A strong team of buyers in China is the foundation of any successful sourcing operation.
If you source bad products, everything else falls apart. Quality problems lead to returns, unhappy customers, damaged reputation, and ultimately lost sales. No matter how good your marketing or customer service, you can’t build a successful business on poor quality products.
We’ve seen companies waste millions on poor purchasing decisions.
So, when hiring a buyer in China, what kind of talent should you be looking for? How much should you budget to pay them? And crucially, should you hire your own staff directly or use an outsourced solution?
Let’s dive in!
Key Responsibilities of a Buyer in China
At its core, a buyer’s job is simple: find the best products at the best prices.
This means finding suppliers that align with the company’s best interests, considering factors like product specifications, order size, purchasing power and the manufacturing process.
The best buyers don’t just compare prices. They become your eyes and ears on the ground, wearing multiple hats that often overlap with product developers, quality managers, logistics coordinators, and even legal compliance officers, doing things like:
- Set up proper buying systems
- Track savings
- Build and manage supplier lists
- Check factories are up to scratch
- Keep quality high
- Sort out shipping headaches
- Spot ways to save money
Now, these receptibilities can be encompassed by one purchasing manager for small teams or juniors and seniors in a larger team.
Qualities to Look For
Obviously, this changes depending on what you’re looking for.
For Junior Buyers
Curiosity is the most crucial trait for junior buyers. They should:
- Demonstrate genuine interest in understanding production processes
- Want to learn how products are actually made
- Be eager to improve processes for better cost-benefit relations
This curiosity should extend to practical details like raw material prices, packaging processes, and logistics factors such as distance to ports. Junior buyers need the disposition to understand how suppliers calculate costs and find win-win solutions.
For Experienced Buyers
Look for people who:
- Know their product inside out
- Understand manufacturing properly
- Know EXACTLY which regions make your products
- Can estimate costs accurately
For Purchasing Managers
They need all the above PLUS:
- Leadership skills
- Knowledge across different products
- Relationship skills AND tough negotiation
- Bridge the gap between your HQ and China operations
Useful Qualifications
While hands-on experience often trumps paper qualifications in China sourcing, certain certifications can indicate someone knows their stuff:
Certified Procurement Manager (CPM) – This fancy title actually means something! CPMs typically understand the nitty-gritty of sourcing, negotiating with suppliers, handling contracts, and managing risks. If your candidate has this, they’ve likely got a solid procurement foundation.
But don’t be blinded by letters after someone’s name! We’ve seen brilliant buyers in China with no formal qualifications and terrible ones with a wall full of certificates.
Always check their actual track record and practical knowledge.
TIP: Ask candidates to walk you through a specific sourcing project they managed from start to finish. Their answer will tell you more than any certificate ever could!
Salary Expectations
Salaries vary massively depending on where you’re hiring:
- In Shanghai, purchasing managers earn an average annual salary of 531,900 Chinese yuan ($81,000), which is 18% higher than the national average
- In Beijing, the average annual salary for a purchasing manager is 514,650 yuan ($78,000)
- In Hong Kong SAR, purchasing managers command significantly higher salaries, with a monthly average of $65,000 Hong Kong dollars ($8,300)
Experience makes a huge difference too:
- Entry-level buyers (1-3 years’ experience) in Beijing earn around 363,565 yuan annually
- Senior buyers (8+ years’ experience) can command up to 646,162 yuan annually
- Overall, purchasing manager salaries in China typically range from 273,000 yuan to 875,000 yuan annually, depending on qualifications and experience
If you’re sourcing from multiple regions, consider how much travel time and expense you’re building into your operation.
In-House vs Outsourcing
Choosing between an in-house team or outsourcing for China sourcing affects your entire supply chain.
In-house teams give you more control and build supplier relationships that become competitive advantages. Your own buyers focus solely on your products and understand your quality needs and brand position better.
However, running a purely in-house operation comes with significant costs. Expenses include, legal entity setup and maintenance fees, substantial administrative overhead, and considerable travel expenses if you’re sourcing from more than one location in China.
On the other hand, outsourcing to agencies gives immediate access to supplier networks without setting up a Chinese legal entity. This works well for companies with changing needs or those testing the market.
Smaller companies that can’t afford full-time staff or those buying many different products often find outsourcing more practical. Yet, using an outsourced buyer in China typically offers far less security and control.
Employer of Record Services
An employer of record (EOR) service, like The China Desk, offers a valuable middle ground.
- Hire your own dedicated buyer in China
- No need to set up a legal entity
- Your staff work ONLY for you
- The EOR handles all the compliance headaches, payroll and admin
Whatever you choose, make your decision based on your budget, how much China knowledge you have in-house, and how critical these products are to your business.
Remember, a good China buying team doesn’t just save you money, it helps you make money too!
