We recently discovered that Alibaba shows a list of “purchasing agents“. We thought “Wow really? How are they verified?”
They list more than 2,000 individuals at your service. It looks like the upwork.com or the freelancer.com of the sourcing industry. Some of these agents boast over 20 years of experience and are specialized in a certain industry. Looks great… so far.
What are the conditions to be listed as a purchasing agent?
First, the agent must be part of a trading company listed on Alibaba (so these are not individual freelancers — these are middlemen).
Second, the company must have been a “gold supplier” for at least 3 years. In other words, they must have been paying for Alibaba’s services for at least 3 years. (As I explained before, a “gold supplier” is a supplier that pays for their Alibaba account — it has nothing to do with their competency, track record, etc.)
In other words, Alibaba found a way to offer some exposure to trading companies in a positive light. The problem is, the way it is presented is prone to deceive buyers. These “purchasing agents” are English-speaking salespeople working for a trading company.
Does it make sense for buyers?
We defined a product that is simple but not “hot” — a 3M adhesive tape with a bit of customization. We contacted 5 agents and got one answer within a week. That agent’s quotation looked random and did not match our exact request.
No surprise here. Since they are part of a trading company, those agents are interested in working on off-the-shelf products that are easy to sell.
So… does it make sense for buyers to use this Alibaba service? I don’t think so. You can simply send an enquiry on Alibaba. Most responses will come from trading companies.
—
Related articles:
Hi, do you think the branded customers still need sourcing agent / purchasing agent in China now? I wonder if all of the branded customers have their own sourcing office in Hong Kong or Shenzhen now..
Yes I guess Alibaba targets small overseas buyers. Many of them do need a sourcing agent and try to get a freelance / contract employee there (without paying for expenses such as a registered company, an office rent, etc.). But as I wrote in previous articles, it often ends up more expensive since 99% of these “agents” get a commission in their pocket from the factory.