When Should You Get A Sourcing Agent?

As your order per day increases, it might create some sort of panic that you may not be able to meet your daily demand.

As a result, some may even lead to believing that they may need the assistance of a sourcing agent.

If this is you, then calm yourself down. Such instances may not necessarily require their assistance, and any concerns that you may have regarding your business operation can be resolved without them.

With this being said, I will be discussing this matter. And then, when should you get a sourcing agent who will manage your businesses’ procurement processes.

So without further delays, let’s begin today’s topic…

What is a Sourcing Agent?

Before I provide you the answer—when should you get a sourcing agent, allow me to explain who they are first and what is the stuff they do.

A sourcing agent is basically an individual who oversees your procurement processes. Other terms that you may hear relating to them include an import agent, sourcing broker, or buying agent.

In simpler terms, they are the ones who make sure that you meet product demands and also perform quality assurance before they are shipped to your customers.

Other notable functions include prospecting suppliers, negotiations, contract signing, etc.

Why is a sourcing agent essential?

I have relayed some of the basic functionalities of sourcing agents in the previous section, and their importance is pretty much established at this point.

But if you’re still in doubt of their true value, then refer to the points I have listed below.

The qualities of a competent sourcing agent include—

  • They are capable of finding the right suppliers

  • They have an excellent network

  • They are capable of providing you expert advice

  • They know how to minimize risk

  • They have excellent negotiation skills

  • They have strong communication skills

When should you get a sourcing agent?

Yes, the benefits are overwhelming but do you really need one?

The answer is it depends on the current status of your business.

If you’re a startup and barely breaking in tens—maybe between 5 to 10 orders per day, then seeking the assistance wouldn’t be a good idea to tell you honestly.

For one thing, you will still have to compensate for their services and would have to set aside an approximate fund of $2,000!

Apparently, such efforts would be a huge waste if your product orders aren’t consistent and flop altogether.

So the million-dollar question is when you should get a sourcing agent?

What I recommend is that you wait until your business starts to scale up. And you may need to wait until your product order has reached the volume of 30 to 50 a day, consistently.

And the reason why this is the case is that you don’t want to increase your capital early in the process without establishing any solid foundation.

As mentioned earlier, such an experience would become very costly if you failed eventually.

Final thoughts

I hope today’s topic has enlightened you on the question—when should you get a sourcing agent.

If you’re looking for more guidance on how you can effectively carry out your dropshipping business, then you can check out more resources by clicking here.

Or, you can book a FREE 45-minute 1-on-1 mentorship program with me and let me help you take your business to the next level.

I believe we’ve covered sufficient grounds here.

Thank you for the time, and I do hope to see you on the next topics!



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