do Amazon Sourcing Agent Service Offer Discounts for Repeat Orders?

Yes, they do.

Once you become a returning customer to a sourcing agent or agency, and they generate recurring revenue through you, they may consider giving you discounts.

It’s part of their customer care services just to ensure you become a long-term customer to them.

What is GDPR and Why is it Important?

General Data Protection Regulation was enforced by the EU parliament on 24^th May 2016.

It became effective on 25^th May 2018 in all EU member states.

It replaced EU Data Protection Directives.

GDPR is an EU legal instrument that protects individuals regarding personal data and core rights to privacy.

It’s meant to apply a single data protection law that binds all EU member states.

The Union expects those who process personal data to observe provision communication rights to people whose data is being processed.

Everyone involved in the processing is required to act according to the regulations.

Individuals dealing with personal data may be located outside the EU.

However while undertaking personal data for EU citizens; they should be in line with GDPR.

This applies to those with an establishment in the EU and they exercise personal data.

GDPR comes with complexities and requirements that need to be followed failure to which there will be financial penalties. It should not be taken lightly.

This union protects EU data subject and rights and clarifies what exactly the companies that process data must do to safeguard their rights.

Must Amazon Sourcing Agents be GDPR Certified?

It depends on the agents’ situation.

For those agent’s organization located in EU and those that are not established in the EU but they process personal data in terms of selling goods or services to EU countries, they must be GDRP certified.

They have to follow GDPR regulations.

Can Amazon Sourcing Agents help with customs clearance?

Customs Clearance

Sure.

As mentioned above, customs clearance is one of the services offered by agents especially agencies.

They may help you:

• Identify the best clearance options that may save you time and money.
• Deal with customs officers on your behalf.
• Prepare, receive and process all import and export documentation.
• Calculate customs duty and all the other government taxes involved.

How Long does it Take Agents to Source Products to Amazon FBA?

The period an agent may take to find products to sell on Amazon FBA may be affected by the following factors:

• Depends on how long you and your agent take to seal the deal.
• How long the agent will take to source the best supplier.
• How long the supplier will take to manufacture the goods
• The payment method you agree on- If you need to pay an upfront fee, it depends on how fast you will pay the fee to ensure there is enough cash flow in the business.

How many Types of Amazon Sourcing Agents are there?

There are various types of sourcing agents, they include:

· Single-Sourcing Agent

These agents work independently.

They have few clients at a go hence they build a good relationship and assure quality services.

On the downfall, they have a small network and you have to depend on them fully.

The possibility of being scammed is high and can easily go missing.

· Sourcing Agencies

These are companies that have employed different agents that have specialized in different products.

It could be furniture, food, construction materials, etc.

They have a large network and the ability to provide the best agents.

However, they are expensive compared to individual agents.

· Full-service Sourcing and Logistics Companies

These companies not only offer sourcing services but also quality check, logistics, and shipping services.

They handle everything from product search to sending goods to amazon warehouse.

On the other side of the equation, there are very expensive and risky because you over depend on them.

It’s worth noting that you can easily find a sourcing agent that is also an Amazon Freight Forwarder that works for you.

You hire them but you are in charge of business and communication.

Some work for themselves meaning, they are not hired, they are in control of everything, and cash is paid to them not the supplier.

What are Some Common Myths about Amazon Sourcing Agent Services?

There are so many myths swirling around about services offered by Amazon sourcing agents.

They include:

Agents are Expensive

Not true.

Reliable agents can be a great investment in your e-commerce business.

You pay them, yes, but they save you from hustle and mistakes that might cost your business more money in the long run.

You will Succeed Immediately you get an Agent

Not true.

Agents may determine the success of your business however not immediately.

Like any other business, success is a process, not an instant thing.

Selling on Amazon is very Easy with an Agent by your Side

No it is not easy.

It’s your products that sell not the agent.

Agents only ease the process for you.

Agents can Negotiate Better Prices than you

That’s not the case.

They can negotiate a better price, meaning there is a bargain window.

It’s only that you don’t know how to do it effectively but you will with time.

If you Don’t Involve an Agent it may Take Time

It may not be the case if you are smart enough to learn from experts.

After some time, you will become a pro.

Can an Amazon Sourcing Agent help me Source FBA Private Label Products?

Amazon Private Label

Yes, they can.

FBA private label products are products that are manufactured by a third party and sold under a certain brand name fulfilled by Amazon

Agents can source products overseas and label them under your brand name or they can as well make minor changes to existing products.

They label packages and put a logo that suits your preference.

Once they have identified what to sell and how to manufacture private label products, they can rely on Amazon to fulfill their order.

How do you Bundle Products for Amazon FBA?

Amazon is a great marketplace with over 300 million active subscribers.

The competition level there is fierce; only strong people thrive.

Here’s the catch.

The best way to make your products outstand is to bundle them.

Combine complementary products to create an appealing bundle for your buyers.

For example, you can combine a camera, a memory card, and a case.

Every time customers such for a camera, they will be attracted by your bundle and that’s how they will click on it and buy from you.

Bundles offer customers a one-stop shop thus saving them time and money, customers get to know other products that may go together with what they are intending to buy, it can as well be a great gift to a loved one.

One element to keep in mind, there is a lot of money to be made on Amazon, but there are great chances your bundle may fail.

Avoid bundles that are duplicates or near duplicates.

Ensure you follow strict guidelines on Amazon.

It’s not possible to correct a list once created, ensure it’s accurate before you submit it.

Can Amazon Sourcing Agent Service Bundle Different Products into One Package?

Agents can compile various products in one bundle for you.

They first receive goods from different manufacturers, they inspect them and bundle them into one package.

Some manufacturers don’t send items similar to samples you received before hence it’s important to have them inspected.

It’s worth noting, Amazon does not bundle items for you, they are shipped to Amazon properly packaged and labeled

Bundled products can save you time and money.

Do Amazon Sourcing Agents Provide Package Printing Services?

The answer is yes.

Amazon sourcing agents or agencies can provide printing services on your package or box.

All you need to do is to the labelling requirements and instructions.

Apart from Printing, What Other Label Options does Amazon Sourcing Agent offer?

Amazon Package Labeling

Agents provide the following label printing options to their customers:

• Sewing- They uses a sewing machine to stitch labels on products.
• Laser-Use laser printing machine to print multiple label sheets.
• Knitting-Wool is used to attach the label to the product.
• They use a thermal label printer to print one sheet of labels at a time. It uses heat to print.

The kind of printing method used depends on the nature of the product or packaging.

Such options are used to print FNSKU labels, expiry date, etc.

I need Customized Packaging for My Products; Can Amazon Sourcing Agent do this?

Yes, they can.

Humans are visual. Generally speaking, we all buy products that are appealing to our eyes.

One way you can set your brand apart from competitors is through packaging.

Great product packaging may increase your income on Amazon.

Modification can be as simple as changing the color of the package.

You can get a customized packaging solution that personalizes your product label from your agent.

This is very common in large sourcing companies.

They can create a custom package design according to the description given.

Details included are company name, logo, flyer in the package, instruction, contact information (phone number, email address, website), and country of origin.

Ensure you give your agent all the details you want to be included on the product, aftermarket information is not allowed.

Do Amazon Sourcing Agents provide Packaging Supplies?

Yes, they do.

Packaging supplies are simply material agents use while packaging goods.

They could either be reusable or not.

Examples boxes, sacks, pallets bags, etc.

Agents provide these dry supplies at their customer’s expense.

However, they don’t have to pay an extra fee.

The amount of money they have paid covers that.

How does Amazon Sourcing Agent Prepare Goods for Shipping to Amazon?

Amazon FBA Warehouse

Amazon only accepts goods that are in order.

Agents create plans and notify Amazon FBA warehouse before shipping goods to them.

Below are some of the things Agent do to ensure goods are accepted by Amazon:

• They check the quality of your goods before leaving the factory.
• They pack products to ensure they don’t spoil during transportation. Fragile items such as glass, are wrapped with protective materials like bubble wrap or Styrofoam.

Items sold as a kit are packed together.

They ensure barcodes are readable.

Once they have the inner package, they insert it inside a strong 6 sided box with intact flaps.

They consider package size and weight, bearing in mind, Amazon charges an additional fee on oversized or overweight goods.

• They bundle complementary products if instructed.
• Labeling makes it easy to access items and truck units in the FBA inventory. They include tag details such as company logo, production and expiry date of the product, FNSKU label, etc.

Correct labeling helps to avoid delays or rejections.

• They inspect sealed boxes to ensure its strong enough then ship to Amazon.

How much do Amazon Sourcing Agents charge for FBA Prep and Ship Service?

FBA prep and ship services ensure products are properly packed and prepared for fulfilment.

Correct packaging and prep protect goods while on Amazon fulfilment, reduce delays, and protects goods from being rejected.

For such services, agents charge a per-unit fee.

They create a shipping plan entailing an estimated fee based on the services of your selected products.

Additionally, they also charge an extra fee for a standard size or oversized product.

Can Amazon Sourcing Agent help with Shipping and Import Documentation?

Shipping to Amazon FBA

Sure. Sourcing agents are the people on the ground.

They can advise you on the documents needed and ensure your entire documentation meet your destination import requirements.

You are the importer on record, you are responsible for filing all documents and making necessary payments i.e. tax and import duty of goods imported.

Agents handle the documents on your behalf and issue them when required to.

Ensure your contact information is included in shipping documentation.

What does the Amazon Sourcing Agent Inspection Service Entail?

Agents physically appear at the factory to check the production and quality of the products.

Most individuals have experience in production, evaluating tools, and technical standards.

The product inspection services provided by agent and agencies include the following:

• They inspect raw materials entering the factory that may be used to manufacture your products.
• They do a second check before the materials are assembled.
• They keep monitoring the process at different production stages.
• They check the quality of the finished products before leaving the factory.

These regular inspections are very crucial; they keep the supplier on their toes.

They have to give their best knowing that the agent won’t take anything less than good quality.

Can my Amazon Sourcing Agent help Fix Quality issues After a QC Inspection?

Yes, they can.

A quality control inspector is a professional who checks the quality of the product on the manufacturing stage.

They monitor the production process and conduct tests.

However, if agents feel the quality still doesn’t meet your standards they may negotiate with the manufacturer and have it fixed.

If the goods are still in the factory, manufacturers will fix them at their expense.

Remember the agent works hand in hand with you; hence they know what is best for you.

Can Amazon Sourcing Agent Facilitate Shipping to Different FBA Warehouses?

Yes. I know it sounds like a lot of work but that’s what they signed for, hello.

If you are dealing with a variety of products, agents can pick them from manufacturers and ship them to relevant FBA warehouses.

Depends on the nature of products, volume, and dimensions.

Of course, they do all this at a price.

Is it Possible to Source from Multiple Suppliers using Amazon Sourcing Agent?

It is possible.

The number of manufacturers you are dealing with depends on the number of goods you want to source and whether or not you want to get them from different factories.

Amazon sourcing agent does what you tell them.

You are the boss here; you make the rules they follow.

Note some agents may compromise on this rule.

Say, for example, you want to source tea and coffee.

Factory A produces both tea and coffee but you want coffee from company A and tea from company B.

Some agents may use shortcuts and decide to source both products from company A.

They may get kickbacks from the manufactures at the end of the day.

Follow up to ensure the manufacturer that is producing your products, is the one you chose.

Do Amazon Sourcing Agents Provide Storage Services?

Yes, they may.

China warehouse and fulfilment service is pretty common among sourcing agents.

They provide temporary storage of your goods once the supplier has produced a substantial amount of products, still working on the rest.

They save space for the supplier.

 China Warehouse

I need Cargo Insurance, How can Amazon Sourcing Agent help?

Your goods pass through many hands before getting to their final destination.

Along the way, they might be mishandled or get damaged.

When damage occurs, more often than not compensation is a process, sometimes it doesn’t happen.

Given all the money you have invested, it’s not worth shipping goods without insurance.

An Amazon sourcing agent can help you choose the best marine cargo insurance cover for your FBA shipments.

The coverage will be valid from the moment they leave the supplier until they get to Amazon FBA.

Choose a comprehensive insurance company that provides 100% cargo coverage in case of damage or loss occurs.

What Procedures do Amazon Sourcing Agents follow when Sourcing for ODM Manufacturers?

First thing first let’s understand the term ODM manufacturers.

Original Design Manufacturers (ODM) is producers who design and manufacture goods with specifications then sell them to a branding firm.

They give you product ideas then take care of all the design work.

The process is quite costly and lengthy because they start manufacturing products from the scratch.

Such manufacturers breathe life into your ideas; they simply bring your thoughts into existence.

Amazon Sourcing agents source for ODM manufacturers just like the other producers.

They give them product ideas and produce the products themselves.

The agents then pick the products from the manufacturer and label them then they ship them to Amazon.

What are the Benefits of Working with a China-based Amazon Sourcing Agent?

China is the World’s largest manufacturer of factory goods and the World leader in many kinds of products.

With a China-based agent by your side, you will accrue the following benefits:

• You will have a local representative for your business who will be in a position:
• Check the quality of your products.
• Inspect and supervise the manufacturing process.
• To clarify all terms and conditions of your contract to your supplier.
• Perform factory audits and process your checks.
• Most agents in China are experienced in the field of sourcing.
• Agents will get direct prices from actual manufactures.
• There will be no language barrier since most agents can easily communicate with the supplier in their native language. This ensures the message shared is home.
• Agents will do quotations on your behalf.
• Most agents’ mode of payment is commission. They pay suppliers on your behalf.
• In case goods delivered are damaged or do not meet your standards, the agent may initiate a dialogue to help solve the issue.

He/she will identify who is at fault and whether the goods will be replaced, fixed or the money will be refunded.

At SourcingWise, we help you import any product from China.

Our team of expert swill help you get the best prices and cost-effective shipping solution.

Contact us now for all your product sourcing from China.