Should I Kick My Agent in China Out?

by shawn
Last updated June 23, 2020

(Last Updated On: September 14, 2020)

To use an Agent in China for your business seems cost money. Is it possible to kick them out of your business? It depends.

The lack of experience in China, the resources, or the time to do your thorough supplier analysis is a good reason to hire an expert to do this for you. A business agent in China offers a solution.

An agent in China to avoid delays

The daily follow-up of your projects and communication with your supplier is very intensive, and takes you a lot of time. Particularly when you develop a customized or new product in China. Many problems can gradually arise from the supplier, and these must be signaled as well and quickly as possible (because not every supplier rings the bell when things are unclear!). And are solved to avoid quality issues and delays.

A local sales agent will closely monitor how your product is produced and under what conditions. This can be necessary to keep control over who has access to your designs and intellectual property. Sadly, hiring an agent to do your supplier analysis does not always mean they put your interests first. Agents typically receive a commission from both the customer and the supplier. That’s why it’s necessary to know more regarding the agent you cooperate with.

What you need to know about an agent in China？

There are some necessary things to know regarding the potential agent such as:

Who owns the corporation

What does the pay structure seems to be

Do they have references

How do they do their supplier analysis

What’s the company’s background

The way they protect your intellectual property

It’s necessary that the agent puts your interests first, and likes to keep things clear.

The pitfalls

If your agent does not want to be open regarding the supplier, where your product is going to be produced, then you can be almost sure that you are going to be paying too much for it.

A real agent offers a lot

The agent ought to be able to bring you with legitimate value and services, such as Order Monitoring, QC(quality control), Container Loading Supervision and Product Development. Without these services, an agent is actually of little value. They ought to be able to offer you insight into where their margins lie otherwise there’s an opportunity that it’ll be considerably increased. Before you join a party, be assured that you have seen a transparent structure of the costs of production and their services. If for any reason, the agent cannot show you this, you could conclude that their added value is almost zero.

More info regarding RedSheep Trading as an agent in China?

Would you like to know more about RedSheep Trading, as a commercial agent in China or our other services like factory audit, sourcing, or quality controls? Please don’t hesitate to contact us to learn more. Of course, you can reach us via Whatsapp too.