There can be some truth within this thinking, but there's much more to sourcing than looking solely in the unit valuation on the goods you want to buy.The largest retailers at hopesourcing on the globe use organizations to assist with sourcing some of their goods. In fact, the actual largest retailer can it, and I know those who have sourced products for the children, although retailer has a huge number of staff inside their worldwide buying offices.

If a sourcing agent was advertising a 3% commission, they may just as easily request much the same commission coming from a supplier. If that happens, their views will immediately become biased depending on the factors which often supplier affords the better compensation.

An example to this particular is, if someone factory is made for the importer, but isn't going to want to present you with a substantial kickback towards the sourcing agent, the agent could well be more inclined to go having a less qualified supplier to acquire a greater payday.This also means, in case there is an error in the production phase, the sourcing agent, who was simply brought on to represent the interests from the buyer could easily defend the interests in the supplier.

What’s the negative effects of by using a sourcing agent?
 Profession – In China you could find many sourcing agents that employ themselves in a number of industries, sourcing all kinds of products. You should be careful of the sourcing agents should the products you would like are relatively technical and professional. They are very likely do not have the expertise and experience to locate these products available for you, not to mention, cannot find you the high-quality product for a reasonable price.

Transparency – Your sourcing agent’s job is to buy you the best quality product at reasonable prices that they can find – end of. Sometimes, some may just explain to you the price plus the product details and that’s it. This means that you aren’t alert to who your supplier is plus you've got no idea whether or not the retail price they offer is the first price from suppliers. They might convey a little commission within it, or they take red envelope from suppliers, you don’t know.