A business is called a business when you have products to sell. However, sourcing the business products from reliable and legit sources is what most retailers describe as tricky and daunting. This entire process can even be more cumbersome if you are sourcing the products from other foreign countries.

A lot can be at risk when you don’t have the right channels and connections when sourcing products. Multiple sourcing from different suppliers in foreign countries can be challenging. In addition, dealing with different products and numerous suppliers globally can expose someone to scam and fraudulent suppliers who easily can get away with your hard-earned money.

To avoid such scenarios and get your business on the move, it is wise to consult the services of a product sourcing company. Today, a lot of entrepreneurs have discovered the effectiveness of product sourcing and consulting companies and they are what every business needs to thrive in the ever-competitive business world. As a matter of fact, they are regarded as a necessity for building a business that will survive the test of time.

What exactly are product sourcing companies? Do retailers need their services? To understand more about product sourcing we have to first understand what the companies are and what they do.

What are Product Sourcing Companies?

Product sourcing companies are middlemen who facilitate relationships of retailers with suppliers. They mainly specialize in importing goods or products from various parts of the world on your behalf.

The companies have direct contacts with suppliers and they locate the best sources at the most competitive prices internationally and locally. This in turn helps you save anything up to 50% or even more on purchase prices.

How does product sourcing work?

With the help of sourcing specialists, the companies are able to obtain goods, materials and services by using strategic sourcing strategies and extensive knowledge of their commodity industry. This helps maximize on profit margins and save on costs.

Due to their close ties in the sourcing world, they work with multiple wholesale suppliers and manufacturers aggregating purchasers’ needs into one service. Most products sourced by these companies are mainly sourced from low-cost countries in Asia, mostly China.

How exactly do they accomplish these? The companies have a wide connection and people on the ground that facilitates the sourcing process ranging from production, price negotiation, and buying of products up to the shipping process. This minimizes the risks of retailers been taken advantage of and escape fraudulent services as well.

Who are the product sourcing companies?

They are sometimes regarded as trading companies, third-party sourcing, importers, brokers or drop shippers and they only represent the purchaser, not the supplier.

Services may include sourcing specified products at the best price to managing the whole import process and all possible services in between. They make their profit by leveraging group spend, buying in bulk, and selling for profit.

The advantages of using product sourcing companies

The reason why you need to seek the services of a product sourcing company is:

They save you on costs

Products sourcing services help reduces costs that you could have incurred such as labor costs. They also help save on time and management. They can source your products where they get the best price and pass the cost savings, up to 50% directly to you. Some companies will also do new product research for you and deliver you samples for approval and competitive pricing.

They get products direct from the source

The companies have direct connections to the factories. This makes sourcing the products more efficient as there is direct and swift communication to the factories in question. Therefore, it fastens up the sourcing process, time, as well as resources, are managed efficiently.

Eases the communication barrier

When sourcing internationally, language barrier is what most people encounter and it interferes and delays the sourcing process. With the help of product sourcing companies, this can be avoided because the companies have personnel who can handle this very well.

The idea of sourcing goods involves the products having to go through numerous channels before the delivery of goods to your doorstep. One of the main barriers that retailers experience is miscommunication and insufficient quality control can ruin entire shipments and waste hard-earned cash.

Qualified sourcing agents and companies can arrange quality assurance checks along every step of the process to ensure early identification of any issues and present viable solutions. From sourcing from certified suppliers to load monitoring inspections, agents can cover your entire supply chain with transparency.

Selecting the Right Product Sourcing Company

To find a reputable sourcing company is like finding a needle in a haystack. Many business owners don’t even know where to begin because it is complicated and time-consuming to find a reputable sourcing company. How do you find a reliable product sourcing company?

Reputation is the key

A good reputable company will have positive reviews from satisfied customers. A company’s track record is a good indicator of the service you can expect. References from previous customers’ will be a good sign to show the reputation of the company and you can be reasonably confident that they can perform the services you need.

Beware of heavy sales pitches

Product sourcing companies that have a hard sell approach and catchy sales literature without any backup evidence should be avoided. It is wise to avoid product sourcing companies that have no social media handles and have unsubstantiated claims, outdated, and incomplete website information.

Experience is everything

Sourcing companies with experience in the field are considered to be more reliable and trustable. Though there are great and up-coming new product sourcing companies, finding experts who have been in the sourcing market for a longer period guarantees efficiency and trust.

It can cast shadows of doubt on retailers especially when sourcing from foreign countries where you need a company that can maneuver easily to get you trusted partners.

Hiring experts and experienced personnel minimizes your worries because you are assured that they have cultivated deep relationships with suppliers over their working experience.