There are a lot of different factors that can motivate you to look for a product sourcing company or a product sourcing agent. Whatever your specific reason may be, there is no question that product sourcing is a great way to help you get your new business off the ground or elevate your existing business to whole new profitable levels. If you have heard about other companies who have had success working with product sourcing companies, but you are not sure how to get started within this lucrative industry, this article will give you all the information you need to begin exploring opportunities with a product sourcing company. Once your questions are answered and you are set on the right path, you will be an experienced professional that knows how to strike a good deal with a product sourcing company that will increase your profits and make your business better.
In order to see the bigger picture in terms of how a product sourcing agent or company can benefit you and your business, you need to understand exactly what these things are and how the process works.
What is a product sourcing company?
You can think of a product sourcing company essentially as the middle man that is responsible for sourcing goods on your behalf, usually with the objective of finding the absolute lowest price for that good on the competitive market. Product sourcing companies have insight and access to suppliers that you might not, which means they can often times score much better deals, saving you money in the end. In addition to sourcing goods for you, product sourcing companies usually will offer you storage in their warehouse. By covering these logistics by hiring a product sourcing company, you will find enjoy the benefits of a continuous supply chain that you can afford to keep stocked. Product sourcing companies tend to establish good working relationships with suppliers in China and other Asian companies that are known for manufacturing goods quickly and cheaply.
Is there any difference between a product sourcing company and a product sourcing agent?
If you are new to the business of product sourcing, you might not immediately know the difference between a product sourcing company and a product sourcing agent. There really is no difference between these two terms expect that the company represents the entire product sourcing business, whereas an agent is an individual that works for a product sourcing company. You can think of product sourcing agents as the reps who are out in the field working directly with suppliers to land you the best deals. Product sourcing agents have a lot of experience working with suppliers and have a good sense for the quality of a product and the trustworthy nature of the supplier.
What are the advantages of working with a product sourcing company?
If you have ever tried to set up a business deal with a supplier in China, you know just how difficult it can be to make sure you are getting a fair price and a high quality product. You can take this worry off your mind when you partner with a product sourcing company. It is tempting to want to cut out the middle man and bring home more profits for yourself, but this mentality can backfire if you don’t know what you are doing. Importing goods from China or anywhere else in the world is a very serious business with a lot of room to make mistakes. When you are dealing with large orders of a particular good, you cannot afford mistakes, or else your entire business will be in major jeopardy.
This is where it pays to hire a professional product sourcing company that employs experienced product sourcing agents to work on your behalf. You have probably heard that the most important factors in establishing a good business relationship with an overseas supplier are trust and respect. Product sourcing agents know better than anyone how to manage relationships with overseas suppliers in order to get you high quality products delivered in a reasonable time frame.
How can a product sourcing company help your business grow?
When you don’t have to spend time on the detailed logistics involved with importing goods from an international supplier, you can spend more time on other aspects of your business like acquiring resellers, marketing, and advertising. A product sourcing company will handle the business of making sure your overseas supplier is playing by the rules. They will also continually work on your behalf to get you the lowest prices on goods. Sometimes, your goods will be drop shipped directly to your resellers without ever crossing your path. Your product sourcing agents are the ones who make sure these deliveries are made on time and arrive in good condition. Just think about how much peace of mind you will have knowing that everything is taken care of at every single checkpoint on your supply chain. This just makes good business sense.
If you have a great business idea or concept, but you aren’t sure how to stock your shelves or maintain a constant flow of new and exciting products, working with a product sourcing company might be the solution to your problem. Enlisting product sourcing agents to negotiate deals and source goods on your behalf is a line item on your budget that will bring in returns tenfold. These relationships can prove to be the deciding factor in whether or not your business sinks or swims. The truth is that there is no way you will be able to strike the same types of deals as product sourcing agents who do this for a living. It is not as easy as stated here in Entrepreneur.com. Working with overseas suppliers, especially in countries like China where manufacturing rules the economy, requires a certain finesse and street sense that can only be gained through years of experience in the industry.
If you are a newcomer or are just looking to expand your reach in the retail industry, a product sourcing company can help you with every aspect of working with an overseas supplier.