50+ Amazon Sourcing Agent: Develop Your Private Label Brand

An amazon sourcing agent can source products in bulk and label on them. When should you hire an 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?

Amazon product sourcing agents are companies or individuals that help Amazon sellers find and procure products from manufacturers in China and other countries. They provide a range of services, including product research, sourcing, sample management, quality control, and logistics.

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 decides 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

Do You Need Amazon Product Sourcing Service?

Whether or not you need an Amazon product sourcing service depends on your individual needs and circumstances. Here are some factors to consider when making your decision:

Your time and expertise: If you have the time and expertise to research, source, and import products from China on your own, you may not need an Amazon product sourcing service. However, if you are short on time or lack the experience to do this effectively, an Amazon product sourcing service can save you a lot of time and hassle.

The complexity of your products: If you are sourcing simple, low-cost products, you may be able to get by without using an Amazon product sourcing service. However, if you are sourcing complex, high-value products, it is advisable to use a sourcing agent to ensure that you are getting high-quality products at a fair price.

Your risk tolerance: There are some risks involved in sourcing products from China, such as the risk of receiving defective products or dealing with unreliable suppliers. An Amazon product sourcing service can help to mitigate these risks by providing quality control and due diligence services.

Your budget: Amazon product sourcing services can range in price from a few hundred to several thousand dollars. The cost of the service will depend on the complexity of your products, the volume of your orders, and the level of service you require.

Cons and Pros of Amazon FBA Sourcing Agent:

Sourcing Agent Advantages:

Time Savings:

• • Enables focus on core business.
  • Streamlines negotiations and sample handling.

Experience Utilization:

• • Leverages agent’s sourcing expertise.
  • Reduces workload for inexperienced buyers.

Decision Making:

• • Provides access to exclusive factory relationships.
  • Offers a competitive edge beyond Alibaba.com.

Cost Savings:

• • Bundles samples, minimizing air freight costs.
  • Simplifies supplier selection with consolidated samples.

Quality Control:

• • Ensures high sample quality.
  • Highlights agent specialization importance.

Amazon FBA Sourcing Agent Disadvantages:

Lose Factory Relationships:

• • Limits direct engagement benefits.
  • Places control with the agent.

Lose Direct Line Communication:

• • Hampers direct communication with factories.
  • Relies on agent interpretation.

Dependence on a Single Agent:

• • Risks disruption if the agent becomes unavailable.
  • Lack of contact during agent absence.

Supplier Changes Without Notification:

• • Potential shifts without buyer awareness.
  • May impact product quality.

Marked-Up Prices:

• • Emphasizes the need for independent pricing research.
  • Prevents unknowingly accepting inflated prices.

IPR Skills Required for an Amazon FBA Sourcing Agent:

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 an 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 client’s invoice.

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.

Seek Authentic Reference:

Choose an 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.

Experience Matters：

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.

Responsive Communication:

Trustworthy agents prioritize communication. Observe their response time and level of detail in their answers. Clear and prompt communication is crucial for building a seamless partnership.

7 Questions to Ask an 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 an 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.

Amazon FBA China Sourcing Agent Conclusion:

From the time you find a manufacturing partner to the time the product arrives at your destination, an 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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