50+ Amazon Sourcing Agent: Develop Your Private Label Brand

A  Amazon sourcing agent can source products in bulk and label on them. When should you hire a Amazon sourcing agent and when should you steer clear?

Although the private label product process is simple, the responsibility is big. You may face some aspects, include:

• Quality Control
• Factory Relationships
• Product Samples
• Shipping

Today in this topic, we will help you to decide whether you need a sourcing agent and how to hire a product sourcing agent. These easy steps would help you build a great brand. Without further ado, let’s get started!

Amazon Supply Chain Overview 

Nearly 70 percent of sellers on Amazon source their products from China. Third-party sellers rely heavily on Chinese factories to produce the products they successfully sell online.

Finding Suppliers in China for Your Amazon

Finding reliable FBA suppliers can be challenging, and making unwise decisions can undermine the opportunity to make the most of your business as an Amazon seller. Understanding what goes into sourcing from China is important before engaging with them, determining shipping options, and finalizing your supply chain strategy.

For unprepared Amazon sellers, disruptions in the Chinese and global supply chains could have a negative impact on sales. However, by working with a China Amazon sourcing agent, you can realign your business strategy, find the right suppliers, identify the right shipping methods, and get your sales back on track.

What is Amazon Product Sourcing Agent?

What is Amazon Product Sourcing? As per the bookish definition of Amazon Product Sourcing goes it is defined as the process of finding good quality products for amazon sellers from trusted and reputable suppliers at good prices.

Do You Need Amazon Product Sourcing Service?

Before making this decision, there are some very important things to understand.

First, it is important to understand where you are in your business. The purchasing process is one of the most important areas of your Amazon business that you must master. It defines two things.

• The continued excellence of your product quality
• Whether the price of your products is competitive

It doesn’t matter how good your traffic or PPC skills are if you don’t have a firm grasp on these two factors.

Advantages of Working With a Sourcing Agent

• Time saving

If you are a one-man or one-woman show, then hiring a Amazon sourcing agent will allow you to focus on other areas of your business and free up your time. Yes, dealing with an agent still takes time, but much less time than talking and negotiating with multiple factories and arranging samples.

• Experience Using

The Amazon sourcing agent will have some experience in sourcing products from factories in China. You can use this experience to keep your sourcing practices up to date, as you will need some time to build this knowledge for yourself.

If you don’t have experience, then a Amazon sourcing agent can take a lot of the workload off your shoulders. Even if it’s not the best deal, it’s still better than what you might get on your own. But remember, when you start to scale up, you have to have relationships with factories.

• Decision Making

Some Amazon sourcing agents may already have relationships with factories that you can benefit from. If so, they will be able to introduce you to factories that may not be available on Alibaba.com. This can be a huge competitive advantage.

• Cost Saving

When working with multiple suppliers, a Amazon sourcing agent can bundle samples for you and send them to you together. Without an agent, you will likely have to send multiple samples from different factories, which can increase your air freight costs. A sourcing agent can collect all of these samples for you and send them as one package. If they mark the samples correctly, you can choose the factory you like best for your purchase.

• Quality Control

Finally, the purchasing agent should also check the quality of the samples before they arrive to you. All samples you receive should be of a high enough standard for you to order. If you get poor quality samples, then the purchasing agent is clearly not good at that category. This is why it is important to ask the SA which product categories they specialize in.

Disadvantages of Working with a Amazon FBA Sourcing Agent

• Lose Factory Relationships.

For me, the biggest advantage of buying products from China for your business comes from your relationship with the factory. However, when you work with a Amazon sourcing agent, they own that relationship and control the communication. Building your own good relationship with the factory owner can lead to better prices, faster delivery times, credit terms, introduction of new products, etc.

• Lose a Direct Line Communication.

If you are experiencing inventory problems or delivery delays, you want to be able to pick up the phone and talk to the decision maker at the factory. But when working with an Amazon FBA agent, you have to go through them. If they don’t interpret your message in the right way or portray your feelings in the right way, you may not get the results you want.

If working with a single sourcing agent rather than a sourcing company, you will be in big trouble if your agent ever goes missing. If they take an extended vacation, if they don’t want to work anymore, or if they have a family emergency, you will have no point of contact to find out where your shipments are, when they will be ready, update inspections, etc. In this case, you don’t even know where your goods are made!

• Change Suppliers without Your Know

If you are totally dependent on your purchasing agent to do all your purchasing for you, they may change suppliers without your know, which can negatively affect the quality of your products. If they find another factory making the same product at a cheaper price, they may decide to switch to that factory and make extra profit without your knowledge.

• Marked Up Your Prices

Even when hiring a FBA sourcing agent, it is still very important for you to do your own pricing research. If you just accept the price given, you will be in the dark if the sourcing agent marks up your price and you pay more than you should!

50+ Best Amazon Sourcing Agents List:

It’s easy to make a successful private labeling business. But for that, you need to ensure you are working with the right Amazon FBA sourcing agent.

We have tried our best to cover all the necessary information you need to know about the right Amazon sourcing agent in China.

How to Find the Amazon Sourcing Agent?

Finding the right Amazon product sourcing agent could be very challenging. It’s of utmost importance to find the best for your products as you are going to sell them under your trademark.

Choose a Amazon sourcing agent who can provide you with authentic references from other companies. Make sure you take the time to talk to these references and check out their websites. Find out how long they have been working with sourcing agents and the quality of the Amazon product sourcing services they provide. Response time and patience in responding is one of the early indicators of a reliable company.

The Main Skills Required for a Amazon FBA Sourcing Agent

include:

• Great relationship management.
• Strong negotiation skills.
• Impeccable time-management.
• Strategic production skill.
• Ability to adapt to change.
• Understanding of risk management.
• Understanding of and ability to enhance production sustainability.

Pitfalls To Avoid: IPR related issue

IPR (intellectual property right) is the most necessary factor to consider when you outsource to a private label product manufacturer. Yes, you need to keep IPR even if you are authorizing the other company to manufacture your item. But make sure you write down everything contractually so that you can protect your rights.

How Do Amazon Sourcing Agents Get Paid?

The most common forms of compensation a Amazon FBA sourcing agent will receive are the following: Flat rate commission: This rate is usually advertised and ranges between 5% – 10% of the product payment price. They collect this fee before it is time to shipping the product to Amazon FBA, and tack it into their clients invoice.

7 Questions to Ask a Amazon Sourcing Agent Before Cooperation

1. Are they a SOHO or a company?

Knowing if you’re paying a single person or a company is important. The risk is much higher if you are paying one person because they may take the money and run. As mentioned earlier, if they are sick or on vacation, you will never be able to find someone to contact about your purchase.

2. How many years have they worked as a Amazon sourcing agent?

This will show their experience. If they are new to the game and have been a sourcing agent for less than 3 years, there may be better companies to work with. In addition, you should ask your buying agent for references from other clients. This is another potential red flag if they can’t provide references.

3. Will they provide you with a direct relationship and communication channel with the factory?

Remember, the value is in the relationship with the factory. If they do not share factory information with you, then you will have no control over how and where your products are made.

4. What product categories do they specialize in?

Sourcing agents can only specialize in some areas. Mistakes will be made if they don’t know your products or categories.

Find out their strengths: price, quality, negotiation, etc. Are they qualified to sign samples? Do they have experience with your product line to check and approve before sending them to you?

5. How do they get paid for their work? Upfront fees or commissions?

Figure out how they are paid for their services: is it a flat fee or a commission?

Ask if the factory compensates them: they shouldn’t be, and if they are, they may be hiding it. But it is a good idea to show that you understand the practice.

A good Amazon FBA sourcing agent should refrain from getting a kickback from the factory because it shows that they are incentivized by the percentage the factory is willing to pay them, not the best place to produce your goods.

6. What is the scope of their work?

Some only do sourcing, and some only do the inspection. Others will include testing, referral to shipping agents, etc. Understand the full scope of their services and fully understand what you are paying for everything.

7. What is their process for auditing factories?

It’s good to know if they have pre-existing factory relationships that they can leverage. If not, are they just using Alibaba? If so, we could have done it ourselves without paying a deposit.

Did they attend the Canton Fair, or did they go to the factory for review before doing business? Each Amazon FBA sourcing agent has its own process, and it is important to understand how they select your factory.

What Does a Amazon Sourcing Agent Do?

1. Find the Best Fit Manufacturer

Investigate the manufacturer background, who they are, what they do, who is middleman, etc. The better they understand the business background, the better experience you would have, include:

• Check out if the manufacturer is real?
• What kind of products he manufacturer?
• What’s his business scope? And so on.

2.Ask Particular Questions for the Product

The best and the next step is to ask some specific manufacturing questions from them.

It will help the agent understand the business’ core mission and the value the supplier offer. It will let they identify the level of quality the supplier provide. 

3. Manage the Manufacturing Process and Get Your Samples

When the agent decide to work with a manufacturing factory, they will specify the manufacturing process requirement in business contract. They have to get at least one sample for each item before they decide a batch manufacturing process. After they get your samples, they have to inspect them and check their functions.

4. Get Updated on the Manufacturing Process

Amazon FBA sourcing agents have to get updated on the manufacturing process and know the production timeline for your products. You are allowed to ask for updates from the manufacturer to ensure a smooth operation. You have to know your assembly line and make a good business schedule. They will inspect your items after the production line to make sure of the high-quality of your products.

5. Checkup before Shipping

Always ensure the quality of private label products; for this, the Amazon sourcing agent can check your items before shipping. This is a very important step. Quality inspection let you ensue of everything and help you avoid any pitfalls. Usually include:

• Bundling
• Labeling
• General inspection
• Arrange shipping

Amazon FBA China Sourcing Agent Conclusion:

From the time you finding a manufacturing partner to the time the product arrives at your destination, a Amazon sourcing agent in China can make finding the right supplier smooth and act as an ally throughout the process.

With an experienced agent on your side, you never have to feel overwhelmed by the complexities of dealing with manufacturing and shipping. You can take decisive action to increase your chances of achieving healthy sales and profits on Amazon.

We hope this article will help you learn all about Amazon product sourcing agent. Follow all the steps carefully and check the results. Don’t forget to contact with us if you need Amazon product sourcing service.

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Darryl

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